What is Good for our economy in terms of depreciation and appreciation of Naira against the dollar. I read the below link from page one to page seven but most of the post there got me confused.

Appreciation of Naira against the dollar: Means that imported goods will be more cheaper than those manufactured in the country thereby killing local manufacturers which will result in coy laying of workers.

Depreciation of Naira against the dollar: This will reduce the capital of importers. If an importer has a million naira when the $ exchanged at 1naira but when the dollar is exchanged at 2naira the importer will have his capital halved as a result he cannot be able to import the number of goods he used to. This will in effect reduce the number of goods in the market making the price to sky rocket. When too many people are chasing few goods it intends to make the price of that goods go up.

Am not an economist, this is how I understand this depreciation and appreciation of a thing. If my analysis is right which of the two scenarios is good for our economy and why.

https://www.nairaland.com/2543845/naira-rallies-against-dollar/7

doncaster:
What is Good for our economy in terms of depreciation and appreciation of Naira against the dollar. I read the below link from page one to page seven but most of the post there got me confused.

Appreciation of Naira against the dollar: Means that imported goods will be more cheaper than those manufactured in the country thereby killing local manufacturers which will result in coy laying of workers.

Depreciation of Naira against the dollar: This will reduce the capital of importers. If an importer has a million naira when the $ exchanged at 1naira but when the dollar is exchanged at 2naira the importer will have his capital halved as a result he cannot be able to import the number of goods he used to. This will in effect reduce the number of goods in the market making the price to sky rocket. When too many people are chasing few goods it intends to make the price of that goods go up.

Am not an economist, this is how I understand this depreciation and appreciation of a thing. If my analysis is right which of the two scenarios is good for our economy and why.

https://www.nairaland.com/2543845/naira-rallies-against-dollar/7

Your analysis is incomplete. The latter ( depreciation) will therefore encourage local producers to increase output for this to happen they will need more staff (employment), more raw materials ( buiness boost ) all these will increase the country GDP.
Let NL decide which one now.
I no sabi econs bt I sabi say dis OP dey hide the truth.

afolag:

Your analysis is incomplete. The latter ( depreciation) will therefore encourage local producers to increase output for this to happen they will need more staff (employment), more raw materials ( buiness boost ) all these will increase the country GDP.
Let NL decide which one now.
I no sabi econs bt I sabi say dis OP dey hide the truth.

Am not hiding any truth, I opened this thread to learn, like I said in my first post am not an economist just want to know the one that will favour our economy.

depreciation of the naira against the dollar is supposed to encourage more exports since our local produce will then b cheaper 4 other countries, to buy with dollars, thereby bringing in more dollars n increasing foreign reserves. n boosting d naira

@OP, my writeup will be long, so i'll be back l8r.