The relationship between the US Dollar (USD) and the Nigerian Naira (NGN) has been marked by significant fluctuations over the years. Understanding this history requires examining the economic factors, policy changes, and market dynamics that have shaped the exchange rate between these two currencies.
As of 17:00 PM UTC, $10.00 (ten US dollars) is worth ₦14,382.10 (fourteen thousand three hundred eighty-two naira 10 kobos). This conversion is based on the mid-market exchange rates. The current exchange rate stands at 1438.2100.
Compared to the previous closing exchange rate, the Nigerian Naira has decreased by -0.29% (-42.50) against the US Dollar.
To convert in reverse from Naira to US Dollars, you can perform the conversion.
On this day last year, $10.00 would have been exchanged for ₦16,785.49, which is ₦2,403.39 higher than today’s rate. The most favorable exchange rate over the past seven days was ₦14,471.60.
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The Naira: Nigeria's Currency
The naira (sign: ₦; code: NGN) is the currency of Nigeria. The Central Bank of Nigeria (CBN) is the sole issuer of legal tender money throughout the Federal Republic of Nigeria. It controls the volume of money supplied in the economy in order to ensure monetary and price stability.
Explainer: How Naira’s redesign will affect Nigeria’s economy
The naira was introduced on 1 January 1973, replacing the Nigerian pound at a rate of £1 = ₦2. The coins of the new currency were the first coins issued by an independent Nigeria. All circulating coins of the Nigerian pound were struck by the colonial government of the Federation of Nigeria in 1959, with the name of Queen Elizabeth II on the obverse. This also made Nigeria the last country in the world to abandon the £sd currency system in favour of a decimal currency system.
In 1973, coins were introduced in denominations of 1⁄2, 1, 5, 10 and 25 kobo, with the 1⁄2 and 1 kobo in bronze and the higher denominations in cupro-nickel. The 1⁄2 kobo coins were minted only that year.
In 1991, smaller 1, 10 and 25 kobo coins were issued in copper-plated-steel, along with nickel-plated-steel 50 kobo and ₦1. On 28 February 2007, new coins were issued in denominations of 50 kobo, ₦1 and ₦2, with the ₦1 and ₦2 bimetallic.
Read also: AUD/NGN Historical Data
On 1 January 1973, the Central Bank of Nigeria introduced notes for 50 kobo, ₦1, ₦5, ₦10 and ₦20. In April 1984, the colors of all naira banknotes were changed in an attempt to control money laundering. In 1991, ₦50 notes were issued, while the 50 kobo and ₦1 notes were replaced by coins. On 28 February 2007, new versions of the ₦5 to ₦50 banknotes were introduced.
Originally the ₦10, ₦20 and ₦50 were to be polymer banknotes, but the ₦5, ₦10 and ₦50 were delayed to late 2009 and only the ₦20 was released in polymer. The notes are slightly smaller (130 × 72 mm) and redesigned from the preceding issues. On the ₦1,000 notes, there is a subtle shiny strip running down the back of the note to prevent counterfeiting. The strip is a shimmery gold color showing ₦1,000 and has a triangular shape in the middle of the front of the note which changes its color from green to blue when tilted.
On the first prints of the ₦100 notes issued starting 1 December 1999, Zuma Rock was captioned as located in Federal Capital Territory, while actually it is situated in Niger State. On 12 November 2014, the Central Bank of Nigeria issued a ₦100 commemorative note to celebrate the centennial of Nigeria's existence.
The notes are similar to its regular issue with the portrait of Chief Obafemi Awolowo on the front, but are redesigned to include a new color scheme, revised security features, and the text "One Nigeria, Great Promise" in microprinting.
There was a government plan to redenominate the naira at 100:1 in 2008, but the plan was suspended. The Central Bank of Nigeria claimed that they attempted to control the annual inflation rate below 10%. In 2011, the CBN increased key interest rate six times, rising from 6.25% to 12%.
Read also: Naira Value Trends
In 2022, a policy was implemented by the Central Bank of Nigeria (CBN) to redesign and replace the highest denomination banknotes: the ₦200, ₦500, and ₦1,000 notes. The redesign primarily focused on changing the colour palette and enhancing the security features of the affected denominations. Unlike some previous currency changes, the core images (portraits of national figures and other symbols) on the front and back of the notes remained largely the same, though the aesthetic details were modernised.
The 2023 Nigerian currency crisis was precipitated in January 2023 by a shortage of naira cash amid an attempt by the Nigerian government to force citizens to use newly-designed notes, which the government said would help stem the tide of vote-buying in the lead-up to the 2023 general elections.
A major cash crunch occurred in February 2023 when the Nigerian government used a currency note changeover-delivering too few of the new notes into circulation-to attempt to force citizens to use a newly created government-sponsored central bank digital currency.
The CBN announced its naira redesign policy, citing that, by global best practice, currency should be redesigned every 5 to 8 years, and the Naira was long overdue.
Impact of Currency Redesign
The scarcity of both old and new notes led to a prolonged cash crunch across Nigeria, severely impacting the economy. Businesses, particularly those in the informal sector which relies heavily on cash, suffered significant losses.
The policy was highly controversial, with critics arguing the timing (just before the 2023 general elections) and implementation were flawed.
Current Exchange Rate Dynamics
Currently, the exchange rate on the parallel market is around ₦1483 per 1 USD, significantly higher than the official Central Bank of Nigeria rate.
The Nigerian Central Bank stated that it would make the naira fully convertible against foreign currencies by 2009. Currently, the amount of foreign currency is regulated through weekly auctions, while the Central Bank sets the exchange rate. The naira appreciated against the dollar through 2007 due to high oil revenues.
A floating exchange rate was adopted in 2016. However, the dollar is around ₦1483 per 1 USD, significantly higher than the official Central Bank of Nigeria rate.
Historical Exchange Rates
Examining historical exchange rates provides valuable insights into the fluctuations between the USD and NGN. Here’s a look at some recent data:
Data Statistics
This section organizes the historical exchange rate data of 1 USD to NGN, including daily data over the past 1 day, 15 days, 30 days, and 90 days. It also marks the highest, lowest, and average rates during each period, helping you easily understand how the exchange rate has changed over time, which is useful for currency exchange, transfers, or investment decisions.
| Period | Highest Rate | Lowest Rate | Average Rate |
|---|---|---|---|
| Past 1 day | 1462.39 | 1450.73 | 1456.56 |
| Past 15 days | 1490.49 | 1443.77 | 1473.42 |
| Past 30 days | 1496.98 | 1443.77 | 1479.11 |
| Past 90 days | 1550.71 | 1443.77 | 1503.3 |
Past 7 Days Historical Exchange Rates
Below are the daily average exchange rates of USD to NGN for the past 7 days, helping you track the trend during this period. We also provide exchange rate changes of NGN to USD, helping you understand fluctuations from different perspectives and better plan your currency exchange, transfers, or fund management.
The USD/NGN rate is down -10.31% in the six months.
Factors to Consider When Converting USD to NGN
The actual amount received during remittance is directly affected by the USD to NGN exchange rate. Differences in rates offered by banks or platforms may lead to significant differences in the final amount. It’s recommended to compare real-time rates and fees from several providers before making a decision.
When conducting cross-border transactions, pay attention to real-time rates, the bid-ask spread, settlement fees, etc. Especially for large payments, even small differences in the USD to NGN exchange rate can result in substantial changes in actual amounts.
Different banks or payment platforms use various pricing mechanisms. Some use mid-market rates; others add wider spreads, fees, and settlement times. Such differences can be significant for large transactions.
By examining the recent fluctuations in the exchange rate between USD and NGN, you can determine whether the current exchange rate is high or low, helping you decide whether to immediately remit, lock up the exchange, or delay the transaction to obtain a better price.
Look at the charts of USD to NGN over the past few months. If the trend is upward, it means USD is appreciating and exchanging to NGN is more cost-effective; if downward, you may want to act quickly to exchange at a better rate.
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