Cyoung4real:


No, I’m not sure. The high value of Ghana Cedi was because they redenominated their currency by removing 0000 zeros from it In 2007. Take Zimbabwe as an example, if they choose to redenominated their currency by removing some zeros from it, it will get value. If 1$ =20,000 and they choose to redenominated their currency by removing four zeros then 1$ would become 2 Zim currency but the purchasing power remains the same which means you can still get the things that were sold for 20000 zim currency before the redenomination for 2 Zim currency after redenomination. I don’t know if this is clear enough.

Bankyshinani:

If that's how the thing runs, why haven't Nigeria do the same thing

Nothingserious:


If N150k is say equivalent of 266 USD.
If someone earning 150k in Nigeria can afford a few things with that amount, can same 266 chase same goods elsewhere?

If say N400k can pay an annual house rent, can 710 USD chase same value for an annual rent too?

Cyoung4real:



It all depends on the government and also our currency is still kinda strong. Around 2007 in Ghana, you will have to carry a bag full of money just to buy bread and that was why they redenominated their currency so it doesn’t become so useless and Zimbabwe own too was useless that you have to carry a narrow full of money just to buy food

rigarmortis:
Ghana has a weak currency. One of the weakest in Africa, redominated their money by knocking off zeros behind it, which any country can do. And at the end of the day the value has inflated to 100 and something from 1 cedi to one dollar in a space of few years. That means that the value is even.worse that the naira

Cyoung4real:



Okay, take it this way. 200 Naira is equal to 2 cedi 99 pesewas. 200 Naira can buy you one bag of pure water in Nigeria but you need 4 cedis or 5 cedis to get a beg of Water in Ghana. You gerrit?

Danzysb:
N1000 is equal to $2.
Giant of Africa indeed.

JAMO84:
Libya's population is less than 7 million. It's like the whole Niger Delta oil money going to Abia state alone, imagine how strong the currency will be, because 7 million people will have more than enough and there will be a lot in the reserves.



Large Foreign reserves protect local currency.




In contrast, Nigeria has an estimated 200 million people, oil prices dropped, reserves tanked and no enough forex earnings to defend the Naira, hence the naira is on free fall due to forex demand pressure.



Our appetite for Foreign products, education, vacation, medication and other importation by our large population will continue to lift dollar above Naira.


Solution: we need to go local as soon as possible. The lesser we convert our naira to dollars for foreign patronage, the stronger the naira will be.

saintgp:
How do you explain the above using China's population.

JAMO84:
China is 1500 years old. It's an industrialized economy. Nigeria is 60 years old oil dependent economy, no basis for comparison.

oyatz:


A higher percentage of the population of China are into productive economic activities which produce goods for the Chinese people and also export to the rest of the World.

saintgp:

There is basis for the comparison,if am to go by ur earlier assertion that population is the reason behind the poor dollar to naira exchange rate.
Sir the issue isn't about high population,dats exactly what I want you to understand, rather it is about the work-function of ur population.and for the record there was a time china's economy was in mess,so it's not about the age, for if it was about age, ethiopia that is way older than china would have been better of.

Again like I said it's not about population but about the work-function of the people that makes of the country.

chiefobdk2:



I am certain u don't know wat u re talking about... China and India should have the worst currency in the world.. USA should also have one of the worst currency due to thr huge population...

Instead of you to shut up and learn.. U want to form woke..

Now u Don disgrace your self

Cyoung4real:
What are their purchasing powers? That’s what matters

Nothingserious:


If N150k is say equivalent of 266 USD.
If someone earning 150k in Nigeria can afford a few things with that amount, can same 266 chase same goods elsewhere?

If say N400k can pay an annual house rent, can 710 USD chase same value for an annual rent too?

Cyoung4real:



Okay, take it this way. 200 Naira is equal to 2 cedi 99 pesewas. 200 Naira can buy you one bag of pure water in Nigeria but you need 4 cedis or 5 cedis to get a beg of Water in Ghana. You gerrit?

Nothingserious:


If N150k is say equivalent of 266 USD.
If someone earning 150k in Nigeria can afford a few things with that amount, can same 266 chase same goods elsewhere?

If say N400k can pay an annual house rent, can 710 USD chase same value for an annual rent too?

VaselineCrew:


Lol, so in a sense, you are actually advocating for a further slide in our currency?

Cause why stop at N580, using your analysis up there? Why don’t we crank the dollar up to about N2,000. So for 266USD, you’d have N532,000 abi?

Don’t gorget though, that you produce almost nothing, so that phone you used to buy for 30k, is now 120k, out of your N532,000.

Now what about minimum wages and currency value? A minimum wage here is N30,000. Thirty whole thousand a month? I should be so rich, but I forgot that the currency was in naira, sigh. Meanwhile, a cleaner might make 6 dollars/hour abroad, talk less of people with specialized skills.

Soon, cleaners from abroad will come back to buy all of you, lol, because maybe when dollar becomes N2k, they will just bring like 1k dollars back home which will be like 2 million naira, then you guys will be prostrating on the floor shouting “Oga Sir”.

Bankyshinani:

What is the exchange rate of 1gh cedis to 1naira?
Redenomination is not only the answer, my brother...Are you aware that some investors prefer to invest in Ghana to Nigeria as it is now?

rigarmortis:


you are right on your second point, but thats another story totally bro. The thing is, if your currency is not backed by your economy and production, then knocking off all the zeros in the world wont stop it from inflating. and in the case of ghana, the cedi has worsened even more than the Naira.

if the cedi has gone from 1 cedi to 1 dollar after redomination to over 100cedi to 1$, that means it is now worse than it was before redomination.

chiefobdk2:



I am certain u don't know wat u re talking about... China and India should have the worst currency in the world.. USA should also have one of the worst currency due to thr huge population...

Instead of you to shut up and learn.. U want to form woke..

Now u Don disgrace your self

Bankyshinani:

Okay... Are you an Economist?

princeeze1:
what you failed to tell them is that a bag of pure water in Nigeria is 20sachets, in Ghana it is 30 sachets. Take it also that the naira is neither strong nor has purchasing power. It’s true #1k can just afford 4 plantain.

rigarmortis:


i am not originally an economist, i graduated as an engineer, but all my job experience and professional qualifications are in finance and risk management.

rigarmortis:


you are right on your second point, but thats another story totally bro. The thing is, if your currency is not backed by your economy and production, then knocking off all the zeros in the world wont stop it from inflating. and in the case of ghana, the cedi has worsened even more than the Naira.

if the cedi has gone from 1 cedi to 1 dollar after redomination to over 100cedi to 1$, that means it is now worse than it was before redomination.

saintgp:

There is basis for the comparison,if am to go by ur earlier assertion that population is the reason behind the poor dollar to naira exchange rate.
Sir the issue isn't about high population,dats exactly what I want you to understand, rather it is about the work-function of ur population.and for the record there was a time china's economy was in mess,so it's not about the age, for if it was about age, ethiopia that is way older than china would have been better of.

Again like I said it's not about population but about the work-function of the people that makes of the country.

mdntiri:
[quote author=YoungRay007

Op you're wrong with this ranking. The list of the strong African currency rankings are wrong, they're too simplistic, they only look at face value of the currencies, not their RATE OF DEPRECIATION/APPRECIATION AGAINST THE DOLLAR YEAR-ON-YEAR

So Ghana's "small" 6 cedi giving you a dollar is not better than Nigeria's 410 naira giving you a dollar. 410 naira is the same as 6 cedi. Ghana's 6 cedi is actually 60,000 old cedi