I even misunderstood this whole 20 pounds thing before.

What I thought was that bank records or something were lost, and everybody was getting 20 pounds regardless of the amount of cash they had before.

But what appears to have happened is:

1) Wealthy Biafrans took their money from Nigeria to Biafra
2) They exchanged this money for Biafra money
3) This money eventually became worthless
4) But they expected to be able to exchange the Biafra money for Naira at the same rate they converted


Unfortunately, this is not how life works. I bought a small amount of Hewlett-Packard stock a year ago, it has lost 30% of its value. If i want to sell today, I'll lose money.

Nobody is under any obligation to insulate you from risks like this.

Anyway, Katsumoto or someone else who is very well-versed in Nigerian history...why did Awo give them even 20 pounds?

He should have given them 0, no?

Him giving them something valuable (Nigerian pound) for something worthless (Biafra pound) was essentially a massive transfer of wealth from Nigeria to Biafra. In effect, Nigeria was paying for the Biafran war.

Why did he do this? Awolowo was wrong to have done that, in my opinion.

ekt_bear: I will print my own Bear Kingdom money, with an official exchange rate of 20 Bear Dollars to USD.

Clearly the US government would be evil to not accept my exchange rate, yes?

This whole discussion is r3tarded. Supply and demand, yes? If nobody wants to buy what you are selling at the price you want, then find another buyer, right?

How can the person SELLING Biafran pounds dictate to the buyer how much to buy it for?

If you don't like the price the Nigerian government is offering for your Biafran pounds, find another buyer who will give you hard currency for it.

Surely there would have been some Swiss or US bankers who would have been happy to exchange gold, dollars, or swiss francs for the valuable Biafran currency......

There are criteria for currency exchange. Ask any one who did macroeconomics. You are simply exposing your ignorance.

ekt_bear: Lord Almighty. Currency is one of the things you don't play with. If you exchange Nigerian pounds for useless Biafran currency, you'll create massive, Zimbabwe-style inflation.

God bless Awolowo for not doing something that stvpid.

God bless someone who seized all the money which Biafrans have in the bank before the war, only to issue £20 to the priviledged few?
What happened to a saying that victors should be magnanimous in victory? Yet, you wonder why the debate of what happened 42yrs ago is still raging. Awo was not an economist! Had it been that this issue was left to the economist to work out, this debate would not be raging up till this moment.

ekt_bear: So this whole 20 pound saga was you guys b1tching about Awo not giving you a nice exchange rate for your worthless currency?

Lord Almighty. So when does the loser of a war get to dictate to the winner at what rate the winner must buy his WORTHLESS currency
You are entitled to your opinion but not to your facts.

How can you make me buy something from you that you and I both know is worthless, which nobody else on earth has any interest in buying?

I ask again, can you prove that Biafran currency was worthless?

ekt_bear: My question at this point is, why did Awo even do the 20 pound currency?

Even that is too generous. The Biafran currency was worthless.

Perhaps I am misunderstanding what exactly the 20 pounds was in exchange for.

I ponder on that question too. He should not had given Biafrans anything to complete his wicked policies.

ekt_bear:
http://www.xe.com/ucc/convert/?Amount=1&From=AFN&To=USD

So currently, I can go visit my bank and purchase X units of Afghan currency for $1. If Afghanistan stabilizes or strikes oil somewhere, no doubt the demand for Afghan currency will increase.

You are not making sense. How much do you know about macroeconomics?

Anyway, this is pretty much supply and demand...like trading potatoes or wheat. Forex is actually the biggest market by volume. There are some macroeconomic aspects no doubt...but from the perspective of someone asking the question, "How much is currency X worth today?", that is a fairly self-contained question with a clear answer.

Why are you such a clown?

No, they convert to some other currency. At which exchange rate? What ever the market (supply and demand) is willing to bear.

Anyway, long story short....the only demand for Biafran currency at that time was Nigeria and Biafrans. Nobody else had any interest in it. So the value of the currency upon Biafra collapsing was pretty much zero..

You knowledge of macroeconomics is limited. Economics is a very complicated subject. More complicated than medicine and surgery. Macroeconomics goes beyond demand-supply.

ekt_bear: Anyway, Katsumoto or someone else who is very well-versed in Nigerian history...why did Awo give them even 20 pounds?

He should have given them 0, no?

Him giving them something valuable (Nigerian pound) for something worthless (Biafra pound) was essentially a massive transfer of wealth from Nigeria to Biafra. In effect, Nigeria was paying for the Biafran war.

Why did he do this? Awolowo was wrong to have done that, in my opinion.

Why invite Katsumoto to help you? Why delve into a discussion with your ignorance, only to call on someone to rescue you?

I've actually taken macroeconomics (and micro, for that matter) before. And done quite well in those courses, for that matter. However, the material is not particularly fresh, nor is it something I use in my career or daily life.

But none of that is particularly relevant.

The question we are asking is, "How much is currency X worth at time Y?"

Since "worth" is vague, we can be a bit more precise and say, "what is the best price I can buy a unit of X at, and the best price I can sell a unit of X at?"

Phrased in this way, I can look up the price of a barrel of oil, a bushel of wheat, a euro, etc. All of these resources are fairly liquid and are traded on markets.

The price of these goods at any point in time is a function of supply and demand. Economic factors might come into play into predicting price movements, but from the perspective of current value/price, they are irrelevant.

ACM10:
There are criteria for currency exchange. Ask any one who did macroeconomics. You are simply exposing your ignorance.

See my post above. Like I said...the only criteria for currency exchange is the current price on the market.

God bless someone who seized all the money which Biafrans have in the bank before the war, only to issue £20 to the priviledged few?
What happened to a saying that victors should be magnanimous in victory? Yet, you wonder why the debate of what happened 42yrs ago is still raging. Awo was not an economist! Had it been that this issue was left to the economist to work out, this debate would not be raging up till this moment.

When magnanimity costs a lot of money and can potentially ruin your economy if done poorly, then one needs to be careful.

I ask again, can you prove that Biafran currency was worthless?

Well, who was interested in Biafran currency at the time of surrender? Who, other than the Nigerian FG was likely to exchange anything of value for the currency?

In particular, if Nigeria had refused to give anything for Biafran pounds, would those in posession of that currency been able to exchange it for anything useful?

You are not making sense. How much do you know about macroeconomics?

What about the simple example doesn't make sense to you? You asked, what is the value of Afghanistan money. I answered your question by looking up the price. Of what relevance is macroeconomics in answering your question?

You knowledge of macroeconomics is limited. Economics is a very complicated subject. More complicated than medicine and surgery. Macroeconomics goes beyond demand-supply.

All of which may very well be true....but is irrelevant to the current discussion.

The point of this discussion is now how confusing economics is as a subject to you.

But instead that the Biafran pound was without any value.

ACM10:

Why invite Katsumoto to help you? Why delve into a discussion with your ignorance, only to call on someone to rescue you?

Do you not understand my post? Do you have difficulty reading English? What I want is additional context for what seems arguably a very generous (arguably too generous) policy by Awolowo. I asked someone who might be able to provide this insight.

How is this any of your concern, anyways? Is the post directed at you?

You seem to have more pressing concerns...given that you don't understand how currencies are valued, yet are arguing that some arbitrary predetermined exchange rate for the Biafran pound would have been appropriate.

Face the beating I am currently giving you rather than looking for distractions.

ekt_bear: Incidentally: http://fx-rate.net/HTG/

One USD is approximately 43 Haitian Gourdes.

Didn't you contradict yourself here? In essence, no matter how useless and worthless a currency is, it still retain some value.

ekt_bear: If Nigeria today wants to buy some land in the US for an embassy, here is what they'll do:

1) Visit the forex market, buy USD with Naira
2) Use that USD to buy the land

Given that the universe of buyers for Biafran pounds at the time of Biafra's surrender was essentially only just Nigeria, how on earth do you expect to dictate the price at which Nigeria buys your money

This calls for a straight-forward currency exchange between Nigeria and Biafra. This would had been left to the economist to determine the rate. £20 flat fiat was a wicked policy. There is no justification for that. Awo's intention must have been to humiliate Biafran, thereby lending credence to professor Chinua's use of "frenzy". I'm glad that you admitted that Nigerians patronize Biafran currency.

If you are selling a hat, and only one person wants to buy it, then you are in no real position to expect a good price for your product.

How do you know that Biafran pounds had only one patron country?

ekt_bear: I even misunderstood this whole 20 pounds thing before.

What I thought was that bank records or something were lost, and everybody was getting 20 pounds regardless of the amount of cash they had before.

Me too! I'm amazed by the concept behind £20 policy if it is not meant to humiliate the war loser.

But what appears to have happened is:

1) Wealthy Biafrans took their money from Nigeria to Biafra
2) They exchanged this money for Biafra money
3) This money eventually became worthless
4) But they expected to be able to exchange the Biafra money for Naira at the same rate they converted

You are free to imagine, afteral you are entitled to your opinion, but not to your facts.

Unfortunately, this is not how life works. I bought a small amount of Hewlett-Packard stock a year ago, it has lost 30% of its value. If i want to sell today, I'll lose money.

Nobody is under any obligation to insulate you from risks like this.

This is a silly analogy

ekt_bear: I've actually taken macroeconomics (and micro, for that matter) before. And done quite well in those courses, for that matter. However, the material is not particularly fresh, nor is it something I use in my career or daily life.

If you took macroeconomics in your undergraduate and postgraduate level and still do not understand the concept of macroeconomics as it relates to foreign currency exchange; I'm sorry to say that you are dumb!

But none of that is particularly relevant.

What is not relevant here?

The question we are asking is, "How much is currency X worth at time Y?"

Since "worth" is vague, we can be a bit more precise and say, "what is the best price I can buy a unit of X at, and the best price I can sell a unit of X at?"

Since you admitted that the of currency "X" is vague, why wont an economist be called to determine its worth? Why should a politician determine its worth?

Phrased in this way, I can look up the price of a barrel of oil, a bushel of wheat, a euro, etc. All of these resources are fairly liquid and are traded on markets.

The price of these goods at any point in time is a function of supply and demand. Economic factors might come into play into predicting price movements, but from the perspective of current value/price, they are irrelevant.

Can you explain this in the context of £20 fiat?

ACM10:
The problem that I have whenever I debates you is that you allow your bias to affect your judgement. A currency is a currency. Even if it is as worthless as Zimbabwean dollars. Biafran currency can exchange favourably with Nigerian currency. Any economist can do this calculation. Exchanging £20 with any amount of Biafran currency was a downright wicked policy.

Lmao. OK. So clearly you don't know anything about currency. You claim that the exchange rate is something that an economist will calculate rather than the market determine itself.

Shouldn't you at least talk to one of these economists so they can disabuse you of your notions?

Can economists calculate the price of potato too for us? What the "right" price should be of it?

What of oil?

Can you ask one of these village economists you know to do that, so that we can get rid of the stock markets, exchange boards, etc and just ask your village economist for how much things should cost?

This thread is now becoming interesting.
Anyways, bottomline is this;
My Igbo brothers, why not just forget the past and work towards embracing a better future?
You can not gain anything from this name calling and accusations, its like beating a dead horse.
In Nigeria today, the people that accommodate you most are Yorubas, but they are the ones you hate most, they are the ones you will still need to collaborate with to achieve or attain any achievement in this country.
You cannot afford to continue to be lone rangers.
You are Great People but Greater when you embrace others.
ANY NATION IN NIGERIA WHO TRIES TO SEPARATE NIGERIA WILL END UP DIVIDING AGAINST ITSELF!!!

ACM10:
Didn't you contradict yourself here? In essence, no matter how useless and worthless a currency is, it still retain some value.

Stop being dvmb. Haitian currency is not worthless...it has a specific value. There are people willing to buy and sell you Haitian money.

If Nigeria had decided not to accept Biafran pounds, then would there have been anyone willing to buy it? No, there would not.

This calls for a straight-forward currency exchange between Nigeria and Biafra. This would had been left to the economist to determine the rate. £20 flat fiat was a wicked policy. There is no justification for that. Awo's intention must have been to humiliate Biafran, thereby lending credence to professor Chinua's use of "frenzy". I'm glad that you admitted that Nigerians patronize Biafran currency.

How on earth can an economist determine the exchange rate between Nigerian money and Biafran money? Or of ANY two currencies, for that matter? Currencies are traded by individuals and/or governments according to supply and demand. Nobody writes a formula saying this is what the exchange rate should be.

How do you know that Biafran pounds had only one patron country?

Are you claiming that Biafran pounds were being accepted by anyone outside of Biafra?

This is a silly analogy

Stocks, bonds, currency, potatoes, wheat, pounded yam, etc all appreciate and depreciate in value. So how is the analogy silly? Or do you think that there are special rules for currency that don't apply to other investments/assets?

If you took macroeconomics in your undergraduate and postgraduate level and still do not understand the concept of macroeconomics as it relates to foreign currency exchange; I'm sorry to say that you are dumb!

So, kindly explain how macroeconomics can be used to set the price of currency. And while you are at it, also use it to explain how it can be used to set the price of potatoes.

ACM10:
What is not relevant here?

Macroeconomics cannot be used to set the price of a currency. That is my point.

Since you admitted that the of currency "X" is vague, why wont an economist be called to determine its worth? Why should a politician determine its worth?

No. My point is, "value" is possibly vague. I may value my car more than the street price actually is. Or the watch that say an ex-girlfriend bought for me for at $50, perhaps i value it at $500 myself...or view it as priceless. But we can make things precise in the way I said.

Can you explain this in the context of £20 fiat?

Indeed.

1. The Biafran pound was the currency of a state which declared independence and then capitulated. Given that the currency wasn't accepted or recognized anywhere aside from Biafra while the country was alive, it certainly wasn't accepted or recognized anywhere after surrender.
2. Given this, temporarily ignoring any settlement by the Nigerian government, the demand for the Biafran pound was zero.
3. Anything for which there is zero demand, logically it makes sense to pay 0 for it (paying anything more than 0 decreases your utility, essentially)
4. Given this, the total value of the Biafran pounds available was zero.
5. Thus, Awolowo vastly overpayed by offering anything for it.

I am still waiting for this village economist formula that determines exchange rate, ACM10.

Kindly provide it.

Then perhaps you can ask the economist from your village to tell us what the price of potatoes, oil, gold, etc should be

Btw, what happens if there is a discrepancy between your village economists prices and what people are actually willing to pay (as evidenced by the market)?

How does your village economist propose resolving such a discrepancy?

ekt_bear:
See my post above. Like I said...the only criteria for currency exchange is the current price on the market.

Thank you! How did prof. Ekt-bear determine the price of the market which made him to pronounce the Biafran currency "useless and worthless"?

When magnanimity costs a lot of money and can potentially ruin your economy if done poorly, then one needs to be careful.

. . .and politician Awolowo was in a strong position to determine its impact on the economy?

Well, who was interested in Biafran currency at the time of surrender? Who, other than the Nigerian FG was likely to exchange anything of value for the currency?

Biafrans were still interested in their currency. So their feeling must be taken into account. They would like to stick to their former currency if they can't get a better deal with the new currency. This is no different from adopting Euro by the European country. Britain stuck with their pounds because Britons felt that Euro wont offer them a better deal.

In particular, if Nigeria had refused to give anything for Biafran pounds, would those in posession of that currency been able to exchange it for anything useful?

That calls for the use of dual currency in the same country. Till the economics works out the modalities for adopting a single currency exchange.

What about the simple example doesn't make sense to you? You asked, what is the value of Afghanistan money. I answered your question by looking up the price. Of what relevance is macroeconomics in answering your question?

So your economics lecturer did not tell you that every acceptable legal tender by a group of people has value? You must be a very dull student.

The point of this discussion is now how confusing economics is as a subject to you.

Who is confused here? Me or you Someone who pronounced someone's legal tender "useless and worthless" and not worthy of exchange; no matter how little? Someone who studied economics, yet justifies a currency exchange by fiat as opposed to economic principle.

ekt_bear:

Do you not understand my post? Do you have difficulty reading English? What I want is additional context for what seems arguably a very generous (arguably too generous) policy by Awolowo. I asked someone who might be able to provide this insight.

How is this any of your concern, anyways? Is the post directed at you?

You seem to have more pressing concerns...given that you don't understand how currencies are valued, yet are arguing that some arbitrary predetermined exchange rate for the Biafran pound would have been appropriate.

Face the beating I am currently giving you rather than looking for distractions.

Mr. Man, why do you have to invite someone else to dig you out of your hole? Why delve into a debate with your ignorance, only to ask for help from someone midway?

ekt_bear:

Lmao. OK. So clearly you don't know anything about currency. You claim that the exchange rate is something that an economist will calculate rather than the market determine itself.

Why are you such a clown? Which indices does economists use to calculate the value of a currency? Do you think that economist only sit on a round-table and peg a currency exchage rate? Or peg it on a static rate by fiat like your hero did?

Shouldn't you at least talk to one of these economists so they can disabuse you of your notions?

I think that you need this advice more than me.

Can economists calculate the price of potato too for us? What the "right" price should be of it?

What of oil?

You are a funny economist. How does economist calculate any value to determine market movement then determine the worth of a currency?

Can you ask one of these village economists you know to do that, so that we can get rid of the stock markets, exchange boards, etc and just ask your village economist for how much things should cost?

You sound pathetic! Your ignorance knows no bound. No wonder why you invited someone to help you out. I can see that this dicsussion is beyond the capacity of your brain. Feel free to invite a helper.

Lord Almighty.

You are possibly one of the dumbest people I have met in my life. How you were given a medical license, I do not know

So your economics lecturer did not tell you that every acceptable legal tender by a group of people has value? You must be a very dull student.

Is currency backed by a defunct government (the Biafran government) legal tender after said government has surrendered and ceased to exist

Do you even have a brain?

Some people don't understand the #20 policy.
The Biafran currency was not a legal tender but the Ibos insist on exchanging their Ordinary paper for a Nigerian currency.

ACM10:

You are a funny economist. How does economist calculate any value to determine market movement then determine the worth of a currency?

Brainless fellow! Economists do NOTTTTTTT determine market movements! People do! Traders, people buying and selling, etc.

The market determines the price of goods, not economists.

Are you so stupid that you don't get this point, despite me having said it over and over?

Did you not pick up my sarcasm with the village economist jibes, that no such formula exists?

If an economist comes up with a formula saying that oil should be sold at $95.00 tomorrow but I can find someone willing to pay more, do you think I will listen to that economist, or the buyer I have found?

You are the scarecrow from the Wizard of Oz...a man without a brain.

Biafrans were still interested in their currency. So their feeling must be taken into account. They would like to stick to their former currency if they can't get a better deal with the new currency. This is no different from adopting Euro by the European country. Britain stuck with their pounds because Britons felt that Euro wont offer them a better deal.

Wetin concern "feelings" with this?

Jesu Kristi

And here I was wasting the past hour arguing with a complete id1ot

ACM10:
. . .and politician Awolowo was in a strong position to determine its impact on the economy?

This is getting sad now. I am feeling bad for you.

Suppose that there are 10 million Nigerian pounds in total.

Suppose that there are 5 million Biafran pounds in total.

Suppose Awolowo had said, "Let me do 1:1 exchange rate between Nigerian pound and Biafran pound."

As this post argues (https://www.nairaland.com/1068292/own-words-how-awolowo-defended/1#12484779), Biafran pounds were worthless.

Isn't it clear that this would decrease the value of Nigerian pounds, and cause inflation?

There is no difference between this and Awolowo deciding to print out 5 million more Nigerian pounds.

It would also be a massive transfer of wealth from Nigeria to Biafrans.

This is elementary and obvious. Awolowo recognized it, and probably most high school students would also recognize it too.

Dada-Stephen:
This thread is now becoming interesting.
Anyways, bottomline is this;
My Igbo brothers, why not just forget the past and work towards embracing a better future?
You can not gain anything from this name calling and accusations, its like beating a dead horse.
In Nigeria today, the people that accommodate you most are Yorubas, but they are the ones you hate most, they are the ones you will still need to collaborate with to achieve or attain any achievement in this country.
You cannot afford to continue to be lone rangers.
You are Great People but Greater when you embrace others.
ANY NATION IN NIGERIA WHO TRIES TO SEPARATE NIGERIA WILL END UP DIVIDING AGAINST ITSELF!!!

Ndigbo do not hate the Yorubas. That is simply your personal opinion. We have moved forward. Just that some sections of Nigerians gets annoyed whenever the shameful activities of their past leaders gets mentioned. We have nothing against the Yorubas. I can assure you that Ndigbo are more accomodating than the Yorubas. We go extra mile to protect any stranger in our midst. We don't discriminate! We believe in meritocracy! While our neighbours interprete "meritocracy" as domination. We believe in the principle of "live and let live". It is just that our neighbours often takes advantage of our carefree attitude as a sign of foolishness. No matter how painful the events of 1966 to 1972 is to the psyche of an average Onyeigbo, we still extend our hand of friendship to our neighbours. We else do you want us to do to demonstrate that we have moved on? We get annoyed whenever someone tries to deny or justifies those shameful acts. The same way, Armenians gets annoyed when Turkey denies genocide.

ACM10:
That calls for the use of dual currency in the same country. Till the economics works out the modalities for adopting a single currency exchange.

When in the history of mankind has the losing side in a war been able to dictate to the winning side what currency it must use

Jesus Christ.

What is this?

When did Biafrans become so arrogant?

OK, let me stop laughing and be serious for a second.

Let's run with your dual currency idea.

WHO guarantees the worth of that Biafran currency? Your Biafran government and central bank were dead and defunct. Are you suggesting that the Nigerian central bank then guarantee the value of the Biafran currency?

If so, why should Nigeria bear that financial obligation?

How did you get a medical degree, ACM10? You are a pretty dumb guy. I've always thought doctors are supposed to be smarter than average.

ACM10:
Biafrans were still interested in their currency. So their feeling must be taken into account. They would like to stick to their former currency if they can't get a better deal with the new currency. This is no different from adopting Euro by the European country. Britain stuck with their pounds because Britons felt that Euro wont offer them a better deal.

Britain has a sovereign government which issues the pound and guarantees it.

Who was this sovereign government guaranteeing the Biafran pound, after Biafra surrendered?

How on earth does your analogy make any iota of sense?

Lord Jesus.

Why are you so dumb, guy?

ekt_bear:
Stop being dvmb. Haitian currency is not worthless...it has a specific value. There are people willing to buy and sell you Haitian money.

My question is, how can you calculate the exchage rate between Haitian currency and foreign currency? I'm disappointed that an economist failed to attend to this basic question.

If Nigeria had decided not to accept Biafran pounds, then would there have been anyone willing to buy it? No, there would not.

But the people were willing to use their currency. Wont it be wise to hash out a fair currency exchange before retiring the old currency?

How on earth can an economist determine the exchange rate between Nigerian money and Biafran money? Or of ANY two currencies, for that matter? Currencies are traded by individuals and/or governments according to supply and demand. Nobody writes a formula saying this is what the exchange rate should be.

Again you are are dull student of economics for making the above assertion. Why should economics are sidelined when the issue of adopting a new currency is involved in favour of politicians?

Are you claiming that Biafran pounds were being accepted by anyone outside of Biafra?

This is a dumb question! Does anyone accept Nigerian Naira outside Nigeria?

Stocks, bonds, currency, potatoes, wheat, pounded yam, etc all appreciate and depreciate in value. So how is the analogy silly? Or do you think that there are special rules for currency that don't apply to other investments/assets?

The analogy is silly because you failed to explain how they affect the currency exchange.[/quote]

ekt_bear:
Stop being dvmb. Haitian currency is not worthless...it has a specific value. There are people willing to buy and sell you Haitian money.

My question is, how can you calculate the exchage rate between Haitian currency and foreign currency? I'm disappointed that an economist failed to attend to this basic question.

If Nigeria had decided not to accept Biafran pounds, then would there have been anyone willing to buy it? No, there would not.

But the people were willing to use their currency. Wont it be wise to hash out a fair currency exchange before retiring the old currency?

How on earth can an economist determine the exchange rate between Nigerian money and Biafran money? Or of ANY two currencies, for that matter? Currencies are traded by individuals and/or governments according to supply and demand. Nobody writes a formula saying this is what the exchange rate should be.

Again you are are dull student of economics for making the above assertion. Why should economics are sidelined when the issue of adopting a new currency is involved in favour of politicians?

Are you claiming that Biafran pounds were being accepted by anyone outside of Biafra?

This is a dumb question! Does anyone accept Nigerian Naira outside Nigeria?

Stocks, bonds, currency, potatoes, wheat, pounded yam, etc all appreciate and depreciate in value. So how is the analogy silly? Or do you think that there are special rules for currency that don't apply to other investments/assets?

The analogy is silly because you failed to explain how they affect foreign currency exchange.[/quote]

Interesting read...

ACM10:
My question is, how can you calculate the exchage rate between Haitian currency and foreign currency? I'm disappointed that an economist failed to attend to this basic question.

Of what relevance is this for an economist? It is a market, some buying and selling. Do you STILLLLLLLLL not get this point, despite me saying it over and over again?

Do you think some economist in Washington or Haiti is sitting there calculating things? Of course, you can affect future exchanges rates through different policies...say, raising interest rates in your country, etc. But that is not relevant for the price TODAY.

But the people were willing to use their currency. Wont it be wise to hash out a fair currency exchange before retiring the old currency?

The only sensible way to hash out a fair exchange rate is using supply and demand. Otherwise, the Nigerian side would have felt cheated.

Anyways, this didn't happen....Awolowo for some reason ended up giving Biafrans way more than their money was worth.

Again you are are dull student of economics for making the above assertion. Why should economics are sidelined when the issue of adopting a new currency is involved in favour of politicians?

What on earth are you talking about?

This is a dumb question! Does anyone accept Nigerian Naira outside Nigeria?

Let me restate so your feeble brain can understand.

Nigerian Naira today, I can exchange today for dollars. I can even do that here in the US...visit my bank and tell them to exchange for me.

There was no such market at that time for Biafran currency. Nobody can visit their bank to trade dollars for Biafran pounds. Nobody could visit the currency exchanges in London to swap dollars for Biafra pounds.

The analogy is silly because you failed to explain how they affect foreign currency exchange.

You are the dumbestttttttttttt guy I have ever met.

Lord Jesus, help me.

OK.

Let's pretend that today, 1 USD = 150 Naira. 1 year from now, 1 USD = 200 Naira. In other words, Naira has depreciated to 75% of its previous value from (1/150th of a dollar to 1/200th of a dollar).

I could also have decided to spend that 1 USD and buy Hewlett Packard stock. Or units of potatoes. Or US government bonds. Or any other investment/asset.

All of these assets I have listed (Naira, HP stock, potatoes, government bonds) all have the potential to appreciate or depreciate.

So, those Nigerians turned Biafrans who lost lots of money...they are no different from me who decided to convert his USD into Hewlett Packard stock, and then watched this investment fall in value.

There is no reason for them to expect any special protection against decreased value of their investment from the Nigerian government (which they even abandoned, mind you!) than I should expect protection from Obama for my bad H-P investment.

Is the point crystal clear to you now, my dimwitted student?

ACM10:

Ndigbo do not hate the Yorubas. That is simply your personal opinion. We have moved forward. Just that some sections of Nigerians gets annoyed whenever the shameful activities of their past leaders gets mentioned. We have nothing against the Yorubas. I can assure you that Ndigbo are more accomodating than the Yorubas. We go extra mile to protect any stranger in our midst. We don't discriminate! We believe in meritocracy! While our neighbours interprete "meritocracy" as domination. We believe in the principle of "live and let live". It is just that our neighbours often takes advantage of our carefree attitude as a sign of foolishness. No matter how painful the events of 1966 to 1972 is to the psyche of an average Onyeigbo, we still extend our hand of friendship to our neighbours. We else do you want us to do to demonstrate that we have moved on? We get annoyed whenever someone tries to deny or justifies those shameful acts. The same way, Armenians gets annoyed when Turkey denies genocide.

ACM,
I know you are a very intelligent fellow and I know that it is of no positive use arguing on Biafra, or Igbo or Yoruba.
My advice for NIGERIANS especially the Ndigbos is to stop being retrospective, let's bury the hatchet and push for a one Nigeria!
This is the Greatest Country in the World that God has created with the errors of mankind.
Many Countries want to break this country because its a threat to them but it has been bound by God.
Talk to people to grow up !

ekt_bear: So, kindly explain how macroeconomics can be used to set the price of currency. And while you are at it, also use it to explain how it can be used to set the price of potatoes.

Thought you should know that as an economist. BTW, did I say that macroeconomics can be used to set the price of retail goods in the market? Chineke me! Who taught you economics, let alone macroeconomics? That lecturer should be shot. I know a little on how to determine an exchange rate between two countries on macroeconomics level. But I wont disclose it to you.

ekt_bear:

Macroeconomics cannot be used to set the price of a currency. That is my point.

This is serious! What is the work of central bank? At this stage, I'm convinced that you are truly dumb and ignorant! Pls call Katsumoto. I'm wasting my time with you.

No. My point is, "value" is possibly vague. I may value my car more than the street price actually is. Or the watch that say an ex-girlfriend bought for me for at $50, perhaps i value it at $500 myself...or view it as priceless. But we can make things precise in the way I said.

If you value your goods more than its street value, then you have every right to hold on to it. But immediately you decides to sell your goods, its value can appreciate, depreciate or remain the same . The price of your watch and phone can never be pegged at a certain immovable value.

1. The Biafran pound was the currency of a state which declared independence and then capitulated. Given that the currency wasn't accepted or recognized anywhere aside from Biafra while the country was alive, it certainly wasn't accepted or recognized anywhere after surrender.

Do you really understand the concept of "legal tender"? Mention anywhere in the world where Naira is accepted apart from Nigeria?

2. Given this, temporarily ignoring any settlement by the Nigerian government, the demand for the Biafran pound was zero.

Where do you have demand for Nigerian Naira outside Nigeria? Mention one. . .

3. Anything for which there is zero demand, logically it makes sense to pay 0 for it (paying anything more than 0 decreases your utility, essentially)

Can I conclude that Naira is worthless because there is a zero demand for it outside Nigeria?

4. Given this, the total value of the Biafran pounds available was zero.

Really! What a dull student. Your lecturer must be ashamed of you.

5. Thus, Awolowo vastly overpayed by offering anything for it.

You are right! I agree with you. He should have paid nothing to complete his policy.

ekt_bear: I am still waiting for this village economist formula that determines exchange rate, ACM10.

Are you a clown in real life?

Then perhaps you can ask the economist from your village to tell us what the price of potatoes, oil, gold, etc should be

Hmm. . .na wa o for this economist

Btw, what happens if there is a discrepancy between your village economists prices and what people are actually willing to pay (as evidenced by the market)?

I've learnt not to be surprised here. Are you not the one who wrote about the law of demad and supply? What else do you want me to say here?

ekt_bear: Lord Almighty.
You are possibly one of the dumbest people I have met in my life. How you were given a medical license, I do not know

Are you willing to descend to the level of personal attack to prove your dumb assertion? I can see that you've exhausted your ammo. BTW, I share my handle with my cousin. So whose license were you referring to? Go through the medical advice of ACM10 on health section. You will discover that they are sound and professional medical advice. You are free to proffer a better advice.

ACM10:
Thought you should know that as an economist. BTW, did I say that macroeconomics can be used to set the price of retail goods in the market? Chineke me! Who taught you economics, let alone macroeconomics? That lecturer should be shot. I know a little on how to determine an exchange rate between two countries on macroeconomics level. But I wont disclose it to you.

If macroeconomics cannot be used to set the price of retail goods at a market, then what makes you believe that it can be used to set the price of currency?

Isn't currency something that I can purchase at a market?

This is serious! What is the work of central bank? At this stage, I'm convinced that you are truly dumb and ignorant! Pls call Katsumoto. I'm wasting my time with you.

Interest rate policy, Monetary policy, controlling how much of a currency is printed, among other tasks.

But, if I want to buy X units of currency Y today...is this price going to be set by the central bank (well, temporarily ignoring from a few countries which attempt to fix their exchange rates)....?

Will I talk to the central bank, or visit consult the markets to make this purchase?

If you value your goods more than its street value, then you have every right to hold on to it. But immediately you decides to sell your goods, its value can appreciate, depreciate or remain the same . The price of your watch and phone can never be pegged at a certain immovable value.


Do you really understand the concept of "legal tender"? Mention anywhere in the world where Naira is accepted apart from Nigeria?

What laws would govern the currency of a defunct country like Biafra? Where can Biafran money be legal tender after Biafra has expired?

Where do you have demand for Nigerian Naira outside Nigeria? Mention one. . .

Every country on earth where Nigerians are and which they send money back home. In each and every one of these countries, local currency is being exchanged for Naira.....

Can I conclude that Naira is worthless because there is a zero demand for it outside Nigeria?

See above.

ACM10:
Can I conclude that Naira is worthless because there is a zero demand for it outside Nigeria?


Really! What a dull student. Your lecturer must be ashamed of you.

Since there was zero demand for Biafran currency shortly after capitulation (temporarily ignoring the demand from the Nigerian FG), then yes, it has zero value. What is controversial about this?

I've learnt not to be surprised here. Are you not the one who wrote about the law of demad and supply? What else do you want me to say here?

You are the one claiming that the price of currencies is set by economists.

So, suppose an economist sets an exchange rate to X. But in reality, the day to day rate people trade at is Y.

How do we explain this discrepancy between your theory and reality?