Experts in the house, can you please shed light on what it would take to make $1 (One Dollar) equal ₦1 (One Naira).

What sacrifices are necessary to be made?
What areas would be affected?, e.t.c.

Let's hear your view.

I like this here.....

Wana learn too

luvly101:
Experts in the house, can you please shed light on what it would take to make $1 (One Dollar) equal ₦1 (One Naira).

What sacrifices are necessary to be made?
What areas would be affected?, e.t.c.

Let's hear your view.

the process will take next 55 years to complete or destroying Nigeria to create new one

G

shivaclub:
the process will take next 55 years to complete or destroying Nigeria to create new one

Wow!, that's scary . But, what process(es) could be involved in the complete transformation?

I wish I know Buhari's Nairaland Moniker.




I 4 just quote am.

Hmmmm

How currency appreciates:
A currency appreciates as a result of increased demand for that currency on world markets: its value in the world market increases. This increase in demand can occur for several reasons:

-When a country's exports are high, the buyers of these exports need its currency to pay for those exports.
-When the country's central bank increases interest rates, people will want that currency to deposit in the banks to earn that higher interest rate.
-When employment and per capita income in a country increase, the demand for its goods and services increases, along with demand for that country's currency in the local market.
-When the demand of the currency is high in foreign
exchange market
-Due to Government borrowing or loosening of fiscal
policy.

Currency appreciation is not a good thing for an exports based economy, which is why the Chinese always devalue their currency.

The appreciation of a country's currency refers to an increase in the value of that country's currency.
if the Naira appreciates relative to the dollar, the exchange rate falls: it takes fewer Naira to purchase 1 dollar (1
dollar=1.5 Naira→ 1 dollar=1.4 naira). If the Naira appreciates relative to the dollar, the naira becomes less competitive. This will lead to larger imports of American goods and services, and lower exports of Nigerian goods and services.

When a currency appreciates or strengthens (a higher exchange rate) there are many effects on you and the economy. Some good, some not so good. Let's discuss a few of those now.

**Imports cheaper: When a currency appreciates or strengthens in relation to other currencies, imports get cheaper. This means your dollar will buy more of another foreign currency so that you can purchase foreign goods. For example, if you were traveling and shopping in Europe and the exchange rate of the dollar vs. euro went from (0.75 to 1) to (0.95 to 1) your dollars would now buy more Euros. So, if a can of soda cost two Euros it would have originally cost you $2.66 ($2/0.75 exchange rate). Now it costs you essentially $2.11 ($2/0.95 exchange rate). This is also great news for American companies who import a lot of components and raw materials to manufacture goods. Lower costs often lead to higher profit margins.


**Lower inflation: When the exchange rate for a currency strengthens it makes imports cheaper. This means you and I spend less money on foreign goods. This in turn puts pressure on American firms to keep their prices low, so they can remain competitive. All of this leads to lower prices and ultimately more money in your pocket and a higher standard of living.


**Balance of trade deficit: One of the biggest disadvantages of higher exchange rates or a strong dollar may be that it leads to trade deficits. Because strong currencies lead to cheaper imports, a country tends to import more than they export. This causes a trade deficit, which can exert a contractionary effect on the economy. What does that mean? It simply means that because our currency is strong, our own goods we look to export appear expensive to other countries; so they buy fewer American goods. This lowers demand for American goods and as a result lowers GDP. Over time, this can make it more difficult for American firms to compete and can also damage profit potential.


You can read more of this on Investopedia

Karmanaut:

When a currency appreciates or strengthens (a higher exchange rate) there are many effects on you and the economy. Some good, some not so good. Let's discuss a few of those now.

**Imports cheaper: When a currency appreciates or strengthens in relation to other currencies, imports get cheaper. This means your dollar will buy more of another foreign currency so that you can purchase foreign goods. For example, if you were traveling and shopping in Europe and the exchange rate of the dollar vs. euro went from (0.75 to 1) to (0.95 to 1) your dollars would now buy more Euros. So, if a can of soda cost two Euros it would have originally cost you $2.66 ($2/0.75 exchange rate). Now it costs you essentially $2.11 ($2/0.95 exchange rate). This is also great news for American companies who import a lot of components and raw materials to manufacture goods. Lower costs often lead to higher profit margins.


**Lower inflation: When the exchange rate for a currency strengthens it makes imports cheaper. This means you and I spend less money on foreign goods. This in turn puts pressure on American firms to keep their prices low, so they can remain competitive. All of this leads to lower prices and ultimately more money in your pocket and a higher standard of living.


**Balance of trade deficit: One of the biggest disadvantages of higher exchange rates or a strong dollar may be that it leads to trade deficits. Because strong currencies lead to cheaper imports, a country tends to import more than they export. This causes a trade deficit, which can exert a contractionary effect on the economy. What does that mean? It simply means that because our currency is strong, our own goods we look to export appear expensive to other countries; so they buy fewer American goods. This lowers demand for American goods and as a result lowers GDP. Over time, this can make it more difficult for American firms to compete and can also damage profit potential.


You can read more of this on Investopedia

Thanks for your inputs Karmanaut. If you're to make $1 equal ₦1, how would you go about it?

luvly101:


Thanks for your inputs Karmanaut. If you're to make $1 equal ₦1, how would you go about it?

I wouldn't.
It doesn't favour exports.
Lord knows Nigeria needs to be an export-based economy, or at least manufacturing most of what it needs then importing the rest.
So doing that won't favour Nigeria.

Karmanaut:

I wouldn't.
It doesn't favour exports.
Lord knows Nigeria needs to be an export-based economy, or at least manufacturing most of what it needs then importing the rest.
So doing that won't favour Nigeria.

tell the oga on top

Karmanaut:

I wouldn't.
It doesn't favour exports.
Lord knows Nigeria needs to be an export-based economy, or at least manufacturing most of what it needs then importing the rest.
So doing that won't favour Nigeria.

I see. I now understand clearly why it won't be possible...the people benefiting from the Exports are more, and won't want things turn around the other way.

Thanks for your time.

Just a try and i go thus:
We are trying to be independent to naira that's why we leave pound, but we are still enslave to dollar, so far our surest economy means lies on crude oil and because of international game play crudeoil sells in dollars which devalue our Exchange rate value of naira not until we wise up to freedom of trading our crude oil in naira (actually low benefit rate for a while if endure).
Other suggestion i have is short term increase in interest rate, govt should look beyond fiscal and monetary policy but some Exchange policy on our export, strictly on naira demand, borrow from World bank in naira pay back in naira lets feel d independence of our currency. My bottom line is; if we are not ready to suffer short term deflation how can we promote naira demand which is the sole key to value our naira.

kayodeisaac:
Just a try and i go thus:
We are trying to be independent to naira that's why we leave pound, but we are still enslave to dollar, so far our surest economy means lies on crude oil and because of international game play crudeoil sells in dollars which devalue our Exchange rate value of naira not until we wise up to freedom of trading our crude oil in naira (actually low benefit rate for a while if endure).
Other suggestion i have is short term increase in interest rate, govt should look beyond fiscal and monetary policy but some Exchange policy on our export, strictly on naira demand, borrow from World bank in naira pay back in naira lets feel d independence of our currency. My bottom line is; if we are not ready to suffer short term deflation how can we promote naira demand which is the sole key to value our naira.

True... No pain, No gain.

I know What Nigeria can do, it will take 5years to get it done by 2023 and Nigerians have to also cooperate together to get it done. Nigeria will be the Giant of Africa and even the World.

Enjoy these funny questions and answers from Penzazo Street Quiz with Jaiye. Question: How many time Have You Committed SUICIDE? and also Why do People Committed Suicide?
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