latest dollar to naira exchange rate in 2024 is one of the key factor for economic cost of living in Nigeria. It affect different sectors such as the import and export of goods and services. The rapid increase in the exchange of dollar to naira has reflected in both the local and global economic conditions. It is a determining factor on inflation due to exchange of goods and services with foreign countries. If there is limited foreign currency, businesses needs a higher naira to exchange to dollar in purchasing goods in foreign countries where by making naira to de-value. read the article to the end to have a better understanding on the latest dollar to naira exchange rate in 2024
Official Exchange Rate
This is reflected by the central bank of Nigeria. As at this month, the latest official dollar to naira exchange is “$1(USD) to #1500” which seems to be stable compared to other months. The Central Bank Nigeria displays the official rate. which is important for foreign transactions, buying and selling and official receipt.
Black Market (Parallel Market Rate)
The black market prices fluctuate according to demand and supply pressures of different foreign currencies. which is contrary to the official body. The black market is a place to have a quick exchange of dollar to naira and as well has a noticeable increase rate when compared to official body that is into currency exchange. The dollar to naira exchange rate in black market is “ $1 USD to #1600 ”. the imbalance between the black market and the official organization market rate will continue to surface due to the factors of of dollar scarcity and due to the increase in demands of dollars by businesses, importers and and individuals.
Factors Influencing the dollar to naira Exchange Rate
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Demand for Forex
There is always a high demand of dollars for imports, tuition fee, travel purposes and other international transactions. Which put a lot of pressure on naira by depreciating the currency.
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Inflation
Frequent inflation, that is rise in goods and services in Nigeria reduces the purchasing power of naira and and as well reduce businesses confidence. As a result of this, businesses purchase goods from foreign countries which they perceive to have stable price and quality. With this factor, it reduces the value of naira and increases the demand for foreign currency.
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Oil prices
When there is high demand of oil, oil prices are on the increased rate, the country makes money from selling oil which maximize the inflow of international currency for example US dollars. The increased availability of foreign exchange strengthens the local currency (Naira). Which leads to a lower exchange rate of dollar to naira (increase in the value of Naira).
However, when there is no demand for oil, the price falls, which in return causes less inflow of foreign currency and lower the value of Naira. In this case, higher naira is used to exchange to foreign currency to purchase oil.
Foreign Exchange (FX) Reserves
The federal Government uses its reserve to preserve the value of naira. which means, when there is an excess demand for dollar than supply, the CBN takes from its reserve to meet the excess demand and as well preventing naira form depreciating.
CBN Policies
To reduce the depreciation of Naira, CBN generated some policies of reducing access to foreign exchange for importing goods. This in return encourages the purchase of local products. This policies are been put in place to mitigate the dependency of foreign currencies, which leads to appreciation of Naira.
Impact on Nigerians
The imbalance in dollar to naira has noticeable consequence on individuals and businesses. The issues encountered by importers are increase in purchase of goods, which in return leads to consumers buying goods at an increased rate. Foreign students face the consequence of sourcing foreign currencies form black market at a expensive rate.
Conclusion
This year, the exchange rate of dollar to naira continues to face challenges due to instability of the economy but this exchange is important to Nigeria financial plan. Having a deep knowledge about the policies behind the exchange rate, can help businesses make informed decisions. For the most daily updates, keep a watch closely on the CBN and black market trends.