$1 USD to Nigerian Naira NGN: Convert Dollar to Naira

Today, $1 US Dollar is exchanged for ₦1250.7, and this is the standard rate by the Central Bank of Nigeria (CBN). According to findings by BBC News pidgin, it was written that Central Bank of Nigeria sold $10,000 to every Bureau De Change (BDC) present in Nigeria, with CBN warning them not to sell the dollar more than 1.5% of what was bought for, and they are not expected to sell above that.

Suppose you’ve been following the updates on the daily exchange rates of the US dollar to the naira. In that case, you can unarguably agree with me that the naira has indeed taken a good turn compared with its rollercoaster relationship with the dollar in the past few months and even years.

Most Nigerians have been thrilled to witness this, as the cost of most imported items has been high. So, we can say there is hope for Nigeria. If members of Bureau De Change can do as the Central Bank of Nigeria instructed, then the dollar-to-naira exchange rate can keep falling from a thousand naira to $1.

The content of a circular sent by CBN to the president of the Bureau De Change Association of Nigeria clearly stated that any member of the association who doesn’t follow the orders will be sanctioned accordingly. The circular stated the sale of $10,000 to each BDC at the rate of ₦1,251.

This is one of the numerous steps that the Central Bank of Nigeria (CBN) has taken to regain the value of naira, which crashed to almost ₦1,900 naira earlier this year.

Other steps the CBN took against the fall of the Naira include carefully reducing the activities of illegal BDCs within the country and monitoring the activity of cryptocurrency traders.

The PUNCH also reported that CBN announced the decision to sell $20,000 worth of foreign exchange to every deserving member of Bureau De Change operating in the country as of February 2024. Just last month, the current CBN governor, Olayemi Cardoso, put in place an outlined strategy to greatly tackle inflation, stabilize the CBN exchange rate, and restore the value of the Naira, thereby regaining outstanding confidence in the Nigerian Banking System and economy at large.

In the last Monetary Policy Committee meeting with foreign investors, Olayemi Cardoso said that different measures have been carefully implemented to enhance reserves, thereby creating room for more liquidity in the market. As confirmed by analysts, it has been said that when the apex bank invests more money into the financial system, the foreign exchange market stabilizes, hence providing more funds for buying and selling currencies.

Tope Fasua, an economist, said as the naira is getting its value back, importers should do the masses the favor of reducing and reviewing their prices as well. Because the prices of things now won’t be the same as they were five months ago. Sadly, most importers don’t seem excited about this reality. Also, another economist named Emmanuel Anoliefo said the rebound of the naira does not look permanent, as he’s yet to see other parameters that clearly state that the Naira will keep on standing strong. But then, he still went ahead and said that nothing is impossible, and he hoped the appreciation in the value of the Naira would continue so the prices of things in the market could be considerably reviewed.

CBN Exchange Rate Today

Here, the CBN exchange rate will be carefully broken down for the different denominations for easy understanding.

Since $1 to Naira today is ₦1250.7, this value will be multiplied by the denomination in dollars to find the equivalent in Naira.

The Relevance of Exchange Rate to the Nigerian Economy

Exchange rates unarguably have significant impacts on the economic growth of any country, in this case, Nigeria. As a result of this, economic policymakers and researchers are always on the watch to come up with analyses that the fluctuating exchange rates can cause.

The Dollar to Nigerian Naira exchange rate plays a vital role in the country’s trade activities, and it cannot be overlooked. With the dollar currently taking the lead in international trade for a market economy, the pressing issue of the Dollar to Naira exchange has become a matter of concern to every Nigerian living in Nigeria.

Factors That Influence Dollar to Nigerian Naira Exchange Rate

Many factors affect the US dollar and the Naira exchange rate, in addition to interest rates and inflation, which almost everyone knows. It’s no longer news that the currency exchange rate greatly influences the economic health and growth of the Nigerian economy. This is one of the reasons why the Dollar to Naira exchange rate is always closely monitored.

You might be interested in how this exchange rate affects a country’s trading relationship with other countries, right? A country with a lower currency value will end up with more expensive imports and less expensive exports, and vice versa with a higher currency value. I hope you’re getting the gist. A higher exchange rate does more harm than good to a nation’s trade balance, while a lower exchange rate, on the other hand, improves it.

Let’s look at some of the major factors currently affecting the fluctuating Dollar to Naira exchange rate. It is important to note that these factors are in no particular order.

1. Differences in Inflation

A country with a lower inflation rate will consequently experience an increased currency value and higher purchasing power. A country like Nigeria that is facing high inflation will face depreciation in its currency compared to another trading currency like the dollar. Higher interest rates most often accompany this.

2. The Issue of Debt

According to the Nigerian Bureau of Statistics, Nigeria’s public debt was ₦87.38 trillion. In addition, the Economic Summit Group also disclosed that the Nigerian government depends on foreign debt to finance its budget. A situation of being in debt gives an upper hand to inflation and the overall economic situation in Nigeria. For this reason, Nigeria’s debt rating is a huge determinant of her exchange rate.

3. Unique Economic Importance

Foreign investors will always look for countries with outstanding economic importance to invest their capital. Indeed, such countries won’t want to have much to do with a country facing economic crises, which affects the currency and exchange rate of the country in question.

On the other hand, we can say there is hope for Nigeria, as the naira has taken a good turn in the right direction in the case of exchange rates in the past few months.

The Bottom Line

The good news is that the Nigerian Naira has been rising compared to the exchange rate as of February 2024. The naira has steadily been recovering its value, as the US dollar to Nigerian naira CBN exchange rate today is $1 for ₦1250.7.

Since numerous factors determine exchange rates, the Nigerian economy can still bounce back, as the CBN has been strategizing ways to enhance the value of the Naira.