Euro To Naira Exchange Rate In Black Market Today – 1 Eur to Ngn
What is the current exchange rate euro to naira black market today? When it comes to exchange rate of naira with other currencies like Euro, there is one thing that is common, and that is the fluctuation. This is no different when it comes to the Euro to Naira exchange rate today.
Nigerians are familiar with the interaction of the nation’s currency, the Naira with the triumvirate of the following currencies; the Dollar, the Pound and the Euro. The Euro to Naira exchange rate today is the basis for this article.
You will recall that the Euro became the currency of the then newly formed European Union (EU) in 1999.It is the medium of payment amongst member nations of the EU, except the United Kingdom and between the EU and other nations of the world.
Unfortunately, some months back, it reached a point of a shocking high rate of about 500 naira to one euro and even beyond.
On this page, you will always be updated with the latest Euro to Naira official CBN bank rate history for 2017.
The Euro to Naira exchange today can be determined via two ways: from the CBN (Interbank/official) rate and from the parallel market.
The following rates are obtainable on the official interbank market for the Euro to Naira pricing mechanism over the last couple of days:
Euro to Naira bank rate:
Date Buying Selling
11/4/2017 ₦324.96 ₦325.2
10/04/2017 ₦322 ₦323
07/04/2017 ₦324 ₦325
06/04/2017 ₦325 ₦326
Euro to Naira black market rate:
Date Buying Selling
12/4/2017 ₦ 425 ₦435
11/4/2017 ₦420 ₦430
10/4/2017 ₦420 ₦425
The Euro has steadily become the most traded currency in the world after the United States Dollar, even surpassing the latter at a point in the early 2000s.
In Nigeria, the Euro is especially sought after by business men and women who place transactions with other businesses based in the European Union. It is also needed by students who desire to study in any institution of learning in the Euro zone.
The following rates hold sway for the Euro to Naira exchange pricing mechanism at the parallel market:
Factors that Affect the Euro to Naira Exchange Rate Today
The Central Bank of Nigeria (CBN) holds the key responsibility for preserving/maintaining the Naira and shoring up its value against other currencies; including the Euro. It carries out this function in a number of ways.
The first means is that the CBN could decide to shore up the value of the Naira to the Euro, by providing the commensurate sum demanded in Euros to the banks and other third party financial institutions. In this case, what you have is situation whereby the Naira is artificially priced/valued against the Euro.
This situation can only be sustained when the Foreign reserves of the Federal Government is surplus enough to meet the demand of the market.
On the other hand, the fiscal/monetary policies of the Government may be geared towards letting the Naira float against the Euro and allowing the market forces of demand and supply determine the Euro to Naira exchange rate today.
Effect of Euro to Naira Exchange Rate on the Importer/Exporter Today
The Euro zone is third in line of the biggest trading partners with Nigeria, after the USA and China. The Nigeria economy is an import dependent one; hence importers bring in goods like sanitary wares, pampers, processed foods etc from many European nations. If the Euro to Naira is in favor of the Euro, then the cost of these goods will be high. This situation translates to the average Nigerian importer having to source for more Naira to obtain the equivalent Euro.
The Nigerian exporter on the other hand, will be able to see greater gains in Naira terms, since he/she receives payment for export transactions in Euro.
Effect of Euro to Naira Exchange rate Today on Studying Abroad
The Euro zone is one of the most patronized places for Nigerians in their educational pursuits. Countries like Germany, Sweden, Norway, Finland etc offer quality educational programs and friendly packages for international students.
If the Euro to Naira exchange rate is not in favour of the Naira, then the cost of paying the tuition fees and other living expenses will be steep for the intending applicant.
Only just recently, the CBN announced a series of measures to provide adequate foreign exchange for students for the settlement of tuition fees and other expenses. This provision includes a concessionary pricing mechanism for the exchange rates for the Naira to other currencies, including the Euro.
However, when no such measures exist, then you will be forced to source for Euros at the rates offered by the parallel market, which implies that, you will spend more naira to obtain the equivalent sum in Euros.
Effect of Euro to Naira Exchange Rate on the Cost of Living
You can draw a relationship between the goods imported into Nigeria and the effect of the currency exchange regime that is in force. For one, Nigeria earns the bulk of her foreign exchange from the sale of crude oil.
However, due to the years of neglect that the real (industrial) sector has experienced, including the presence of inadequate infrastructure, the cost of producing finished goods in Nigeria is astronomical. Hence, imports have traditionally been the resort for the economy.
So, if the Euro to Naira Exchange rate has indices that favour the Euro, the cost of importing goods will be expensive. Such a cost will reflect in the prices passed on to the final consumers, which will severely impact the standard of living of Nigerians.
The situation is just not encouraging at all and as Nigerians, we need to act fast in order to curb this as soon as possible. But then, firstly, what affects the 1 euro to naira exchange rate, and why is the exchange rate so high?
Too Much Imported Goods
I bet when you go around your house, you would probably find only one or two stuffs that were made in Nigeria. Nigerians are so dependent on imported goods. We import virtually everything we use and worse still, even when there are similar products which are ‘made in Nigeria’, we still go for the foreign goods.
The rate at which we import goods is just greatly alarming. It would have made no much difference if we export as much, but then the major item we are known to export is crude oil whose demand has even decreased now, which brings us to the send factor that affects the euro to naira exchange rate.
The obvious solution to this would be to put in more efforts into our industries. Rather than big companies becoming major marketers and distributors of foreign products, they should focus on producing right here in our country.
If more industries are set up and running, the dependence on imported goods would definitely reduce greatly. We could end up producing more products here in Nigeria, and even end up exporting some finished goods which would go a long way in helping the euro to naira exchange rate to be more favorable to Nigerians.
Only One Major Export Product
When I was younger, I was taught about food crops and cash crops and crops like cocoa that were exported to other countries. But that is not the case in our country today. We generated so much revenue from exportation of crude oil, that we became solely dependent on it.
But then, this is a new age, and most of these countries we sell our oil to are now looking for new means of generating energy other than crude oil. With the reduction in demand for crude oil by most of these countries, crude oil price dropped. This of course in turn affected the euro to naira exchange rate.
Since the revenue generated from crude oil is not what it used to be, it is time the Nigerian government shift away from crude oil and focus more on agriculture. Not just agriculture but biotechnology in addition to other sectors. This would provide more produce to export, thereby strengthening the euro to dollar exchange rate.
Corruption is also another aspect that has greatly affected the euro to naira exchange rate today. Corrupt government officials steal our nation’s money, convert it to euro and save it in other countries. This helps such nation’s economy thereby tarnishing our own economy. Even when such corrupt acts are discovered, little or nothing is done to the culprits which encourages others to follow suit.
The government needs to be serious about dealing with corrupt practices. This would include recovery of looted funds and throwing such funds into the Nigerian economy by investing it in different sectors of our economy.
This would be advisable rather than the usual trend of hearing on the news about recovered loot without any trace of what the recovered funds would end up being used for.
Increasing Demand for Foreign Currencies
Some businesses have now developed the habit of performing transactions in foreign currencies rather than in our Nigerian dollar. This has further contributed to devaluing the Nigerian naira leading to the high euro to dollar exchange rate.
This can be curbed if Nigerian government in conjunction with CAC Nigeria cautions such industries in order for them to stop such practices.
The issue of trying to help the naira regain its value does not end with the federal government alone. It is also needs our effort and together we can make this Euro to naira rate attractive again.
The Euro is an important reserve currency of choice for close to 400 million people. The strength of the Naira against the Euro is intricately tied to the earnings of the country as well as the fiscal/monetary policies of the CBN.
Increasing revenue earnings and some proactive foreign exchange policies will ensure that the Euro to Naira Exchange rate will be backed by a stronger Naira.