Western Union Dollar to Naira Exchange Rate – Are you planning on using the Western Union services to send or receive money? Are you wondering what the exchange rate is like before you proceed? Then this article is what you need to read.
You will be provided with more information on Western Union and specifically the Western Union Dollar to Naira exchange rate.
Western Union is a money transfer service that allows you to send and receive money from people around the world within a short period of time. Transactions can be made with Western Union 24/7.
Western Union has reached a certain level of importance in the exchange field in the country. It has developed over the years, and as a result, become one of the reference points as far as the determination of the Exchange rate of the dollar to the Naira is concerned.
The global currency market is a very unstable unit and as a result, exchange rate values are ceaselessly changing and a fixed rate cannot be achieved even for just a whole day. This unstable nature requires that constant update of exchange rates be made to keep up with current realities.
This is particularly true for those making financial transactions through this medium, that is, either receiving payments in dollars or sending the same in US dollars.
Western Union operates as a conduit that allows people to send and receive money using the phone, internet, or Western Union center. The working principle is simple; a sender goes to a Western Union center and instigates a transfer.
After completing the necessary paperwork, the money would be made available for the receiver to collect at any Western Union center or wait until it gets to their bank account.
This is because of the number of people using this medium for financial transactions.
With numerous Nigerians working abroad and making remittances to families or relatives, also, with parents, businessmen and other categories of Nigerians making use of this medium for payment of upkeep allowances.
It is not surprising that the Dollar to Naira Western Union exchange rate has become a topic of interest to many Nigerians.
Western Union cannot determine the Dollar to Naira Exchange rate Regime in Nigeria on its own. Rather, the exchange rate it employs for the currency pair is dependent on the macro-economic and fiscal policies set by the Central Bank of Nigeria.
The Naira’s strength against the Dollar is determined by a number of factors. The first is the demand and supply dynamic that prevails at any point in time.
When there is a sharp increase in the demand for dollars by importers, business people, students, and other individuals, the Dollar to Naira exchange rate realities is affected.
The CBN responds to this demand/supply dynamic by supplying the required amounts of Dollars need in the financial markets.
The Bank will be able to adequately meet this need if the capacity, as reflected in an optimistic foreign reserve portfolio, is present. The bank can, therefore, guarantee an adequate supply of Dollars and other foreign currencies.
On the other hand, if the revenue earnings from the sale of crude oil diminish, the ability of the Central Bank of Nigeria to defend or shore up the value of the naira is severely vulnerable.
This situation will lead to importers, students and other individuals seeking foreign exchange from the corresponding market.
With the modernized interventions undertaken by the CBN who have left no one in doubt that it means business, particularly the currency speculators that have severally hoarded this commodity (USD) causing a hike in its exchange rate versus the naira.
The Dollar to Naira Western Union exchange rate has witnessed some stability lately, with a dollar exchanging at the rate of N353.23 (N353.23/$).