Money is a necessary part of our lives. It’s what allows us to purchase the things we need and want, and it also allows us to pay our bills. No one knows this better than those living in countries where the currency is unstable or difficult to obtain. For those of you living in countries where the United States Dollar is the main currency, converting it to Nigerian Naira may be a requirement for some purchases. In this article, we will provide you with a quick guide on how to do just that.
What is the United States Dollar?
The United States dollar is the official currency of the United States of America. The dollar is divided into 100 cents. There are also paper bills in denominations of $1, $2, $5, $10, and $20.
The History of the United States Dollar
The history of the United States dollar begins with the 1792 Mint Act, which mandated that the United States create a standardized coinage. The coins were to be made of silver and copper and be worth one eighth of a sterling silver ounce.
In 1837, the dollar became backed by gold reserves and was named the “dollar” after President Andrew Jackson’s famous saying, “The government should not emit fiat money but should rely on its own physical currency.” In 1971, U.S. President Richard Nixon suspended convertibility of the dollar into gold and declared that the U.S. would no longer use a fixed exchange rate for its currency but instead float against other currencies. This decision gave rise to what is now known as fiat money.
Since then, there have been several attempts to restore convertibility into gold, but all failed due to political reasons or economic conditions. Today, the dollar remains fiat currency and is not backed by any physical assets.
How to Convert United States Dollar To Nigerian Naira
How to Convert United States Dollar To Nigerian Naira:
Step 1: Calculate the amount of dollars required to be converted. This will be the base currency amount.
Step 2: Take the 242.9 naira rate as the conversion factor and multiply it with the dollar amount to get the naira equivalent.
For this example, we will use $100 as our base currency and get 100 naira equivalents.
Nigerian Naira = 100 x 242.9 = 24295.6
Conclusion
In this quick guide, we have provided a handy table of currency conversions so that you can easily calculate the value of money in different currencies. As always, be sure to consult with a financial advisor if you need help making any important financial decisions.
