Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / NewStats: 3,194,314 members, 7,954,259 topics. Date: Friday, 20 September 2024 at 03:36 PM |
Nairaland Forum / Nairaland / General / Nigeria’s Currency- Toothpick Alert.. The Economist's View Of Naira's Stability (863 Views)
How To Make Sense Of Nigeria’s Currency Swap Deal With China / Devaluation Of Nigeria Currency / Paris Attack Was Predicted By The Economist Magzine 2015 Edition (2) (3) (4)
Nigeria’s Currency- Toothpick Alert.. The Economist's View Of Naira's Stability by kenod(m): 5:02pm On Jul 02, 2015 |
Nigeria’s currency Toothpick alert Desperate measures from the bank CENTRAL bankers may talk in martial terms of defending currencies against bloodthirsty speculators, but they seldom suffer wounds more grievous than a bruising of their egos. They can, however, cause untold harm to economies, as the Central Bank of Nigeria (CBN) is doing in puffing up its exchange rate. The naira has been hit hard by a fall in the price of oil, Nigeria’s main export. The official exchange rate has slumped by almost 20% over the past year to about 196 naira per dollar. The black market rate, a more accurate gauge, is close to 230. Instead of allowing the naira to devalue, the central bank is trying to defend it by blocking imports. It has drawn up a list of disfavoured goods, and will not grant foreign exchange to import them. Godwin Emefiele, the governor of the central bank, said he wants to conserve foreign reserves (which have fallen by about a fifth over the past year and now cover only six months of imports) and stimulate local production. “Nigeria cannot attain its true [potential] by simply importing everything,” he said. The hit list appears to have been drawn up by someone wandering around a home and a building site and randomly pointing at items. It includes Indian incense, toothpicks and wire rods as well as more obvious luxuries such as private jets (demand for which could be slashed by simply barring government officials from flying in them). It also includes basics such as rice and tinned fish. Nigeria does not produce enough of these things to feed itself, but no matter. The nation must be shielded from foreign sardines. Economists find the policy baffling. Central banks usually prop up their currencies if they are worried about inflation, or allow them to devalue to depress imports and stimulate exports. Nigeria, by contrast, appears to be set on achieving both an uncompetitive exchange rate and higher inflation. Whereas many investors were impressed by the previous CBN governor, Lamido Sanusi, who was sacked for exposing corruption, they fret about the harm being inflicted by the current one. Some wonder which would be worse for Nigeria: allowing him to serve the remaining four years of his term or undermining the independence of the central bank by sacking him. http://www.economist.com/news/middle-east-and-africa/21656700-desperate-measures-bank-toothpick-alert |
Re: Nigeria’s Currency- Toothpick Alert.. The Economist's View Of Naira's Stability by Nobody: 5:04pm On Jul 02, 2015 |
Re: Nigeria’s Currency- Toothpick Alert.. The Economist's View Of Naira's Stability by deadZONE: 5:05pm On Jul 02, 2015 |
Re: Nigeria’s Currency- Toothpick Alert.. The Economist's View Of Naira's Stability by Aitee1: 5:09pm On Jul 02, 2015 |
Re: Nigeria’s Currency- Toothpick Alert.. The Economist's View Of Naira's Stability by DennisEche(m): 5:09pm On Jul 02, 2015 |
following in 3D |
Re: Nigeria’s Currency- Toothpick Alert.. The Economist's View Of Naira's Stability by deadZONE: 5:11pm On Jul 02, 2015 |
Aitee1:is this the Aitee i know? |
Re: Nigeria’s Currency- Toothpick Alert.. The Economist's View Of Naira's Stability by Aitee1: 5:13pm On Jul 02, 2015 |
deadZONE: Ask google, as for me and my household I knoweth not any deadZONE 1 Like |
Re: Nigeria’s Currency- Toothpick Alert.. The Economist's View Of Naira's Stability by Nobody: 5:16pm On Jul 02, 2015 |
Aitee1:SmA |
Re: Nigeria’s Currency- Toothpick Alert.. The Economist's View Of Naira's Stability by deadZONE: 5:16pm On Jul 02, 2015 |
Aitee1:follow me back... am worth knowing cause am you brother |
(1) (Reply)
Why? / Grandfather, John Okafor AKA Mr. Ibu Is Expecting 3rd Child With His Girlfriend / Man Strucked To Death By Thunder In Kwara State After Heavy Rainfall
(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. 12 |