The Dollars has vigorously increased against the Naira now making room for people of Nigeria to start inciting extremist and abusive comments against the administration of today and then doubting the sincerity of the economic system of today.
Any currency is being valued at the level of exportation and importation of goods in a country and also the level for exchange of currencies.
If your importation is very high probably due to projects being carried out by private and public institutions or companies the currency is devalued or will painstakingly fall.
When your currency rises:
your currency will rise when you have a large tourist attractions making tourists to visit your country very often and now demanding a high increase exchange of currency notes or bills thereby your currency rises against the standard value and an increase in exchange rates.
What about the case of Nigeria?
For the case of nigeria we mostly experience fall in Naira during december and festive seasons because of the high demand for importation of food, cooking utensils, electronics etc.
Why has the naira fallen so low?
You know that Nigeria is in a critical development stage in our democratic system and we have elections coming up and people are afraid of unknown events that may come up.
The politicians that owns businesses no longer wants to invest in any business idea for now until the election becomes a history in Nigeria there are monies and lots of monies being thrown into the election, i dont want to start calling names its not part of why i am here.
The foreign investors are also afraid of losing their money to war breakout, there are still fears that war may breakout in Nigeria.
And another reason is the politicians that are sending their kids and families abroad for security reasons.
What are we to do?
As for me i will direct that question to the politicians cause the opposition party and the Apc are still the same corrupt human beings inhabitting the parties that have only their personal interest at heart but my suggestion is that don't put every blame on the Federal Government we have a collective responsibility to ensure that things go well in our country called Nigeria.
We can try by putting our country first.

Let me be sincere i am an Apc supporter we Nigerians are all corrupt we should work on ourselves first before trying to correct another person's error, like the saying goes the spec in another man's eyes and the log in your own eyes.
Am trying to be as unbiased and impartial as possible.
Thanks.
Thanks for coming Prof. Bolasayo!
It's my pleasure

Whilst I agree with him to a large extent, I also have issues with the CBN. They should be able to guard the naira to a large extent with what we have in our foreign reserves thereby, cushioning the effects for us.

GboyegaD:
Whilst I agree with him to a large extent, I also have issues with the CBN. They should be able to guard the naira to a large extent with what we have in our foreign reserves thereby, cushioning the effects for us.

So as to allow "political relevance addicts" accuse them of squandering foreign reserves?

You are right to an extent!

@OP, I see your knowledge of the financial system is quite very low. How would you attribute the Naira woes to import-export deficit as well as raw fund alone? When these factors may not contribute more than 20% of the reason?

Wait, do you follow what is happening in Russia? Putin? The Rouble woes?

And secondly, Naira devaluation, FYI, can be a deliberate attempt to salvage our system that is over-dependent on oil which is crashing in value.

Just that these days, topics that make FP lack substance. SMH vigorously.

GboyegaD:
Whilst I agree with him to a large extent, I also have issues with the CBN. They should be able to guard the naira to a large extent with what we have in our foreign reserves thereby, cushioning the effects for us.

Not really

J12:


Not really

Perhaps you should explain better.

The OP is cluesless trying to defend jonathan who does not save enough money when crude oil was soild at 110$
You know nothing about economy so please shut up, the effect of election on naira is just under 5%
the major effect is because of out empty foreign reserve and price of crude oil

BestNaija:
@OP, I see your knowledge of the financial system is quite very low. How would you attribute the Naira woes to import-export deficit as well as raw fund alone? When these factors may not contribute more than 20% of the reason?

Wait, do you follow what is happening in Russia? Putin? The Rouble woes?

And secondly, Naira devaluation, FYI, can be a deliberate attempt to salvage our system that is over-dependent on oil which is crashing in value.

Just that these days, topics that make FP lack substance. SMH vigorously.

He must be one of the clueless PDP goons

I understand that the dollars is stronger that what it used to be and all major currencies are falling against it ,and as such our CBN has done its best to cushion its effects.

bettercreature:
The OP is cluesless trying to defend jonathan who does not save enough money when crude oil was soild at 110$
You know nothing about economy so please shut up, the effect of election on naira is just under 5%
the major effect is because of out empty foreign reserve and price of crude oil

So what causes foreign reserves to be empty(im sure you meant 'reducing'?

BestNaija:
@OP, I see your knowledge of the financial system is quite very low. How would you attribute the Naira woes to import-export deficit as well as raw fund alone? When these factors may not contribute more than 20% of the reason?

Wait, do you follow what is happening in Russia? Putin? The Rouble woes?

And secondly, Naira devaluation, FYI, can be a deliberate attempt to salvage our system that is over-dependent on oil which is crashing in value.

Just that these days, topics that make FP lack substance. SMH vigorously.

You seem to be the only one who doesn't understand basic economic concept.. Russia saved over $500bn which is about 25% of its GDP and it has pumped about $50bn to save the rubble.. Russia is under sanction while Naija is not. If savings are not good as we are being told, why is the GEJ tapping on inherited savings to fund the budget? Reserves are meant to boost economy in difficult times through fiscal policies like govt spending and monetary policies like quantitative easing

adconline:

You seem to be the only one who doesn't understand basic economic concept.. Russia saved over $500bn which is about 25% of its GDP and it has pumped about $50bn to save the rubble.. Russia is under sanction while Naija is not. If savings are not good as we are being told, why is the GEJ tapping on inherited savings to fund the budget? Reserves are meant to boost economy in difficult times through fiscal policies like govt spending and monetary policies like quantitative easing

Those who are sentiment like you will never accept the fact that the sanction against russia is one of the major reasons for the naira problem and the general fall in oil prize

Why would someone always be onesided in their opinion. We knew the politics that went into the savings that you guys are talking about. Why are we talking as if we can't remember what happened in the past. Who were the people who fought the government to stop the savings inother for them to have their own share. Have you forgotten that the CBN governor then now the emir of Kano also used those reserves to defend the naira and they stopped when they realise it was not sustainable. Why didn't those state save their own money as the federal did. That is why i say when many people play politics in Nigeria, they forget the most important thing which is Nigeria.

cooljude:
Why would someone always be onesided in their opinion. We knew the politics that went into the savings that you guys are talking about. Why are we talking as if we can't remember what happened in the past. Who were the people who fought the government to stop the savings inother for them to have their own share. Have you forgotten that the CBN governor then now the emir of Kano also used those reserves to defend the naira and they stopped when they realise it was not sustainable. Why didn't those state save their own money as the federal did. That is why i say when many people play politics in Nigeria, they forget the most important thing which is Nigeria.

Only a fool would believe you. How come Naira never lost more than 15% of its value in 5yrs while it has lost about 40% in a year? If SLS used reserves to shore up Naira, how come our reserves weren't depleted? If savings are not Good to stabilize Naira, why are they good to be tapped as emergency money to fund govt budget?

Kedam:
Those who are sentiment like you will never accept the fact that the sanction against russia is one of the major reasons for the naira problem and the general fall in oil prize

There is no correlation between Sanctions on Russia and Sliding Naira value..
Give your numbers!

adconline:

Only a fool would believe you. How come Naira never lost more than 15% of its value in 5yrs while it has lost about 40% in a year? If SLS used reserves to shore up Naira, how come our reserves weren't depleted? If savings are not Good to stabilize Naira, why are they good to be tapped as emergency money to fund govt budget?

I remember vivdly when SLS said he was defending naira with the foreign reserve but they stopped because it was not sustainable, google it and do some research for yourself. The fall in naira coincides with the fall in oil prices and you could check other OPEC countries without robust savings. My own take is that they should do anything to make sure that Naira regains it value.

GboyegaD:
Whilst I agree with him to a large extent, I also have issues with the CBN. They should be able to guard the naira to a large extent with what we have in our foreign reserves thereby, cushioning the effects for us.

Bros na theory be this. If you are not exporting anything to bring in dollar, the importers will finish the dollar reserve importing.

This is why the naira fall. If we begin export, the buyers will bring in dollar to buy our goods and we will have excess dollar to back naira. Take a look at china.

This is a layman explanatio

jdilight:


Bros na theory be this. If you are not exporting anything to bring in dollar, the importers will finish the dollar reserve importing.

This is why the naira fall. If we begin export, the buyers will bring in dollar to buy our goods and we will have excess dollar to back naira. Take a look at china.

This is a layman explanatio

Oga, have we stopped exporting crude, cocoa, and other stuff we exports? I know our net export is negative but not as bad as to wipe off our foreign reserves in a very short while.

GboyegaD:


Oga, have we stopped exporting crude, cocoa, and other stuff we exports? I know our net export is negative but not as bad as to wipe off our foreign reserves in a very short while.

When your export is negative will you not balance it? the balance is the devalue of Naira. If it was positive, the balance will be the value of naira.

jdilight:


When your export is negative will you not balance it? the balance is the devalue of Naira. If it was positive, the balance will be the value of naira.

The challenge here is not the net exports position but the fact that ours isn't a pure floating exchange rate thus, it is the duty of our Central Bank to safeguard our naira.