makemoneywbsite:


Trying to act intelligent? You just picked another person's idea and made a post as if you have the mental capacity to have reasoned it out yourself. Abeg, give credit to whom get sense pass you. No one who sees your comments expect you to be mentally stellar.

Tell me where it was copied from.

There is one thing to be envious but then another thing to be jealous, they say jealousy leads to early grave.

thebosstrevor1:


Tell me where it was copied from.

There is one thing to be envious but then another thing to be jealous, they say jealousy leads to early grave.

Really? So you grew some grey matter last night? Unfortunately, I'm not decieved. I already read where you got that dunnny...

makemoneywbsite:


Really? So you grew some grey matter last night? Unfortunately, I'm not decieved. I already read where you got that dunnny...

Show me the place, i believe you also saw my moniker there.

Don't be disturbed, one day, you will be like me, fan boy

Whoever sponsored your education must not see this. Chai!

If they use the money used in funding your education to fund pig farming, I swear it would be more profitable. WTF

Purchasing power parity is what you just murdered like this? It is not enough to just reason something in your head and conclude you made sense, first inform people around you before posting on the internet. Na so person take equate 5G to coronavirus. I tire for Nigerians

thebosstrevor1:
This is for all those that love to say it is better to compare 1 dollar to 1 naira rather than 500 naira.

Comparing 1 dollar to 1 naira does not make economic sense, many currencies in the world does not have equal value to the dollar.

You can not compare 1 dollar and 1 naira, they are not of equal value.

You can't also compare 1 euro and 1 dollar, they are also not of equal value.

You can't also compare 1 pound to 1 dollar they are not of equal value.

To get equal value of 1 dollar to a given currency you convert, you find for the equivalent of 1 dollars in a given country currency and then compare.

For instance.

1 dollar is equal to 500 naira.
1 dollar is equal to 71 pence
1 dollar is equal to 82 euro cent.

Now, you compare, what will 500 naira get in Nigeria and what will 1 dollar get in the United states.

What will 71 pence get in the england vs what will 1 dollar get in America.

What will 82 euro cent get in the EU vs what will 1 dollar get in America.



That is how you compare.

Proflere:
Whoever sponsored your education must not see this. Chai!

If they use the money used in funding your education to fund pig farming, I swear it would be more profitable. WTF

Purchasing power parity is what you just murdered like this? It is not enough to just reason something in your head and conclude you made sense, first inform people around you before posting on the internet. Na so person take equate 5G to coronavirus. I tire for Nigerians

After the ranting, one counter argument wasn't written down.

I wasn't expecting something reasonable not rant.

I wouldn't be surprised if you don't understand ppp

DubaiLandLord:
Some Nigerians are just so dumb. The person that first talked about comparing 1 naira to 1 dollar on the thread about the Naira and CFA that made front page, I was shocked he had more than 300 likes.

Ignorance and lack of understanding of international economics

Nothing you do in this life and 600yrs to come will change the fact that buhari and apcheat are a collosal and humongous failure in all ramifications of life.

thebosstrevor1:


I don't understand what you wrote, can you explain better?

Sorry typing with my phone and a bit distracted.

Min wage Naija 30 000 which translate to 30000/(40 hr week * 4 weeks in a month) = 187.5 naira per hour.

Min wage USA 7.5 dollars on the average.

Item by item:
A loaf of bread in USA say 2.5 dollars that means it cost you (2.5/7.5)*100=33.3% of your hourly wage to buy bread.

A loaf of bread in Nigeria on the average is 300 naira. That means you have to spend almost two hours wage in buying a loaf of bread.

Is this clear now?

Proflere:
Whoever sponsored your education must not see this. Chai!

If they use the money used in funding your education to fund pig farming, I swear it would be more profitable. WTF

Purchasing power parity is what you just murdered like this? It is not enough to just reason something in your head and conclude you made sense, first inform people around you before posting on the internet. Na so person take equate 5G to coronavirus. I tire for Nigerians

O boy you get bad mouth, why not correct him. We are all learning, correct him one or two of us can learn from your insight.

What the op wrote above, is what is called beer parlor economics

thebosstrevor1:
This is for all those that love to say it is better to compare 1 dollar to 1 naira rather than 500 naira.

Comparing 1 dollar to 1 naira does not make economic sense, many currencies in the world does not have equal value to the dollar.

You can not compare 1 dollar and 1 naira, they are not of equal value.

You can't also compare 1 euro and 1 dollar, they are also not of equal value.

You can't also compare 1 pound to 1 dollar they are not of equal value.

To get equal value of 1 dollar to a given currency you convert, you find for the equivalent of 1 dollars in a given country currency and then compare.

For instance.

1 dollar is equal to 500 naira.
1 dollar is equal to 71 pence
1 dollar is equal to 82 euro cent.

Now, you compare, what will 500 naira get in Nigeria and what will 1 dollar get in the United states.

What will 71 pence get in the england vs what will 1 dollar get in America.

What will 82 euro cent get in the EU vs what will 1 dollar get in America.



That is how you compare.

Oga what exactly are you saying? Which kind ofurukpe economy be this?

Exchanging money (forex) is a business. And like Mercedes exchange to IVM, would make a scale collapse in one direction, it's shows the strength of one economy over another.

There was a time N1=$1.5. The graph has tilted since. N1 was meant to equal $1. ¥1 was meant to equal £1. But since most forex are under competitive market (unlike CBN that kept controlling forex) the law of demand and supply would determine the true strength overtime

Countries devalues their currencies because of economic weakness and to gain certain economic advantage. This discussion would be very long and educational if it was done f2f. But it's an error to say people should not compare N1 to $1.

MrMaestro:

No it really isn't. It's not tied to food at all. Maybe other things, but not food and shelter. Which is most important. And we don't just import from U.S., we also import from China, India, Brazil and others with much more favorable exchange rates. Regardless, the U.S./Naira comparison is idiotic.

in case you don't know...only small amount of the food we eat are produced in nigeria while majority of other either finished product or raw materials in processing them e.g. tomato paste,rice,wheat,palm oil and another thing that makes finished food expensive is packaging materials with most of polymer and plastics being import....the reason why sachet water is expensive is not because of the water but because of sachet

Cryptodegen:
This post does not change the fact that Bitcoin will continue to pump and that crypto have produced more millionaires this 2021 than Internet scam!

And triple more losers ..stop making it seem everyone that puts money in BTC will become rich

I have always said one must be on the lower spectrum of intelligence to support Buhari and this op has proven me right once again

slachtoffers:


Sorry typing with my phone and a bit distracted.

Min wage Naija 30 000 which translate to 30000/(40 hr week * 4 weeks in a month) = 187.5 naira per hour.

Min wage USA 7.5 dollars on the average.

Item by item:
A loaf of bread in USA say 2.5 dollars that means it cost you (2.5/7.5)*100=33.3% of your hourly wage to buy bread.

A loaf of bread in Nigeria on the average is 300 naira. That means you have to spend almost two hours wage in buying a loaf of bread.

Is this clear now?

What calculation is this? And what exactly are you calculating for? For value of currency or exchange rate, ppp?

The flaws in your calculation is this, you fail to factor the cost of labour and standard of living between the United states and Nigeria. Standard of living and labour cost is always high in developed countries, so expect a higher minimum wage in developed countries.

Minimum wage in Nigeria is 30k per month.
Minimum wage in the United states is 7.5 per hour that is 1400 per month.

The 1400 usd per month is also struggling like his counterpart in Nigeria earning 30k per month.

If we use the Balassa–Samuelson theory, the Nigerian earning 30k will have a cheaper life while the American will have a more expensive life because of difference in the cost of consumer prices and cost of living.


For value of currency and ppp

This how it works if you are calcuting for ppp

It cost about 300 naira to cut a man's hair in Nigeria in the Unitedstates, that same haircut cost about 28 dollars

If we have to calculate ppp

P1 = 300
P2 = 28 dollars (1dollars = 500 naira) = 28×500 = 14,000

PPP

S = p1/p2

300/14000 = 0.021

This means the value of dollar is overvalued when compared to naira.

Someone taking 28 dollars to Nigeria will be able to cut his hair 46 times while the other person taking 300 naira to the United states wont be able to cut his hair.
This is for value of money.

If we have to say what will 1 dollar buy me in the United states and Nigeria?

1 dollar wont buy more than soda in the United states, the equivalent of 1 dollar is 500 naira in Nigeria, it will buy you a whole lot of things

FarahAideed:
I have always said one must be on the lower spectrum of intelligence to support Buhari and this op has proven me right once again

Point to me where i was wrong?

Powersurge:


Oga what exactly are you saying? Which kind ofurukpe economy be this?

Exchanging money (forex) is a business. And like Mercedes exchange to IVM, would make a scale collapse in one direction, it's shows the strength of one economy over another.

There was a time N1=$1.5. The graph has tilted since. N1 was meant to equal $1. ¥1 was meant to equal £1. But since most forex are under competitive market (unlike CBN that kept controlling forex) the law of demand and supply would determine the true strength overtime

Countries devalues their currencies because of economic weakness and to gain certain economic advantage. This discussion would be very long and educational if it was done f2f. But it's an error to say people should not compare N1 to $1.

You wrote whole lot of jargons.

Most currency do not have equal value.