This is just a reminder to my fellow Nigerians that the fall in Naira is not the sole making of any Government but as a result of global Economics. To prove that, I have made a reference to the Canadian dollar, since Canada is also an Oil rich nation with their oil based in the province of Alberta. Below is the value of the US dollar to a Canadian $ on November 15 2014, and the value yesterday wednesday April 22, 2015 and the value of a Naira to a US dollar on the same dates.

Saturday 15 November 2014 1 CAD = 0.88598 USD
Wednesday 22 April 2015 1 CAD = 0.8180 USD
Drop = 0.06798 Cents

Saturday 15 November 2014 1 NGN = 0.00584 USD
Wednesday 22 April 2015 1 NGN = 0.005 USD
Drop = 0.00084

The Premier of the province of Alberta has increased the fuel tax from 9 cents per litre to 13 cents and increase in income taxes, health levy (newly introduced) and increase in sin taxes (taxes on alcohol and cigarettes) have also been introduced to kick in in 2016 tax year. These are all measures to buttress the budget deficit the province is going to see in 2015.

Even though these countries are not similar in advancement and technology, it does not change the fact that the drop in oil price is affecting every nation with oil. For Accountants that know the meaning of hedging ( That is getting into a forward contract with a bank to receive a particular amount on a future date to prevent or avoid Foreign exchange loss), it is a very good thing to adopt in these interesting times.

A good number of jobs have also been lost in the oil and gas companies in Alberta, as well as in the oil fields. The chain reaction is that the prices of houses are dropping by the day and day care/day home owners are experiencing withdrawal of kids since their parents no longer have jobs and it doesn't make sense to keep kids in the day care and pay between 700 dollars to 1000 dollar in a month. It is obviously a bad time to search for jobs in the Oil and gas sector in Alberta, as even the premier has called for ways in making the oil rich province a diversified economy rather than just rely on oil, they want to start looking into manufacturing.

If you have more facts about countries feeling the impact, please add.

Marc the Fan

Wow Well is good to know Nigeria is not the only country being affected but how many Nigerians want to hear this one. Everything is Goodluck Jonathan that caused i.

gangb:
Wow Well is good to know Nigeria is not the only country being affected but how many Nigerians want to hear this one. Everything is Goodluck Jonathan that caused it

Canadian currancy fell don't mean naira should do the same

imbless:
Canadian currancy fell don't mean naira should do the same

Can you give reasons why the naira shouldn't fall?

Sorry. This isn't same rate. Nigerian naira increased from #162 to #208 early this year. Do the mathematics.

mayorall:
Sorry. This isn't same rate. Nigerian naira increased from #162 to #208 early this year. Do the mathematics.

I gave you the global exchange rate on the world market and not what local Nigerian bureau merchants sell the Us dollars at. You can check my rates on google

@op why must you feel inferior in the league of nations?

realjoker:
@op why must you feel inferior in the league of nations?

What do you mean? Can you explain?

Jackter101:

I gave you the global exchange rate on the world market and not what local Nigerian bureau merchants sell the Us dollars at. You can check my rates on google

Alright. Check this #204 This year on normal rate.

mayorall:




Alright. Check this #204 This year on normal rate.

To calculate the naira equivalent to the dollar value I posted, all you needed to do was divide 1 by 0.005 which gives you 200 naira to a dollar as at 22nd April 2015. What you posted was the dollar equivalent of naira up until February 18th, the value I posted was at specific dates; value as at November 15, 2014, and value on April 22nd 2015.

Please note that the value of every currency fluctuates every minute and you cannot assume that the value in February is the same as now. See the below link for the confirmation of my calculation (noting the effect of approximation). Thanks

link: http://usd.fxexchangerate.com/ngn/100-currency-rates.html

Jackter101:


To calculate the naira equivalent to the dollar value I posted, all you needed to do was divide 1 by 0.005 which gives you 200 naira to a dollar as at 22nd April 2015. What you posted was the dollar equivalent of naira up until February 18th, the value I posted was at specific dates; value as at November 15, 2014, and value on April 22nd 2015.

Please note that the value of every currency fluctuates every minute and you cannot assume that the value in February is the same as now. See the below link for the confirmation of my calculation (noting the effect of approximation). Thanks

link: http://usd.fxexchangerate.com/ngn/100-currency-rates.html

You supported your claims with November 2014, I supported mine with February 2015. naira is currently #199/$ officially. I was charged #208/$ by access bank today.


www.exchangerates.org.uk/USD-NGN-exchange-rate-history.html

Jackter101:

What do you mean? Can you explain?

ie the aus dollar lose grand against the USD does that mean our countary currency must do the same and besides i dont know when we will stop the America will know attitude and make our nation a great nation among the league of nation.

mayorall:




You supported your claims with November 2014, I supported mine with February 2015. naira is currently #199/$ officially. I was charged #208/$ by access bank today.


www.exchangerates.org.uk/USD-NGN-exchange-rate-history.html

My write up is not about what Access charged you, as Access bank is into business and they intend to make profit from every exchange. What my write up is all about is the drop in naira value as a result of the global drop in oil price. And to make a reasonable comparison, you must use the same basis to compare, which is what I did with both the Canadian dollar and the naira, just to drive home my point. The local exchange rate in Nigeria is what a lot of people refer to as the naira value, which is wrong, as commercial banks, and exchange merchants add their mark up so they can make profit from every exchange.

Cheers

@OP.
Stop wasting your breath and tim!
They wont hear you!

Buhari will soon stabilize the oil price and make $1 = N1.
We are waiting.

Jackter101 your research doesn't show a fall of the Canadian dollar based on the fall of oil prices. Canadian dollar and Australian dollar have been spiking against the USD since I started following in 2007, so I don't see how this in any way should be compared with the fall in Nigeria's currency over 90% since 2009. Yes, the naira was about 112 to the dollar in 2008 during the credit crunch and it never recovered, which would be largely blamed on corruption on most sectors of the economy. Imagine people getting ruthlessly rich in a country that produces so little and many unemployed people. When they lay hands on this money, all they think about is acquiring the dollar and traveling abroad to invest

Jackter101:


My write up is not about what Access charged you, as Access bank is into business and they intend to make profit from every exchange. What my write up is all about is the drop in naira value as a result of the global drop in oil price. And to make a reasonable comparison, you must use the same basis to compare, which is what I did with both the Canadian dollar and the naira, just to drive home my point. The local exchange rate in Nigeria is what a lot of people refer to as the naira value, which is wrong, as commercial banks, and exchange merchants add their mark up so they can make profit from every exchange.

Cheers

Why not ask yourself this question.


why did the value of naira dropped drastically compared to currencies. isn't too high at #199?.

noblezone:
@OP.
Stop wasting your breath and tim!
They wont hear you!

Buhari will soon stabilize the oil price and make $1 = N1.
We are waiting.

Thanks for the advice, I give up