Dollar was devalued most during objs tenure .

paddy_lo:

There was no reason for the Naira to exchange 1 - 1 with the dollar in the first place

It was an artificially strong Naira,that was backed by no real productive base

It only encouraged imports of all kinds of nonsense into Nigeria

The Naira today is where it should be. . .

go and check out the exchange rates of countries like Japan,Turkey and Indonesia

A weak currency encourages,industrialization and manufacturing of goods in the home country
because imports are more expensive. . .but when u export u get more money for your exports

I dont want the naira to ever get below N120 - $1

easy bro. . . .

exchange rates and productive base

doyin13:

easy bro. . . .

exchange rates and productive base

paddy_lo:

There was no reason for the Naira to exchange 1 - 1 with the dollar in the first place
A weak currency encourages,industrialization and manufacturing of goods in the home country
because imports are more expensive. . .but when u export u get more money for your exports

I dont want the naira to ever get below N120 - $1

paddy_lo:

any question u need to ask?. . go ahead

While this postulation works perfectly well in other countries, the opposite is the case in Nigeria as the country's production capacity has continued to degenerate in perfect rhythm with the value of the Naira. Could this have been caused by other factors such as power?

For our leaders, it is clear that Nigeria started her downward slide during the IBB era, an era continued by Abacha and aggravated by OBJ.

Now, IBB is scheming to come back, perhaps to finally kill the Naira and the country!

u cant divorce the issue of power from the low manufacturing in the country

Although manufacturing is growing today,it still grows at 3% a yr,whearas it should be growing double digits to make a huge difference

However,for Nigeria a strong Naira is not an option,because we will import everything in the world
even down to toothpicks

we have to go with a weak currency,sort out the power problems and u will see more companies like

Innosson auto,Innosson Tire,Dangote cement, GZ industries,TATA motors and so on set up

If the Naira is 1 -1 today,why would Innosson set up a plant in Nigeria?. . .

when he can import a fully built bus for N30,000. . . assuming it costs $30,000. . .

thats the problem with strong exchange rates. . .

From your logic, one should require less yen to exchange for the dollar than say the
tunisian dinar since japan has greater productive base than tunisia.

@paddy lo

then why does anybody bother having a static exchange rate
if a weaker exchange rate is better.

every economy would simply continue devaluing their currency
in a continuous case of oneupmanship in order to give their
exporters an edge.

But not in Nigeria . . . we still consumes and yet we have devalued currency

Your economics is still pretty scruffy.

The dynamics are way more complex than you have
outlined here.

The primary aim of most central bankers is stability.

Central Banks will intervene at times to shore up or
weaken their currencies, but the kind of precipitous
devaluation seen with the Naira was a recipe for disaster based
on any economic theory.

Fhemmmy:

Most Nations that has brain and devalued their own money against $$, they always have something to show for it.
Manufacturing ought to be better
Influx of business to that nation ought to be booming.
But not in Nigeria . . . we still consumes and yet we have devalued currency

KnowAll:

1 Kuwaiti Dinar = N540.00
1 Maltese Lire = N450.00
I think I am in the wrong country

Thank you!! So a stronger Naira makes sense since we import still over 90% of that which we need and use in the country. We are no where near where countries like Japan, China, Kuwait etc are.

u were bemoaning the fact that Nigerias foreign reserves are running low

Now u are asking for a stronger Naira

Is it that u are a troll that doesnt understand what u stand for?

or u are an anywhere belle face type,just making noise in all threads with no point. .

Just to be clear to u.  .u can want a stronger naira. . but dont weep about low reserves in the same breadth.cause the reserves is what the CBN uses to defend the naira

U can cliam its ok to import 100% of all our needs. . .but dont come complaining about declining reserves cause it is the reserves the CBN uses to fund imports

u cant have it  both ways. . but of course this will as usual fly way over your head. . . .

idupaul:

Naira was devalued most during objs tenure .

Fhemmmy:

Most Nations that has brain and devalued their own money against $$, they always have something to show for it.
Manufacturing ought to be better
Influx of business to that nation ought to be booming.
But not in Nigeria . . . we still consumes and yet we have devalued currency

KnowAll:

1 Kuwaiti Dinar = N540.00
1 Maltese Lire = N450.00
I think I am in the wrong country