Euro to Naira Exchange Rate Today (Black Market)

Euro to Naira exchange rate is an ever fluctuating value, just like it is the case with other currency. In recent times the naira has taken some bad beating and it had receded from well below 300 naira to well above 400 naira. In actual fact, it is tending towards hitting 500 naira and far beyond.

In recent times anyway, the naira gained back some amount, but the gain was just temporary. It seems the power that increased its value sometimes last week had waned and it is giving in to its accustomed downward sliding again.

In recent times anyway, the naira gained back some amount, but the gain was just temporary. It seems the power that increased its value sometimes last week had waned and it is giving in to its accustomed downward sliding again.

 

Euro to Naira Exchange Rate Today @ Black Market (Credit: FXMallam)

euro

Virtually everything about this exchange rate is ridiculous. First and foremost, the gap between the official CBN rate and the black market rate is alarming.

The gap would have been more than that anyway if not for the force pressure on the federal government by market forces to remove restriction on naira devaluation, after which the president and the CBN governor agreed to allow market forces to determine price of the euro and the other foreign currencies.

Also Read: Dollar to Naira Exchange Rate Today 

Another ridiculous factor is the difference between what he President promised during his electioneering campaigns and what he has achieved so far regarding what naira-foreign currency exchange rate would be when he becomes president.

The president told Nigerians then that he was going to make 1 naira to be equal to $1 and this formed the basis on which many Nigerians voted for him.

But that seems to be far from being realized today as the naira to dollar rate now stands at a ridiculous rate of 465 naira and naira to euro rate is as high as 505 naira.

Some factors had been found to be responsible for the pummeling in value of the naira against the euro. In this write-up, you will get to learn about these factors.

You can bet your last dime on it that these factors will still prevail in the future and the value of naira to euro may hit 1000 naira before December if the proper things are not done.

Overdependence on importation 

Nigeria is largely an importation-inclined country. Virtually everything is imported in this country. There are reports that Nigeria also imports toothpick. This is one of the factors that had led to the beating the naira had gotten in recent times.  The dependence on importation means Nigerians have to source for more foreign currencies.

This leads to an increase in demand for foreign currencies.  Normally, increase in demand equals to increase in price and value. This is exactly one of the reasons the naira had been plummeting in recent times.

Overdependence on oil revenue

Nigeria is an exporter of crude oil and the eight largest of crude oil producers in the world. While this should be a benefit to Nigeria, it had unfortunately become an albatross.

ALSO READ:  Oil and Gas Companies in Lagos

Crude oil now forms the major export commodity in Nigeria. In addition, it forms the major percentage of the Nigerian economy. This mono-economic situation is yet another factor that had been responsible for the fall in value of the Nigerian currency against the euro and the other foreign currencies.

This would not have been a problem if not for the sudden fall in value and price of crude oil. This fall in value brought about reduction in the amount of foreign exchange coming into Nigeria. This scarcity in foreign exchange leads to an increase in price of the little foreign exchange available.

This spate may end if price of crude oil rises again, but it is unlikely that the price can rise again to the good old days when crude oil was selling for over $100.

Excess foreign exchange demand

Truth is many Nigerians, especially the elite, do not trust in the Nigerian currency. They prefer to hoard foreign currency instead of saving in naira, since they are afraid the naira can fall in value. Unknown to them, their very action is one of the major factors responsible for the fall in value of the naira.

Their action leads to more demand for foreign currencies, including the euro, and this leads to less demand for naira. Such reduction in demand has led to a reduction in value and price of the naira.

Obsession for foreign services and products

Typical Nigerian elite prefers to treat himself abroad instead of treating himself in a Nigerian hospital. Many of them would travel abroad for the most ridiculous medical reasons.

There was the case of a Nigerian elite that traveled abroad to treat knee injury, and this made many to wonder  if Nigerian doctors are not good enough to handle knee injuries. The case of the national assembly buying official vehicles from abroad instead of patronizing made in Nigeria vehicles.

Looting of public fund

The looting problem is also part of the problem causing fall in the value of the naira. Government office holders are known to loot public funds. In actual fact, reasons why many of them contents for elective position is to loot public funds and enrich themselves.

The most disgusting part of it is that they go ahead to invest the money in foreign lands and better their economy. When such huge money leaves circulation in Nigeria, it favours the currency of that foreign country against the naira and this is one of the many factors militating against the naira today.

Lost of interest in Nigeria

Truth is many Nigerians have lost interest in the economy.  It is not their fault anyway; so many factors are militating against the Nigeria state that may make the staunchest of hearts to waver. Due to the prevailing economic situations, Nigerians do not trust in government policies anymore.

Political instability occasioned by insincerity of the political class is yet another militating factor that had been affecting the Nigerian means of exchange against the foreign currencies.  The fear is that the situation may continue until the political class begins to act more sincerely when dealing with the common Nigerians on the streets.

ALSO READ:  Maersk Nigeria Limited: Important Details

The said political instability makes many foreign investors to lose interest in Nigeria. They would rather invest in other countries than Nigeria. This situation devalues the naira a great deal since it is not attractive to the common Nigeria on the street anymore.

Unhelpful government policies

This is yet another factor worthy of consideration. Many government policies are not helpful to investment.  Many of them tend to scare away investors and also discourage Nigerians from, investing, since such investments may lead to loss. This is yet another factor working against the naira.

Terrorism

Nothing scares away an investor like terrorism.  When a place is plagued with terrorism, it sends wrong signals to investors that their investments are not safe. This is one of the factors that had sunk the naira to the state it is today.

Many foreign investors are afraid to put their money in the Nigerian economy because of the several unrests that had plagued the northern and southern regions of this country in recent times.

It is true the wave of terrorism has been steamed to an extent, but it will take time for foreign investors to start having positive thoughts and plans and opinions regarding Nigeria again. They may not want to be in a hurry to invest in the country’s economy and this means the naira may remain in this low-value state until investors begin to have a rethink.

Conclusion

This low value state of the naira does not just affect the Nigerian economy, it also affects the confidence of Nigerians in the Nigerian state.  Nigerians even tend to lose confidence in themselves, especially when they are compared to citizens of other countries where the economy is far better than Nigeria’s economy and where  the euro or dollar is not as expensive as it is in Nigeria today.

The change we desire in Nigeria does not depend on any politician; rather, it depends on Nigerians. We are the only ones that can change ourselves and our economy for the better.

We have got to change our attitude to Nigeria and made-in Nigeria products. We have got to stop living fake lifestyles. We have got to face the realities on ground if we must make Nigeria better for ourselves and generations yet unborn.

Yes, the government also has a role to play in all this. But the big question is this: is the government sincere about positive change?  This is why we must trust in ourselves and take the bull by the horns and take our destiny as Nigerians into our own hands.

Nigerians must start buying Nigeria in order to save the currency from further fall.  In conclusion, it is high time Nigerians join the likes of Senator Ben Murray Bruce, whose philosophy had been “Buy Nigeria to grow the naira”.

Government too must be serious about making things better and they must enact laws and review laws that can bring to pass the Nigeria we all hope and pray for.

Advertise Here
Click For More Information


Share This Post With Your Friends...
Share on FacebookTweet about this on TwitterShare on Google+Share on LinkedIn

You’ll Love These Posts…

Leave a Reply

Your email address will not be published. Required fields are marked *

Nigerian Finder © 2013-2016