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Current USD to NGN Exchange Rate 18th June 2024.

Dollar to Naira exchange rate trend in June 2024: Let’s dive into understanding fluctuations and impact to Naira (NGN) to Dollar (USD) currency market 2024. Stay tuned for the latest update on exchange rate.

The black market exchange rate has been the news headline recently, because of the wavering nature of the market for a few months now. Meanwhile it is important to note that the current exchange rate in this article is not constant to clarify these rates fluctuate based on daily market dynamics.

TOC: Current USD to NGN Exchange Rate 18th June 2024

Outlines

  1. A closer look at the current exchange rate between NGN to USD.
  2. Also looking at the current USD to EUR exchange rate

Overview

  • Current Trends
  • Expert Opinions
  • Impact of Exchange Rate Fluctuations on Stake Holders
  • Strategies for Navigating Naira to Dollar Volatility
  • Looking to the future: Forecasting

Understanding the Naira to Dollar Exchange Rates Dynamics.

The NGN to USD exchange rate is a pivotal metric for Nigeria’s economy. This rate is influenced by various factors, including oil prices, foreign investment inflows, and the country’s economic policies.

Now the question is: What’s happening with the Nigerian currency?

The currency was devalued in June 2023 and again January 2024

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Tinubu is now borrowing to cover current expenditure obligations.

Consequently, 91 per cent of dollar revenue in the first quarter, Q1, went into debt repayment. Above all forget capital expenditure. That is to say, from the information available, Q2 dollar revenue will be less than Q1.

How much is $1 Dollar to Naira in Nigeria today?(Black Market Exchange Rate from Dollar to Naira)

1 USD= 1,470NG

https://www.investopedia.com/terms/e/exchangerate.asp

Factors Influencing the Naira to Dollar Exchange Rate

From fluctuations in global oil prices to domestic political developments, several key factors influence the Naira to Dollar exchange rate.

Impact of NGN to USD Exchange Rate Fluctuations on Stakeholders for Instance customers, suppliers, communities, employees and creditors.

Excess exchange rate volatility has been Identified to reduce economy growth for example by creating business uncertainty reducing competitiveness, lowering productivity and profits, and increasing domestic prices. As a result of the fluctuations,” based on current exchange rate, the prices of stocks as at February is double the price of today for instance a bag of cement was NGN14,500 subsequently today a bag is NGN7000. Similarly converting to USD. Since 1$ is equal to NGN 1,500 in black market approximately, a bag of cement is $5 as of today.

Strategies for Navigating Naira to Dollar Exchange Rate Volatility

However, exchange rate volatility affected Nigeria’s trade flows negatively, in the short-run but does not in the long-run. As such the Central Bank of Nigeria would find some trade benefits from intervening immediately to stabilise the foreign exchange market in the face of volatility.

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Similarly,looking at the current USD/ EUR exchange rate

As of May 18,2024 the USD/ EUR exchange rate stands at 0.89, reflecting a slight strengthening of the euro against the dollar compared to the previous week. On the other hand, the GBP/JPY rate has experienced volatility due to uncertainty surrounding trade negotiations.

Expect Opinions

However, uncertainties surrounding Brexit continue to weigh on the British pound. In the same vein, Kuwaiti dinar(KWD) is the world’s strongest currency, and this is for a number of reasons. For starters,in short Kuwaiti has one of the largest oil reserves in the world.

Conclusion

In conclusion, Understanding fluctuations and impact of exchange rate is a pivotal metric for Nigeria economy. A lower-valued currency makes a country’s imports more expensive and its exports less expensive in foreign markets. Above all a higher exchange rate can be expected to worsen a country’s balance of trade, while a lower exchange rate can be expected to improve it.

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