mekaboy:


Naira is more valuable.

http://mobile.ghanaweb.com/GhanaHomePage/NewsArchive/Cedi-returns-to-Africa-s-worst-currency-378119

Thanks for the link...but it says performing. We all know the Cedi has been performing poorly in recent times but hello...it's still the 4th strongest in the whole of Africa and the Nigeria Naira is no where in the first 10...

http://www.africacradle.com/2015/04/03/top-10-strongest-african-currencies/7/

bodejohn:


Thanks for the link...but it says performing. We all know the Cedi has been performing poorly in recent times but hello...it's still the 4th strongest in the whole of Africa and the Nigeria Naira is no where in the first 10...

http://www.africacradle.com/2015/04/03/top-10-strongest-african-currencies/7/

Well since you are bent on comparing 1 cedi to 1 naira there is no point arguing till u visit Ghana with Naira or dollars.

You have to understand what happens when you remove zeros from a currency first to compare.

Let's not talk much about naira vs cedis.... The real talk should be how to capitalize on the High Interest rate of T.bills @ ghana. To me, the most daunting factor that could affect a nigerian investing there is "the change in exchange rate". How do I mean?
****************************************
If 1cedis=50naira and I invest 1million naira(20,000cedis) in Ghana t.bills @ a rate of 20% for 91days. I'm expecting a profit of 997 cedis after 91days of maturity; making a total of 20,997 CEDIS....if I converted this money back to naira @ the same rate of 1cedis = 50naira, then I should be expecting 20,997 * 50 = 1,049,863
***************************************
But then, what If by the time I'm cashing out and 1cedis = 45naira,
it'll be 20,997 *45 = 944,865naira.
So u'll see that despite the HIGH INTEREST RATE of 20%, you will LOSE money if the currency rate changes by just 5naira!!!
I came in with 1million naira but I'm leaving with 944,865naira. I lost about 56,000naira!
****************************************To be successful then, We have to hope the Ghana-naira currency should CAST sooo badly, I.e the currency of cedis should perform badly and that of naira should wax stronger. In other words, who can safely predict the outcome of the currency rate after 91days

Chukzyfcb:
Let's not talk much about naira vs cedis.... The real talk should be how to capitalize on the High Interest rate of T.bills @ ghana. To me, the most daunting factor that could affect a nigerian investing there is "the change in exchange rate". How do I mean?
****************************************
If 1cedis=50naira and I invest 1million naira(20,000cedis) in Ghana t.bills @ a rate of 20% for 91days. I'm expecting a profit of 997 cedis after 91days of maturity; making a total of 20,997 CEDIS....if I converted this money back to naira @ the same rate of 1cedis = 50naira, then I should be expecting 20,997 * 50 = 1,049,863
***************************************
But then, what If by the time I'm cashing out and 1cedis = 45naira,
it'll be 20,997 *45 = 944,865naira.
So u'll see that despite the HIGH INTEREST RATE of 20%, you will LOSE money if the currency rate changes by just 5naira!!!
****************************************To be successful then, We have to hope the Ghana-naira currency should CAST sooo badly, I.e the currency of cedis should perform badly and that of naira should wax stronger. In other words, who can safely predict the outcome of the currency rate after 91days

Bros, you sabi

bodejohn:


Thanks for the link...but it says performing. We all know the Cedi has been performing poorly in recent times but hello...it's still the 4th strongest in the whole of Africa and the Nigeria Naira is no where in the first 10...

http://www.africacradle.com/2015/04/03/top-10-strongest-african-currencies/7/

What you quoted was April last year. Meanwhile, it is not just looking at the figures and concluding. Purchasing power, cost of living, terms of trade, debt, inflation etc all are factors that determine the strength of a currency.

Find cost of living in Ghana below and tell me if you will be willing to take your Naira there because you feel cedes is stronger.

http://www.numbeo.com/cost-of-living/city_result.jsp?country=Ghana&city=Accra&seeThePricesForMobile=true

mekaboy:


Well since you are bent on comparing 1 cedi to 1 naira there is no point arguing till u visit Ghana with Naira or dollars.

You have to understand what happens when you remove zeros from a currency first to compare.

I guess the group that compiled the data that said the Cedi is the 4th or 3rd strongest currency in Africa did not visit Ghana before making their submission.

Whether you remove 10 zeros or not, there is an international guage of how each country's currency is doing against others. Do you know nigeria at one time in the past changed her currency? Nobody is talking about the old currency because it is no longer a legal tender.

The old Ghanaian Cedi is no longer a legal tender, you can't refer to it any more. The new Ghanaian as it is now is the third or fourth strongest currency in African and I repeat...the Nigeria naira is not even in the first 10.

Most if not all currencies are compared against the dollar, a few are higher while many are lower than the dollar. That is the only international standard that I know.

These things are not calculated by wishful thinking or a mere visit. Again...I say show me a verifiable link where it is clearly stated that the Naira is stronger than the Cedi.

mekaboy:

If u don't understand economics you will find it difficult. How much was 1 naira in cedis before ghana govt removed the zeros from their or your currency?

Or was $10 not up to 100000 cedis before ?

And how is $10 to cedis now. We are talking about the present and you still talking about something done 9 years ago

unite4real:


What you quoted was April last year. Meanwhile, it is not just looking at the figures and concluding. Purchasing power, cost of living, terms of trade, debt, inflation etc all are factors that determine the strength of a currency.

Find cost of living in Ghana below and tell me if you will be willing to take your Naira there because you feel cedes is stronger.

http://www.numbeo.com/cost-of-living/city_result.jsp?country=Ghana&city=Accra&seeThePricesForMobile=true

We are not comparing the cost of living here.
The argument is simple...the Naira or the Cedi, which is the stronger currency.

The link you provided is comparing Ghana with the US.

mekaboy:

If u don't understand economics you will find it difficult. How much was 1 naira in cedis before ghana govt removed the zeros from their or your currency?

Or was $10 not up to 100000 cedis before ?

And how much is $10 to cedis now. We are talking about the present and you still talking about something done 9 years ago

bodejohn:


We are not comparing the cost of living here.
The argument is simple...the Naira or the Cedi, which is the stronger currency.

The link you provided is comparing Ghana with the US.

Guy, if you are so positive, go and invest in Ghana. The link I sent put the price of coke in Ghana to be 1.68 in dollars. In Nigeria it is 0.55$. Convert that to Naira and cedes respectively then you can decide to take your Naira there.

bodejohn:


I guess the group that compiled the data that said the Cedi is the 4th or 3rd strongest currency in Africa did not visit Ghana before making their submission.

Whether you remove 10 zeros or not, there is an international guage of how each country's currency is doing against others. Do you know nigeria at one time in the past changed her currency? Nobody is talking about the old currency because it is no longer a legal tender.

The old Ghanaian Cedi is no longer a legal tender, you can't refer to it any more. The new Ghanaian as it is now is the third or fourth strongest currency in African and I repeat...the Nigeria naira is not even in the first 10.

Most if not all currencies are compared against the dollar, a few are higher while many are lower than the dollar. That is the only international standard that I know.

These things are not calculated by wishful thinking or a mere visit. Again...I say show me a verifiable link where it is clearly stated that the Naira is stronger than the Cedi.

Ok you deal with the what's written, I go by my experience. I rather have 60 naira in Nigeria that 1 cedi in Ghana.

achimotan:


And how much is $10 to cedis now. We are talking about the present and you still talking about something done 9 years ago

$10 is 39 cedis now. Just like $10 would be 270 naira kobo if 2 zeros are removed from our currency.

so which will you prefer? to buy dollars at 39 naira or 270 .naira ?

unite4real:


Guy, if you are so positive, go and invest in Ghana. The link I sent put the price of coke in Ghana to be 1.68 in dollars. In Nigeria it is 0.55$. Convert that to Naira and cedes respectively then you can decide to take your Naira there.

The price of coke is not true. Coke presently sells at 1 cedis. Even the price of Guinness, Castle lager, Star beer is less than $1.68

unite4real:


Guy, if you are so positive, go and invest in Ghana. The link I sent put the price of coke in Ghana to be 1.68 in dollars. In Nigeria it is 0.55$. Convert that to Naira and cedes respectively then you can decide to take your Naira there.

Before you joined the discussion, I gave an example of the same bottle of coke in Europe, Germany to be specific. It is more than 1 Euro but in Nigeria it is less than 0.5 Euro.

With this same example, will you say that naira is stronger than euro or that the economy of nigeria is better than that of Germany. Partly because the taxes and duties that apply on these items are different from country to country.

The strength of currencies as compared on the international scene is more than the cost of everyday items.

I have asked you guys to provide a link where I will find a sentence that says the Nigeria Naira is stronger than the new Ghanaian Cedi.

mekaboy:


Ok you deal with the what's written, I go by my experience. I rather have 60 naira in Nigeria that 1 cedi in Ghana.

The tone of your response sounds defeatist...

I might not be able to change what you believe but it is a duty to correct misconceptions. This is the Internet, how can we be talking about investment when we don't even know how currencies compare on the International scene?

Like I have said...stay on one line of argument...we are not comparing living in Ghana with living in Nigeria. This discussion is about the strength of the Naira and the Cedi and I maintain that as at today...the Cedi as a currency is stronger than the Naira.

AM THE REFEREE...

EVERYBODY IS CORRECT..

DISCUSSION CLOSE...

THOSE THAT WANT TO INVEST IN GHANA SAY AAAAAIIII?

THOSE THAT WANT TO CONTINUE TO INVEST IN NIGERIA SAY AAAAIIIII??



GUYS SHINE YOUR EYES AS YOU INVEST IN GHANA...Think of a sinking ECONOMY of a high interest rate?

bodejohn:


The tone of your response sounds defeatist...

I might not be able to change what you believe but it is a duty to correct misconceptions. This is the Internet, how can we be talking about investment when we don't even know how currencies compare on the International scene?

Like I have said...stay on one line of argument...we are not comparing living in Ghana with living in Nigeria. This discussion is about the strength of the Naira and the Cedi and I maintain that as at today...the Cedi as a currency is stronger than the Naira.

My comparison is purchasing power of both currencies. And from my experience I can purchase more with the naira locally and internationally.

I have purchased online from both countries and I know what I spent from both.

you compare 1 cedi to naira as 53 naira just like u did a pound to naira 1 pound to 350 or so.

And u referred to a cedi as just 1 cedi is 53 naira. Like 1 cedi is the same as 1 naira. If we removed 2 zeros from naira like they did the cedis 1 cedi will be 53 kobo.

mekaboy:


My comparison is purchasing power of both currencies. And from my experience I can purchase more with the naira locally and internationally.

I have purchased online from both countries and I know what I spent from both.

bodejohn:

I don't seem to understand your point...you have not been consistent...
What point are you trying to make?
Between 1 Cedi and 1 Naira, which is more valuable? Which one do you think is higher?
These things are intentional trade, I do not need to go to ghana to find out what exchange rates are.

mekaboy:

Naira is more valuable.
http://mobile.ghanaweb.com/GhanaHomePage/NewsArchive/Cedi-returns-to-Africa-s-worst-currency-378119

I have told you to stay on a line of argument.
We are talking about the strength of the Cedi and Naira, not purchasing power of the currencies or cost of living in the two countries.

You cannot directly compare the face value of commodities across countries. The are different tax regimes in these countries...the VAT in Nigeria is 5%, do you know what it is in Ghana? It became 17.5% last year. Do you know if there are other luxury taxes in Ghana?

Answer this simple question...the cost of a coke in Germany is 1 Euro (about 300 naira) in Nigeria the same bottle of coke is 100 naira.

Will you say the naira is stronger than the euro?

I get you mekaboy.

I know we derailing but I also found this. It's from a 2012 thread.

Gbawe:
This is really a very simple issue. Decimal places in a currency is not the indicator of the strength of currency. They are merely numerical expressions. Ghana deliberately redenominated it currency via rounding it down several decimal places to make it more 'wieldy'. What was 10,000 cedis now became 1 cedi. 100,000.00 now became 10 cedis and 1 million cedis now became 100 cedis.

Today at current exchange rate, and If Ghana had not redenominated, £1 = N250 = 31,000.00 cedis i.e 3.1 cedis today.

When Ghana redenominated in 2007 , and rounded down decimal places, the exchange rate became 2 cedis to £1 and approximately $1 to 1 cedi. Back then, and as has been the case for a while, Naira hovered around N255 to £1. Meaning N255 bought 2cedis. Today, as we speak Naira is still around £255.00 to £1 whereas it is £1 to 3.1 cedis. Today N255 now buys 3.1 cedis when it only bought 2cedis in 2007. This is why like-for-like comparison is always best to make issues crystal clear. Is it not now obvious which currency is stronger and has greater purchasing power?

Also, it is a measure of Ghana's fiscal mismanagement, even if they are getting it right in many other areas, that their currency has depreciated and lost a whole 1.1 cedis again the sterling pound in 5 years. This would be the equivalent of the Naira depreciating by 91 Naira against the sterling pound to become £1 to N345.00. We all know we have not seen such depreciation in the past 5 years and it is obvious the Ghanaian cedis has lost value quite badly to become less strong in comparison to the Naira as an economic fact.

I have Ghanaian enterpreneur friends who are incredibly annoyed currently with the situation because import cost them significantly more since they now need more cedis to purchase the pounds and dollars to buy their goods abroad. This is impacting horribly on their profit.

mekaboy:

If u don't understand economics you will find it difficult. How much was 1 naira in cedis before ghana govt removed the zeros from their or your currency?

Or was $10 not up to 100000 cedis before ?

u're making biggest mistake, xchange rate is different from market value no body will xchange for u base on market value go to bank, or black market b4 u can make any comment on dat

bodejohn:


Before you joined the discussion, I gave an example of the same bottle of coke in Europe, Germany to be specific. It is more than 1 Euro but in Nigeria it is less than 0.5 Euro.

With this same example, will you say that naira is stronger than euro or that the economy of nigeria is better than that of Germany. Partly because the taxes and duties that apply on these items are different from country to country.

The strength of currencies as compared on the international scene is more than the cost of everyday items.

I have asked you guys to provide a link where I will find a sentence that says the Nigeria Naira is stronger than the new Ghanaian Cedi.

You are getting it all wrong. You can't separate the strength of a currency from its purchasing power.

https://en.m.wikipedia.org/wiki/Currency_strength

Currency strength expresses the value of currency. For economists, it is often calculated as purchasing power,[1] while for financial traders, it can be described as an indicator, reflecting many factors related to the currency; for example, fundamental data, overall economic performance or interest rates.[2] It can also be calculated from currency in relation to other currencies, usually using a pre-defined currency basket. A typical example of this method is the U.S. Dollar Index. The current trend in currency strength indicators is to combine more currency indexes in order to make forex movements easily visible. For the calculation of indexes of this kind, major currencies are usually used because they represent up to 90% of the whole forex market volume.[3]

unite4real:


You are getting it all wrong. You can't separate the strength of a currency from its purchasing power.

https://en.m.wikipedia.org/wiki/Currency_strength

The link you provided is talking about international trade which is one of the reason why there is exchange rates not the price of a bottle of coke in country a or country b.

Please provide a link or document that states how the naira is stronger than the Cedi.

bigdot1759:
u're making biggest mistake, xchange rate is different from market value no body will xchange for u base on market value go to bank, or black market b4 u can make any comment on dat

Ofcourse even the exchange rate, you get dollars at a cheaper rate in naira compared to ghana.

1 dollar = 3.9 cedis

while 1 dollar is = 260 naira .

260 naira is close to 5 cedis.

An0nimus:
I get you mekaboy.

I know we derailing but I also found this. It's from a 2012 thread.

I am glad u found it, maybe they will understand. I don't know the bases of their arguements. When u tell them u can buy more with Naira than cedis, they say it's not based on purchasing power. Then u tell them you exchange naira for dollars at a cheaper price, they say it's not about exchange rate.

Yet they comprehensive 1 cedi to 1 naira knowing fully well 1 cedi is not the same as 1 naira .

mekaboy:


Ofcourse even the exchange rate, you get dollars at a cheaper rate in naira compared to ghana.

1 dollar = 3.9 cedis

while 1 dollar is = 260 naira .

260 naira is close to 5 cedis.

There you go again...mixing the official and parallel rates together...

Official rates...

1 usd = 199.4 Naira
1 usd = 3.82 Cedi
1 cedi = 52.1Naira

199.4 ÷ 3.82 = 52.1

These numbers are not from the air...

bodejohn:


There you go again...mixing the official and parallel rates together...

Official rates...

1 usd = 199.4 Naira
1 usd = 3.82 Cedi
1 cedi = 52.1Naira

199.4 ÷ 3.82 = 52.1

These numbers are not from the air...

ok so does this make the Cedi almost equal to the dollar since 1 dollar is 3.82 cedis?

If we redenominate like the Cedi 1 cedi will be 52 kobo.

So how valuable is 52 naira compared to 1 cedi? naira just has more digits while the Cedi has less but the value of naira is still higher in purchasing forex.

If u dash me.1 cedi you have given me 52 naira and if I give you 52 naira I have given you 1 cedi.

Now what I will do with 52 naira is more than what I can do with 1 cedi.


If I convert my naira to cedi to buy dollars in Ghana, i will use less to buy more. But if I change cedis to naira to buy dollars u pay more.

So from your analysis since 1 cedi is 52 naira, it means the Cedi is stronger than the naira and Ghana economy is better than Nigeria right?

bodejohn:






I have told you to stay on a line of argument.
We are talking about the strength of the Cedi and Naira, not purchasing power of the currencies or cost of living in the two countries.

You cannot directly compare the face value of commodities across countries. The are different tax regimes in these countries...the VAT in Nigeria is 5%, do you know what it is in Ghana? It became 17.5% last year. Do you know if there are other luxury taxes in Ghana?

Answer this simple question...the cost of a coke in Germany is 1 Euro (about 300 naira) in Nigeria the same bottle of coke is 100 naira.

Will you say the naira is stronger than the euro?

Which coke is sold at 1 Euro in Germany.. how many litres or are u adding pfand too?

@ Mekaboy

I get it out now. I was thinking as the engineer that i am and not as an economist. It is common sense but i guess i didnt figure it out until i dispalyed my ignorance.

Thanks for your patience and I am sorry if I annoyed you.

I checked other measures of the economy like gdp and per capita income and ofcourse Nigeria is far ahead.

bodejohn:
@ Mekaboy

I get it out now. I was thinking as the engineer that i am and not as an economist. It is common sense but i guess i didnt figure it out until i dispalyed my ignorance.

Thanks for your patience and I am sorry if I annoyed you.

I checked other measures of the economy like gdp and per capita income and ofcourse Nigeria is far ahead.

You did not annoy me sir, we learn from each other everyday. I was getting confused myself. Wondering if it is still the same Ghana that I know.

Because from your analysis it means the Cedi is stronger than the Japanese yen and Ghana economy is better than Japan.

Thank God d Nigeria Vs Ghana battle is over.lol

yomi007k:
Thank God d Nigeria Vs Ghana battle is over.lol

technical knock ouT!