Do you know that there are actually some facts about dollar that you do not know? Well, this article is about to share more knowledge concerning that.
We make use of different currency notes now or later. From the dollars to the Euro, Naira, and others to purchase goods ranging from food items and others, paying bills and doing other things. Though in recent days it has been fluctuating, currently at the below rate. This rate isn’t encouraging, in fact, many Nigerians now spend more buying less, an act that shouldn’t be
- 1 Dollar To Naira Exchange Rate Today in the Black Market
- 2 History Of Dollar
- 3 Some Major Reasons for High Black Market Exchange Rate of Dollar to Naira Today
- 4 Conclusion
Dollar To Naira Exchange Rate Today in the Black Market
N480 – buy per $1
N485 – sell per $1
History Of Dollar
On April 2, 1792, the United States Congress created the U.S dollars as the standard unit of money for the country. The word dollar is derived from the low Saxton cognate of the High German Thaler. Before the use of paper money, coins were first in use, the most commonly circulated and readily available currency used by common Americans at that time was the Spanish Peso which was also known as the Spanish milled dollars and this was of much value for its high silver content.
In those days gold and silver traded at a ratio that hardly varied over centuries. It was known as a “Bimetallic” System. In time, gold became the central monetary basis rather than silver. Britain used the monometallic system in 1816, the United States wholly adopted this system until 1900.
The first U.S paper dollar was issued in 1875. The sign on the U.S paper dollar ($) has lots of theories. However, there is one that is widely accepted all over, this was according to the Bureau of engraving and printing that the dollars sign goes back to the Spanish Peso. Now below are some interesting facts about the Dollars.
Some Major Reasons for High Black Market Exchange Rate of Dollar to Naira Today
Fall in Oil Price
It is no news that Nigeria depend largely on oil exports for its revenue and it is also no news that this oil has lost value in the world market in recent years due to various reasons. This had led to a reduction in our revenue which had also affected the Naira. If only we can diversify to grow the Naira.
Nigerians Obsessions For Foreign Products
Foreign products are more valued than our locally made products. This obsession with foreign goods has made our importers import more exchanging our Naira for the dollars which have decreased the value of Naira.
Importation is on the High Side
Nigeria as a country imports more than it export, which shouldn’t be so. The ridiculous part of the whole scenario is we bring in things like pampers and toothpicks making us more of a consumer country rather than a producing one. You may think there is nothing wrong with this but a closer look at our economy would show you that we are strengthening the dollars against the Naira since most international transactions are in dollars. We need to become a producing country so we could have more to export aside oil.
This obsession has even gone to another level that we now prefer services rendered by persons from foreign countries who would demand to pay in their currency rather than our own. Nigerians fly out to study outside the country and go for other services like medication, conferences, seminars, etc. It would be better if we can strike a balance in this. There is a recent campaign in Nigeria which is the ‘buy 9ja to grow the Naira,’ many people have not yet accepted.
Looting of Public Funds
Public officers who are supposed to be custodians of our collective wealth had turned around to become the ones looting it. When they loot, they change this money into dollar and stock them in foreign accounts, this has been the major source of Naira devaluation.
Just recently, there has been an outcry from some quarters that the Government had technical devalued the Naira, an allegation that the Government denied. Either way, many foreign investors had lost trust in the economy and has refused to invest. This among other reasons have been the reason Naira is depreciating against the dollar.
Citizens and the Government should give a helping hand to the Naira before it becomes an object of ridicule like the Zimbabwe currency.