Pls, pardon my ingnorance.

This is when you need google.

It simply means to remove d value Naira... Just like dat

Google

It means relax regulation of the Naira's value and let it reflect the true purchasing power based on our trade balance.

Elnino4ladies:
Pls, pardon my ingnorance.

you are wise for asking question.
what it means is that. if you buy a bottle of coke for #70 today and tomorrow you buy that same quantity for #100. what happen there is that the value has drop. now compare it to foreign currency like dollar. if when $1=#100 as at yesterday and you order for a laptop @$100 yesterday and naira value drop due to the interaction between export and import. to say like $1=150. it means to buy that same laptop to hustle hard to make up for the balance. devaluation has its own advantage and disadvantage.

devaluation simply mean reductions in the value of your country currency in term of others value of currency in the world which lead to the increase in the price of goods and services(inflation)

Let me try and help:

To devalue the Naira means deliberate downward adjustment of the Naira by the statutory agency responsible, against other key currencies.

Because we are an import dependent country, the process will lead to inflation or higher prices for goods and services whilst income may remain fixed.

For example, if you earn N200,000.00, it will equate to $1,000 at an official "Dutch Auction System" rate of N200/$. When devalued to an assumed rate of N300/$, your income becomes less than $700.

Now, if all goods, consumables and services we require are produced locally, there will be no cause for alarm as the true worth of your money will be compared against the local currency, Naira. It also favours export to other countries. It also encourages investors.

Unfortunately, the devaluation of the Naira will bring untold hardship until Nigeria becomes more export dependent and diversifies her economy to bring in foreign earnings away from crude oil.

What the CBN is doing is to keep dollar supply at the benchmark rate of N199/$ to key stakeholders whose demand have major impact on the economy. The skyrocketing rate at the BDCs is based on forces of demand & supply for retail goods and purposes, which in my opinion, we can set aside or reduce appetite for at these trying times.

WinningSun:

you are wise for asking question.
what it means is that. if you buy a bottle of coke for #70 today and tomorrow you buy that same quantity for #100. what happen there is that the value has drop. now compare it to foreign currency like dollar. if when $1=#100 as at yesterday and you order for a laptop @$100 yesterday and naira value drop due to the interaction between export and import. to say like $1=150. it means to buy that same laptop to hustle hard to make up for the balance. devaluation has its own advantage and disadvantage.

tnks...am grateful

realborn:
Let me try and help:

To devalue the Naira means deliberate downward adjustment of the Naira by the statutory agency responsible, against other key currencies.

Because we are an import dependent country, the process will lead to inflation or higher prices for goods and services whilst income may remain fixed.

For example, if you earn N200,000.00, it will equate to $1,000 at an official "Dutch Auction System" rate of N200/$. When devalued to an assumed rate of N300/$, your income becomes less than $700.

Now, if all goods, consumables and services we require are produced locally, there will be no course for alarm as the true worth of your money will be compared against the local currency, Naira. It also favours export to other countries. It also encourages investors.

Unfortunately, the devaluation of the Naira will bring untold hardship until Nigeria becomes more export dependent and diversifies her economy to bring in foreign earnings away from crude oil.

What the CBN is doing is to keep dollar supply at the benchmark rate of N199/$ to key stakeholders whose demand have major impact on the economy. The skyrocketing rate at the BDCs is based on forces of demand & supply for retail goods and purposes, which in my opinion, we can set aside or reduce appetite for at these trying times.

wow! Tnk you veri much.