Exchange Rate Of Dollar To Naira As At Today
The exchange rate between the United States dollar (USD) and the Nigerian naira (NGN) is a significant economic indicator that impacts both countries. As of today, the exchange rate of the dollar to naira stands at 1 USD = 411 NGN.
Factors Affecting the Exchange Rate of Dollar to Naira
Several factors affect the exchange rate of the dollar to naira, including:
- Oil Prices: Nigeria is a major oil-producing country, and the price of oil in the international market has a significant impact on the country's economy and the exchange rate of the naira against the dollar.
- Foreign Investments: The inflow of foreign investments into Nigeria can positively impact the exchange rate of the naira against the dollar.
- Inflation Rate: High inflation rates in Nigeria can negatively impact the exchange rate of the naira against the dollar.
- Political Stability: Political instability in Nigeria can negatively impact the country's economy and the exchange rate of the naira against the dollar.
History of Dollar to Naira Exchange Rate
The exchange rate of the dollar to naira has been fluctuating over the years. In the 1980s, the exchange rate was relatively stable at around 1 USD = 0.60 NGN. However, in the 1990s, the exchange rate started to fluctuate due to political and economic instability in Nigeria.
By the early 2000s, the exchange rate had deteriorated significantly, and the naira was devalued. In 2005, the exchange rate was 1 USD = 132 NGN. In 2016, the exchange rate reached an all-time high of 1 USD = 490 NGN.
The exchange rate has been relatively stable since then, hovering around 1 USD = 400 NGN.
Impact of Exchange Rate on the Nigerian Economy
The exchange rate of the dollar to naira has a significant impact on the Nigerian economy. A weaker naira makes imports more expensive and can lead to inflation, while a stronger naira can make exports less competitive and hurt the country's balance of trade.
Moreover, the exchange rate can affect the cost of living in Nigeria, as many essential goods and services are imported.
Conclusion
The exchange rate of the dollar to naira is an important economic indicator that affects both the United States and Nigeria. Several factors, including oil prices, foreign investments, inflation rates, and political stability, impact the exchange rate. The history of the exchange rate has been marked by fluctuation, and the current rate is 1 USD = 411 NGN. The exchange rate has a significant impact on the Nigerian economy, affecting the cost of living and the country's balance of trade.