Why does dollar currency has value more than naira??

[Oluwasegun purpose]

Although am new to making money online I have been hearing that dollar currency is more valuable than naira which shocked me when I first heard it because I used to think that all the countries in the world had the same money value it was just the paper printing that was different until I got to know that 1$ which belongs to American counties is worth #500 in Nigeria.

That's half the amount of the highest printed currency of Nigeria which is #1000 so I got to one of my uncles house and got 1$ and took #1000 out of my saving box and am wondering now how dollars came to gain more value than naira.

So I want to ask why dollar has more value than naira and other currencies is it the economy or what??

 

[sincerem]

When it comes to dollar, different countries makes use of it, you need to be specific, we have the Canadian Dollar, U.S dollar, New Zealand dollar, Taiwan dollar, Singapore dollar, just lots of them. That's why you need to be specific when it comes to asking this sort of question. If you're talking about USD, then i have to say,
USD is growing everyday better than Naira due to the country being United States of America working extremely hard to put value in their fiat currency. When you country care less about productivity to the foreign exchange market, then it means that, it's currency gonna depreciate. A country needs to be more direct when it comes to depot than import, most of the time Nigeria is a country that derives joy importing raw materials, finished goods from overseas, making their currency to have value. You just need to ask yourself, what is your country producing or providing to the world as a whole that is justifiable? If your country is making isn't bringing in-demand products or services to the foreign exchange market, then, it's currency isn't going to grow.

 

[Suba]

Even when the USD is no longer pegged to gold, the price of gold is always related to the value of the USD. Many factors can affect the value of USD against Naira (local money) such as inflation rate, GDP, export value, balance of payments, interest rates etc.
USD is more stable than currencies from other countries, so USD is used as an international payment instrument. The weak exchange rate of the Naira (and local currencies of other countries) was also caused by limited foreign investment.

 

[Ithedicious]

It depends on so many things , the reason why a currency is valuable is because of what they offers to other countries .

Since we are using the dollar as an official currency for buying of goods and services , therefore if a country really wants to improve the economy and the strength of their currency , they really have to go into a serious economic revival .

Revival in the sense that they have to increase their production of materials needed outside the country.

When this is being done , a lot of people will always buy from you In dollars making your currency valuable.

And if also it happened the other way around that people are not really buying anything from you using the dollars, automatically your currency can reduce in value and this is always as a result of bad economy of a particular country .

There was a time in which the economy of our country was so perfect to a point that people were able to exchange $1 to 1 Naira then, but because of bad leadership skills the economy of our country is going down and as a result of this people are losing interest in our currency making it less valuable .

 

[Flow-er]

Majorly the answer the question that you ask is very straightforward and the answer is not far fetched . The major reasons why one just need to be very skeptical of the whole thing is the rates at which the naira loses value against the dollar. To me that is indeed a pathetic situation . Economist will measure the state of the economy by the dollar rate. The amount we exchange the naira for the dollar will tells so many things about our economy. Unfortunately, I am not an economist , but I will try to see it from a very simple perspective for you to have a grasp of the true picture.

The inflation rate is the major determinant of the naira losing great value against the dollar which is used as a standard for measuring the the value of the fiat currency. Inflation is when we have a very big amount purchasing very little quantity of goods . In other words, the Inflation is when the price of commodities keeps rising at an alarming rate. This will make the naira lose its purchasing powers. What we should keep asking ourselves is that what is the cause of the Inflation. Good, inflation is caused when we import so many commodities or when our local manufacturing companies can't meet up with the country's demand.