Today Exchange Rate in Nigeria: Dollar to Naira


Welcome to informationhood. Today we will be looking into the world of our foreign exchange. The way it been exchanged and its effects on our economy. Do enjoy!!!

Dollar to Naira – 360.00  ( fab 2018 )

The Current World Exchange Rate

Exchange Rate
An exchange rate is the price or the amount of a nation’s currency in terms of another currency. The exchange rate has two components; the domestic currency and the foreign currency can be quoted directly or indirectly. In a direct quotation the price of a unit of each foreign currency aside the country’s currency is expressed in terms of the domestic currency.

For an indirect quotation, the price of each unit of the domestic currency is always in terms of the foreign currency. Most exchange rates are quoted in the values against the United States currency which is the (USD) and also quoted against the other nations currency this is referred to as a cross currency or cross rate. The exchange rate has a base currency and a counter currency which is applicable for both quotations.

For the direct quotation, the foreign currency is the base currency while the domestic currency is the counter currency, and for the indirect quotation, the domestic currency is the base currency and foreign currency as the counter currency.

Many exchange rates use the United State Dollar as the base currency and other currencies as the counter currency, the exception to this is the use of the Commonwealth currencies like the British Pound, New Zealand dollar, Australian dollar and the Euro.

The exchange rate is generally expressed to four places after the decimal for most currencies, this is exceptional for the currency quotations involving the Japanese yen, which are quoted to two places after the decimal.

Effects of the World exchange rate on the economy

The use of the exchange rate created a foreign exchange between business owners. The foreign exchange market enables people or traders to buy, sell, exchange and speculate on currencies. The exchange market is made up of banks, commercial companies, central banks, investment management firms, retail forex brokers, investors and the huge funds. This is regarded as the largest financial market in the world as regards the Forex World.

The foreign exchange market stimulates the retail currency traders from all over the world due to its spectacular benefits which is trading currencies in a massive volume, which cover the largest asset class globally making the currencies exchange rate of high liquidity.

Since Foreign exchange rate are always on the move, it is advisable to check out the currency charts before payments is made. Market rate or interbank rates are the official live conversion rate for any given currency pair.

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The market rate constantly fluctuates in price with bank trade currencies. Most financial institution charge up to five percent on the interbank rate when you’re your money overseas that could cost more based on the amount you are transferring overseas.

The major and relatively steady currencies uses a floating exchange rate which is generally accepted. The exchange rate is determined by the market factors including the interest rates, consumer and inflation data, political climate and fluctuations o the value of exported goods. The currencies that follow this trend are the USD, GBP and EUR amongst others.

The most frequently used currencies includes;
The United Dollar (USD):

The Current World Exchange Rate
Exchange Rate

An exchange rate is the price or the amount of a nation’s currency in terms of another currency. The exchange rate has two components; the domestic currency and the foreign currency can be quoted directly or indirectly. In a direct quotation the price of a unit of each foreign currency aside the country’s currency is expressed in terms of the domestic currency.

For an indirect quotation, the price of each unit of the domestic currency is always in terms of the foreign currency. Most exchange rates are quoted in the values against the United States currency which is the (USD) and also quoted against the other nations currency this is referred to as a cross currency or cross rate.

The exchange rate has a base currency and a counter currency which is applicable for both quotations.

For the direct quotation, the foreign currency is the base currency while the domestic currency is the counter currency, and for the indirect quotation, the domestic currency is the base currency and foreign currency as the counter currency.

Many exchange rates use the United State Dollar as the base currency and other currencies as the counter currency, the exception to this is the use of the Commonwealth currencies like the British Pound, New Zealand dollar, Australian dollar and the Euro. The exchange rate is generally expressed to four places after the decimal for most currencies, this is exceptional for the currency quotations involving the Japanese yen, which are quoted to two places after the decimal.

The use of the exchange rate created a foreign exchange between business owners. The foreign exchange market enables people or traders to buy, sell, exchange and speculate on currencies. The exchange market is made up of banks, commercial companies, central banks, investment management firms, retail forex brokers, investors and the huge funds. This is regarded as the largest financial market in the world as regards the Forex World.

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The foreign exchange market stimulates the retail currency traders from all over the world due to its spectacular benefits which is trading currencies in a massive volume, which cover the largest asset class globally making the currencies exchange rate of high liquidity.

Since Foreign exchange rate are always on the move, it is advisable to check out the currency charts before payments is made. Market rate or interbank rates are the official live conversion rate for any given currency pair.
The market rate constantly fluctuates in price with bank trade currencies. Most financial institution charge up to five percent on the interbank rate when you’re your money overseas that could cost more based on the amount you are transferring overseas.

The major and relatively steady currencies uses a floating exchange rate which is generally accepted. The exchange rate is determined by the market factors including the interest rates, consumer and inflation data, political climate and fluctuations o the value of exported goods. The currencies that follow this trend are the USD, GBP and EUR amongst others.

The most frequently used currencies includes;

The United Dollar (USD)

The United States Dollars is usually recognized with US$, sign $ and the code; USD, it is mostly regarded as the American dollar or the U.S dollar. it is the official currency of the United States and its territories as it is the most used in the international transaction, it is the world’s primary reserve currency. Many countries take it has their official currency while some take it has a defacto currency.

Aside the United States, it is also used as the sole currencies in other British Territories. The United States central bank is also known as the Federal Reserve Bank or The Fed.

The British Pound Sterling (GBP):
The British Pound Sterling (GBP) is the official currency of the United Kingdom, the British Overseas Territories of South Georgia, the South Sandwich Islands and the British Antarctic Territory as well as other United Kingdom crown dependencies.

Some African country like Zimbabwe also uses the pounds and pegged to the Falklands Pound, Gibraltar pound, Saint Helenian pound, Jersey Pound, Manx Pounds, Scotland notes and the Northern Ireland notes.

The currency has one of the highest trading volumes in the world, trailing only the United State Dollar, Euro and the Yen on a daily basis, the British pounds was nicknamed “quid” and popularly known as the British pound sterling and has served as currency in many colonies previously such as Australia, New Zealand and Canada.

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The United States Dollars is usually recognized with US$, sign $ and the code; USD, it is mostly regarded as the American dollar or the U.S dollar. it is the official currency of the United States and its territories as it is the most used in the international transaction, it is the world’s primary reserve currency. Many countries take it has their official currency while some take it has a defacto currency.

Aside the United States, it is also used as the sole currencies in other British Territories. The United States central bank is also known as the Federal Reserve Bank or The Fed.

The British Pound Sterling (GBP):

The British Pound Sterling (GBP) is the official currency of the United Kingdom, the British Overseas Territories of South Georgia, the South Sandwich Islands and the British Antarctic Territory as well as other United Kingdom crown dependencies. Some African country like Zimbabwe also uses the pounds and pegged to the Falklands Pound, Gibraltar pound, Saint Helenian pound, Jersey Pound, Manx Pounds, Scotland notes and the Northern Ireland notes.

The currency has one of the highest trading volumes in the world, trailing only the United State Dollar, Euro and the Yen on a daily basis, the British pounds was nicknamed “quid” and popularly known as the British pound sterling and has served as currency in many colonies previously such as Australia, New Zealand and Canada.

And many other currencies





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The Author

Jesutofunmi May

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