Dollar to Naira Bank Rate Today – Everything You Need to Know

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Dollar to Naira Bank Rate Today - Everything You Need to Know

Dollar to Naira Bank Rate Today

Are you interested in finding the dollar to naira bank rate for today? Not only have we provided that in this article, but we have also covered every question in relation to naira and the dollar, take a look at some of the Benefits of Currency converter Apps and their impact on currencies conversion rates like Naira to dollars and dollars to Naira vice versa and explained why the naira fluctuates so erratically.


◊Dollar to Naira Bank Rate Today

As at the time of writing, the value of one dollar was equivalent to ₦411.50, a 5-day low of 0.12%, and a depreciation of 0.37% from the month prior.


It also signifies that in the past 365 days, the Naira has lost 6.19% of its value against the dollar along with a drop of 32.19% in the past 5 years.

Currency converter Apps

Currency converter Apps are a quick and easy way to see live market exchange rates at the click of a button just like what we have at Xe  and ngnrates. Easily convert international currencies and do business with multinationals within and outside the shores of the country right from your comfort zone.

It is the prayer of every business minded person to be able to do business on an international scale and this in itself is a good desire. the major challenge with running foreign transactions is the need for an accurate conversion of currencies into the correct local equivalent.

Benefits of Currency converter Apps

Practically, those  currency traders are mostly referred to as Bureau operators, they’re readily available and useful but an intelligent and well vast businessperson understands that to a large extent the best deals need a bit of verification and cross checking. Other times,persons who specialize in international trade may need an instant update wherever they may be. This is why it’s of uttermost benefit that there’s a host of currency conversion apps available for Android smart phones,Apple iPhones and systems.

We are going to be listing here for your knowledge and reading pleasure, five benefits of Currency converter Apps.

Five benefits of Currency converter Apps

  • The Currency converter app is specifically programmed to do the entire task of monetary calculations for the user and because these apps are synchronized with the internet, they get the updated rate of exchange at all times, leaving no room for discrepancies. No currency exchange or transaction is ever possible without a good currency converter, at least to the best of our knowledge.
  • Currency converter Apps come in handy, are simple, are accurate and are fast to be employed in any situation as the user just has it either directly on his smart phone or computer system, providing him/her quick and real time access to doing business within and outside the shores of the country without fear of making human error that is a characteristic of most this transactions.
  • Currency converterApps are mostly free and come ad free too. They are ingrained with the unique feature that links all of them to a currency page online. Which proofreads them with the needed database that allows you discover in-depth the knowledge of individual currencies. Most of these converter Apps follows every currency being traded and offers a multiple-currency display to help you keep track of relative trends simultaneously and keeping you updated as well.
  • Currency converter Apps are able to handle a large number of popular currencies, it also has in built in it, several options that would make it appeal to a large number of business people. It has the ability to beoperated in offline mode – to save on the bandwidth and data time. In addition, it can track changes in the international markets and display it as a graph, helping to predict future trends and giving analytics. Paired with a constant update of currency news, this if you will agree with me is a major benefit of Currency Converters that exist as apps.
  • Currency converter Apps can be depended on for accurate and fast information. It is  dependable to provide information on real time. These apps have and easy to navigate, pleasing and easy to use interface,presents the latest data on world currencies and precious metals. Users can even have all such data tracked in real-time.

Why is Naira Falling Against Dollar?

In 2021 alone, the Nigerian naira has unfortunately broken its all-time low record value several times, despite there still being another half of the year to go? What causes this?

There are many reasons why this phenomenon occurs. However, among the main ones are the following:

  1. Increase in the amount of Naira that circulates without increase in the wealth of Nigeria. When this happens, the Naira in circulation cannot be backed by reserves like the dollar, and therefore decreases in value.
  2. Due to a drop in the demand for local currency, as a result of an increase in the demand for foreign currency.

Who is Involved in this Phenomenon?

The main factors behind the depreciation of the naira are:

  • politics,
  • war,
  • acts of terrorism, or
  • any other situation that puts the country in question in a situation of mistrust or instability.

All of this factors have plagued Nigeria in the past two decades since when the naira was last valued at less than ₦100 to a dollar.

Why this effects the value of the naira is because foreign investors prefer to take their money to countries with stable economies, and find it more convenient to lend their money to governments with higher interest rates.

Will the Naira Stop Falling?

Unfortunately not. As we have seen, this phenomenon goes very hand in hand with political-social movements, which are present every day in all countries.

Then, the only thing that could ensure that there are no longer depreciation in the value of the naira, would be if society itself ceased to exist. However, we do have some tips to deal with this situation:

How do I Protect Myself from A Weak Naira Against the Dollar?

Take Care of Goods

It is preferable to have money in material properties than in circulating naira.

Moderate Expenses

Plan ahead for the things you want to buy, and study carefully whether current economic perceptions allow it.

Save Money

It is convenient to reserve a part of the naira for possible emergencies or unforeseen events. If there is a devaluation, the anticipated saving will allow to live those moments of crisis with greater relief.

Why Was the Naira Devalued Against the Dollar?

There are several reasons that can move the Central Bank of Nigeria to devalue the Naira against the dollar, the primary factors behind devaluation are:

Be More Competitive in Export Prices 

Nigeria sometimes, with the intention of increasing the volume of their exports, have resorted to devaluing the naira. In this way, this makes the products cheaper compared to other countries.

The idea is to increase market share and generate more income. However, although exports may increase, imports will come at a higher price as the dollar becomes more expensive compared to the Naira.

Financing Public Spending

In certain cases, Nigeria have sometimes chosen to print banknotes to finance public spending. Typically this creates inflation.

Fight Deflation

In instances where prices are falling (deflation), Nigeria will opt to to issue money. Although this will directly influence an increase in inflation it will also trigger a devaluation of the Nigerian naira.

Why is Dollar Higher than the Naira?

The dollar has remained the world’s reserve currency since US President Richard Nixon shocked the world when he disassociated it from gold in 1971. Its large volume and the country’s efficient banking system made the currency more convenient, and cheaper to trade than other currencies.

Specialists point out that the dollar is considered the most important currency in the world and this is due to its use as a global currency and its implications in all financial markets in the world.

Today, 88% of currency transactions are in dollars and no other currency comes anywhere near that level. Some economies are so dependent on US banknotes that they are even commonly used on a day-to-day basis, and greenbacks can be withdrawn at ATMs.

In fact, an estimated two-thirds of the $100 bills and half of the $ 50 bills are outside the United States.

In aggregate, the dollar today represents 61% of the world’s foreign exchange reserves. This is because, while other currencies are as stable as the dollar, the US has much more economic power and influence.

For example, the Swiss franc is just as stable as a currency, but the population of Switzerland is only eight million, while the American giant has about 330 million citizens:

So in essence the first reason for the dollar’s dominance over the naira and other currencies is due to the fact that the country with the highest interest rate should have a stronger currency.

The second factor indicates that as a country develops economically faster, its currency strengthens because investors want to put their money where there is growth. Afthe same time the central bank now have moe incentives to raise the interest rate, further strengthening the dollar against the naira.

And finally, there is the reserve of value and this is one of the basic but most important functions of money, since the more stable the currency is, the more demand it will have. This is why no currency is traded more with the naira than the US Dollar.

Dollar to Naira Bank Rate Today

As at the time of writing, the value of one dollar was equivalent to ₦411.50, a 5-day low of 0.12%, and a depreciation of 0.37% from the month prior.

It also signifies that in the past 365 days, the Naira has lost 6.19% of its value against the dollar along with a drop of 32.19% in the past 5 years.

Dollar to Naira Exchange Rate History

1972 $1 = ₦0.658

1973 $1 = ₦0.658

1974 $1 = ₦0.63

1975 $1 = ₦0.616

1976 $1 = ₦0.62

1977 $1 = ₦0.647

1978 $1 = ₦0.606

1979 $1 = ₦0.596

1980 $1 = ₦0.550

1981 $1 = ₦0.61

1982 $1 = ₦0.673

1983 $1 = ₦0.724

1984 $1 = ₦0.765

1985 $1 = ₦0.894

1986 $1 = ₦2.02

1987 $1 = ₦4.02

1988 $1 = ₦4.54

1989 $1 = ₦7.39

1990 $1 = ₦7.39

1991 $1 = ₦8.04

1992 $1 = ₦9.91

1993 $1 = ₦17.30

1994 $1 = ₦22.33

1995 $1 = ₦21.89

1996 $1 = ₦21.89

1997 $1 = ₦21.89

1998 $1 = ₦21.89

1999 $1 = ₦21.89

2000 $1 = ₦85.98

2001 $1 = ₦99 – ₦106

2002 $1 = ₦109 – ₦113

2003 $1 = ₦114 – ₦127

2004 $1 = ₦127 – ₦130

2005 $1 = ₦132 – ₦136

2006 $1 = ₦128.50 – ₦131.80

2007 $1 = ₦120 – ₦125

2008 $1 = ₦115.50 – ₦120

2009 $1 = ₦145 – ₦171

2010 $1 = ₦148.21 – ₦154.8

2011 $1 = ₦151.05 – ₦165.1

2012 $1 = ₦155.09 – ₦161.5

2013 $1 = ₦153.21 – ₦162.9

2014 $1 = ₦170 – ₦199

2015 $1 = ₦199 – ₦300

2016 $1 = ₦300 – ₦320

2017 $1 = ₦352 – ₦359

2018 $1 = ₦355 – ₦364

2019 $1 = ₦306 – ₦365

2020 $1 = ₦361 – ₦387

2021 $1 = ₦411.15 (July 2021)

Source(s) :

//www.investopedia.com/terms/c/currency-depreciation.asp

//www.thebalance.com/world-currency-3305931

 

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