wirinet:
Got this message on my WhatsApp this morning.

Just Thinking. .

State of the Nigerian Nation.

A typical Nigeria "Big boy/lady" wakes up in the morning, turns off his alarm clock made in CHINA , gets out of his bedsheets woven in INDIA, puts on his clothes made from wool in BANGLADESH, shoes from ITALY, drinks his orange juice from SPAIN, puts milk made in DENMARK in his coffee produced in BRAZIL.

He jumps into his Toyota Camry car made in JAPAN to the TOTAL service station (FRANCE) to refuel PMS, imported from Europe and takes his KOREAN Samsung Galaxy Note 20 Ultra phone made in TAIWAN and buys data for his MTN SIM card (SOUTH AFRICA).

At noon, he leaves his COCA-COLA (USA) office and joins his friend who smokes
AMERICAN cigarettes, they eat THAILAND rice, drink ITALIAN wines and returns home to watch the El Classico on DSTV (SOUTH AFRICA) .

Without spending a kobo on anything made in Nigerian and you want Nigeria to grow!!!?

It will take magic for the Naira to stabilize against the dollar

donbachi:
Magical

Monogamy:
As long as we keep on importing unnecessary things which we could have been producing ourselves, then the dollar rate would continue to rise

wirinet:
Got this message on my WhatsApp this morning.

Just Thinking. .

State of the Nigerian Nation.

A typical Nigeria "Big boy/lady" wakes up in the morning, turns off his alarm clock made in CHINA , gets out of his bedsheets woven in INDIA, puts on his clothes made from wool in BANGLADESH, shoes from ITALY, drinks his orange juice from SPAIN, puts milk made in DENMARK in his coffee produced in BRAZIL.

He jumps into his Toyota Camry car made in JAPAN to the TOTAL service station (FRANCE) to refuel PMS, imported from Europe and takes his KOREAN Samsung Galaxy Note 20 Ultra phone made in TAIWAN and buys data for his MTN SIM card (SOUTH AFRICA).

At noon, he leaves his COCA-COLA (USA) office and joins his friend who smokes
AMERICAN cigarettes, they eat THAILAND rice, drink ITALIAN wines and returns home to watch the El Classico on DSTV (SOUTH AFRICA) .

Without spending a kobo on anything made in Nigerian and you want Nigeria to grow!!!?

It will take magic for the Naira to stabilize against the dollar

inoki247:



You people with all diz your excuse sef Wetin Saudi dey produce from ordinary water sef dem no dey produce still why dere currency no dey crash any aw always looking for excuses to defend d Govt...

wirinet:


It goes beyond importing. Nigerians must encouraged to produce simple consumer items like matches, tea cups, rechargeable torch, shoes, clothes, etc using mainly locally sourced materials. Education priority should be given to entrepreneurship and technical education instead of the present administrative and purely academic eduction.
Also capital should be made available and accessible to entrepreneurs, as an interest rate regime of 25 - 25% is counter productive to production and development.

LikeAking:


interest rate regime of 25 - 30% is counter productive to production and development

To combat this problem we must build our communities and also establish community banks.
We must find a way to counter these capitalist.

Monogamy:
As long as we keep on importing unnecessary things which we could have been producing ourselves, then the dollar rate would continue to rise

LikeAking:


Thank you very much.

Currency value has nothing to do with dependence on imported goods.

Although manufacturing goods in Nigeria will be of a great advantage.

These whites have been fooling us for a long time.

There are countries even importing sand, some dont manufacture as much as NiGEIRA, yet their currency has a higher value.

Nigerian currency is loosing is value becos our leaders are not smart enough to fix a permanent currency values like some countries in the Arab world.

LikeAking:


Thank you very much.

Currency value has nothing to do with dependence on imported goods.

Although manufacturing goods in Nigeria will be of a great advantage.

These whites have been fooling us for a long time.

There are countries even importing sand, some dont manufacture as much as NiGEIRA, yet their currency has a higher value.

Nigerian currency is loosing is value becos our leaders are not smart enough to fix a permanent currency values like some countries in the Arab world.

inoki247:



You people with all diz your excuse sef Wetin Saudi dey produce from ordinary water sef dem no dey produce still why dere currency no dey crash any aw always looking for excuses to defend d Govt...

plaetton:

Pure Nonsense.

Currency values, just like everything in a market place are determined by the forces of demand and supply. At the micro-level , is a measure of the aggregate productive capacity or productive value of a country as compared to other countries. Currency value invariably reflect the economic productivity at any given time.
In well organized economies, yes, the government can manipulate its Currency by adjusting the factors that affect productivity, such as interest rates, money supply, etc, or by adopting an optimistic or pessimistic economic tones gong forward.

Nigeria is neither an organized nor productive economy. Besides oil, we produce very little of anything of value to trade with. With very low per capita productivity, and a non- diversified economy, the value of our currency is solely dependent on the vagaries of the crude oil market. With a large growing population of consumers, our appetite for imported goods, and increasing lack of confidence for new investments create a permanent imbalance in the demand and supply of foreign currencies. Therefore, our currency, over the long run, would always trend downwards. The market forces are too strong for any government to control.

LikeAking:



I for argue with you, but judging by ur write up you are an amature in this field.

Currency value has nothing big to do with you mentioned in raeality.

Point of correction, Nigeria is a productive economy. We grow almost 95% of the food we consume and still manufacture many things. We have lots of manufacturing companies in Nigeria.

Nigerian economy is not as bad as you think/claim, Nigeria is not the head quarter of poverty,etc. All those claims are all rubbish.

Some countries in the Arab world and Europe, Asia manufacture less than Nigeria yet their currency value is higher than Nigeria.

As an amuture in the field of finance and economics, I guess you are not aware every country has the right to peg the value of their currency.

Let me school you a little bit.

There is class room economics and there is reality economics.

We are talking about reality economics.

The value of Nigerian Naira is higher than the Korean won, tell me why? Is Nigeria productive than Korea?

Once agian welcome to reality economics.

LikeAking:



I for argue with you, but judging by ur write up you are an amature in this field.

Currency value has nothing big to do with you mentioned in raeality.

Point of correction, Nigeria is a productive economy. We grow almost 95% of the food we consume and still manufacture many things. We have lots of manufacturing companies in Nigeria.

Nigerian economy is not as bad as you think/claim, Nigeria is not the head quarter of poverty,etc. All those claims are all rubbish.

Some countries in the Arab world and Europe manufacture less than Nigeria yet their currency value is higher than Nigeria.

As an amuture in the field of finance and economics, I guess you are not aware every country has the right to peg the value of their currency.

Let me school you a little bit.

There is class room economics and there is reality economics.

We are talking about reality economics.

The value of Nigerian Naira is higher than the Korean won, tell me why? Is Nigeria productive than Korea?

Once agian welcome to reality economics.

wirinet:


False. Nigeria imports all the wheat and wheat products used in making bread, pasta, and pastry. These foods alone constitute more than 5% of Nigeria's diet. Even with the ban on rice, we still import over 30% of rice we consume in Nigeria through smuggling. We also import a large quantity of beans from neighbouring west African countries. We import tomato paste mainly from China. We import all the milk we consume. Other food we import in large quantity is frozen fish, chicken, turkey, Apple, fruit juice, etc.

95% is a huge overexaggeration

The worst of all the is fuels. We import 100% of the fuels that drive our cars, trucks and machines. Fuels alone constitute a huge percentage of our export bill and thus the value of the naira.

plaetton:


Laughing out loud.

I will award you an F.

Pegging of currencies has zero to do with making a currency strong. Rather, it has to do with increasing exports.
Countries that Peg their currencies to stronger currencies usually do it for solely to maintain stability Rather than strength. They do it to prevent their own currencies from increasing in strength against a major export market Countries.
The Countries that usually peg their currencies are usually high productivity Countries with low-cost production. They Pegging their currencies at a set low rate solely for purpose of maintaining their export advantage. Korea is such an example.

Now, you mention that Naira is more than the Korea currencies, as an example of your economic illiteracy.
Ok, since Naira is stronger than Korean currency, in your words, can 1 Naira and 1 Korean Won buy equivalent items, such as , say, a loaf of bread in Korea and in Nigeria ?

The value of a currency is not about the numerical figure. It is also the value of your productive value as well as it's purchasing capacity.

LikeAking:



I for argue with you, but judging by ur write up you are an amature in this field.

Currency value has nothing big to do with you mentioned in raeality.

Point of correction, Nigeria is a productive economy. We grow almost 95% of the food we consume and still manufacture many things. We have lots of manufacturing companies in Nigeria.

Nigerian economy is not as bad as you think/claim, Nigeria is not the head quarter of poverty,etc. All those claims are all rubbish.

Some countries in the Arab world and Europe manufacture less than Nigeria yet their currency value is higher than Nigeria.

As an amuture in the field of finance and economics, I guess you are not aware every country has the right to peg the value of their currency.

Let me school you a little bit.

There is class room economics and there is reality economics.

We are talking about reality economics.

The value of Nigerian Naira is higher than the Korean won, tell me why? Is Nigeria productive than Korea?

Once agian welcome to reality economics.

LikeAking:


Read my reply properly.
I didnt say Nigeria is productive than Korea, I asked a question.

The point of argument here is simple, class room economics is different from reality economics.

Your class room economical theories can be amended by any nation.

You mentioned lots of class room economics theories not 100% applicable in real life.

[/b]Currency values, just like everything in a market place are determined by the forces of demand and supply. At the micro-level , is a measure of the aggregate productive capacity or productive value of a country as compared to other countries. Currency value invariably reflect the economic productivity at any given time.[b] = CLASS ROOM ECONOMICS. You made refrence to the above.

No change the topic.

I disagree with the bolded.

Can you please educate us on REAL LIFE ECONOMICS, and teach us factors that determine the currency of a country. And can you use this REAL LIFE ECONOMICS to explain why the naira has been progressively losing value. Why can't then the CBN decree $1 to equal N1 by today?

plaetton:

And I forgot to add that foreign curry and Gold reserves are also important ways to bolster and stabilize the value of a currency, even for non- export countries.
Saudi Arabia, which you also mentioned as an import dependent country, has multiple times GDP per capita than Nigeria. They reserve a substantial part of their oil earnings and enormous Gold reserves permanently domiciled in USD. They invest heavily in diversified areas in and outside their country.
So, despite being an import dependent country, they have more than enough foreign earnings, reserves and investments to buffer their currency. Not comparable to Nigeria at all.

Monogamy:
As long as we keep on importing unnecessary things which we could have been producing ourselves, then the dollar rate would continue to rise

ourema:


What are you saying, give Nigerian the opportunity to produce some of these things you mentioned, they will turn around to be more costlier than the imported ones. Take a look at rice for instance, the locally produced rice is costlier than the foreign rice. So tell me how can we expect to improve.

LikeAking:


Thank you very much.

Currency value has nothing to do with dependence on imported goods.

Although manufacturing goods in Nigeria will be of a great advantage.

These whites have been fooling us for a long time.

There are countries even importing sand, some dont manufacture as much as NiGEIRA, yet their currency has a higher value.

Nigerian currency is loosing is value becos our leaders are not smart enough to fix a permanent currency values like some countries in the Arab world.

samsard:
You can only fix a permanent value if you have the funds to defend your currency. Ask Lebanon, their currency situation is even worse than Nigeria.
And hey, you're wrong. What you produce can determine the value of your currency. Arab nations have relatively small populations and produce millions of barrels of crude oil. On the other hand, Nigeria has about 200 million people depending on forex mostly from no more than 2 million barrels of crude oil & remittances from abroad with loads of importation.
If we can reduce importation by producing what we use, it'll greatly reduce the pressure on forex.