Worried over naira going down and up sometimes? Find out what is the current situation with the Nigerian currency and what Buhari had to say about it.
You have probably heard about Naira to dollar rates fluctuations in recent time. People often use international transactions; that’s why this issue is extremely important. Well, what is the situation with exchange rate on official and black market? And what do the authorities say about it? Let’s find it out.
Dollar to naira
Let’s first talk about official data and dolar to naira rates. According to the latest reports, naira has dropped drastically. The proved and confirmed information was received from Bureau De Change. In fact, during the last days, the rates have been changing. Official ones are always fixed by National Bank of Nigeria. However, the situation is not the same with black markets. Everything is unpredictable there. BDC operators are extremely worried about it.
Official data say that naira has dropped up to 330-343 as regards to dollar. Nevertheless, the rates keep shifting day by day. If we compare it to the previous data, we may notice dramatic changes. Thus, in November, you had to pay N226 for dollar. While a year ago, the amount was only 189-191. Well, now the numbers are almost two times more.
Nigerian currency is deeply dependent on the oil price. The lower it is the weaker Naira is against dollar. To 170 carry out any exchange operations, people from the big cities, such as Lagos or Abuja, can use various methods, including banks, online resources, and forex exchanges. You can also check out the exchange rates at the reliable onine source.
Black market currency exchange
We can say that black market is somewhat independent from the official one. The rates there may differ from those of BDC. Many Bureau De Change workers get really concerned about this issue, as it has its influence on the stability of currency.
On the black market, dollar might be sold for N330. However, the situation was a bit better only a couple days before. Thus, you could buy dollars for about 250-270 naira. So, even if the rates are stable on BDC, they will keep fluctuating on the black market. Nevertheless, today’s situation is more suitable for BDC, as the rates are actually equal.
According to the estimates from the specialists, naira will soon drop again. People might have to pay N355 or even more for every dollar.
Authorities’ opinion on naira situation
You see that the situation is quite bad, but Nigerian official figures continue to reject the devaluation of Naira. President Buhari claims that Nigerian economy is strong enough and is able to survive the troubles with oil prices.
The current president assures that his government is not going to devalue naira. It was announced during the Panel Roundtable on Investment and Growth Opportunities held in Egypt, Sharm El-Sheikh. Buhari also said that Nigeria cannot afford devaluation as many other developed countries. The main reason is absence of competition, as Nigeria does not export, but import goods and materials.
He claims that the best way out for the country now is to concentrate on agriculture and minerals development. It will allow to lower unemployment rates at least.
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Let’s see how everything will develop. We hope that the situation will stabilize and Nigerian economy will be able to deal with dollar and oil prices. The economy of the country should continue to grow.
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