OYAY:
God bless the analysts above. The president knew we are consuming nation without producing much to commensurate what we are consuming hence his sceptism to devaluation. Therefore the 2016 budget should be religiously implemented using non oil sector revenue so as to encourage diversification that will lead to production; but in all we have to get our power sector right to be a productive nation which will drive industrialisation and reduce the cost of production then we can talk of devaluation if the naira does not appreciates naturally.

Pesuzok:


In summary it means the official exchange rate will go higher to like 230 to $1. This will affect the price of products that are eligible for cbn official rate. Eg petrol

Ama80:
it sounds positive but why is d president hesitant?

musicwriter:
Until African nations invest in mass science education, there's no other way to achieve development. This talks of devaluation, inflation, depression, recession, e.t.c will continue to be here until we embrace science.

Wealth doesn't come from importation, but from manufacturing. Dangote was an importer for years without getting so rich. Only when he began manufacturing all those things he used to import, like; cement, spaghetti, sugar, e.t.c did he become one of the richest man on earth.

At the heart of Dangote cement is a CHEMIST making better cement mixtures than others. Get it?.

Ban English and French in all African schools and usher in true education, and we'll be forever prosperous. The difference between development in first world countries and third world is SCIENCE. One know science, while one don't.

Africa cannot develop without investment in grassroots science.

Ama80:
it sounds positive but why is d president hesitant?

Emmeritus:
@d one who explained devaluation:Do u knw what happened to Zimbabwe after their currency was devalued?

Emmeritus:
@d one who explained devaluation:Do u knw what happened to Zimbabwe after their currency was devalued?

14:


50% of it will be financed by foreign loan. and that loan will come with the conditions for nigeria, else it wont ne granted.

ggirl4real:
Everyone is talking about diversifying the economy yet no one is taking action....

Even when government approve funds for agricultural purposes, it will be by "man-know-man" basis to get the funds and the funds will even be diverted for other uses...

Which way Nigeria

2rutalk1:
Devaluation is a DELIBERATE reduction in the value of a country's currency in relation to the currencies of other countries. Devaluation is different from depreciation. Whereas devaluation is deliberate, depreciation of currency is caused by some macroeconomic factors.

However, Devaluation is used to discourage import and encourage export of goods and services across borders.

How do we achieve this? When a country's currency is devalued, foreign goods (imports) become so expensive because the value of the country's currency has been reduced making the value of the currency of her trading partner to go up. In this case, the foreign country will be enticed to import from Nigeria (for instance) and our hitherto importers will equally buy Nigerian made products because of high cost of foreign goods. This makes our balance of payment to become favourable.

In the long run (in future), the high rate of export from Nigeria and low import of foreign products by Alaba guys (lol) will increase the value of our naira.

Ama80:
it sounds positive but why is d president hesitant?

drss:
because he doesn't understand economics. he's a cattle rearer by profession.

Montaque:
Everybody sees the good in a favour able balance of trade but will refrain from patronizing made. In Nigeria goods.
Hypocrisy.

2rutalk1:
Devaluation is a DELIBERATE reduction in the value of a country's currency in relation to the currencies of other countries. Devaluation is different from depreciation. Whereas devaluation is deliberate, depreciation of currency is caused by some macroeconomic factors.

However, Devaluation is used to discourage import and encourage export of goods and services across borders.

How do we achieve this? When a country's currency is devalued, foreign goods (imports) become so expensive because the value of the country's currency has been reduced making the value of the currency of her trading partner to go up. In this case, the foreign country will be enticed to import from Nigeria (for instance) and our hitherto importers will equally buy Nigerian made products because of high cost of foreign goods. This makes our balance of payment to become favourable.

In the long run (in future), the high rate of export from Nigeria and low import of foreign products by Alaba guys (lol) will increase the value of our naira.

2rutalk1:
The President is hesitant because our economy may not actually reap the benefits of devaluation for now because we are import dependent economy - we have little or nothing to export to other countries. Therefore, even if our currency is devalued and import is discouraged as it is always the case, can our importers source the products locally? This will worsen the situation. What we need to do now is to diversify our economy, make the business/macroeconomic environment conducive, and ultimately, pursue import substitution strategy of industrialization. Import substitution strategy is a situation whereby goods and services that are hitherto imported from foreign countries are manufactured locally.

suyamasta:
Devaluation will cripple Nigerias economy at this point in time, the rate of inflation will go balistic considering that we are import dependent

Sugarhugs:

The $1/N198 is the official exchange exchange rate which can be regulated by the CBN. The $1/N305 is the parallel market(black market) rate. Which tells u the real status of exchange rate in d economy... the black market always react to the forces of demand and supply without regulation. The official market also react to the forces of demand and supply, but it can be manipulated(regulated).

I guess this explains why google says exchange rate of dollars to naira is 198, CU's I have been wondering how come its 300+ here and google saying 198.

Ama80:
it sounds positive but why is d president hesitant?

Ama80:
it sounds positive but why is d president hesitant?

tunesoft:
Abeg not yet....i still dey waka about pricing my next car. Biko....pity a common salary earner like me. PMB biko

2rutalk1:
Devaluation is a DELIBERATE reduction in the value of a country's currency in relation to the currencies of other countries. Devaluation is different from depreciation. Whereas devaluation is deliberate, depreciation of currency is caused by some macroeconomic factors.

However, Devaluation is used to discourage import and encourage export of goods and services across borders.

How do we achieve this? When a country's currency is devalued, foreign goods (imports) become so expensive because the value of the country's currency has been reduced making the value of the currency of her trading partner to go up. In this case, the foreign country will be enticed to import from Nigeria (for instance) and our hitherto importers will equally buy Nigerian made products because of high cost of foreign goods. This makes our balance of payment to become favourable.

In the long run (in future), the high rate of export from Nigeria and low import of foreign products by Alaba guys (lol) will increase the value of our naira.