As of today, March 2 in Lagos, Abuja and Kano, here are the exchange rates for the Nigerian Naira (NGN) to the respective currencies: It includes the Naira Black Market exchange rates, Aboki/Bureau De Change (BDC).
Naira to Dollar Exchange Rate (USD to NGN):
Buying Rate 1490
Selling Rate: 1510
Euro to Naira Black Market Exchange Rate (EUR to NGN):
Buying Rate: 1560
Selling Rate: 1520
Pounds to Naira Black Market Exchange Rate (GBP to NGN)
Buying Rate: 1910
Selling Rate: 1860
Factors That Determines Exchange Rates:
- Interest rates: Higher interest rates can attract foreign investors seeking better returns, leading to increased demand for the local currency and strengthening its exchange rate. Conversely, lower interest rates may discourage foreign investment and result in currency depreciation.
- Balance of trade: A trade surplus, where exports exceed imports, creates demand for the local currency as foreign countries purchase goods and services. This increased demand strengthens the exchange rate. Conversely, a trade deficit can put downward pressure on the currency.
- Foreign direct investment (FDI): Higher levels of foreign direct investment indicate confidence in a country’s economic prospects and can lead to increased demand for the local currency, strengthening its exchange rate
- Government policies and interventions: Government decisions, such as monetary policies and foreign exchange controls, can directly impact exchange rates.
- Global economic factors: Global economic conditions, including economic growth, interest rate differentials, and geopolitical events, can affect exchange rates. Changes in the global economic environment can result in capital flows into or out of a country, influencing its exchange rate.
It’s important to recognize that these factors are interconnected, and changes in one factor can have cascading effects on others. This interdependence makes exchange rates a complex and dynamic system.
