Exchange rate!!! what does it actually mean?

Exchange rate is the price of one currency in terms of another currency. Put differently it is the value of one currency for the purpose of conversion to another.

TYPES: Exchange rates can be either fixed or floating (Flexible).

Fixed exchange rates: This occurs when the government seeks to keep the value of a currency fixed against another currency. e. g. the value of the Naira is fixed at ₦1.00 = $322.500, thus Fixed exchange rates are decided by central banks of a country. Note on the exchange rate chat it is called cbn rate or fixed rate

Floating exchange rates: are also referred to as flexible exchange rates. This exchange rates are determined by the mechanism of market demand and supply, in order words when the value of the currency is determined by market forces. Note on an exchange rate chart it’s called the parallel rate or black market rate. This is the rate at which the Aboki’s sell.. LOL.

for today's exchange rate see here Naira exchange rate

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