What's this that's coming

Which is why, Our Yahoo brothers are migrating to Ghana.

imagine o. just ordinary Ghana down there!! Nigeria don almost finish. na small remain

Where were you when the Ghanaian government through their central bank made an adjustment to their currency value by removing certain number of digits? Obviously, the upward trend could not have happened because of their trade or forex gains in such a very short period. It was the same thing Obj reportedly wanted to do but our law makers kicked against the idea and that was the last time we heard about it.

Sammiel:
Where were you when the Ghanaian government through their central bank made an adjustment to their currency value by removing certain number of digits? Obviously, the upward trend could not have happened because of their trade or forex gains in such a very short period. It was the same thing Obj reportedly wanted to do but our law makers kicked against the idea and that was the last time we heard about it.

Obj or yaradua?

LabuleofNigeria:
Very soon, nigerians might be travelling to ghana to hustle. Omase ooo...Mighty falls

I tell u

Peteru1st:
imagine o. just ordinary Ghana down there!! Nigeria don almost finish. na small remain

Was shocked when I saw this on bing.com

Same old story.

Cedi was redenominated (10, 000 old cedis = 1 new cedi) in 2007 thus making 1 cedi to be 0.9USD (all the way from 10,000USD). Does this mean their economy was better than that of the US then? No! That doesn't necessarily reflect the strength of the economy. Nigeria could easily knock off zeros from their Naira (say N100 will be N1000) and match up but does that really solve our economic problems? If N1000 could only purchase a fowl and after redenominating, the new N100 can still purchase only a fowl, then it's just an internal thing and doesn't reflect or change the true strength of your currency in the international market. If you were earning N5000 a week and still earns N500 a week after such redenomination, how has that really helped you?

Redenomination is a money management strategy aimed at ensuring portability, security and easier calculation. It doesn't reflect the value of the currency. What matters is the value (what money can buy) and the power (how much of it you have).

Thanks

WoundedLamb:
Same old story.

Cedi was redenominated (10, 000 old cedis = 1 new cedi) in 2007 thus making 1 cedi to be 0.9USD (all the way from 10,000USD). Does this mean their economy was better than that of the US then? No! That doesn't necessarily reflect the strength of the economy. Nigeria could easily knock off zeros from their Naira (say N100 will be N1000) and match up but does that really solve our economic problems? If N1000 could purchase only purchase a fowl and after redenominating, the new N100 can still purchase only a fowl, then it's just an internal thing and doesn't reflect or change the true strength of your currency in the international market. If you were earning N5000 a week and still earns N500 a week after such redenomination, how has that really helped you?

Redenomination is a money management strategy aimed at ensuring portability, security and easier calculation. It doesn't reflect the value of the currency. What matters is the value (what money can buy) and the power (how much of it you have).

Thanks

Well..I don't thoroughly understand u...Bit I will ask...Does that mean what I can buy with the 1000old cedi is thesame with what I will buy with the the prevent 1cedi or would be less that the present 1cedi

abiolamitodun:
Obj or yaradua?

Perhaps you are right.

That's redenominating. They removed 4 zeros from their digits to make it flexible for them. Prof Soludo tried replicating that policy whilst he was still the CBN governor but it was rejected by our law-makers..

WoundedLamb:
Same old story.

Cedi was redenominated (10, 000 old cedis = 1 new cedi) in 2007 thus making 1 cedi to be 0.9USD (all the way from 10,000USD). Does this mean their economy was better than that of the US then? No! That doesn't necessarily reflect the strength of the economy. Nigeria could easily knock off zeros from their Naira (say N100 will be N1000) and match up but does that really solve our economic problems? If N1000 could purchase only purchase a fowl and after redenominating, the new N100 can still purchase only a fowl, then it's just an internal thing and doesn't reflect or change the true strength of your currency in the international market. If you were earning N5000 a week and still earns N500 a week after such redenomination, how has that really helped you?

Redenomination is a money management strategy aimed at ensuring portability, security and easier calculation. It doesn't reflect the value of the currency. What matters is the value (what money can buy) and the power (how much of it you have).

Thanks

Thanks for the education man! You really explained it as it is.

abiolamitodun:

Well..I don't thoroughly understand u...Bit I will ask...Does that mean what I can buy with the 1000old cedi is thesame with what I will buy with the the prevent 1cedi or would be less that the present 1cedi

As at that July 2007, both had the same value. Of course, just like many other African currencies, cedis hasn't really been doing so great against the USD so presently, the value has also gone down a little (1USD is now more than 5 GHc). So the new 1GHc may not be able to purchase a foreign good it could purchase back in 2007 but this second part has little to do with the denomination cause even if they were still using the old currency, it would have still had the same effect.

Poster u need to see this too,

I honestly hope naira wnt be useless as Zimbabwe dolar

WoundedLamb:


As at that July 2007, both had the same value. Of course, just like many other African currencies, cedis hasn't really been doing so great against the USD so presently, the value has also gone down a little (1USD is now more than 5 GHc). So the new 1GHc may not be able to purchase a foreign good it could purchase back in 2007 but this second part has little to do with the denomination cause even if they were still using the old currency, it would have still had the same effect.

So that means that 1cidi is greater than the naira...?

Sicilyjoe:
Poster u need to see this too,

For real?..

abiolamitodun:

So that means that 1cidi is greater than the naira...?

Short answer:
In terms of norminal value, yes but in terms of economic value, no. In terms of normal value, the Ghanaian Cedis is even greater than the Japanese currency but this obviously has no implication on the economy. Both the Japanese economy and the Nigerian economy are still far ahead of that of Ghana. In summery, Nigerians have higher purchasing power, the living standard in Nigeria is higher and inflation is still lower in Nigeria.

Long answer:
Let me try my best to explain this further. You see, there was a great inflation in Ghana up to 2007 where cedis was almost worthless. People had to carry heavy notes about and calculations were hectic. At this time, not only was 1 Naira equal to 150 Cedis (it was actually more but I chose 150 for ease of calculation), 750 Cedis (5 Naira) could not buy anything at all due to inflation. So even though 750 Cedis was 5 Naira, it still could not buy what 5 Naira would buy in Nigeria. Salaries were also higher in Nigeria. So Nigeria generally had higher purchasing power. Now Ghana redenominated in July 2007 making 1Cedi (10,000 old Cedis) to be equal to 1 USD which was about 300 Naira (rounded to the nearest 100). While this made their life more convenient in terms of money management, it does not in any way affect Naira or change the fact that Nigeria still has higher purchasing power. This is because the 300 Naira (which then became 1 Cedi) could still purchase more than what 1 Cedi could buy. This is still the case till today. Therefore, while Cedi has more nominal value, Naira still has more economic value.

Clear?

WoundedLamb:


Short answer:
In terms of norminal value, yes but in terms of economic value, no. In terms of normal value, the Ghanaian Cedis is even greater than the Japanese currency but this obviously has no implication on the economy. Both the Japanese economy and the Nigerian economy are still far ahead of that of Ghana. In summery, Nigerians have higher purchasing power, the living standard in Nigeria is higher and inflation is still lower in Nigeria.

Long answer:
Let me try my best to explain this further. You see, there was a great inflation in Ghana up to 2007 where cedis was almost worthless. People had to carry heavy notes about and calculations were hectic. At this time, not only was 1 Naira equal to 150 Cedis (it was actually more but I chose 150 for ease of calculation), 750 Cedis (5 Naira) could not buy anything at all due to inflation. So even though 750 Cedis was 5 Naira, it still could not buy what 5 Naira would buy in Nigeria. Salaries were also higher in Nigeria. So Nigeria generally had higher purchasing power. Now Ghana redenominated in July 2007 making 1Cedi (10,000 old Cedis) to be equal to 1 USD which was about 300 Naira (rounded to the nearest 100). While this made their life more convenient in terms of money management, it does not in any way affect Naira or change the fact that Nigeria still has higher purchasing power. This is because the 300 Naira (which then became 1 Cedi) could still purchase more than what 1 Cedi could buy. This is still the case till today. Therefore, while Cedi has more nominal value, Naira still has more economic value.

Clear?

I nw understand

WoundedLamb:


Short answer:
In terms of norminal value, yes but in terms of economic value, no. In terms of normal value, the Ghanaian Cedis is even greater than the Japanese currency but this obviously has no implication on the economy. Both the Japanese economy and the Nigerian economy are still far ahead of that of Ghana. In summery, Nigerians have higher purchasing power, the living standard in Nigeria is higher and inflation is still lower in Nigeria.

Long answer:
Let me try my best to explain this further. You see, there was a great inflation in Ghana up to 2007 where cedis was almost worthless. People had to carry heavy notes about and calculations were hectic. At this time, not only was 1 Naira equal to 150 Cedis (it was actually more but I chose 150 for ease of calculation), 750 Cedis (5 Naira) could not buy anything at all due to inflation. So even though 750 Cedis was 5 Naira, it still could not buy what 5 Naira would buy in Nigeria. Salaries were also higher in Nigeria. So Nigeria generally had higher purchasing power. Now Ghana redenominated in July 2007 making 1Cedi (10,000 old Cedis) to be equal to 1 USD which was about 300 Naira (rounded to the nearest 100). While this made their life more convenient in terms of money management, it does not in any way affect Naira or change the fact that Nigeria still has higher purchasing power. This is because the 300 Naira (which then became 1 Cedi) could still purchase more than what 1 Cedi could buy. This is still the case till today. Therefore, while Cedi has more nominal value, Naira still has more economic value.

Clear?

U earned a follower/fan

punisha:



U earned a follower/fan

Thank you for the accolade. This is probably the only post of mine you'd like, trust me. Lol

for more info check this out


https://www.youtube.com/watch?v=t9DWoildPkA

WoundedLamb:
Same old story.

Cedi was redenominated (10, 000 old cedis = 1 new cedi) in 2007 thus making 1 cedi to be 0.9USD (all the way from 10,000USD). Does this mean their economy was better than that of the US then? No! That doesn't necessarily reflect the strength of the economy. Nigeria could easily knock off zeros from their Naira (say N100 will be N1000) and match up but does that really solve our economic problems? If N1000 could only purchase a fowl and after redenominating, the new N100 can still purchase only a fowl, then it's just an internal thing and doesn't reflect or change the true strength of your currency in the international market. If you were earning N5000 a week and still earns N500 a week after such redenomination, how has that really helped you?

Redenomination is a money management strategy aimed at ensuring portability, security and easier calculation. It doesn't reflect the value of the currency. What matters is the value (what money can buy) and the power (how much of it you have).

Thanks

You are partially right. The truth is that it affects the citizen's psyche.

A country not using coins, that cant think in bits, but in large round figures is heading to disaster.

Children grow up adjusting to large figures and hearing millionaires all the time. Ever wondered why our millenials glorify in yahoo yahoo? There's a way low figures brings about contentment and humility.

A price of commodity that must increase from N50 can only do so by 100%. From N50 to N100, especially transportation business.

What about handling? Why do i need a bulky purse to carry money in a "cashless" economy? Because the least thing i spend money on on a daily basis has two zeroes (00) at the back. Why are bullion vans everywhere? In London, i remember that £50 note was huge when i lived there. It is rarely seen in public, even £20 note. Most daily expenses were in coins and patapata were in £5 to £10 notes. Same with Ghana.
Russia too removed many zeroes in the late 90s.
So you see how it affects the common man psychologically?

WoundedLamb:


Thank you for the accolade. This is probably the only post of mine you'd like, trust me. Lol

U be werey!
We all are...
Lol.
I'm sure there's more to learn from u.
Cheers bruh

God

What do you mean by the Nigerian economy is ahead of that of Ghana? What parameters are you using?

What is the level of inflation in Ghana and Nigeria? What is life expectancy in Nigeria compared with Ghana? What is GDP/economic growth in Nigeria, compared with Ghana? What is Nigeria’s per capita GDP, compared with Ghana?

What is the level of unemployment in Nigeria, compared with Ghana? What is the poverty level in Nigeria, compared with Ghana? How is Nigeria ranked in terms of access to health care, quality education, electricity and personal security?

Ghana is far ahead of Nigeria on all these indices. So when you say “the Nigerian economy is ahead of Ghana” can you provide credible and verifiable evidence? Talk is cheap

Yes, Ghana redominated her currency, but there is nothing special about that. What you failed to mention was the fact that the Ghanaians has been one of the fastest growing in Africa. The Ghanaian economy has been growing consistently around 6% in the past decade or so. If you want to talk about how Nigeria and Ghana are doing on the economic front, then provide figures and stop your shambolic innuendos and needless attempts to rubbish the great achievements of Ghanaians in trying to rebuild their economy. Naira has more economic value, and yet Nigeria has become the undisputed champions and headquarters of world poverty?

WoundedLamb:


Short answer:
In terms of norminal value, yes but in terms of economic value, no. In terms of normal value, the Ghanaian Cedis is even greater than the Japanese currency but this obviously has no implication on the economy. Both the Japanese economy and the Nigerian economy are still far ahead of that of Ghana. In summery, Nigerians have higher purchasing power, the living standard in Nigeria is higher and inflation is still lower in Nigeria.

Long answer:
Let me try my best to explain this further. You see, there was a great inflation in Ghana up to 2007 where cedis was almost worthless. People had to carry heavy notes about and calculations were hectic. At this time, not only was 1 Naira equal to 150 Cedis (it was actually more but I chose 150 for ease of calculation), 750 Cedis (5 Naira) could not buy anything at all due to inflation. So even though 750 Cedis was 5 Naira, it still could not buy what 5 Naira would buy in Nigeria. Salaries were also higher in Nigeria. So Nigeria generally had higher purchasing power. Now Ghana redenominated in July 2007 making 1Cedi (10,000 old Cedis) to be equal to 1 USD which was about 300 Naira (rounded to the nearest 100). While this made their life more convenient in terms of money management, it does not in any way affect Naira or change the fact that Nigeria still has higher purchasing power. This is because the 300 Naira (which then became 1 Cedi) could still purchase more than what 1 Cedi could buy. This is still the case till today. Therefore, while Cedi has more nominal value, Naira still has more economic value.

Clear?

Fuckeduppedness Did you say “ordinary” Ghana? If indeed Ghana is ordinary, I wonder what you will call Nigeria

Peteru1st:
imagine o. just ordinary Ghana down there!! Nigeria don almost finish. na small remain

Torture2020:

Fuckeduppedness Did you say “ordinary” Ghana? If indeed Ghana is ordinary, I wonder what you will call Nigeria

Nigeria is nothing jere

Torture2020:
What do you mean by the Nigerian economy is ahead of that of Ghana? What parameters are you using?

What is the level of inflation in Ghana and Nigeria? What is life expectancy in Nigeria compared with Ghana? What is GDP/economic growth in Nigeria, compared with Ghana? What is Nigeria’s per capita GDP, compared with Ghana?

What is the level of unemployment in Nigeria, compared with Ghana? What is the poverty level in Nigeria, compared with Ghana? How is Nigeria ranked in terms of access to health care, quality education, electricity and personal security?

Ghana is far ahead of Nigeria on all these indices. So when you say “the Nigerian economy is ahead of Ghana” can you provide credible and verifiable evidence? Talk is cheap

Yes, Ghana redominated her currency, but there is nothing special about that. What you failed to mention was the fact that the Ghanaians has been one of the fastest growing in Africa. The Ghanaian economy has been growing consistently around 6% in the past decade or so. If you want to talk about how Nigeria and Ghana are doing on the economic front, then provide figures and stop your shambolic innuendos and needless attempts to rubbish the great achievements of Ghanaians in trying to rebuild their economy. Naira has more economic value, and yet Nigeria has become the undisputed champions and headquarters of world poverty?

Bro, you are getting very emotional with all your responses here. This is a mere discussion and not a fight. Rubbish Ghana? Why would I rubbish Ghana? Where I live, the white man doesn't care where you are from. So this is not a Ghana vs Nigeria thing (that's childish). If you had read a couple of posts down, you'd see where I gave a further explanation by comparing the purchasing power of both currencies. Besides, Nigerian economy is not the same as Ghanaian's. And that's merely because Nigeria is a much bigger country, far more populated and thus more economically vibrant due to the larger market. Isn't this glaring? Must we argue over everything on Nairaland?

Parameter wise, Ghanaian economy is growing and when expressed in terms of percentage of its former state, it's at a higher rate than Nigeria's (7.9% as against 6.6%) but it's not up to Nigeria's economy and it will take a miracle to get up to that given the size difference. But in terms of purchasing power parity, Naira is more than 40% higher. (This means 1Naira can purchase in Nigeria more than its Ghanaian Cedis equivalent can purchase in Ghana thus making Ghana a more expensive place). This is because Nigerian GDP (total worth of finished goods/services produced in the country) will always be higher because Nigeria has more industries.

In summary, Nigerian currency has higher basket worth (PPP) due to the high GDP. Nigeria's revenue is more than 100% higher than that of Ghana which means she can afford more amenities. Nigeria has more industries. Cost of living is lower in Nigeria. However, Nigeria has more number of poor people. Ghana's economy is growing at a slightly higher rate. Ghana has better wealth distribution scheme.

For discussion sake, you really need to understand the indices of the poverty report you're mentioning. Before Nigeria was termed the poverty capital, it was India. Now, does that mean the economy of Ghana was better than that of India too? Of course, not. It is a function of population (the same population that constitute the source of economic vibrancy). The number of poor people in Nigeria will always be higher. If it were expressed in percentage, it would have been South Sudan (with more than 95%). Ghana has done well by moving from more than 45% to much less while Nigeria remains above that. However, the huge norminal difference in terms of population means that it takes elevating a fewer people above poverty line in Ghana to reduce the percentage than it takes in Nigeria. This explanation does not undermine the efforts of Ghana in the area of poverty reduction and most importantly, wealth distribution (where Nigeria is seriously lagging behind). Nigeria just has more money to spend. The US has more poor people than Canada, it doesn't mean the Canadian economy is better.

I'm probably not going to contribute any further to this chat cause I shy away from any emotionally charged threads but if you have any sincere question, I'd be willing to answer.

Good morning.

WoundedLamb:


Bro, you are getting very emotional with all your responses here. This is a mere discussion and not a fight. Rubbish Ghana? Why would I rubbish Ghana? Where I leave, the white man doesn't care where you are from. So this is not a Ghana vs Nigeria thing (that's childish). If you had read a couple of posts down, you'd see where I gave a further explanation by comparing the purchasing power of both currencies. Besides, Nigerian economy is not the same as Ghanaian's. And that's merely because Nigeria is a much bigger country, far more populated and thus more economically vibrant due to the larger market. Isn't this glaring? Must we argue over everything on Nairaland?

Parameter wise, Ghanaian economy is growing and when expressed in terms of percentage of its former state, it's at a higher rate than Nigeria's (7.9% as against 6.6%) but it's not up to Nigeria's economy and it will take a miracle to get up to that given the size difference. But in terms of purchasing power parity, Naira is more than 40% higher. (This means 1Naira can purchase in Nigeria more than its Ghanaian Cedis equivalent can purchase in Ghana thus making Ghana a more expensive place). This is because Nigerian GDP (total worth of finished goods/services produced in the country) will always be higher because Nigeria has more industries.

In summary, Nigerian currency has higher basket worth (PPP) due to the high GDP. Nigeria's revenue is more than 100% higher than that of Ghana which means she can afford more amenities. Nigeria has more industries. Cost of living is lower in Nigeria. However, Nigeria has more number of poor people. Ghana's economy is growing at a slightly higher rate. Ghana has better wealth distribution scheme.

For discussion sake, you really need to understand the indices of the poverty report you're mentioning. Before Nigeria was termed the poverty capital, it was India. Now, does that mean the economy of Ghana was better than that of India too? Of course, not. It is a function of population (the same population that constitute the source of economic vibrancy). The number of poor people in Nigeria will always be higher. If it were expressed in percentage, it would have been South Sudan (with more than 95%). Ghana has done well by moving from more than 45% to much less while Nigeria remains above that. However, the huge norminal difference in terms of population means that it take elevating a fewer people above poverty line in Ghana to reduce the percentage than it takes in Nigeria. This explanation does not undermine the efforts of Ghana in the area of poverty reduction and most importantly, wealth distribution (where Nigeria is seriously lagging behind). Nigeria just has more money to spend. The US has more poor people than Canada, it doesn't mean the Canadian economy is better.

I'm probably not going to contribute any further to this chat cause I shy away from any emotionally charged threads but if you have any sincere question, I'd be willing to answer.

Good morning.

This is succinct and well presented explanation. Sound more like an elderly man.