The Exchange Rate from the USD to NGN
The currency used in the US is the US dollar while the Nigerians use the Nigerian naira. The representative for the US dollar is USD while the symbol for the Naira is ?. When a transaction is to be done across nations, currencies, have to be changed. If in the US, you will have to exchange the 1 usd to ngn if you want to spend money in Nigeria. Even if you are buying goods from Nigeria, you need to get the naira for your convenience.
The exchange rates change in minutes, and you might, therefore, need to be aware of this when doing foreign exchange. This information is provided daily with the closing rates being considered for the day. However, there is an equilibrium around which the exchange rates to tend to fluctuate around. This rate is meaningful only for preparation purposes. When you want to do the exchange, confirm the day exchange rates. These rates differ across exchangers in the market. There are several; players who do foreign exchange transactions http://buzznigeria.com/convert-us-dollar-naira/ and will help you with the information.
The exchange rate for one USD is 315.65 NGN. This can be 100 Used exchanging for 31665 NGN. This rate is not hard and will vary at different times. It is, therefore, important to be prepared for this. The variations are very important to the forex players as it is the source of their profits. They buy currencies where they are cheap and sell them at a higher marginal in other markets.
The exchange rate players include the business people who conduct the exchange. Some are fully involved in this business; they offer other services such as transfer from banks to banks for different currencies. There are also banks which participate in this trade. The federal bank controls the trade of the USD with other currencies of the world. The Nigerian monetary authority also controls the exchange of the NGN with other world currencies.
The exchange rate determination depends on various factors such as whether they are internally set rate by the central bank of any country. It also changes due o demand and supply pressures. Higher prevalence of a currency leads to a reduction in its price. Perhaps, this is the best time to buy the Nigerian currency. Inflation affects the value of currency. If a country is experiencing inflation, its currency lowers in value and therefore trades cheaply. Inflation rates tend to fluctuate slowly and therefore have slight effects on the currency exchange rates daily.