Naira keeps falling in value against the dollar. Infact dollar is now 450 in the black market.
Economist in the house why is this so.?
Would naira bounce back to 360 ever again??

Cc: Mynd44 Seun lalasticlala

Okay boy. Get ur calculator lets resolve this for you

Yes it can bounce back, if only we can start producing more goods and provide more services. All we need is more export.

andriods:
Okay boy. Get ur calculator lets resolve this for you

Resolve what man.

SUPERPACK:
Yes it can bounce back, if only we can start producing more goods and provide more services. All we need is more export.

This is theoritcal, we know.
The question is why is the dollar 390 times the naira. Abi is the American economy not on Lockdown too.

sotomayor:

This is theoritcal, we know.
The question is why is the dollar 390 times the naira. Abi is the American economy not on Lockdown too.

The currency used internationally for trade between nations is the dollars. The implication of this is that you must earn in dollars in other to purchase products you can't produce on your own. Our major source of dollars is crude oil sales which is currently not marketable due to covid 19, as a result we have more naira chasing the limited flow of dollars in circulation. So the naira losses more value due to the principle of demand and supply in economics, less dollars in supply, high demand of dollars. As for the USA they produce almost all they need so even in this lockdown they can meet the demand of their citizens without looking to purchase from others. Do read more on Export dependent and Import dependent countries for more. USA is export dependent, Nigeria is import dependent.

SUPERPACK:
The currency used internationally for trade between nations is the dollars. The implication of this is that you must earn in dollars in other to purchase products you can't produce on your own. Our major source of dollars is crude oil sales which is currently not marketable due to covid 19, as a result we have more naira chasing the limited flow of dollars in circulation. So the naira losses more value due to the principle of demand and supply in economics, less dollars in supply, high demand of dollars. As for the USA they produce almost all they need so even in this lockdown they can meet the demand of their citizens without looking to purchase from others. Do read more on Export dependent and Import dependent countries for more. USA is export dependent, Nigeria is import dependent.

Okay nice one...
But with the fall in oil price doubt if it would rebounce to the price it was.
If not naira would depreciate from 365 even after the Corona Palava

Major reason is the pandemic. Because the flow of dollar has been distorted.Human activities in the world make money to move but many of it have been halted.Only few money move now.The second reason is wat we call speculation.The bureau de change will speculate shortage in dollar supply and they start hoarding of dollar.so dat dey can sell it at high price.

Dollar is 471 today at onitsha.