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Nairaland Forum / Nairaland / General / Business / What Is Devaluation Of Naira? (56222 Views)
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What Is Devaluation Of Naira? by Ama80(f): 6:22pm On Feb 01, 2016 |
For the benefit of those of us who do not know much about economy.Can the Economists in the house enlighten us on naira devaluation, the implications and the ripple effects and why the president is reluctant in doing that.in a simple language pls. 28 Likes 2 Shares |
Re: What Is Devaluation Of Naira? by 2rutalk1: 7:41pm On Feb 01, 2016 |
Devaluation is a DELIBERATE reduction in the value of a country's currency in relation to the currencies of other countries. Devaluation is different from depreciation. Whereas devaluation is deliberate, depreciation of currency is caused by some macroeconomic factors. However, Devaluation is used to discourage import and encourage export of goods and services across borders. How do we achieve this? When a country's currency is devalued, foreign goods (imports) become so expensive because the value of the country's currency has been reduced making the value of the currency of her trading partner to go up. In this case, the foreign country will be enticed to import from Nigeria (for instance) and our hitherto importers will equally buy Nigerian made products because of high cost of foreign goods. This makes our balance of payment to become favourable. In the long run (in future), the high rate of export from Nigeria and low import of foreign products by Alaba guys (lol) will increase the value of our naira. 257 Likes 15 Shares |
Re: What Is Devaluation Of Naira? by Ama80(f): 8:21pm On Feb 01, 2016 |
2rutalk1:it sounds positive but why is d president hesitant? 23 Likes 2 Shares |
Re: What Is Devaluation Of Naira? by Nobody: 9:29pm On Feb 01, 2016 |
same question have been wanting to ask. 3 Likes 1 Share |
Re: What Is Devaluation Of Naira? by grandstar(m): 10:07pm On Feb 01, 2016 |
2rutalk1: The currency needs to depreciate now because the forex inflow has reduced drastically. It is because the government has refused to allow it depreciate at the official market as led to its massive depreciation at the black market. 8 Likes 1 Share |
Re: What Is Devaluation Of Naira? by suyamasta(m): 10:37pm On Feb 01, 2016 |
Devaluation will cripple Nigerias economy at this point in time, the rate of inflation will go balistic considering that we are import dependent 44 Likes 2 Shares |
Re: What Is Devaluation Of Naira? by suyamasta(m): 10:42pm On Feb 01, 2016 |
2rutalk1:The problem here is we dont have many competitive products to export now! we have not been able to do import substitution not to talk of good exports 36 Likes 1 Share |
Re: What Is Devaluation Of Naira? by Nobody: 10:55pm On Feb 01, 2016 |
@d one who explained devaluation:Do u knw what happened to Zimbabwe after their currency was devalued? 39 Likes 5 Shares |
Re: What Is Devaluation Of Naira? by Ama80(f): 3:16pm On Feb 02, 2016 |
Emmeritus:pls tell us more about dat. 2 Likes |
Re: What Is Devaluation Of Naira? by Pesuzok(m): 5:25pm On Feb 02, 2016 |
Ama80: In summary it means the official exchange rate will go higher to like 230 to $1. This will affect the price of products that are eligible for cbn official rate. Eg petrol 5 Likes |
Re: What Is Devaluation Of Naira? by 2rutalk1: 7:45pm On Feb 02, 2016 |
Ama80:The President is hesitant because our economy may not actually reap the benefits of devaluation for now because we are import dependent economy - we have little or nothing to export to other countries. Therefore, even if our currency is devalued and import is discouraged as it is always the case, can our importers source the products locally? This will worsen the situation. What we need to do now is to diversify our economy, make the business/macroeconomic environment conducive, and ultimately, pursue import substitution strategy of industrialization. Import substitution strategy is a situation whereby goods and services that are hitherto imported from foreign countries are manufactured locally. 133 Likes 8 Shares |
Re: What Is Devaluation Of Naira? by 2rutalk1: 7:48pm On Feb 02, 2016 |
Emmeritus:It happened to Zibabwe because their economy is not ripe for devaluation. Any country that has little or no products and services for export has no business devaluing her currency. 54 Likes 5 Shares |
Re: What Is Devaluation Of Naira? by Codedzng: 9:52am On Feb 03, 2016 |
Educating, I never support Devalulating Our Naira. 11 Likes 1 Share |
Re: What Is Devaluation Of Naira? by Ama80(f): 8:56pm On Feb 03, 2016 |
Lalasticlala will never consider dis topic fp worthy bcs it tends to enlighten.it's only political vituperations dat see fp. 10 Likes 1 Share |
Re: What Is Devaluation Of Naira? by Nobody: 9:34pm On Feb 03, 2016 |
Breaking News: APC in Akwa Ibom rejects supreme court verdict for announcing PDP's Udom Emmanuel winner and heads straight to The basket ball court.. Source: Lai Mohammed.. 34 Likes 2 Shares |
Re: What Is Devaluation Of Naira? by allanphash7(m): 9:34pm On Feb 03, 2016 |
Google is your friend 1 Like 1 Share |
Re: What Is Devaluation Of Naira? by kulobyno: 9:36pm On Feb 03, 2016 |
It's another unfavourable gimmick that makes the naira weaker than it already is 4 Likes |
Re: What Is Devaluation Of Naira? by englishmart(m): 9:36pm On Feb 03, 2016 |
bubu 2 Likes |
Re: What Is Devaluation Of Naira? by NJPot(m): 9:36pm On Feb 03, 2016 |
it is the act of devaluing naira |
Re: What Is Devaluation Of Naira? by cutetopsey(f): 9:37pm On Feb 03, 2016 |
Hmmmm |
Re: What Is Devaluation Of Naira? by kobonaire(m): 9:37pm On Feb 03, 2016 |
Question: What is devaluation of Naira? Answer: The result of his excellency trying to make N1 = $1 5 Likes 2 Shares |
Re: What Is Devaluation Of Naira? by ggirl4real: 9:38pm On Feb 03, 2016 |
Everyone is talking about diversifying the economy yet no one is taking action.... Even when government approve funds for agricultural purposes, it will be by "man-know-man" basis to get the funds and the funds will even be diverted for other uses... Which way Nigeria 27 Likes 4 Shares |
Re: What Is Devaluation Of Naira? by abbey621(m): 9:40pm On Feb 03, 2016 |
The Naira was devalued less than 2 years ago and we all saw the negative result, what makes people think it would work now? 18 Likes 1 Share |
Re: What Is Devaluation Of Naira? by potbelly(m): 9:40pm On Feb 03, 2016 |
@2rutalk1 in other words, does devaluation of a currency mean the purchasing power of that currency is lower in relation to the currency of another country due to lack of or non existing exporting activities? 3 Likes 1 Share |
Re: What Is Devaluation Of Naira? by Freelancer007(m): 9:40pm On Feb 03, 2016 |
Ok |
Re: What Is Devaluation Of Naira? by rattlesnake(m): 9:40pm On Feb 03, 2016 |
Jesus has come finish ooo 4 Likes 1 Share |
Re: What Is Devaluation Of Naira? by VocalWalls: 9:41pm On Feb 03, 2016 |
When threads like these start popping up, then devaluation is inevitable 4 Likes 1 Share |
Re: What Is Devaluation Of Naira? by banmee(m): 9:42pm On Feb 03, 2016 |
Ama80: Because devaluation will never work in a country that is corrupt. Nigeria needs to tackle corruption first before any meaningful economic objective can be achieved. 19 Likes 1 Share |
Re: What Is Devaluation Of Naira? by drss(m): 9:42pm On Feb 03, 2016 |
Ama80:because he doesn't understand economics. he's a cattle rearer by profession. 9 Likes 2 Shares |
Re: What Is Devaluation Of Naira? by Obas101(m): 9:43pm On Feb 03, 2016 |
Hmm.. I'm learning 2 Likes |
Re: What Is Devaluation Of Naira? by bayocanny: 9:43pm On Feb 03, 2016 |
In other words, devaluation of naira is booming yahoo boys business
#fact# 9 Likes 3 Shares |
Re: What Is Devaluation Of Naira? by Nobody: 9:43pm On Feb 03, 2016 |
2rutalk1: I guess this explains why google says exchange rate of dollars to naira is 198, CU's I have been wondering how come its 300+ here and google saying 198. 3 Likes 1 Share |
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