Five Oil Exporters Affected By Currency Devaluation Most - Business - Nairaland
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| Five Oil Exporters Affected By Currency Devaluation Most by NgeneUkwenu(f): 7:03am On Feb 19, 2016 |
For the uinitiated and those who don't read beyond the Sensational Headlines of our Local Newspaper, today I Bring to you, the prevalent economic situations of other monolithic Economies (those who depend on only oil as their source of generating Foreign Exchange) so that you can compare and understand, there is no Magic wand to address the present situation, unless the price of crude Oil appreciates in the intentional market.. Devaluation is the word of the day in oil exporting countries. Whether it is the Nigerian naira, the Venezuelan bolívar, or the Russian rouble, low oil prices are wreaking havoc in oil exporting economies and on their national currencies. In most cases the scenario is similar: over the past decade, oil exporting countries used excessive revenues from oil to expand public services, or simply pursue populist policy in order to buy political stability. Once oil prices started to fall, the budgets did not shrink accordingly, which created a wide gap between the oil revenues and swelling fiscal demands. In order to stem the rapid outflow of foreign reserves, the governments were forced to devaluate their national currencies. An unwanted consequence is almost always the rise in inflation and household prices, along with a decline in living standards and stalled economic growth. GRI presents five countries most affected by this devaluation trend. Azerbaijan The former Soviet republic is the first country to request a $4 billion emergency loan from the IMF and the World Bank in order to cover losses caused by low oil prices. Although the Azerbaijani government officially denied the need for a bailout, the country is in dire straits: income from oil and gas makes up around 75% of the country’s revenues, and the recent devaluation of the national currency manat by more than 30% incited public protests that might easily disrupt the political stability of the authoritarian regime of president Ilham Aliyev. Venezuela Venezuela has gone through an equally depressing scenario since July 2014. Although the country’s economy wasn’t sustainable even with triple digit oil prices, a prolonged period of low oil prices brought the economy close to a breaking point. Over the past two years, the national currency, the bolívar, lost more than 90% of its value. According to the IMF’s forecast, inflation will reach 720% in 2016. Venezuela’s domestic woes are further aggravated by the government’s efforts to limit imports in order to raise enough cash to stave off default. There is, however, an increasing danger that with a further slump in oil revenues, and with sovereign bonds yielding at around 30%, Caracas might default on its debts at some point in 2016. The real question is, how long will the Maduro regime be able to suppress the growing social discontent and increased pressures from the opposition-controlled parliament? Nigeria Africa’s largest economy was hard hit by the falling oil prices. The national currency, the naira, dropped against the dollar by 25% over the past year. On January 30, the Nigerian government requested a $3.5 billion loan from the IMF and the African Development Bank to plug its $15 billion budget gap. The country’s oil revenues are expected to fall by 70% in 2016, while the hard currency reserves almost halved from $50 to $28 billion, and the state’s emergency fund went from $22 billion in 2009 to $2.3 billion currently. Angola Angola earned around $500 billion from oil exports between 2000 and 2014. But today the country’s economy is among the hardest hit in Africa. Inflation is at 14% and the national currency, the kwanza, devaluated by more than 50% since January 2015. The country earns 75% of its fiscal revenues from oil exports, which make up around 95% of total exports. As a consequence, Jose Eduardo dos Santos’ regime is starting to feel the pressure from well-organised public protests that might turn into more widespread unrest if the economic situation continues to worsen. Russia Russia is going through some tough economic times, as the toxic combination of Western sanctions and low oil prices is devastating the country’s economy and living standards. Since June 2014, the rouble devaluated by more than 100% against the dollar. GDP is expected to shrink by 3.7% in 2016 alone. How do these numbers affect the everyday lives of average Russians? Real wages fell by almost 10% in 2015, and the percentage of households that cannot afford sufficient food or clothing has increased from 22% to 39% over the previous year. Although Russia is not an average developing, oil-exporting country, the severity of Russia’s economic and potential political troubles, which might come along with the low oil prices, puts the country well inside this infamous club. These five countries are already feeling the effects of low oil prices and devaluation. And there are more candidates: Brazil, Ecuador, and even the rich Gulf countries are starting to feel the pinch, and it seems that the end to depressed oil prices is nowhere near. http://globalriskinsights.com/2016/02/five-oil-exporters-most-affected-by-currency-devaluation/ 8 Likes 2 Shares
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| Re: Five Oil Exporters Affected By Currency Devaluation Most by NgeneUkwenu(f): 7:04am On Feb 19, 2016 |
Even Though The CBN Official rate of the Naira( which caters for about 80% of the dollar Usage) against the dollar Still remained @ 199 Naira at the Close Business Yesterday, while the parallel Market (Black Market) trades at 385 Naira to a dollar...It is pertinent to state that we are suffering for the mismanagement and corruption of the yesteryears, engineered, watered and nurtured by Vision less Party that just left power. For the Past 16 Years, they looted Our reserves: For For past 16 years, they did not Save for the rainy day... For the past 16 years, they did not diversify our Economy.. For the past 16 years, they never implemented any of their yearly ritualistic budgets to stimulate the economy.. For the past 16 years, they only shared our Foreign exchange and depleted our reserves... Now this is result of their hard work.... In fact , it is still a miracle, that The Present Government is still meeting it's financial Obligations in the face of all these crunches... 127 Likes 16 Shares |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by Demdem(m): 7:05am On Feb 19, 2016 |
even at that babas leadership has ensured that only the elite at most feel the brunt of devaluation. Most vulnerable who happen to be the majority dont even know or feel its impact.this explains why as against the elites call that he should allow the official rate to fall naturally, he says no. Let the overfed go source for their dollars elsewhere to fund their luxuries. Demdem: 33 Likes 7 Shares
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| Re: Five Oil Exporters Affected By Currency Devaluation Most by babyfaceafrica: 7:06am On Feb 19, 2016 |
K |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by NgeneUkwenu(f): 7:23am On Feb 19, 2016 |
junta001: Learn to read! 28 Likes 3 Shares |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by NgeneUkwenu(f): 7:24am On Feb 19, 2016 |
Where are the IPOB Youths... 4 Likes |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by Babacele: 7:41am On Feb 19, 2016 |
NgeneUkwenu:abeg tell am again. many of them don't read n that was y PDP is able to manipulate them easily. 20 Likes 1 Share |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by ishiamu(m): 7:59am On Feb 19, 2016 |
NgeneUkwenu: They preparing for today's rally in Aba with their self defence gun, they moved the army headquarters 2 Aba let's see how today go be... gotta give em anything they want... 9 Likes 1 Share |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by Nobody: 8:03am On Feb 19, 2016 |
[size=20pt]Thats Great ....[/size]  1 Like
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| Re: Five Oil Exporters Affected By Currency Devaluation Most by ishiamu(m): 8:03am On Feb 19, 2016 |
NgeneUkwenu: Those countries you mentioned are better than nigeria right now... as they have other source to make money than oil... Russia can decide to sell arms... your rubbish article to justify buhari's foolishness and ineptitude is not gonna scale thru... we struggle to send my sis sch fees in usa cos of policies of not using our atm in yankee... make buhari go mud jare... wonder why we worry bout mugabe when we have a higher mugabe... 39 Likes 5 Shares |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by politricks: 8:04am On Feb 19, 2016 |
ishiamu:Can you tell me the other sources of money venezuela has or you just decided to say something by force. 43 Likes 3 Shares |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by kilokeys(m): 8:07am On Feb 19, 2016 |
As in ehn. Na mumugabe dey rule us 2 Likes |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by adedam007(m): 8:07am On Feb 19, 2016 |
T |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by luvinhubby(m): 8:07am On Feb 19, 2016 |
The worst is that Nigeria elected a bunch of clueless lying demons headed by a retired grand pa who was lured out of retirement by a group of masked change chanting political robbers to come truncate an economic blueprint put in place by a globally reknown economist without any alternative plan. Na only prayers i get for them. Nigeria ntoorrrr !! APC are fraudsters. 8 Likes |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by efilefun(m): 8:07am On Feb 19, 2016 |
Those blaming Buhari on this issue are just like a Grandfather who never saved nor invested when there was excess asking his grandchild why the family is poor. Atleast Obasanjo left power with 0naira debt and a robust Reserve while crude oil was sold for about $60 yet an ineffectual buffoon ruled and squandered everything with crude oil being sold above $100 yet some EKPAs sees him as their hero lol 54 Likes 6 Shares |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by davodyguy: 8:08am On Feb 19, 2016 |
The greedy importers would still see the black market situation as an avenue to exploit. Cost of imported tyres on the rise, instead of them looking inwards on made in Nigeria tyres 4 Likes |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by wristbangle: 8:08am On Feb 19, 2016 |
It is well  |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by ChappyChase: 8:09am On Feb 19, 2016 |
At least we were gaining when the naira was strong so make we endure, cause that's business!! After all watin carry us go borrow money when we get so many untapped mineral resources for naija!? 1 Like |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by dave2meek(m): 8:09am On Feb 19, 2016 |
Let's observe some minutes silence for our Naira, what happened to the campaign promise to stabilize oil price and make 1$ equal to 1#. 2 Likes |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by politricks: 8:09am On Feb 19, 2016 |
Bad |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by Trillyonaire: 8:09am On Feb 19, 2016 |
Im sure PDP was in Power in all these countries 7 Likes |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by NighttWalker(m): 8:09am On Feb 19, 2016 |
Demdem:What the fvck are you talking about? Everyone's feeling the heat, my uni fees have almost doubled thanks to buharis government and the devaluation of the naira. 5 Likes |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by Adesiji77: 8:11am On Feb 19, 2016 |
Following... |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by morganacanta: 8:11am On Feb 19, 2016 |
Lord save us. Is this the change we wanted? From pan to fire 1 Like |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by harmless011: 8:11am On Feb 19, 2016 |
The difference between those countries you mentioned and nigeria is they are not blaming anyone for their current economic challenges, but here in nigeria instead of the president to focus on finding solution he is busy blaming GOD, IBB, JONATHAN, MAFIAS, ANCESTORS, NIGERIANS ETC. 5 Likes 3 Shares |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by Nobody: 8:12am On Feb 19, 2016 |
PEOPLE ARE SUFFERING NOW O...IF SCARCITY OF FUEL FOLLOWS THIS HARDSHIP THEN WE ARE DONE LIKE EBA...... U ECONOMIST AND BUSINESS MANAGERS.....U GUYS HAVE NO SENSE AT ALL....LIKE U HAVE BEEN COMMENTING,....LET ME ASK ? HOW WILL NIGERIA TURN TO BE AN EXPORTING COUNTRY OVER NIGHT WHEN GOOD POLICY AND INFRASTRUCTURES ARE NOT IN PLACE TO ENHANCE IT ?.... THIS DOLLAR RISING HAS NO GOOD EFFECT TO MASSES...IT IS ONLY FAVORING THOSE WHO HAVE HARD DOLLARS TO CASH OUT... PRICES RISING TO 40% IN JUST TWO MONTH WITHOUT NO INCREASE IN EARNING IS TOTAL HARDSHIP. BUHARI COULD HAVE PERFORMED WELL AS EFCC CHAIRMAN THAN A PRESIDENT. MY THOUGHT THOUGH.... 10 Likes |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by melodyirish(m): 8:12am On Feb 19, 2016 |
NgeneUkwenu:until naira sell at 500 ur eyes go clear. Call a spade a spade, nd stop hidden truth 8 Likes |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by ishiamu(m): 8:12am On Feb 19, 2016 |
politricks: The one I mentioned is it wrong? |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by 2sex(m): 8:12am On Feb 19, 2016 |
I am beginning to hate this. Stop makinh more rooms for excuse. So u had to create a thread just give another excuse of why we should fold our arms and watch things get worse abi? 7 Likes 1 Share |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by Lindasblog: 8:13am On Feb 19, 2016 |
http://9jahome.com.ng/2016/02/five-oil-exporters-most-affected-by-currency-devaluation/ |
| Re: Five Oil Exporters Affected By Currency Devaluation Most by Freelancer007(m): 8:13am On Feb 19, 2016 |
Hmnn |
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