Five oil exporting countries, including Nigeria, Angola, Venezula, Azerbaijan, and Russia are mostly affected by falling currency value, Organisation of Petroleum Exporting Countries (OPEC) has said.

OPEC, in a paper detailing the impacts of recession on the global oil market, said the countries were picked among several others as having showing serious effects of fall in currency value.

The body said depreciation in the cuurency value is common in the in oil exporting countries, adding that whether it is the Venezuelan bolívar, or the Russian rouble, low oil prices are wreaking havoc in oil exporting economies and on their national currencies.

OPEC said: ‘’ In most cases, the scenario is similar: over the past decade, oil exporting countries used excessive revenues from oil to expand public services, or simply pursue populist policy in order to buy political stability. Once oil prices started to fall, the budgets did not shrink accordingly, which created a wide gap between the oil revenues and swelling fiscal demands.’’

According to OPEC, governments were forced to devalue their national currencies in order to stem the rapid outflow of foreign reserves.

‘’An unwanted consequence is almost always the rise in inflation and household prices, along with a decline in living standards and stalled economic growth,’’ it added.

OPEC gave a bit by bit accounts of impacts of falling curency value on the five countries thus.

Nigeria

Africa’s largest economy was hard hit by the falling oil prices. The national currency, the naira, dropped against the dollar by more than 50 per cent over the past year.

On January 20, the Federal Government requested $3.5 billion loan from the International Monet6ary Fund(IMF) and the African development Bank to plug its $15billion budget gap. The country’s oil revenues are expected to fall by 70 per cdent in 2016, while the hard currency reserves almost halved from $50billion to $28billion and the state’s emergncy fund went from $2 billion in 2009 to $2.3billion currently.

Azerbaijan

The former Soviet Republic is the first country to request a $4 billion emergency loan from the IMF and the World Bank in order to cover losses caused by low oil prices.

http://thenationonlineng.net/nigeria-four-oil-exporters-hit-by-falling-currency-value-says-opec/

Where is Saudi?

Where is Saudi? The whole essence of OEC is roduct regulation and price influence, it seems they are missing things.

From the way things are going Oil Prices wud drop to $1 per barrel soon.

The dead bone shall rise again

Abeg who read am finish make you nah summarize.

Na wa o. The way The Naira is falling, it would soon rediscover oil.

Kk, niger-deltans how market? In other news a bucket of clean water is now worth more than a barrel of crude (our oyel) time to use it to soak garri

1# to 1 dollar

Hmmmm, the price of palm oil come dey rise...
I need a miracle at least to turn water to oil, I mean palm oil pls

Lol.. So Buhari is making things worse for the rest of the world

Cos if our naira keeps falling, our oil price will keep dropping.. Forcing others to drop theirs to remain in the market..
Chai.. Elections was choosing between the Devil and the Deep Blue Sea..

We should have chosen the sea.. We might be lucky to stay afloat and drift to shore..

Might exceed N500/$ by December if not arrested. What a freefall.

This sad oil news again

We borrow to live in affluence.

What a country

Ok

I have never gotten up to 50 likes before please make una help me make i give testimony this sunday for church... Atleast a 100likes would do....

What happened to stabilizing price of crude oil as promised

Buhari sef

[i][/i]

ugo4u:
I have never gotten up to 50 likes before please make una help me make i give testimony this sunday for church... Atleast a 100likes would do....

let it fall let it fall let it fall. ...

ugo4u:
I have never gotten up to 50 likes before please make una help me make i give testimony this sunday for church... Atleast a 100likes would do....

To get likes.. U either provoke or excite pple.. I am 5 likes short of 27000.

But, who likes don hep?

kilokeys:


To get likes.. U either provoke or excite pple.. I am 5 likes short of 27000.

But, who likes don hep?

he should open 100 diff accounts and use it to likes himself...

laurel03:
he should open 100 diff accounts

Naah.
He needs to just talk sense in one... I have had 889 likes to a single post. Some pple have had more than that.

tola9jaa:
[i][/i]

Nawa o

kilokeys:


Naah.
He needs to just talk sense in one... I have had 889 likes to a single post. Some pple have had more than that.

don't mind him jare... May be he will show bank nairaland likes to collect money

Wat is even Opec's work.. they should regulate price and influx of oil ni... if they can't do it, den dia is no reason for its existence

omowolewa:
Where is Saudi? The whole essence of OEC is roduct regulation and price influence, it seems they are missing things.

The strategy has to change in face of blooming shale oil production from US. Cut production and you loose your market share to the shale oil producers. The new strategy is to flood market with cheap oil and use that to cripple their production which come on stream at higher cost.

mebad:
What happened to stabilizing price of crude oil as promised

He is jetting out to Egypt, Saudi Arabia and Qatar soon, hoping to negotiate a reduction in production so that prices can go up a bit.
Most oil production companies are operation above cost price and this isn't sustainable

Oil came up abit yesterday, $33 , Opec is working on it,some countries will freeze production to enable oil price rise ,meanwhile our currency is still as it is,airlines still selling tickets same price , just the black market that Emefiele doesn't know what to do about (obviously )

Long b4 now, experts had been urging the Nigerian Govt. to diversify its economy, now look at where we are. We need to look at other sectors like commercial agriculture and others. I still believe its darkest b4 the morning come. Nigeria will break forth and prosper again, by God we will

naso we go dey APC?