Dollar To Naira Rate Today
The rate at which the US Dollar has increased in Nigeria over the years is shocking and there is no sign that the increase will stop anytime soon.
Why is Naira Falling Against the Dollar?
There are many obvious factors that are responsible for the continued depreciation of the Naira against the dollar.
One of the major reasons is that Nigeria spends a large chunk of its foreign currencies on importing important items like electronics, refined petrol, wear, and food.
A whopping $47 billion was spent by Nigeria on importation in 2019, and $28.7 billion was spent on invincible things like financial services, medical tourism, professional fees, and business travel.
The continuous demand for the American dollar by Nigerian importers has been the significant factor why the Nigerian Naira keeps depreciating, while the dollar increases.
Nigerian importers constantly need the dollars to enable them to import goods and pay for services abroad, this has continued to have a negative effect on the Naira.
The fact that Nigeria does not produce much locally makes the country depend on imports for its survival.
Between 1999 to 2021, the United States dollar worth has increased in Nigeria by over 500%, this rise is detrimental to the survival of Nigeria’s economy.
However, we should be aware that this did not just happen overnight. There are many factors that contributed to this, and this increase in the dollar rate may continue as long as these factors are not handled.
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We are going to explain some of these factors in this post, please continue reading carefully
How much is Dollar now in Nigeria?
You can find the current dollar-to-naira black market and official dollar-to-naira rate on this page. The Dollar to-Naira today black market can also be referred to as the Dollar to Naira parallel market.
The black market rate for dollars is frequently higher than that of the Central Bank of Nigeria (CBN).
The CBN Exchange rate which is the official Dollar to Naira rate is the rate at which you can purchase or sell dollars for Naira on the CBN dollar-to-naira website, cbn.gov.ng.
The black market Dollar to Naira rate is the rate at which local money exchangers/suppliers change naira for dollar. This rate is usually over 30% higher than the official CBN Dollar to Naira rate.
The black market Dollar to Naira rate is usually high for various reasons.
The main cause of this price difference is that the CBN/Banks cannot meet the demand for Dollars by citizens making local suppliers/exchangers meet the demand at a higher cost.
Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.
The parallel exchange rate (black market rate) always differs from the CBN rate.
The dollar-to-naira bank rate is the rate you use when you buy something from a foreign website with your Naira MasterCard or Debit card from a Nigerian ban.
These rate varies in different banks and is always cheaper than those available on the black/parallel market.
How Much is Dollar to Naira today in Black Market?
Buying Rate N770
Selling Rate N787.50
Official Dollar to Naira CBN Rate Today
Official Dollar to Naira CBN Rate Today.
The official Dollar to Naira rate today Is N442.35 (Data Source: CBN.gov.ng).
Source: cbn.gov.ng
What was Dollar to naira in 1999?
As of 1999, $1 was equal to N21.89, you can see that a lot has changed within 18 years. The factors listed below have continued to prevail thereby consistently influencing the escalation of the dollar rate in Nigeria.
Between 1999 and 2006 which marked the beginning of democracy in Nigeria, the Dollar rate had increased by over 100%. In 2006, $1 equaled to N128.28.
However, the dollar has witnessed a significant increase in its value between 2015 to 2021 in Nigeria. As of 2015, $1 was N192, it increased to N304 in 2016, N305 in 2017, N306 in 2018, N307 in 2019, and N379 in 2020, and is presently valued at N410.45 official market, while the black market value is way over N575.
With the way things are going, many people have been making predictions that the Dollar may soon reach N1,000. This prediction has made lots of savers and speculators store up dollars instead of Naira.
