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How Is Dollar Regulated To Fight Inflation? - Politics - Nairaland

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How Is Dollar Regulated To Fight Inflation? by Princelyod(m): 8:00pm On Oct 23, 2013
First and formost forgive my ignorance if this idealogy isn't really realistic.

I am not an economist,but i have developed keen interest to study about money and factors behind changes in behavioural pathern of money in respect to every economy.

Now my question goes thus:
with recent policies made by the CBN to fight again inflation in the country which includes baning the black market operator who ofcourse stock alot of money in non-financial institutions which its hoarded figures are not considered because its operated outside the constitutional financial walls.these hoarded nigeria currencies as it related to this case are kept out of circulation for a period of time which ofcourse might coincide between the period the CBN takes stock of the amount of money in circulation.Resultantly,if the CBN decides to pump more naira into the economy at a period that coincides with when the black marketers and most times big churches who probably might not want to reveal their net worth decides to release the hoarded money at the same time,INFLATION happens owing to excess money in circulation.

Now back to dollar.
The USD happens to be the universal currency as such i just read an article on this forum how schools in rich sububs in nigeria like lekki would only accept tuition fees in USD.Similar practices i believe are not exempted in other developed and developing countries owing to how stable and relaible the USD can be compared to other currencies.In this case,the USD is hugely hoarded even outside the boarders of america which eventually leads to shortage of USD circulation in America which ofcourse might prompt more printing of the USD into the American economy.Now my main concern is how does does the Americans attain stability with the us Dollars when eventually these hoarded USD gets back to their economy once again through business activities.

Once again forgive my ignorance!

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