binger: I think that is good news for me and others who earn the USD online,by the time its convertd to our local currency,i'l make a fortune

Aside the fact that the post says the naira firmed against the dollar ( as in the naira closing down the gap on the dollar ), the weaker the naira the less valuable the said dollar u earn online.

People always forget that as the naira becomes weak, prices of commodities in the market ( which u will end up using ur exchanged dollar to buy ) goes up.

You are actually only getting more money ( paper value ) to buy less commodities.

And mine u, I am an internet marketer as well.

yommys01: Aside the fact that the post says the naira firmed against the dollar ( as in the naira closing down the gap on the dollar ), the weaker the naira the less valuable the said dollar u earn online.

People always forget that as the naira becomes weak, prices of commodities in the market ( which u will end up using ur exchanged dollar to buy ) goes up.

You are actually only getting more money ( paper value ) to buy less commodities.

And mine u, I am an internet marketer as well.

Prices don't have to go up when the naira strengthens. For a country like Nigeria that is highly import-oriented, you would actually be buying more foreign goods when the naira firms up; I don't think this is likely to lead to inflation. However, a stronger naira does discourage exports as the locally manufactured goods become more expensive in the eyes of the foreigners. If most of the local goods are for exports, this may indeed lead to deflation.

On the flip side however, a weaker naira, means that foreigners find our products cheaper and thereby encourage exports. China has artificially kept her currency low for years in order to boost her ability to export cheap goods to other countries.

wow naira just had an erektion

Pukkah:

Prices don't have to go up when the naira strengthens. For a country like Nigeria that is highly import-oriented, you would actually be buying more foreign goods when the naira firms up; I don't think this is likely to lead to inflation. However, a stronger naira does discourage exports as the locally manufactured goods become more expensive in the eyes of the foreigners. If most of the local goods are for exports, this may indeed lead to deflation.

On the flip side however, a weaker naira, means that foreigners find our products cheaper and thereby encourage exports. China has artificially kept her currency low for years in order to boost her ability to export cheap goods to other countries.

I agree with you there but I also disagree. The mentality of Nigerians will mean I am right and you are wrong. You need to flash back to what happened when Dollar went up to N180 to a Naira.

Even conductor will take you "You no hear dollar don cost?".

Hmm what's the meaning of all this naira stay naira close. I no even understand or can someone throw more light on it cos I don't know what I means.

yommys01: I agree with you there but I also disagree. The mentality of Nigerians will mean I am right and you are wrong. You need to flash back to what happened when Dollar went up to N180 to a Naira.

Even conductor will take you "You no hear dollar don cost?".

If the naira weakens in a highly import-dependent country like ours, of course it will lead to inflation in Nigeria (all things being equal) because you now need 'more' naira to buy foreign goods whose dollar prices have not changed. In that case, the bus conductor in your example would be right with his 'you no hear say dollar don cost' assertion.

There's no 'two way' about this. It is not the mentality of Nigerians. It is the way things work.