Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 3,195,469 members, 7,958,433 topics. Date: Wednesday, 25 September 2024 at 02:13 PM

Benefits Of The Devalued Naira - Business - Nairaland

Nairaland Forum / Nairaland / General / Business / Benefits Of The Devalued Naira (1367 Views)

Naira Finally Devalued To N290/$ By Buhari / Naira Will Not Be Devalued, Rates Would Be Reduced – CBN / Why The CBN Should have Devalued Naira months ago!! (2) (3) (4)

(1) (Reply) (Go Down)

Benefits Of The Devalued Naira by Nobody: 7:45pm On Feb 25, 2015
I see and hear a lot of rant about the current devaluing of the Naira. Though I am not an economist, I understand to an appreciable extent the dynamics of financial operations.
First of all, let me say that no ADVANCED country is happy when its currency appreciates. Yes! Britain, Australia, Japan, China etc always strive to enact policies and make decisions that will devalue their currency. America has always had problems with China, because they feel China is devaluing their currency too fast and fraudulently too. Ever heard of a currency war? The winners of this kind of war is always those who are able to successfully devalue their currency sharply against that of an opposing country. Japan, one of the top 20 economies in the world has the most volatile currency, yet their economy remains strong. Switzerland only last month sent shock waves round the world by removing the peg from the euro, thereby allowing it to trade freely.

A strong currency also means more immigrants, which will result in job shortages for residents because a lot of immigrants from developed country are usually more qualified for jobs due to their educational background.

What this means
A fast growing economy with a devalued currency simply means more foreign investment. China is a strategic country to America. Americans are number one importers of chinese goods. So, a devalued chinese currency will mean all Americans will prefer to buy and ship goods from China than buying in America. The dollar will be able to afford them more from China than from America; invariable, American companies will start strategising on how to either relocate to China or open a branch there, if they are to remain in business. Also, note that the devaluing of the currency does not automatically translate to inflation. Since the naira started its upward move, the price of sachet water has not changed, the price of garri has not suddenly increased, 1kilo of catfish still sells for 500naira. Nothing much has changed. The federal govt also went further to decrease the price of a litter of petrol, which is a major determinant of inflation in this country.
Re: Benefits Of The Devalued Naira by Nobody: 7:46pm On Feb 25, 2015
A devalued Naira therefore means Nigerians will no longer find it profitable to import finished goods. Invariably, companies with strategic Markets in Nigeria will start exploring all available means to setup a branch in Nigeria, if they are to remain in business. Chinese companies will seriously start thinking of setting up a phone manufacturing company or an assembly unit here. It is only a pity that our dear country is not well equiped to receive this economy-boosting trend. We have no stable power yet, no good security, no proper transportation channel. This would have marked the true beginning of prosperity for all Nigerians. This however is the best time to explore our export potentials and become truly prosperous like the Chinese.
Instead of moaning about the few Nigerians who will loose their jobs, think about the hundreds of thousands who will get employed. Construction companies will no longer find it easy to pay expertraites, rather they will prefer to employ your brother or uncle. Farmers are going to be the greatest beneficiaries of this trend. Those who export farm produce will see real prosperity.

Time and space will not let me expantiate more. My advice: Instead of whining and blaming the government for devaluing the Naira, strategise on how to join the new army of financial giants. I saw this coming and have long enlisted in that army.
Re: Benefits Of The Devalued Naira by BeeBeeOoh(m): 7:51pm On Feb 25, 2015
So, oga Op e dey sweet u abii U neva wan go buy dollar

1 Like

Re: Benefits Of The Devalued Naira by kolomax(m): 7:53pm On Feb 25, 2015
Wetin this BOBO dey yarn naaaa

2 Likes

Re: Benefits Of The Devalued Naira by Glowstone(m): 7:58pm On Feb 25, 2015
chai why I Even comment

meanwhile


.oga Jona till 2019
Re: Benefits Of The Devalued Naira by dkronicle(m): 7:58pm On Feb 25, 2015
D only people that will enjoy this stuff is Yahooboiz.

1 Like

Re: Benefits Of The Devalued Naira by Nobody: 8:01pm On Feb 25, 2015
Your logic could ve worked if Nigeria doesn't rely on imports.
But in a situation where almost 80% of consumables re imported? Things re about to get messy.

4 Likes

Re: Benefits Of The Devalued Naira by Sparrow13: 8:16pm On Feb 25, 2015
I never know this untill now
Re: Benefits Of The Devalued Naira by Nobody: 8:25pm On Feb 25, 2015
dkronicle:
D only people that will enjoy this stuff is Yahooboiz.
Not necessarily! Exporters of cocoa and other farm produce will largely benefit too.
Re: Benefits Of The Devalued Naira by Nobody: 8:27pm On Feb 25, 2015
madridfc:
Your logic could ve worked if Nigeria doesn't rely on imports.
But in a situation where almost 80% of consumables re imported? Things re about to get messy.
It will only be for a while. The companies will be forced to setup branches in Nigeria soon.
Re: Benefits Of The Devalued Naira by SLIDEwaxie(m): 8:36pm On Feb 25, 2015
madridfc:
Your logic could ve worked if Nigeria doesn't rely on imports.
But in a situation where almost 80% of consumables re imported? Things re about to get messy.
thank you o jare

1 Like

Re: Benefits Of The Devalued Naira by Nobody: 8:40pm On Feb 25, 2015
SLIDEwaxie:
thank you o jare
I knew most people will find it hard to agree with me, but what has really gone messy since the naira started trading above $160 last year?
Re: Benefits Of The Devalued Naira by Nobody: 8:45pm On Feb 25, 2015
dadojo:

It will only be for a while. The companies will be forced to setup branches in Nigeria soon.
change your 'a while' to YEARS

1 Like

Re: Benefits Of The Devalued Naira by Nobody: 8:47pm On Feb 25, 2015
china produces.
what do we produce?
what do we export?
how will there be merits when most goods are imported?

2 Likes

Re: Benefits Of The Devalued Naira by Nobody: 8:49pm On Feb 25, 2015
dadojo:

I knew most people will find it hard to agree with me, but what has really gone messy since the naira started trading above $160 last year?
Oga re You in Nigeria??

1 Like

Re: Benefits Of The Devalued Naira by ecomerceguru: 4:53am On Feb 26, 2015
This is nice for those earning in Dollars and those exporting arm produce.

(1) (Reply)

Rice Dealers Needed. / London Dish Washer To An Entrepreneur - Otunba Olufemi Okenla / Become A Bet9ja Agent Starting From Today

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 19
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.