Good day every body.

Here is the shocking truth,the exchange rate of a nation/value of their currency is not tied to the performance of the nations economy.

The economic health of a nation can not determine the value of their currenecy.

A country can be doing very well and still decide to have a very low exchange rate/low value of their currency.A good example of such nations are China,Japan and Korea.On the other hand a country can be performing averagely or badly and still fix a very high value for their local currency.Ghana is a good example of such a nation and many Arab/northern African countries.

The Japanese economy is way,way better than the Nigerian economy yet the ex rate of their currency doesnt reflect this reality.

The Chinese,Japanese,Koreans have decided to maintain a lower exchange rate that doesn't correlate with their economic development/success, because of trade reasons.These countries are economically developed countries so the value of the currency should be in the same league with the Us,Britain,but they choose the other routes because it will favor their economy.

The Chinese and co, intentionally maintained a low value of their currencies in order to out sell their rivals in Europe ans America.

The Nigerian economy is better than Ghanaian economy yet their currency has a higher value than ours,because they are wiser with their economics.

We have been made to believe that the reason why the value Naira keeps plummeting is because of the poor performance of the nation,but the truth is the Nigerian economy handlers are a big economic disaster.Nigeria is not doing badly as most people think,our privates sectors are one of the best performers in Africa.

Despite our poor economic condition as they claim we can still fix a very,very reasonable exchange rate for the country.We must use the economic laws to our advantage,not to our disadvantage.

In a world where nations fix the value of their currency,we leaders should act wisely and fix a reasonable exchange rate that will remain stable for decades.

Handlers of the Nigerian economy have been hurting the nation with their continuous acceptance of the devaluation of the Naira. If the handlers of the Ghanaian economy are wise enough to make wise decisions our own should not be different.

Having lots of degrees doesnt make a man economically wise/honest.The so called academia's must be relegated to the class rooms for Nigeria must progress,because they got their certificates from the class rooms,not through practice.Kindly note:Most of the richest men in the world,who are impacting the global economy with their innovative ideas dont posses much of all these class room degrees.

Its obvious the "Professor" titles dont bring professional Nigerian solutions to the country.

The Nigerian currency must not be devalued when ever their is a small economic problem.
Nigeria is still trying economically,check our various privates sectors you will find development,innovation and progress.

informative.. kudos op

Devaluing the Naira is more like 419,and part of the resolve of the present government to deeply punish Nigerians,their reasons I don't know
Because the primary responsibility of the government is the security and welfare of the people,so for the government to be deliberately punishing his citizens,seems very weird to me
No sound economics support this madness

this op is very poor in economics. Those asian nations deliberately lower their exchange rate cos they're goods producing countries. Its easier to redenominate one's currency but its d strenght of d economy that'll sustain it.

Nice one OP but they're some mistakes in your write up. For starters, Japan's currency is stronger than Nigeria's own.
For those that understand, Asian countries like China and other major exporting countries keep their currency low to attract more foreign buyers.


If you ask me we should just use a standard rate of #500 to a dollar, #550 to a euro and #600 to a pound.

And where did you get the idea that the Nigerian Naira has more value than the Japanese yen from? You Nigerians like living in ignorant self deceit ..you came here to open thread without first even checking the facts

The OP is on point and you are the people we must watch out for.

My only disagreement with the OP is that devaluation has nothing to do with Economics. It is a POLITICAL problem Europe and America use to dictate to developing countries.

China was smuggled into WTA world trade to spite Russia. The rest is history.

Even when Africa has anything to sell, they buy them dirt cheap and control them into their markets only if it is in raw materials.

AGOA Obama thought would help African countries was sabotaged as not "meeting std". But our raw Uranium, Gold, Diamond or even oil did meet standard.

Ask yourself how Zimbabwe money became cheaper than toilet paper after Mugabe got tired of their promises and took their ancestral land back from their white cousins.

theenchanter:
this op is very poor in economics. Those asian nations deliberately lower their exchange rate cos they're goods producing countries. Its easier to redenominate one's currency but its d strenght of d economy that'll sustain it.

Join the movement...

This shit hole is breaking up slowly but steadily... I laugh at anyone who feels there hope for this country... There is more hope for Afghanistan than Nigeria....



Everyone knows we're rich in every single thing except human development..

So lol everyone is just waiting for it to break so that they can Scramble for it... China being wise is making investments already... You wont see trains in the south, but you will see them were the Chinese feel there will be a lot of confusion after the break hence pretending to put everything back on will quench the confusion and turn the people to slaves....



The only people I pity are the middle beltans because the little christianity left there will be quenched should a break occur...because as the maps say there are in the middle belt but are still part of the north......



The yoruba's are like wolfs very intelligent and very hard working,but the dog part of a wolf has made him loyal to the bird just because it has wings... The bird eats up everything the wolf helps catch and remains just enough to keep the wolf loyal... But imagine a pack of wolfs ruled by wolfs .



The ibgos..are elephants very powerful and majestic and can make it we're everyone else can't.., but when it comes to putting forces together everyone starts remembering which elephant lives in the jungle, or which lives in the plains or which lives in the Savannah.. they too have become loyal to the bird not because it has wings but because each group of elephants have sent envoys without the knowledge of each other to the bird who tells each of them the same thing and that is "you are greater than your brother" a lie they believe.



The Niger deltans.. are a group of bees living together in a colony providing honey to the bird who promises not to eat them provided they shut up and keep producing honey.. even when the the bird is also spoiling their comb by taking more than honey.. they don't complain because when they do the bird eats few of them and no other bee wants to be eaten so a swarm of bees who are a million more plentier and stronger shuts up...the queen bees prefer to be submissive even when they are a greater foe.....



Whose the bird, I'll leave you to answer..



Here's to who we are!!

Bunch of hypocritical cowards...

But not for long fellas..



#join_the_movement

theenchanter:
this op is very poor in economics. Those asian nations deliberately lower their exchange rate cos they're goods producing countries. Its easier to redenominate one's currency but its d strenght of d economy that'll sustain it.

You are the one very poor in economics.I stated that fact in my write up.

strenght of d economy that'll sustain it

The strength of ones economy has less to do with the value of the currency.
ask Ghana.

Its all about intelligent mgt.

The Japanese currency is a mistake i will correct it.

How come the Ghanian cidi is way higher than the naira when we have a solid economy than them?.

We better than the Ghanaian in almost every thing na.

The Japanese currency is a mistake i will correct it.

Some years back the naira was higher than the yen.Sorry guys

How come the Ghanian cidi is way higher than the naira when we have a solid economy than them?.

We better than the Ghanaian in almost every thing na.

LikeAking:
The Japanese currency is a mistake i will correct it.

How come the Ghanian cidi is way higher than the naira when we have a solid economy than them?.

We better than the Ghanaian in almost every thing na.

Ghana redominated their currency by removing 0000.....That is not an economic. Improvement...

GamalNasser:
And where did you get the idea that the Nigerian Naira has more value than the Japanese yen from? You Nigerians like living in ignorant self deceit ..you came here to open thread without first even checking the facts

Pls focus on the msg.Years ago the Naira was higher.Although thats not an excuse.

The value of the Jap Yen @ y1 to N3.59 is shocking despite their huge scale development.The value of the Japanese currency should be higher na.

These guys are manipulating their currency to their favor,while our Nigerian leaders are manipulating our currency to the favor of the west.

Bottomline:Nations can fix their exchange rates their way.

Nations are not tied to any econs law.

LikeAking:


You are the one very poor in economics.I stated that fact in my write up.

strenght of d economy that'll sustain it

The strength of ones economy has less to do with the value of the currency.
ask Ghana.

Its all about intelligent mgt.

u're poor in economics cos u don't know d diff between "exchange rate" and "value of a currency". And yes, d nigerian naira has more "value" than d ghanaian cedis.

CilicMarin:


Ghana redominated their currency by removing 0000.....That is not an economic. Improvement...

If they redominate the Naira poverty in Nigeria may reduce by almost 30%, and if it remains stable poverty will dissapear gradually from the country.

One of the reason why Nigeria complain of endless poverty is because the naira keep loosing its value.Whatever Nigerians save and invest in will be eroded by the forces of poverty disguised as hyper inflation.No wonder Nigeria is the poverty capital of the world.

The multimillionaire with 5 million naira in his account in 1991, is now poorer because of the forces of inflation.

Ghana predominating their currency is a big economic improvement.The moment they made that move,MANY companies relocated from Nigeria to Ghana.Today Nigeria is the poverty capital of the world,while Ghana is growing above that class.

That great revaluation move attracted lots of foreign investments.

So its a big achievement for Ghana.

theenchanter:
u're poor in economics cos u don't know d diff between "exchange rate" and "value of a currency". And yes, d nigerian naira has more "value" than d ghanaian cedis.

How?

Value is tied to price in biz/econs my brother.

In some cases the ex rates dont mean higher value in reality,but the naira/cedi case is diff.



eg Gold is higher than silver.

No wise man will keep in money in an economy where depreciation of her currency is endless.

No wise business man will keep the Naira because its highly unstable,they will opt for the cedi instead.

The exchange rate of Gh has sid it all sir.

Foreign investors will pick Gh over Ng any day.

The fact that you spend more Naira to buy the Cedi meanS the Cedi is of a higher value than Naira,else their will be no need for such a transaction.

LikeAking:


How?

Value is tied to price in biz/econs my brother.

eg Gold is higher than silver.

No wise man will keep in money in an economy where depreciation of her currency is endless.

No wise business man will keep the Naira because its highly unstable,they will opt for the cedi instead.

The exchange rate of Gh has sid it all sir.

Foreign investors will pick Gh over Ng any day.

bros, I don't want us to drag this issue.

But if u think d Ghanaian cedis is valuable than d naira, just select some global goods and compare d prices of those goods in Nigeria and Ghana.

theenchanter:
bros, I don't want us to drag this issue.

But if u think d Ghanaian cedis is valuable than d naira, just select some global goods and compare d prices of those goods in Nigeria and Ghana.

Please help me check it.

Life in their country is berra than ours becos of great ex.

Dev countries in Africa must have a great ex rate else poverty will ruin us.

We are taking about price stability here.

We need stable fx rates.

laiperi:
The OP is on point and you are the people we must watch out for.

My only disagreement with the OP is that devaluation has nothing to do with Economics. It is a POLITICAL problem Europe and America use to dictate to developing countries.

China was smuggled into WTA world trade to spite Russia. The rest is history.

Even when Africa has anything to sell, they buy them dirt cheap and control them into their markets only if it is in raw materials.

AGOA Obama thought would help African countries was sabotaged as not "meeting std". But our raw Uranium, Gold, Diamond or even oil did meet standard.

Ask yourself how Zimbabwe money became cheaper than toilet paper after Mugabe got tired of their promises and took their ancestral land back from their white cousins.

devaluation is more of economics than politics and any African country devaluating its currency artificially will suffer the burn because Africa, for a long time has been import dependent while exporting no finished goods but raw materials and agro products only.

And since the value of a currency is attributed to the amount in the nation's foreign reserve, Africa's export earning is minuscule compared to developed economies exports which are mostly finished goods.... Check the price of cocoa and chocolate.

LikeAking:


Pls focus on the msg.Years ago the Naira was higher.Although thats not an excuse.

The value of the Jap Yen @ y1 to N3.59 is shocking despite their huge scale development.The value of the Japanese currency should be higher na.

These guys are manipulating their currency to their favor,while our Nigerian leaders are manipulating our currency to the favor of the west.

Bottomline:Nations can fix their exchange rates their way.

Nations are not tied to any econs law.

good point op but a nation.cannot manipulate her currency if she is not exporting.

LikeAking:


Please help me check it.

Life in their country is berra than ours becos of great ex.

Dev countries in Africa must have a great ex rate else poverty will ruin us.

We are taking about price stability here.

having great fx rate but poor economic outlook is worse, u should get that. Good economy don't need "great fx" to look good, fx takes care of itself in good economy and not artificially induced like Ghana's case.

LikeAking:
We need stable fx rates.

we need to export more to have stable fx. our corrupt economists will not say the truth.

FG should revalute the naira and keep it stable for years.

The countries in Africa play to easy with the laws associated with inflation and deflation.

We are too quick to reduce the value,ex rates of our currencies after every little set back and do nothing to restore our ex rates the moment we overcome our obstacles.

If the Naira will remain at this ex rate for 20 years many Nigerian willl be free from poverty.

LikeAking:
We need stable fx rates.

we can't have it cos the price of crude oil does that.

We should export more diversified goods.

joyandfaith:


we need to export more to have stable fx. our corrupt economists will not say the truth.

Correct.

We should also import less from them.

[b]Despite our poor economic condition as they claim we can still fix a very,very reasonable exchange rate for the country.We must use the economic laws to our advantage,not to our disadvantage.
[/b]Where will you get foreign currency to sustain it if you decide to fix it at a reasonable figure coz our foreign reserve cannot do that over a long period of time neither are we generating alot on income from crude sell considering the government need money to keep going unlike country like Qatar tht have pegged their 3.62tar riyan-1$ since I got to know about that country over 5 years coz they are generating alot of income from their sell of gas & involved in alot of infrastrural project considering the fact that their population is small.

theenchanter:
this op is very poor in economics. Those asian nations deliberately lower their exchange rate cos they're goods producing countries. Its easier to redenominate one's currency but its d strenght of d economy that'll sustain it.

What is ghana producing that they export daily to boost their forex and strengthen their cedi?

yaki84:

What is ghana producing that they export daily to boost their forex and strengthen their cedi?

Ghanaian cedis is not strong.

theenchanter:
Ghanaian cedis is not strong.

But its givig its citizens a brighter future and hope/better life.

Nigeria should stop devaluting their country,no matter what.

If countries like China,Japan and co will break all the rules for the sake of the survival of their economy we should do the same.

We shouldn't make the IMF and co our slave masters.

We are not the only country owing.

LikeAking:


But its givig its citizens a brighter future and hope/better life.

Nigeria should stop devaluting their country,no matter what.

If countries like China,Japan and co will break all the rules for the sake of the survival of their economy we should do the same.

We shouldn't make the IMF and co our slave masters.

We are not the only country owing.

u're not coherent and it shows u know nothing about d economics of nations.