You want to know the Dollar to Naira bank rate for today? It is no more news that almost all Nigerians that are connected to the usage of Dollar in one way or the other are always in search of the dollar present rate.
On Wednesday (29/03/2017), the Gtbank Dollar to Naira exchange rate was ₦307.75 to a dollar; currently the 1 dollar to Naira officially sells at ₦307, a drop of about 0.31% compared to the ₦308 at which it was sold on Thursday; thanks to the calculated policies implemented by the Central Bank of Nigeria in view of reaching a convergence in the Bureau de change (BDC), as well as the Interbank markets.
So far, we now boast about $31 billion in Foreign Reserves, and to top off the excellent exhibition of economic prowess with which the CBN management is handling policies, they have guaranteed relentless furtherance of the improved rates of Naira to dollar in the near future.
In the continuous drive towards equilibrium, currencies dangle in a teeter-totter whose dynamics is influenced by key economic parameters; a dangle which is mostly sustained by the forces of demand and supply.
In recent times, the USD and the Naira have rocked their values so much so that the Nigerian economy had to be the grasses on which the two economic elephants trampled. More precisely, for some good months the dollar had generously woe it Naira counterpart, with exchange rates skyrocketing as high as N315 officially, and N520 to a dollar in the parallel market about a month ago.
We must bear in mind that a number of parameters affect the dollar to naira bank exchange rate aside from economic policies. We also have the rate of import and export activities, and oil price as put by OPEC, as well as roles of the government. To buttress these points, we must note that the more we rate foreign products over our local products; we do so at the expense of our hard earned economy.
This is because of the money (Naira) pumped into these foreign transactions, which translates into devaluation of the Naira eventually, in corroboration of the saying, “LITTLE HONOR goes with that which is TOO COMMON”.
Oil market has also been Nigeria’s major source of income for decades now, and the sudden increased supply of the commodity in the international market has not produced the best effects on the nation.
These factors culminated in the unprecedented fall that befell the Naira of late. So the less we encourage local manufacturing schemes, the less we improve bank exchange rate for dollar or any currency against the Naira.
On Import and Export Market
With so much said already on the immediate past, it naturally occurs to one’s mind to pose the question: what effect has the cbn exchange rate dollar to naira on imports and exports? On everyday life? It is no news that Forex cuts across virtually any international affair that pertains to finance, from traveling abroad on vacation, to scholarships overseas, to trade on physical products.
No doubt business is not much fun when you have to pay more than you sold an item in order to replace it; that’s a loss—a word that sounds most eerie to any entrepreneur. Consider the scenario whereby the exchange rate when you sold the lasts of a product from your warehouse was ₦400, and on making orders from your suppliers, you find that, that product now costs more Naira to purchase because the exchange rate had risen to ₦412.
This does not spell favorable words for any business as it implies that you would need more cash to buy fewer items; and consequently the result is an inflation leading to increased cost of living. The reverse of this scenario implies reversed consequences as well. The latter is approximately what the Naira is experiencing in the past few days.
In light of the foregoing, it is rational to suppose that since the official bank rate dollar to naira had not been friendly for a while before now, this positive development of positively valued Naira would lead to an upsurge in importation; it is entrepreneurial wisdom to purchase when you would get the maximum goods for little cash, so many entrepreneurs would see this current dollar to Naira exchange rate of banks as their chance to gain from the dance of the currencies, although they might be optimistic of further improvements.
On the other hand, arbitrary expectations would most likely be placed on the effects of this recent exchange rate for dollar to naira on exportations; it is interesting to note that today a barrel of oil sells at $49.97 which indicates a positive shift. It would however make for effective balance of payment, if the exchange rates remain favorable.
We must remain optimistic at this point as regards how much is Dollar to Naira bank rate; hoping for the strings to play beautiful economic notes based on policies and modalities put in place. You would consider this a realistic optimism if you look into the great depression of the 20s that the now great America faced, or the deep recession of the 70s that China overcame graciously.