What is Dollar to Naira Black Market Exchange Rate Today [June 26, 2017].

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Dollar to Naira Black Market Exchange Rate Today [June 26,
2017].
Dollar to Naira Black Market Exchange Rate | 1 Dollar to
Naira Black Market Ex change Rate Monday, 26th June
2017 | Check Dollar to Naira Rate in Par a llel Market
T o day – See more details below;
Dollar to Naira Bla ck Market Exch a nge Rate
Current Dollar to Naira Exchange Rate Today – I know for
sure that this might have been your utmost desire, before you
luckily found this headline captivating online!!! Quiet cool
tho u gh. Here, I will be sharing in detail ‘ Current dollar to naira
black market exchange rate today ’. Feel free to read through.
The (USD) dollar to Nigerian Naira exchange rate today varies
between the CBN exchange rate and the parallel market (black
market) exchange rate. Going by the CBN exchange rate is
pegged at, 1 USD = N314.75 . But coming to parallel market
(Black market), it’s a different story entirely as stated below.
1 Dollar(USD) to Naira(N) Exchange Rate Today In Black
Market
Buying => 1 Dollar to Naira = N362
Selling => 1 Dollar to Naira =N368
As prescribed above, the dollar to naira exchange rate in the
black market is not pegged as CBN rate, as such, it fluctuates
daily. For this regard, this page is updated regularly with the
latest exchange rate for Dollar to Naira in Black Market; we
advise you to Bookmark this page.
Key Factors that Affect Foreign Exchange Rates
INFLATION RATES : Changes in market inflation cause
changes in currency exchange rates. A country with a lower
inflation rate than another’s will see an appreciation in the
value of its currency. The prices of goods and services
increase at a slower rate where the inflation is low. A country
with a consistently lower inflation rate exhibits a rising
currency value while a country with higher inflation typically
sees depreciation in its currency and is usually accompanied
by higher interest rates
INTEREST RATES: Changes in interest rate affect currency
value and dollar exchange rate. Forex rates, interest rates, and
inflation are all correlated. Increases in interest rates cause a
country’s currency to appreciate because higher interest rates
provide higher rates to lenders, thereby attracting more foreign
capital, which causes a rise in exchange rates
COUNTRY’S CURRENT ACCOUNT / BALANCE OF PAYMENTS:
A country’s current account reflects balance of trade and
earnings on foreign investment. It consists of total number of
transactions including its exports, imports, debt, etc. A deficit
in current account due to spending more of its currency on
importing products than it is earning through sale of exports
causes depreciation. Balance of payments fluctuates exchange
rate of its domestic currency.
GOVERNMENT DEBT: Government debt is public debt or
national debt owned by the central government. A country with
government debt is less likely to acquire foreign capital,
leading to inflation. Foreign investors will sell their bonds in
the open market if the market predicts government debt within
a certain country. As a result, a decrease in the value of its
exchange rate will follow.
TERMS OF TRADE : Related to current accounts and balance
of payments, the terms of trade is the ratio of export prices to
import prices. A country’s terms of trade improves if its
exports prices rise at a greater rate than its imports prices.
This results in higher revenue, which causes a higher demand
for the country’s currency and an increase in its currency’s
value. This results in an appreciation of exchange rate.
POLITICAL STABILITY & PERFORMANCE : A country’s political
state and economic performance can affect its currency
strength. A country with less risk for political turmoil is more
attractive to foreign investors, as a result, drawing investment
away from other countries with more political and economic
stability. Increase in foreign capital, in turn, leads to an
appreciation in the value of its domestic currency. A country
with sound financial and trade policy does not give any room
for uncertainty in value of its currency. But, a country prone to
political confusions may see depreciation in exchange rates.
RECESSION: When a country experiences a recession, its
interest rates are likely to fall, decreasing its chances to
acquire foreign capital. As a result, its currency weakens in
comparison to that of other countries, therefore lowering the
exchange rate.
SPECULATION : If a country’s currency value is expected to
rise, investors will demand more of that currency in order to
make a profit in the near future. As a result, the value of the
currency will rise due to the increase in demand. With this
increase in currency value comes a rise in the exchange rate
as well.
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