Dollar to Naira Western Union Nigeria Exchange Rate Today
This article focuses on the Dollar to Naira Western Union exchange rate, and what it portends to users of Western Union or potential users of this platform.
Western Union has assumed a certain critical importance in the Exchange regime in the country. It has evolved over the years to become another reference point in determining the Exchange rate of the Dollar to the Naira.
Due to the continuous fluctuations witnessed in the global currency markets on a daily basis, exchange rate values are forever changing without a fixed rate for an entire day. It is because of these fluctuations that there is a constant update of exchange rates to keep up with current realities.
This is especially true for those making financial transactions through this medium, that is, either receiving payments in dollars or sending same in US dollars.
About Western Union
Western Union is a convenient way of sending money anywhere across the world. It is a money transfer service serving millions of clients across the world as you do not need to have a domiciliary account to send or receive money through this medium.
It is operational any time of the day 24/7 providing cutting-edge instant financial services to clients. Since it came into operation in Nigeria, a lot of Nigerians both home and abroad have embraced this option with open arms.
Why Western Union Exchange Rate?
This area was selected mainly because of the sheer size of people using this medium for financial transactions. With so many Nigerians working abroad and making remittances to families or relatives, also, with parents, business men and other category of Nigerians making use of this medium for payment of upkeep allowances, it is little wonder that the Dollar to Naira Western Union exchange rate has become such a topic of interest to many Nigerians.
What is the Western Union Dollar to Naira Exchange Rate Today?
With the reinvigorated interventions undertaken by the CBN who have left no one in doubt that it means business, especially the currency speculators that have severally horded this commodity (USD) causing a hike in its exchange rate versus the naira, the Dollar to Naira Western Union exchange rate has witnessed some stability lately, with a dollar exchanging at the rate of N410 (N410/$) for the past 3 days.
This price stability between the Dollar and the Naira at the Western Union rate has also been extended to the parallel market and the interbank market rates. Hence, the exchange rate between the dollar and naira has generally witnessed some low volatility lately with indications of further gains made by the naira against the dollar especially as the apex bank (CBN) has assured that there will be continuous interventions in the currency market to narrow the disparity between the parallel market rate and the interbank rate thereby bringing them to a point of convergence.
Bringing This to the Economy
The Dollar to Naira Western Union rate effect is not bereft of consequences to Nigeria’s economy. The nation’s economy either stands to benefit immensely from this rate or it stands to negatively impact the economy. Many Nigerians who have sons and daughters schooling abroad, sending money for urgent emergencies has proven quite difficult. These classes of people were left stranded when the exchange rate spiralled out of control, thus being severely unfavourable to them.
Signs of Improvement
At some point, even when they damned the consequences to buy the dollar at ridiculous rates, it was unavailable for purchase as the CBN was usually the culprit for not supplying enough dollars to the market. But recently, with its sustained intervention in the parallel, the interbank and other sectors of the financial market, the apex bank has demonstrated an increased ability to play its regulatory functions/roles.
The Dollar to Naira Western Union exchange rate is now stable and is showing signs of improvement for the naira in the near future
Its sustained supply of dollar through sales to the relevant banks and clearing houses (bureau de changes) has also demonstrated that the apex bank has a handle on the hitherto spiralling exchange rate of the naira to major currency pairs.
How to Send Money through Western Union?
Sending money through Western Union is usually done through the banks who serve as agents of Western Union. So, simply visit the Western Union agent (your bank). If you are not sure whether your bank is a WU agent and the Western Union rate to send money for that day, you can simply find out from Western Union’s official website.
Complete the “send money” form in block letters and then present a form of identification followed by payment in form of fees/charges. Collect the receipts for this transaction. After these procedures, the money is sent.
Receiving Payments Dollar or Naira through Western Union
Receivers of Western Union payments in Nigeria are required to possess a Money Transfer Control Number (MTCN) which must be presented at the point of receipt of payments before payments are made.
Also, another requirement for collection of Western Union funds is the Identity Card for verification. After the verification process, the receiver receives the money without any charges whatsoever to the receiver.
WESTERN UNION NIGERIA EXCHANGE RATE FOR TODAY
If you are a Nigerian, either resident within or without the shores of the country, there is a very slim chance that you would not have heard or seen a Western Union office or logo or an advert regarding the services rendered Western Union in the country.
This is because Western Union is arguably the largest financial services provider in the world today. Its service offerings include Wire Transfers, Money Orders, Money Transfers, Bill Paying, Transfer Tracking as well as Price Estimation.
With an estimated workforce of over 7,000 individuals worldwide, Western Union has reportedly processed hundreds of millions of transactions ever since it began the money transfer service in 1871. In 2008, it is estimated that over 9 million people visited the website of Western Union to conduct one form of financial transaction or the other.
The general appeal of the Western Union money transfer platform is that you can send/receive money to/from any location in the world, with the sender/receiver obtaining the funds in minutes.
The following Exchange rate regimes were in effect over the last few days from the Western Union platform:
The Dynamics of the Dollar to Naira Western Union Exchange Rate
As mentioned earlier in the article, Western Union’s mass appeal is in the fact that sender and receiver can consummate a transaction within minutes of being initiated. Businesses and individuals patronize Western Union, especially when there is an urgent need for the funds in question.
However, you must be conversant with the workings of the platform, especially in Nigeria. When you desire to send money abroad, say from Nigeria to USA, you will be charged the sell rate for the Dollar on the Parallel Market (also called the Black market rate).
Conversely, when you are the recipient of money transferred to you from a foreign destination, for example, receiving funds in Dollars from China, you will be paid at the prevailing official exchange rate.
In Nigeria, the disparity between the Official and Parallel market Exchange rates will mean that you are actually short changed in trans border transactions, especially when the disparity between both the Parallel and Official markets is wide.
Factors that Affect the Dollar to Naira Western Union Exchange Rate
Western Union cannot, on its own, determine the Dollar to Naira Exchange rate regime in Nigeria. Rather, the exchange rate it employs for the currency pair is dependent on the macro-economic and fiscal policies set by the Central Bank of Nigeria.
The Naira’s strength against the Dollar is determined by a number of factors. The first is the demand and supply dynamic that prevails at any point in time. When there is a sharp increase in the demand for dollars by importers, business people, students and other individuals, the Dollar to Naira exchange rate realities is affected.
The CBN responds to this demand/supply dynamic by supplying the required amounts of Dollars need in the financial markets. The Bank will be able to adequately meet this need if the capacity, as reflected in a buoyant foreign reserve portfolio, is present. The bank can therefore guarantee an adequate supply of Dollars and other foreign currencies.
However, if the revenue earnings from the sale of crude oil diminish, the ability of the Central Bank of Nigeria to defend or shore up the value of the naira is severely hampered. This situation will lead to importers, students and other individuals seeking foreign exchange from the parallel market.
Effect of Dollar to Naira Western Union Exchange Rate on Imports/Exports
The Nigeria economy is heavily dependent on the importation of goods, such as cement, rice, sugar amongst other commodities. This import dependence means that importers need to obtain needed foreign currencies to pay for the cost of importing goods into Nigeria.
If the Central Bank of Nigeria cannot meet up with demand, the average Nigerian importer will resort to the parallel market to source for his/her dollar needs.
Once the required amount of dollars is procured, the importer may resort to using the Western Union Service in paying for the cost of importation. As mentioned earlier, the Western Union Exchange rate is closely tied to what is obtainable on the black market; hence the cost of paying for such goods will be high. This steepness in cost is usually passed on to the final consumers.
Effect of Dollar to Naira Western Union Exchange Rate on Studying Abroad.
With the Western Union Dollar to Naira exchange rate dependent more on the parallel market rates in Nigeria, the student who wishes to study abroad, will have to exchange more Naira to obtain the equivalent sum in Dollars, in order to settle tuition fees and other living expenses in the country of destination.
This article has covered the Western Union exchange rate Dollar to Naira, highlighting such vital issues aimed at educating its users to the benefits and also advantages. Also, a brief summary of how to use this service either when receiving or when sending is also highlighted.