Devaluation means the reduction of the value of a country’s currency in terms of the value of the currencies of other nations of the world. The effects of devaluation are:
Exports Become Cheaper- The prices of goods produced locally would fall in other countries because people from other countries would use lesser amount in buying goods from such countries that devalued.
Import Becomes Much More Expensive- Citizens from a country that devalued her currency would spend more in buying goods from other countries(JP MORGAN HATE NIGERIANS WALAHI). Increase In Exports in a country that devalued its currency would increase because they are cheaper.
Reduction In Imports-The quantity of goods and services that would be imported into a country that devalued its currency would reduce because they are more expensive in terms of buying them due to low purchasing power.
Improvement in the Balance of Payments-This is as a result of increase in quantity of goods exported and reduction in imports which leads to saving foreign exchange for the country. Nigeria at this time could not afford to devalue her currency because the country is not producing a product that would attract buyers from other countries. The little quantity of goods we are exporting apart from crude are in raw-materials which would later be transformed by the developed world and sent back to us as imported goods with higher value (prices).
Naira devaluation at this period will not help the economy; CBN's devaluation over the past decade and particularly under GEJ did not help the Nigerian economy. Only the Capital market and Foreign Speculators have benefited(LET THE STOCK MARKET CONTINUE TO CRASH; THEY MAKE PROFIT WITHOUT PROSPERITY FOR ALL). The Nigerian Government and the management of the apex bank should be careful not to allow IMF control the monetary policies of our economy (I am pleased PMB's approach has solidified the resolve of the CBN, DMO and the Ministry of Finance in their attempt to stabilize the value of the Naira. JP Morgan, working in alliance with the World Bank and IMF made similar suggestion about devaluation during the administration of Ibrahim Babangida (IBB), and the outcome was a disaster for Nigeria; eroding the rebuilding PMB started in the 1980's .
The idea brought about a huge damage with negative consequences to the country and up till now, the economy has not fully recovered from that policy. CBN should focus more on the reforms that will enhance economic growth within the short, medium and long term expectations. This will boost industrial growth in order to address the problem of unemployment in the economy.

PMB is Right on Track....Slowly, But Steadily
#ToHellWithJPMorgan

JP Morgan a Criminal Enterprise! Africa doesn't need you.

"Fiscal or monetary policies won't work, not until we diversify the economy." Quote me anywhere.

Deception of the highest order..
U forgot to tell ushow we lost 311 billion naira worth of investment

What many here don't realize is that Buhari is not new to this game. During the last time he was heads of state, Nairaland was very strong then, almost like 2nd to the dollar if I'm not wrong, or almost at par with dollar.
The IMF and World Bank then pressured Buhari to devalue the naira and collect IMF loan, both of which he rejected. He even started paying the debts we owned. Nigeria was on the path to greatness. Nigeria was expelled from the World Trade Organization but Buhari didn't change his stand.
Then the coup came. It's no more a secret that western interests played a big part in the overthrow of Buhari. immediately IBB came in, what happened: naira was seriously devalued and we took IMF loans that we could have done without; loans which goes hand in hand with the silly SAP conditionalities which had ruined every African economy that it was adopted. We can all see the results today. Nigeria destiny to greatness was aborted when IBB overthrowed Buhari.
Devaluations is good or better for economy that does a lot of exports like China. Nigeria exports almost nothing aside from crude oil. But we import almost everything.
This government is doing what's best for Nigeria. Nigeria will get over the effects of the JP Morgan delisting of it's bonds.

So if you feel we are better off without the int'l institutions as JP Morgan, I can say Nigeria is in for the unknown.

If we refuse to devalue the naira in our own terms, the naira will only succeeded to crash in a free fall.

Time will tell.

[size=15pt]APC crooks are just terrible shameless liars.

Naira was stable for more than 4 years under Okonjo iweala at N152 for a dollar.

Less than 100 days of Buhari as minister of finance, it went to N223 for a dollar.

Yes, we know who had a devaluation policy.[/size]

People don't know that there are advantages and disadvantages of a strong a weak naira. Even China devalued her currency a few weeks ago, because they want to export more.
Unfortunately, our economic policies and formulations are run by people with 2nd grade education in economics who would rather oversimplify discussions about the value of the naira.

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What is OP saying? May ignorance not swallow Nigeria. JP Morgan never told anyone to devalue the NAIRA, it only said STOP Manipulating the Naira and Execute fiscal policies. No investor will put their money into such market as ours under Buhari.

It is clear that you don't know the benefit of being listed by JP Morgan index. Investors trust JP Morgan index that they are ready to put money into bonds that are listed. Delisting Ngeria means further pushing us away from potential investors and making the investors that we already have to pull out. With dwindling oil fortune, this move is a calamity to our economy.

As it is today, our real sector is down, production is at zero and we don't even have any fiscal policy.

@OP You and Buhari should go and learn and stop acting in ignorance.

OreMI22:
[size=15pt]APC criminals are just terrible shameless liars.

Naira was stable for more than 4 years under Okonjo iweala at N152 for a dollar.

Less than 100 days of Buhari as minister of finance, it went to N223 for a dollar.

Yes, we know who had a devaluation policy.[/size]

Get some sense before commenting. what was the exchange rate before May 29?

TonyeBarcanista:
What is OP saying? May ignorance not swallow Nigeria. JP Morgan never told anyone to devalue the NAIRA, it only said STOP Manipulating the Naira and Execute fiscal policies. No investor will put their money into such market as ours under Buhari.

And if we stop manipulating the naira, what will happen other than devaluation.

The Op is wrong though

naijaking1:
People don't know that there are advantages and disadvantages of a strong a weak naira. Even China devalued her currency a few weeks ago, because they want to export more.
Unfortunately, our economic policies and formulations are run by people with 2nd grade education in economics who would rather oversimplify discussions about the value of the naira.

China is export dependent, hence, they need a not-so-strong currency so as not to scare potential market. It pays a country like China in that regard. Nigeria is an import-dependent country that produces virtually nothing for our local market not to talk of export. We can't afford a weak Naira. At the same time, we can't afford to manipulate the naira and still expect investors to come in. The solution is simply to pursue sound fiscal and monetry programmes and secure investors confidence. This is the position of JP Morgan which is sane and fair. The Op unfortunately don't understand. Who brainwashed these APC people sef?

Obiagelli:

And if we stop manipulating the naira, what will happen other than devaluation.

The Op is wrong though

I have explained to you before. The steps that Emefielle is taking is chiefly because there are no fiscal policies from Buhari's end. He (Emefielle) is trying to please his master in Aso rock by doing insane things. To regulate the value of your currency you need the market forces to come into play and not restricting the FX market. I am stating this without mincing word that every move by Buhari admin on our economy have been illogical.

I wonder why one who doesn't have an idea about an issue will want to say rubbish from his ignorance simply because he is a supporter of a movement.

If the writer of the article invested in shares, he would have appreciated the effect of the Morgan's stand.

psucc:
I wonder why one who doesn't have an idea about an issue will want to say rubbish from his ignorance simply because he is a supporter of a movement.

If the writer of the article invested in shares, he would have appreciated the effect of the Morgan's stand.

Remember buying shares and investing in stocks go against some people's religious tenents, ask Sanusi!

OZAOEKPE:
"Fiscal or monetary policies won't work, not until we diversify the economy." Quote me anywhere.

A rare display of constructive criticism by you.

Ok

The Dullard is at it again! Nigeria is going down. #Tears. #GejWeAreSorry

TonyeBarcanista:

I have explained to you before. The steps that Emefielle is taking is chiefly because there are no fiscal policies from Buhari's end. He (Emefielle) is trying to please his master in Aso rock by doing insane things. To regulate the value of your currency you need the market forces to come into play and not restricting the FX market. I am stating this without mincing word that every move by Buhari admin on our economy have been illogical.

Tell me when the interests of developing countries ever become the concern of multinational financial institutions? Many countries have refused to adopt some of the textbook economic magic prescribed by these predatory western economic institutions and were better for it. What has Nigeria derived from the continuous economic romance with these cancerous bodies in the last 16years and beyond?

double0seven:
What many here don't realize is that Buhari
is not new to this game. During the last time
he was heads of state, Nairaland was very
strong then, almost like 2nd to the dollar if
I'm not wrong, or almost at par with dollar.

The IMF and World Bank then pressured
Buhari to devalue the naira and collect IMF
loan, both of which he rejected. He even
started paying the debts we owned. Nigeria
was on the path to greatness. Nigeria was
expelled from the World Trade Organization
but Buhari didn't change his stand.

Then the coup came. It's no more a secret
that western interests played a big part in
the overthrow of Buhari. immediately IBB
came in, what happened: naira was seriously
devalued and we took IMF loans that we
could have done without; loans which goes
hand in hand with the silly SAP
conditionalities which had ruined every
African economy that it was adopted.
We can all see the results today. Nigeria
destiny to greatness was aborted when IBB
overthrowed Buhari.

Devaluations is good or better for economy
that does a lot of exports like China. Nigeria
exports almost nothing aside from crude oil.
But we import almost everything.

This government is doing what's best for
Nigeria. Nigeria will get over the effects of
the JP Morgan delisting of it's bonds.

The haters and venomous bigots will not acknowledge this. In fact, Buhari's economic policies were so spectacular then that Wikipedia termed it 'Buharinomics'

all i fit say is dat buari is a dullarddd. Qoute me anywhere.

oluomad:
The Dullard is at it again! Nigeria is going down. #Tears. #GejWeAreSorry

did i see "mad" in your name? you are certainly living up to your moniker. good job.

OreMI22:
[size=15pt]APC crooks are just terrible shameless liars.

Naira was stable for more than 4 years under Okonjo iweala at N152 for a dollar.

Less than 100 days of Buhari as minister of finance, it went to N223 for a dollar.

Yes, we know who had a devaluation policy.[/size]

It look like you were born yesterday to say it's Buhari who devalue naira to 223.

China devalued their currency and reduced their interest rates so as to be able to flood the export market with their goods which became cheaper due to the exercise. This is another phase of China's plan to move from a state controlled economy to a market oriented economy. Devaluation works best with a side by side arrangement with a high productive market. The plan by NOI, was to devalue the currency in the short term, to allow for our exports to be marketable to the global markets, which no longer favoured oil exports. Unfortunately, we now have a government, which is so selfish as to believe the only way for them to survive is without competition. Hence the step by step plan to return the economy to a state controlled mishmash economy. The only hiccup, in their plan which they haven't considered is the fact that Nigerians have become so accustomed to a market oriented economy and competition. Nigerians no longer believe in waiting for the government to run their businesses. So that, which they trumpeted in their adverts about Nigerians not reaching their full potential because of the inactivity of the then ruling party to support them, will now turn around to bite them, when they try to destroy the market system which Nigerians, are not ready to let go of.
Mark my words, this government, will end the same way as the Egyptian Brotherhood Government. While our dear President, might end up the same way as Morsi.

docadams:


Tell me when the interests of developing countries ever become the concern of multinational financial institutions? Many countries have refused to adopt some of the textbook economic magic prescribed by these predatory western economic institutions and were better for it. What has Nigeria derived from the continuous economic romance with these cancerous bodies in the last 16years and beyond?

We are talking of investment opportunities/loss here and not some kind of loan

OreMI22:
[size=15pt]APC crooks are just terrible shameless liars.

Naira was stable for more than 4 years under Okonjo iweala at N152 for a dollar.

Less than 100 days of Buhari as minister of finance, it went to N223 for a dollar.

Yes, we know who had a devaluation policy.[/size]

You have cockroach brain.

OreMI22:
[size=15pt]APC crooks are just terrible shameless liars.

Naira was stable for more than 4 years under Okonjo iweala at N152 for a dollar.

Less than 100 days of Buhari as minister of finance, it went to N223 for a dollar.

Yes, we know who had a devaluation policy.[/size]

Sorry, not cockroach brain I mean to say but no brain at all. Ode! Oponu! Amuni se'lohun! Idiot!

OreMI22:
[size=15pt]APC crooks are just terrible shameless liars.

Naira was stable for more than 4 years under Okonjo iweala at N152 for a dollar.

Less than 100 days of Buhari as minister of finance, it went to N223 for a dollar.

Yes, we know who had a devaluation policy.[/size]

As if you this madman was not in town when dollars were being thrown around like rain water GEJ's campaign time. Monkey!

You see, I dont like insulting people o, may God forgive me, but you press the wrong button on me with this your silly post. Sorry if I've offended you o, but you m.u.m.u. no be small.

TonyeBarcanista:
We are talking of investment opportunities/loss here and not some kind of loan

In some time past, there was this officially composed mantra that the Nigerian economy guaranteed the highest return on investment globally. Though substantially true but then at what cost? We ran an economy in which the investors where allowed to operate as they wished sometimes with active connivance from staff of regulatory agencies. The side effects of such slavish investments were little felt because there was enough petrodollars to sooth the damage.
I have not seen any major economic policies yet from PMB that will scare away genuine investors already here. However, those that have been picking dollars from our economy without breaking a sweat do have cause to fear. For those investors contemplating coming, they should tarry a while to enable PMB bring some order to the polity and reposition the way we engage these investors in our economy.

Lots of spare-part shop economists here.

Buhari rehearsing his 1983 propaganda

In 1983 he claimed to have stood firm and refused to have devalued the naira

In 2015 he is still making this claim

The question is why is Buhari's Nigeria economy always in a situation where devaluation of the currency is a subject of debate