The foreign exchange market is one of the biggest and most liquid markets in Nigeria, with billions of Nairas been exchanged on any given day between thousands of Nigerians.
The foreign exchange market in Nigeria covers all of these aspects: buying, selling and exchange of different currencies at a determined or current price. The exchange rate in Nigeria and globally is determined by this market.
Based on exchange transactions volume, here is a quick look at Six (6) most popular foreign currencies in Nigeria.
The most popular foreign currency in Nigeria, as well as the whole world, is the United State of America currency popularly known as the US Dollar. The currency code is USD and its symbol is generally regarded as the dollar sign ($).
Due to the U.S. Dollar’s global acceptance, many other countries use the US Dollar as their official currency in lieu of a local currency while some use it as an alternative form of payment. The central bank that controls this currency is called the Federal Reserve System or simply Federal Reserve.
The popularity of the US Dollar in Nigeria is due to the power that the currency carries as the number one most traded currency in the world and also because it is used as the standard currency for most commodities money can buy.
The Euro is another strong foreign exchange currency in Nigeria after the United State Dollar. The currency is also the second largest and second most traded currency in the global foreign exchange market.
Among the 28 members of the European nation, 19 out the 28 use Euro as their official currencies. The currency code for Euros is EUR, and the symbol for the currency is €.
Aside from being the official currency of most European nations, many nations within Europe and Africa peg their currencies to the Euro so as to stabilize the exchange rate. The currency is regulated by the European Central Bank.
Another popular foreign exchange currency in Nigeria is the British Pound also known as the Pound Sterling or by the nickname “The Queens Currency”.
Pounds is the official currency of the United Kingdom, Jersey, Guernsey, the Isle of Man, South Georgia and the South Sandwich Islands, the British Antarctic Territory, and Tristan da Cunha. The currency code of the Pound is GBP and the symbol of the currency is £.
Due to its high value relative to its peers, the pound is also an important currency benchmark for many nations and acts as a very liquid component in the forex market. Pounds uses coins and banknotes. The Bank of England is the central bank in charge of British currency.
The Canadian Dollar is which is the official currency of Canada stands as the 4th most popular foreign currency in Nigeria. Approximating to over 2% of the global foreign exchange market, the Canadian Dollar is also one of the most traded currencies glocally. Countries such as Saint Pierre and Miquelon unofficially use the Canadian Dollar.
It is also one of the top traded currency in the foreign exchange market in Nigeria. The currency code is CAD and the currency symbol Is $ or C$. The Canadian Dollar banknotes are$5, $10, $20, $50, $100 while the coins are also as follows, 5¢, 10¢, 25¢,$1,$250¢, 1¢. “Bank of Canada” controls the flow of money in Canada.
The 5th most popular currency in Nigeria foreign exchange market is the Ghanaian Cedi. It is the most commonly Africa traded currency by in Nigeria. The currency code is GHS and the currency symbol is GH¢.
The Ghanaian Cedi has its plural form as Cedis. This currency uses both banknotes and coins. The banknotes of Ghanaian Cedis are GH₵ 10, Gh₵ 20, Gh₵ 5, Gh₵ 1, Gh₵ 2, Gh₵ 50 while the coins are GH₵1, 10 Gp, 50 Gp, 1 Gp, 20 Gp, 5 Gp. The central bank of Ghana that issues Ghanaian Cedis is called Bank of Ghana.
Due to the relationship between Nigeria and South Africa, the South African Rand is ranked as the 6th most popular foreign currency in Nigeria. The Rand is the official currency of South Africa. The currency code is ZAR and the currency symbol is R.
The central bank of that manages and regulate the currency is known as the South African Reserve Bank. The Rand is legal tender in the Common Monetary Area between South Africa, Swaziland, Lesotho, and Namibia, although the last three countries do have their own currencies pegged at par with rand. This currency uses both coins and banknotes. The coins are 20 cent euro coin, 10 euro cent coin, R1, 50c, R5, R2 while the banknotes are 20 cent euro coin, 10 euro cent coin, R1, 50c, R5, R2.