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What Currency is Used in Nigeria?

Emma MarroneVerified
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Summary：The official currency used in Nigeria is called the Nigerian Naira (NGN), which is issued by the Central Bank of Nigeria. The Naira has undergone various changes in design and security features since its introduction in 1973.

Nigeria is a country located in West Africa with a population of over 200 million people. As a country that is rich in oil and other natural resources, Nigeria has its own currency that is used for transactions within the country. In this article, we will discuss the currency used in Nigeria and its history.

What is the Currency Used in Nigeria?

The currency used in Nigeria is the Nigerian Naira (NGN). The Naira is subdivided into 100 Kobo and is issued by the Central Bank of Nigeria (CBN). The Naira was introduced in 1973 to replace the pound sterling as the official currency of Nigeria. Since then, the Naira has undergone various changes in its design and security features to prevent counterfeiting.

The Current Exchange Rate

The current exchange rate of the Nigerian Naira against the US Dollar is approximately NGN 360 to USD 1. This exchange rate has remained relatively stable for the past few years. However, the Naira has experienced significant fluctuations in value in the past, particularly during periods of political instability and economic uncertainty.

Factors Affecting the Value of the Naira

The value of the Nigerian Naira is affected by various factors, including the country's political stability, economic policies, inflation rate, and globaloil prices. Nigeria is a major oil-producing country, and fluctuations in global oil prices can have a significant impact on the value of the Naira. Additionally, the country's economy is heavily reliant on oil exports, which can make it vulnerable to external shocks.

Investing in the Nigerian Naira

Investing in the Nigerian Naira can be a risky proposition due to the various factors that can affect its value. However, there are ways to minimize these risks and potentially earn a profit. One strategy is to invest in the Naira through aforex tradingplatform. This can allow investors to take advantage of fluctuations in the exchange rate and potentially earn a profit. However, it is important to note that forex trading carries a high level of risk and should be approached with caution.

Conclusion

In conclusion, the Nigerian Naira is the official currency of Nigeria and is used for transactions within the country. Its value is affected by various factors, including political stability, economic policies, inflation rate, and global oil prices. While investing in the Naira can be risky, it is possible to earn a profit through forex trading. As with any investment, it is important to conduct thorough research and exercise caution.

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Nigerian NairaNGN currencyCentral Bank of Nigeriaforex tradingoil prices
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