einsteino:


Thanks for the correction. I mixed it up with Toronto's population. Hopefully I dont get deported for that

DexterousOne:


What will be the end game after oil becomes valueless?

Sammy07:


You're stu.pid and don't know what you're saying.

Ode, you don't know what you're saying..
Even if Charles soludo and Alison diezima were to be president and vice of this country

There is nothing they can do about it.

Are we the cause of Saudi and Russia price war??

Do you think our agricultural products sell that much??

Always think before you talk.
If oil further falls below $30, there will be loss of jobs everywhere

PHijo:


Ode, Samsung is more valuable than your entire economy!
Only Russia and are Saudi Arabia currently influencing the market. If other countries join the fray I wonder what would be the fate of that geographical space called Nigeria.

plaetton:

Nonsense.
How many times in the past has the policy been proposed, when has it ever worked?

Dollar will never be easily available at any official rate to majority of Nigerians. Therefore , the black market will always thrive.

Demand and supply + corruption will always win the day in Nigeria.

Ogaonos:
but dont u think there more to exchange rate oyinbo invented than we think.because why is South Korea money weak pass naira.a dollar is 1000 south Korea money but south Korea economy Nd export look higher Dan ours.that the confusion about exchange rates.

grandstar:


The South Korean Won is a 4 digit currency while the Naira is 3 digit currency. However, in the past, the Naira was a single digit current and only became a tripe digit currency because of high inflation which lead to repeated devaluation of the currency.

For the South Korean Won, the level of depreciation suggest mass printing of notes or ways and means by the CBN. This is hyperinflationary.

https://en.wikipedia.org/wiki/South_Korean_won

However, what matters is inflation.

The South Korean Won has very low inflation. I doubt inflation is ever more than 2.5% annually. How many digits it is inconsequential.

The lower your inflation rate, the more stable it tends to be. Also, the higher your inflation, the more likely you are to lose value against a low inflationary country. It is the general rule.

If the Won suffers from 2.5% inflation and Naira suffers from 11% now, that means the Naira will lose about half its value against the Soluth Korean Won in 10 years time. It could even be more.

Look at the Naira. 10 years ago, it was 155. Inflation has averaged over 10% per annum. What is the exchange rate now? 380 or so. but doesn't u think there is more to exchange rates that are not taught in schools.what Ur take on Nigeria exporting to Africa esp West africa.because the truth is there no jobs in Nigeria because d jobs are in West Africa in a larger context africa.and not overseas.and the naira have always be disadv.for us to export affordable services Nd goods to our west africa brothers.

agbari1:
Thanks that peoples are following this thread as economy is paramount than politics. I will try to simplify this issue further. Someone asked me a question what are the stringent measures or conditions that may be attached to Nigeria go to international financial institutions such as IMF or Paris Club to address budget deficit? The term budget deficit means , government expenditure is above planned revenue received in a year. There are two broad categories of government expenditure - capital and recurrent. Power, rail, school and hospital constructions are examples of capital expenditures while payments of salaries and travels expenses are examples of recurrent expenditure. In any healthy economy, capital expenditure is higher than recurrent one. In nigeria, recurrent expenditure is around 70% of the total budget. Going to the real issue, what type of stringent conditions that may be attached to government borrowing from the international bodies? The conditions could be: remove all of oil subsidy and other subsidies, increase the price of power consumption, increase in taxes, devaluation of currency, increase in import duties, freezing of salaries. Some lenders such as China may request that government give them concessions - exclusive rights to operate a certain sector of the economy. For example, China has taken over the airports of Zambia to be managed for the next 100 years. Chinese is the head of Zambia police right now. China has exclusive rights for lumbering in Liberia. Nigeria economy is a very bad shape. If oil price fall continue fo the next 6 months, Naira exchange rate may jump to N1000 to 1 dollar. The antidote to this is if there is fall in import bills. The higher the propensity to import the higher the pressure on the Naira. If Coronavirus hit Nigeria, there is going to be a serious socio-economic dislocation with unbearable surge in crime wave. Let me stop here

LeanonGOD:
Well well Informed breakdown, thanks a million - am grateful.