Dollar To Naira Exchange Rate Today

On this page, access the daily Naira to Dollar exchange rate.

How Much Is Dollar To Naira Exchange Rate Today?

As the world increasingly becomes interconnected, the need for commerce becomes indispensable. Countries need to deal with each other in terms of energy, ICT, mining, trade, maritime, and a host of other areas.

In simple terms, no country is ever an island.

Money facilitates commerce and needs to be converted from one currency to another. This is where our discussion will dwell on with a special focus on the dollar to the naira exchange rate. With the dollar being the preferred currency of international trade, it’s not surprising that its exchange rate to the naira would be discussed.

So, what’s the exchange rate of the dollar to the naira like? In our bid to provide the right answers, we’ll be looking at things like the official and black-market rates. These are key to understanding what’s involved.

01-03-2021

Today’s Naira To Dollar Exchange Rates

Before we proceed any further, it’s important to clearly state that the U.S. dollar will be the reference currency.

This is to help avoid any confusion as some other countries such as Canada, Australia among several others use the dollar.

Official Rates

The official exchange rate of the dollar to naira is set by the Central Bank of Nigeria (CBN). Its monetary policies are aimed at stabilizing the nation’s currency as well as foreign reserves.

Currently, the official exchange rate of the dollar to naira exchange rate stands at $1to N380.

This means that for every dollar, you’ll need about N380 naira. So, a hundred dollars ($100) will cost around N38,000 based on the CBN’s official exchange rate. So, is this a true reflection of the actual rates obtainable?

It’s important to note that in reality, official rates and black market rates do not always align when considering the dollar to the naira exchange rate. As a matter of fact, the divergence is quite wide.

With such understanding, you’re able to know what to anticipate when carrying out transactions.

Black Market Rates

The dollar to the naira exchange rate at the parallel or black market widely differs from the official rates. This is the actual amount obtainable on the ground when dealing with currency exchanges.

Official exchange rates are only available for specific purposes.

At the currency black market, you’ll exchange a single dollar for around N475 to N480. This range gives a better understanding of the daily fluctuations that occur due to multiple reasons. A major cause of these fluctuations can be attributed to forces of supply and demand.

The higher the demand is on the U.S. dollar, the stronger it gets, thus costing more naira to purchase a single dollar unit. The opposite results when there’s lesser demand on the dollar. The CBN plays a huge role in stabilizing the forces of demand and supply.

So, with a dollar to naira black market exchange rate of $1 to N480, a hundred dollars ($100) will amount to about N48,000. There’s a clear need to shore-up the value of the naira compared to the dollar.

One of the key ways to ensure this happens is by encouraging local production.

This doesn’t in any way mean that there should be 100% local production and consumption. Rather, it should help ensure that there’s a balance between imports and exports.

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