Fellow Nigerians, these are the countries that have weaker currencies than the naira in relation to the USD, the global conversion currency of the world.

How has the mighty giant of Africa fallen this low? If we continue like this, we will overtake Iran as the worst currency in the world. Imagine being the 21st worst currency out of 195 countries.

Congratulations to you all. The people get what they deserve.

🤦🏾‍♂️🤦🏾‍♂️🤦🏾‍♂️🤦🏾‍♂️🤦🏾‍♂️

A pity. Not even middle of the pack.

When T pain finished dealing with this country we'll be asking even Benin Republic to come and recolonize us again

Obeni

If some of these countries you displayed had 10 percent of both natural resources and human resources you have, you won't see them on that list.
The problem of Nigeria is not weak currency but purposeless leadership by Buhari and Tinubu under APC

T PAIN, e no go better for you, your family and your useless supporters.

Seefinish:
If some of these countries you displayed had 10 percent of both natural resources and human resources you have, you won't see them on that list.
The problem of Nigeria is not weak currency but purposeless leadership by Buhari and Tinubu under APC

Agreed. Nigeria had no business being at the bottom. It's so sad.

Seefinish:
If some of these countries you displayed had 10 percent of both natural resources and human resources you have, you won't see them on that list.
The problem of Nigeria is not weak currency but purposeless leadership by Buhari and Tinubu under APC

While I agree with you, our problem with weak currency predates Buhari and tinubu.

Issue is, we have a currency that is tied to the value of our raw materials. If we earn highly, we have a strong currency, because we use forex to buffer it. If we earn low, ie price of what we sell is low.....we have our currency losing value.

LIke now, in the period 1973-82, naira was essentially N1-1 dollar, even stronger than the pound at one point. Back then oil prices were so high, that most oil producing countries were enjoying boom economies. When the oil price crashed in October 1982....the good times ended, and naira began to fall. BY 1988, the same complaint you are making now, they made it back then. BY 1993, it was N20 to one dollar, and by 1999, it was 90 to one dollar.

We had the same cycle between 2008-14, when oil prices were high. Crash again

What Buhari did wrong was to essentially take forex we did not have to buffer the naira. OIl prices were too low. What he should have done back then was to float the naira, let it move freely, remove subsides, and so forth....but that was in 2015, and if he did that, he would have lost 2019 by a landslide.

So, he did what he did, and by the time his sidekick took over, the result of 8 years of preteding was that we had massive debt eating 99% of our revenue. TInubu was forced to do what should have been done in 2015, even earlier.

(ON subsides, people like GEJ saw the coming storm...thanks to his advisers like NOI and SLS, but as we know, Nigerians refused to support projects like subsidy removal back in 2012, that would have helped us over the storm today. And it was buhari and tinubu that led the projects. The result of their projects came to bite them in the ass, especially tinubu).

SO, here we are.

But even then, what we need to do to have a strong currency is to BECOME A PRODUCER NATION (what Obi harped on in the last runup to the election....but everyone was too busy to listen to him)....a nation that produces manufactured goods for export. That is why the yen, the won and the reminbi are strong reserve currencies, alongside the pound and dollars, and euro....because those countries hacked the secret.....manufacture goods the world needs for export.


But in Nigeria, we have leader after leader thant when they come into power, na to share money they know. A sensible leader wouldhave used our oil money to build more power stations, railways, and improve the grid...while removing subsides on everyhting except education. Result would have been a country ready to take on the world....but the problem is, our current leaders no wan do....because it means more hardship, and losing elections .

nairalanda1:


While I agree with you, our problem with weak currency predates Buhari and tinubu.

Issue is, we have a currency that is tied to the value of our raw materials. If we earn highly, we have a strong currency, because we use forex to buffer it. If we earn low, ie price of what we sell is low.....we have our currency losing value.

LIke now, in the period 1973-82, naira was essentially N1-1 dollar, even stronger than the pound at one point. Back then oil prices were so high, that most oil producing countries were enjoying boom economies. When the oil price crashed in October 1982....the good times ended, and naira began to fall. BY 1988, the same complaint you are making now, they made it back then. BY 1993, it was N20 to one dollar, and by 1999, it was 90 to one dollar.

We had the same cycle between 2008-14, when oil prices were high. Crash again

What Buhari did wrong was to essentially take forex we did not have to buffer the naira. OIl prices were too low. What he should have done back then was to float the naira, let it move freely, remove subsides, and so forth....but that was in 2015, and if he did that, he would have lost 2019 by a landslide.

So, he did what he did, and by the time his sidekick took over, the result of 8 years of preteding was that we had massive debt eating 99% of our revenue. TInubu was forced to do what should have been done in 2015, even earlier.

(ON subsides, people like GEJ saw the coming storm...thanks to his advisers like NOI and SLS, but as we know, Nigerians refused to support projects like subsidy removal back in 2012, that would have helped us over the storm today. And it was buhari and tinubu that led the projects. The result of their projects came to bite them in the ass, especially tinubu).

SO, here we are.

But even then, what we need to do to have a strong currency is to BECOME A PRODUCER NATION (what Obi harped on in the last runup to the election....but everyone was too busy to listen to him)....a nation that produces manufactured goods for export. That is why the yen, the won and the reminbi are strong reserve currencies, alongside the pound and dollars, and euro....because those countries hacked the secret.....manufacture goods the world needs for export.


But in Nigeria, we have leader after leader thant when they come into power, na to share money they know. A sensible leader wouldhave used our oil money to build more power stations, railways, and improve the grid...while removing subsides on everyhting except education. Result would have been a country ready to take on the world....but the problem is, our current leaders no wan do....because it means more hardship, and losing elections .

Seems like a brilliant analysis but it doesn't answer the question why Kuwait and Omani currencies are stronger than the dollar. They are not manufacturers of any goods but are known for oil just like Nigeria.

Saudi Arabia and Qatar also have strong currencies. They are only known for their oil. Our problem is simply bad leadership. Leaders borrowing loans, paying high interest and squandering the loans.

zed7:

Seems like a brilliant analysis but it doesn't answer the question why Kuwait and Omani currencies are stronger than the dollar. They are not manufacturers of any goods but are known for oil just like Nigeria.

Saudi Arabia and Qatar also have strong currencies. They are only known for their oil. Our problem is simply bad leadership. Leaders borrowing loans, paying high interest and squandering the loans.

Simple. All those countries produce far more oil than Nigeria, for populations that are less than Nigeria. (KUwait has 6 million people, Oman has about less than 20 million, Saudi has 40 million, and produces ten times what we produce in oil, Qatar has one million and produces nearly 1.2 m barrles per day)

So, per capita, they got more dollars to spend on buffering their currencies, than NIgeria, where, even assuming that our leaders were nice and good people that did not do looting, has limited amount of money.

As 'strong' as their economies are, most nations would prefer to do business in dollars, pounds, euros, and even chinese currency, and yen....because the countries that have those currencies are simply industrial exporters. Heck, I think that even swiss currency better pass Saudi.

And it cost those countries a lot of money to maintain strong currencies...when oil prices fell in 2014, Saudi spent over 100 billion dollars in ten months just to keep the riyal strong. (That led to some changes, including the government eventually setting up a soverign wealth fund).


Nigeria's problem is that we can't do as they do, because we have a large population to spend on. Yaradua was one of the most stingy presidents in NIgerian history, yet at the end he was able to save at least 60 billion dollars in our reserve. Too many people means that a lot of our oil revenue has to be spent meeting needs NOW.....and what we can save , even with prudence, is too little


Ultimately, we have to use our resources to manufacture stuff for export. That is the way. If oil becomes obsolete tomorrow, all those countries will fall.

nairalanda1:


Simple. All those countries produce far more oil than Nigeria, for populations that are less than Nigeria. (KUwait has 6 million people, Oman has about less than 20 million, Saudi has 40 million, and produces ten times what we produce in oil, Qatar has one million and produces nearly 1.2 m barrles per day)

So, per capita, they got more dollars to spend on buffering their currencies, than NIgeria, where, even assuming that our leaders were nice and good people that did not do looting, has limited amount of money.

As 'strong' as their economies are, most nations would prefer to do business in dollars, pounds, euros, and even chinese currency, and yen....because the countries that have those currencies are simply industrial exporters. Heck, I think that even swiss currency better pass Saudi.

And it cost those countries a lot of money to maintain strong currencies...when oil prices fell in 2014, Saudi spent over 100 billion dollars in ten months just to keep the riyal strong. (That led to some changes, including the government eventually setting up a soverign wealth fund).


Nigeria's problem is that we can't do as they do, because we have a large population to spend on. Yaradua was one of the most stingy presidents in NIgerian history, yet at the end he was able to save at least 60 billion dollars in our reserve. Too many people means that a lot of our oil revenue has to be spent meeting needs NOW.....and what we can save , even with prudence, is too little


Ultimately, we have to use our resources to manufacture stuff for export. That is the way. If oil becomes obsolete tomorrow, all those countries will fall.

Interesting angle but I still insist if our leaders didn't loot and borrow foolishly, we wouldn't be where we are.

Population is a good thing if the economy is stable. In 2019, it was reported that over 500 billion dollars has been looted so far. Imagine investing such amount Into the economy.

https://www.thecable.ng/chatham-house-582bn-stolen-from-nigeria-since-independence/amp/

This issue has been trashed severally on nairaland.
Don't be fixated on absolute exchange rate: It is not a measure of how good your economy is! If yes, Greece will have a better economy than China or South Korea....
Go and verify, it is not on KPI of any Central Bank in the world, neither is it a metric of economic growth!
What is required is stability and predictability of your exchange rate. That is why you heard your president stress on that in his independence speech. He's directing that at an audience.
Let's stick to what is important and improve our exports to make naira appreciate, if we are obsessed with absolute exchange rate.

Buccalcavity2:
This issue has been trashed severally on nairaland.
Don't be fixated on absolute exchange: It is not a measure of how good your economy is! If yes, Greece will have a better economy than China or South Korea....
Go and verify, it is not on KPI of any Central Bank in the world, neither is it a metric of economic growth!
What is required is stability and predictability of your exchange rate. That is why you heard your president stress on that in his independence speech. He's directing that at an audience.
Let's stick to what is important and improve our exports to make naira appreciate, if we are obsessed with absolute exchange rate.

why won't we be obsessed with exchange rate when we depends on importation. Do you we produce anything in Nigeria?

It's a serious cause for money, and our currency is still getting weaker by the day.

nairalanda1:


Simple. All those countries produce far more oil than Nigeria, for populations that are less than Nigeria. (KUwait has 6 million people, Oman has about less than 20 million, Saudi has 40 million, and produces ten times what we produce in oil, Qatar has one million and produces nearly 1.2 m barrles per day)

So, per capita, they got more dollars to spend on buffering their currencies, than NIgeria, where, even assuming that our leaders were nice and good people that did not do looting, has limited amount of money.

As 'strong' as their economies are, most nations would prefer to do business in dollars, pounds, euros, and even chinese currency, and yen....because the countries that have those currencies are simply industrial exporters. Heck, I think that even swiss currency better pass Saudi.

And it cost those countries a lot of money to maintain strong currencies...when oil prices fell in 2014, Saudi spent over 100 billion dollars in ten months just to keep the riyal strong. (That led to some changes, including the government eventually setting up a soverign wealth fund).


Nigeria's problem is that we can't do as they do, because we have a large population to spend on. Yaradua was one of the most stingy presidents in NIgerian history, yet at the end he was able to save at least 60 billion dollars in our reserve. Too many people means that a lot of our oil revenue has to be spent meeting needs NOW.....and what we can save , even with prudence, is too little


Ultimately, we have to use our resources to manufacture stuff for export. That is the way. If oil becomes obsolete tomorrow, all those countries will fall.

You too good abeg.... your analysis is top notch.

Population is one of the major factor of the problem in Nigeria, we are not producing enough and also not productive

They have opened the gates for these APC cocaine sniffers to compare currency

I laugh if you think your economy is better that that of 🇻🇳 Vietnam