What is the GTBank Dollar to Naira Exchange Rate Today? Aside from Zenith bank, GTbank dollar to naira exchange rate is one of the most favorable if compared with other commercial banks like UBA, Skye FCMB and First Bank. This is so despite the fact that the CBN has made it clear that all the Inter banks should stick to a friendlier exchange rate.
The exchange rate between the Naira and major global currencies especially the US dollar has been nothing but chaotic to say the least. The nations FOREX industry has witnessed turmoil with the Naira swinging north and south without sustained movements (gains) in its favour.
Thus, it has become common place for uncertainty to characterize market movements as the consolidations witnessed have reduced the degree of accuracy of market prediction.
Although directed by the apex regulatory body the Central Bank of Nigeria CBN to abide strictly by its approved sale rate to customers, this call has rarely been heeded by all the banks.
Some banks have sold and continue to sell at the parallel (black market) market rate to its customers which is in total deviance with the directive from the CBN. It is in this light that we will be looking at the GTBank Dollar to Naira exchange rate.
But Why GTB?
Ranked among the top-tier banks in the deployment of up-to-date technology in service delivery, it is little wonder that one will be so interested in the banks dollar to naira exchange rate policy and whether it has obeyed the CBNs directives.
Although several banks have been reluctant in obedience to rules and guidelines laid down by the apex bank, a few have been very cooperative and among the very few is GTBank.
The Guaranty Trust bank has been tagged the “internet friendly” bank, and it has been keeping up to this tag relentlessly. This is not better shown than in the value at which they have pegged their current exchange rates.
Facts as of today have indicated that GTBank naira to 1 dollar exchange rate is fixed at N320 to $1. This is far more tolerable than the BDCs and most of the other banks. At the close of today’s market, the dollar rose by 0.79% to N383 to 1 USD in the parallel or black markets.
Comparing the GTBank dollar to naira exchange rate today and the Black market rate, we do not need an Ngozi Okonjo to tell us which rate is more favorable; we easily see the distinction clearly.
With the 16.45% advantage of the GTbank dollar to naira exchange rate as compared to the rates sold by the BDCs, the bank is sure to experience a rapid surge of patronage. Recall that the bank has been in the fore front of international banking for a while now, we can only imagine how wide it would stretch its platform with the current rate it sells a dollar.
This is a question any reasoning member of the society should wonder to answer. Every person must be on the trail of the currency of his home country in the quest to find out what causes its dynamism.
In a moment, we would consider a few of the factors that actually lead to the fluctuation of the GTBank dollar to naira exchange rate.
Formulated Policies: Just last year GTbank ranked number one, followed by Zenith bank, in terms of forex allocation with an allocation of $31.3 million allocated to take care of forex activities, as well as invisibles. Such strategies have its way of managing to deflate or inflate the country’s currency, and particularly influencing the GTBank dollar to naira exchange rate.
The CBN could also be the financial body that has introduced such a policy, like in the case of what is currently going on where the CBN has given a price that most commercial banks should sell the dollar. The GTBank dollar to naira exchange rate has been largely instructed by that move, and today it sells at $320 to a dollar.
Increasing demand for Foreign products: There is a negative impact associated with the activities of importation. This impact ripples so deep into the economy, and does not leave the exchange rates out of its influence. Indeed, the GTbank dollar to naira exchange rate is also affected by these activities. They reduce the value of the naira thus increasing the exchange rates.
Loss of worth of our major export Commodities: We have a few products we export after all, like yams and tuber produce and some minerals. However, the major export commodity we boast is the crude oil, and it is not a strange news that oil price has experienced severe crashed. In fact, the oil market for us has been so badly wounded that most experts doubt if there can be a total recovery; there would always remain the scar.
The naira also is part of the victims of excessive importations, and thus without questions it can be ascertained that the GTBank naira to dollar exchange rate also adjusted badly until recently.
With the current GTbank dollar to naira exchange rate, countenances are brightened more and more. At N320 to a dollar, you can imagine how much more you can get compared to just a month ago; its likened literally to hitting a hot pot of gold suddenly.
More interesting is the impact the rates would have on forex players in the major markets, and business moguls like Dangote. Such establishments have suffered huge losses since the naira started its collapse, losses that run in billions. You can imagine what the developments in GTbank dollar to naira exchange rate today would mean to such businesses now.
The bank would make it into one of the friendliest bank in Africa if they improve further on the current GTbank exchange rate dollar to naira today, as travelers would rather patronize the bank for its rates. And what do you expect, they stand a high place in dictating the dynamism of the market today, after all he who pays the piper dictates the tune.
GTBank’s dollar sales to its clients’ needs commendation, because, conducting a background check and comparing their rates to that of other banks, they have so far turned out among the friendliest deals. This is evident in its sale of dollars to its clients for online transactions pegged at N320, and same on POS platforms.
However, the sale of dollars at the interbank rate has been quite higher as it has sold the US dollar at N390 to N400/$. This fluctuating prices within the last few days has been solely due to apprehensions within the FOREX market on whether the CBNs intervention can be sustained or not. Some analysts have gone as far as predicting that there can never be sustainability as continued intervention would eventually deplete the nation’s foreign reserves.
What is Obtainable Today?
Today, the 13th of April, the Naira has witnessed a sharp fall in value to the dollar, selling at the rate of ₦410 to the dollar. This drop has been witnessed in both the parallel markets and the interbank markets.
The reasons for this sharp fall of the naira is due to the apprehension characterizing the exchange rate market on whether the apex bank and regulatory body is able to sustain its intervention to narrow down the exchange rate of the Naira to the dollar.
What Does this Information Translate To?
In interpreting the recent instability in the FOREX market regarding the Naira and the Dollar, GTBank’s dollar to Naira exchange rate which has remained friendly compared to other bank rates since its (naira) recent gains following the CBNs intervention has gone to show that the bank’s utmost drive is the satisfaction of its esteemed customers. It has shown that it is customer focused and service driven.
Also, it means that Nigerians irrespective of whatever banks they patronize have a hope in the financial system as it does not all portend doom. The actions of hoarding of FOREX which has characterized the Nigerian banking sector of late is reflective of the decay in professionalism, but this shows us that all hope is not lost.
How are Nigerians Affected by This?
The exchange rate regime currently being witnessed and the transparency of some banks to sell FOREX at much reduced rates is commendable and positively affects Nigerians as there are still few available banks like GTB willing to provide professional services.
Hence, people seeking dollars for Basic Travelling Allowances (BTA), for tuition, for importation and for medical treatments are not left stranded.
It also means that services will be driven by real market dynamics and not by artificial manipulations. With the CBN threatening to sanction erring banks, things can only get better.
Types of FOREX Services Offered by GTBank
The types of services relating to exchange rate issues offered at the bank include a foreign currency inward transfer (FOREX inflow) and a foreign currency outward transfer (FOREX outflow). I will briefly explain these concepts.
Foreign Currency Inward Transfer
This type of transfer involves foreign currency (in this case the dollar) transferred into GTB client’s domiciliary account from its correspondent banks. However, to benefit from this service, there are certain requirements to be met.
Some of such include; for the currency being receive, there has to be an active domiciliary account, sale of the currency (dollar) to the Bank (GTB) for naira equivalents, among other requirements set forth by the bank.
Foreign Currency Outward Transfer
Here, through the use of a corresponding bank or banks, foreign currency transfers are effected to beneficiaries both domestically or internationally. There are requirements to be met for any outward transfer to take effect.
Some of these include; the reasons for the transactions should be expressly stated for example, if it is for payment of tuition, such reasons should adequately be captured.
These are events surrounding the GTBank’s dollar to Naira exchange rate value and a wake-up call to other banks in the habit of exploiting Nigerians through hoarding of the US dollar and the creation of artificial scarcity thereby driving the exchange value of the Naira to the Dollar further down.
It is also a medium for informing Nigerians and anyone else interested in knowing the dynamics in the exchange rate market in Nigeria.