greatfucker:


How will 1naira then equate to 4 dollars pls explain to me like a kid

The price of a barrel of oil is $97.00, that means u would need 97 units of American money to buy a barrel of oil. It means if our currency is tied to a barrel of oil it means, if I was going to exchange a good it is either I give you one Naira or which would be = 1 barrel of oil.

But because our currency would be too strong can you imagine 1Naira = 97 dollars we devalue our Naira by say 4 = 1 Naira = 24 dollars, it was 20 dollars last week when the price of a barrel of oil was $80.00

That is why I said their should be huge storages of barrels of oil for which every Naira is backed on.

Instead of giving states Naira notes give them barrels of oil as allocation and they can do what they want with it.

This is what would make our currency strong.

U can imagine a state like katsina saying we have not got dollars but we have 200,000 barrels of oil. U do the maths.

KnowAll:



The price of a barrel of oil is $97.00, that means u would need 97 units of American money to buy a barrel of oil. It means if our currency is tied to a barrel of oil it means, if I was going to exchange a good it is either I give you one Naira or which would be = 1 barrel of oil.

But because our currency would be too

strong can you imagine 1Naira = 97 dollars we devalue our Naira by say 4 = 1 Naira = 24 dollars, it was 20 dollars last week when the price of a barrel of oil was $80.00

That is why I said their should be huge storages of barrels of oil for which every Naira is backed on.

Instead of giving states Naira notes give them barrels of oil as allocation and they can do what they want with it.

This is what would make our currency strong.

Wow thanks for the explanation,then I don't know wat is stopping the government from doing so