What is the Dollar to Naira Official Bank Exchange Rate for Today?
How much is Dollar to Naira bank rate rate today? Get daily updates on Naira to Dollar official CBN and commercial bank exchange rates from this page. Find out!
It is no longer news that the current Dollar to Naira bank rate is falling drastically and many people that send money to their relatives abroad in dollars are happy while those that receives or sell dollars are angry with the dollar rate in Nigeria.
On this page, you will always be updated with the latest Dollar to Naira official CBN bank rate for 2017.
Date Buying Selling
27/03/2017 395 400
25/03/2017 400 410
24/03/2017 410 415
Looking at these rates compare to even last year, you will agree with me that Naira is really losing it value. There have been mixed reaction among Nigerians after CBN made the announcement about the flexibility of exchange rate in the foreign market.
While some foreign investors are quiet about it, some are hoping and waiting to see the level of change before they will venture into the exchange market again.
What Affects the Exchange Rate Dollar to Naira?
What is happening in a country can lead to the high demand of the country’s currency. One big factor is the interest rate paid by the Central Bank of the country. The bigger profit margin on the country’s currency makes it attractive for foreign investors to want to exchange their currency for that currency.
They do this by opening an account in this country so they can be getting the high interest rate on their money through government bonds or profitable stocks.
Another point of view is the amount of money supply printed by the country’s central bank. When the central bank of the country (government) print too much currency, it leads to too many money pursuing few goods in the country. This leads to inflation in the country.
Some investors with lots of money will prefer to invest abroad where the inflation rate is low. This is because they have seen that there is less demand for their own currency since there is so much of it.
This is exactly the case of the Nigeria economy. The Naira has no power outside Nigeria thereby causing the increase in the 1 Dollar to Naira rate today.
A country financial stability and economic growth also affect it exchange market. If a country has a strong and growing economy, foreign investors will be happy to invest in the country. They want to be sure that their invested money is not lost in the investment.
Effects of the Dollar to Naira Bank Rate on Nigeria Imported and Exported Goods
The purchasing power of Naira has fallen down drastically for many years now, the parallel market gap alone in the exchange rate market is very wide compare to the official rate by the Central Bank of Nigeria.
As a result of this, most business people in the importing business cannot get access to USD at the official rate. This make it very difficult for these business individuals to import their products into the country.
This current recession the country is experiencing right now is due to the shortage of dollars at the Central Bank of Nigeria official price.
In the spite of these all, most exporters always take advantage of this Naira fall over Dollar to quickly carry out bigger transaction before it goes up.
The up and down in the exchange rate also cause most importers to put an hold in the importation of goods and sometimes the imported goods is even abandoned at the port.
The commercial banks are also one individuals that are not helping matters at all. Though, not their fault but most commercial banks have stopped lending money to importers. There is this scenario that most importers borrow money from banks and are unable to pay back due to the change in exchange rate even before they collect the Bill of Lading.
The US dollar is one currency that is mostly used by importers to purchase their goods and make payment to shipping companies and airlines. With the big gap in the exchange rate not favoring them, they are unable to buy the exact number of commodities they have originally planned to purchase.
For example, the budget that was made to buy 60 products of a particular goods can hardly buy 40. This is really a big discouragement for importers to do business with the present Dollar to Naira exchange rate.
Parent sending their children abroad for studies are also affected by the dollar to Naira exchange rate because most countries uses Dollar as their official currency. Parent will have to spend more than the usual amount so they can be able to afford the school fees and other expenses.
Increase in the Price of Goods in the Market
Lastly, most of the products used in Nigeria are majorly imported. Starting from food items, electronics, furniture, clothes, cars to even toothpick. With the present official bank dollar to naira exchange rate, things are meant to be more expensive because no importer will want to make a lost on their investment irrespective of the economy of the country. Business is all about profit.