How Much Dollar to Naira Exchange Rate Today

How much Dollar to Naira rate today stands at 417 Naira to a Dollar officially. However, the black market rate stands at 573 Naira to a Dollar. The disparity between the official rate and the black market rate calls for concern.

Many Nigerians would rather change at the black market than the official channel made available by Government. 

How Much is Dollar to Naira Exchange Rate Today

The parallel exchange rate is always different from the CBN rate. Currently, Naira is trading at 573 per Dollar. The parallel market is buying at 568 Naira per Dollar and selling at 573 Naira per Dollar.

The economy is always affected by the price movements of the exchange rate. As the Naira falls, inflation rises, which increases the prices of goods which affects the citizens. The Central Bank Governor has called for an all-hands-on-deck approach to turn around the economy.

Please note that the Central Bank Of Nigeria does not recognize the black market rates. The Central Bank of Nigeria has consistently maintained that the parallel market represents less than one percent of foreign exchange transactions and should never be used to determine Nigeria’s Naira/Dollar exchange rate.

Key Factors That Affect How Much Dollar to Naira Foreign Exchange Rate

These are some of the factors that influence the exchange rate.

1. Inflation Rates: Inflation is known to influence the exchange rate. If the Nigerian economy can be stabilized and inflation put under control (by increasing exports), it will impact positively on the Naira, but if the inflation continues to rise, the Naira will continue to fall, thereby leading to an increase in prices of food and basic amenities.

2. Interest Rates: Interest rates is also another indicator to watch. If the CBN raises the interest rates, the impact is almost immediately felt and vice versa if it reduces.

3. Government Debt: Continuous rise in government debt can limit the inflow of dollars into the economy. If the inflow of the Dollar increases, it strengthens the position of the Naira, but if it reduces, it weakens the position of the Naira against the Dollar.

4. Speculation:  Exchange rates are sometimes influenced by speculators. They sometimes hoard money in anticipation of a profit which affects the Naira adversely.

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