The exchange rate between the Naira and the dollar changes from time to time and it is not fixed. Every entrepreneur, forex trader, cryptocurrency investor, blogger, affiliate marketers and every businessman who is into online payment transactions in exchange for goods and services never ceases to forget or lose consciousness about the current exchange rate of the American US Dollar ($) to the Nigerian Naira.
In this post, we will emphasize on the current exchange rate of the US Dollar to the Nigerian Naira in the CBN rate or the black market rate.
The United State Dollar happens to be one of the strongest currencies in terms of economic strength and value. Its relevance is high and it is strongly accepted in international trade, commercial and economic activities across National boundaries. At times, it is abbreviated, shortened and referred to as U.S Dollars or American Dollars; maintaining the ($) as it’s symbol. Its code is popularly known as USD.
On the other hand, the Naira is the currency used as a legal tender and a medium of exchange in Nigeria. It was introduced and brought into Nigeria on the 1st of January 1973 by the then Military Government headed by General Yakubu Jack Gowon. The Naira is shortened and abbreviated as NGN; while its code is ?, which also stands for the symbol.
The Nigerian Naira used to be one of the strongest currencies in the African continent, but as time passed by; its value and strength began moving at a declining rate which has currently placed the foreign exchange rate of the Nigerian Naira to the US Dollar at an alarming figure.
However, there are reasons why the US Dollar has an upper hand over the Nigerian Naira. The causes of this can be traced to over dependence on foreign goods. The obsession and penchant for foreign goods and services has caused the Naira to lose its value.
Another reason for the high rate of the Dollar over the Naira is import over export. A lot of marketers, businessmen, entrepreneurs and importers import different items and commodities in Nigeria without exporting any product made in Nigeria outside. Since business in the international trade is done with foreign currency like the Dollar and not the Naira, these businessmen have to acquire dollars as to do business with their foreign counterparts and hence, the end result of this is that the Naira weakens while the dollar gets stronger over the Naira.
The exchange rate for the United States Dollar (USD) to the Naira in the parallel market is different from the official rate given by the Central Bank of Nigeria (CBN).
As at the time of writing this article, Friday, July 06, 2018, the Central Bank of Nigeria (CBN) exchange rate of the Dollar to the Naira is N305 while the parallel or black market rates in Nigeria for buying the US Dollar is N361 and selling the Dollar to Naira is N358.
Over time, these prices will always change.