₦airaland Forum

theenchanter:
ranks like this work with local currency converted to the american dollar ($). It's almost impossible for a nation with deliberate weakened currency to be above another currency with a strong currency.

That's the case with Nigeria in those ranks.

theenchanter:
umhlanga is in durban.. maybe most of the millionaires and billionaires in durban resides in umhlanga is the reason they put the two together.

That's my opinion .

gezaulole:
I am official a member of Nairaland, I have come here to mute all Kunyans!

Kazikazi:
Bad news for kiberans! Bad news! Bad news

Just30:
The 2 billion dollars Sentuo Oil Refinery has commenced construction
The Refinery will refine 35 Million Barrels of Oil per year.




https://www.youtube.com/watch?v=iH30FNG6oMU

Wuoche:
But Ghana has a strong currency but it's still below Nigeria and Kenya which has weaker currency compared to Ghana.

Wuoche:
But Majority of Nigerians don't use Naira to store their wealth.

Omokanye/Bloomberg
Economics
Nigerians Shun Naira for Foreign Currencies to Store Wealth
By Emele Onu
April 22, 2021, 7:00 AM GMT+3
Updated on April 22, 2021, 6:17 PM GMT+3
Report links currency substitution to Nigeria naira volatility
Nigerians’ use of dollars exceeds IMF’s 30% threshold
Nigerians have been accumulating foreign currencies to protect their wealth from naira volatility and surging inflation, according to a research paper in a journal published by the Central Bank of Nigeria.

“Higher real-exchange rate volatility is associated with an increased level of currency substitution,” central bank economists including Isaiah Ajibola, Sylvanus Udoette, Rabia Muhammad and John Anigwe said in the paper available on the central bank’s website. There is a need to contain “exchange-rate volatility and inflation as a way of curbing the spate of currency substitution in the country,” they said.

One measure of currency substitution, the ratio of foreign cash deposits to naira deposits on demand in the banks exceeded the International Monetary Fund’s 30% threshold from 2009 following the global financial crisis, the researchers said. It hit a peak of 98.2% in 2014 before declining to 83% in 2018. A broader measure of foreign currency in banks to naira savings, demand and term deposits, stayed largely within the IMF limit over the study period from 1995 to 2018.

Africa’s largest economy devalued the local unit twice last year after a crash in the oil price triggered by the coronavirus pandemic hampered revenues. While crude contributes less than 10% to the country’s gross domestic product, it accounts for nearly all foreign-exchange earnings and half of government revenue in the continent’s biggest producer of the commodity.

The naira has lost 66% of its value since 2009 when it exchanged at 149 naira to the dollar. The unit was little-changed at 409.21 naira per dollar at the spot market as of 4:02 p.m. in Lagos on Thursday. Nigeria’s inflation quickened to the highest level in four years in March and is now more than double the 9% limit of the central bank’s target range.

The central bank previously issued a warning to merchants to stop offering local goods in foreign currency and also banned the practice of accessing the foreign-exchange market for settling domestic transactions.

“The key policy implication of currency substitution is that it reduces monetary policy effectiveness,” the researchers said. “Efforts to further diversify the economy should be of paramount interest to boost the base for foreign-exchange earnings.”

Wuoche:
Continue replying to your own comments.

Wuoche:
But Ghana has a strong currency but it's still below Nigeria and Kenya which has weaker currency compared to Ghana.

Wuoche:
See the gap between Abuja and Mombasa. Abuja has 600 people in the $1M category Mombasa has 800 people, in the $10M category Abuja has 30 people Mombasa has 40. The hype that Nigerians have been to Abuja you could think Abuja is not in Africa

Wuoche:
See how the gap between Lagos and Nairobi is rapidly decreasing in terms of wealth. In the first table Nairobi has 6,000 people in the 1 dollar millionaires categories while Lagos have 5,000. In the category of 10M dollar Millionaires, Nairobi have 250 while Lagos have 260.

Overall Nairobi is wealthier than Lagos and that's why Knight Frank ranked Nairobi ahead of Lagos.

kikuyu2:
Speaking of which most homes even in big towns believe it or NOT don't have toilets!
Google Kumasi takeaway toilet - make sure you're seated!

Wuoche:
See how the gap between Lagos and Nairobi is rapidly decreasing in terms of wealth. In the first table Nairobi has 6,000 people in the 1 dollar millionaires categories while Lagos have 5,000. In the category of 10M dollar Millionaires, Nairobi have 250 while Lagos have 260.

Overall Nairobi is wealthier than Lagos and that's why Knight Frank ranked Nairobi ahead of Lagos.

Wuoche:
But Majority of Nigerians don't use Naira to store their wealth.

Omokanye/Bloomberg
Economics
Nigerians Shun Naira for Foreign Currencies to Store Wealth
By Emele Onu
April 22, 2021, 7:00 AM GMT+3
Updated on April 22, 2021, 6:17 PM GMT+3
Report links currency substitution to Nigeria naira volatility
Nigerians’ use of dollars exceeds IMF’s 30% threshold
Nigerians have been accumulating foreign currencies to protect their wealth from naira volatility and surging inflation, according to a research paper in a journal published by the Central Bank of Nigeria.

“Higher real-exchange rate volatility is associated with an increased level of currency substitution,” central bank economists including Isaiah Ajibola, Sylvanus Udoette, Rabia Muhammad and John Anigwe said in the paper available on the central bank’s website. There is a need to contain “exchange-rate volatility and inflation as a way of curbing the spate of currency substitution in the country,” they said.

One measure of currency substitution, the ratio of foreign cash deposits to naira deposits on demand in the banks exceeded the International Monetary Fund’s 30% threshold from 2009 following the global financial crisis, the researchers said. It hit a peak of 98.2% in 2014 before declining to 83% in 2018. A broader measure of foreign currency in banks to naira savings, demand and term deposits, stayed largely within the IMF limit over the study period from 1995 to 2018.

Africa’s largest economy devalued the local unit twice last year after a crash in the oil price triggered by the coronavirus pandemic hampered revenues. While crude contributes less than 10% to the country’s gross domestic product, it accounts for nearly all foreign-exchange earnings and half of government revenue in the continent’s biggest producer of the commodity.

The naira has lost 66% of its value since 2009 when it exchanged at 149 naira to the dollar. The unit was little-changed at 409.21 naira per dollar at the spot market as of 4:02 p.m. in Lagos on Thursday. Nigeria’s inflation quickened to the highest level in four years in March and is now more than double the 9% limit of the central bank’s target range.

The central bank previously issued a warning to merchants to stop offering local goods in foreign currency and also banned the practice of accessing the foreign-exchange market for settling domestic transactions.

“The key policy implication of currency substitution is that it reduces monetary policy effectiveness,” the researchers said. “Efforts to further diversify the economy should be of paramount interest to boost the base for foreign-exchange earnings.”

Wuoche:
Why are you so insecure? I was only adding the presentation of what you posted in writing.

rvp2018:
I keep saying Mombasa makes Abuja look like a joke - Nairobi beat Lagos.

vaxx:
sometimes ago, they were having issues on where to established. has government agree with Tema?

vaxx:
[url][/url] you are so stupid not to realised Ghana shoudnt be on that table naturally judging by her population . all the country above Ghana on that table are well populated . Accra is just a little above 3 million yet it is ranked number 8 in Africa. something should tell you Ghana is working well.


Ghana currency isnt about strenght but stability. she has a stable currency for now at least from the past one year.

Wuoche:
Please stop hiding behind the population jacket.

South Africa with her less population has more millionaires than Nigeria.
Kenya with it's population of 47m have 8,000 millionaires while Nigeria with 200M people has 9,000 millionaires. Ghana with 30M people has more millionaires than Tanzania with 60M people. Kenya is ahead e Ethiopia despite Ethiopia's big population. So please, don't hide behind population.

vaxx:
you actually answer the question better yourself and yet you are still making the same error. I am not hidinrg under any number but fact.

when it comes to wealth, numbers play a role but that is not the only case . the overal wellness of a nation also count . when you look at it per average, Ghana is even doing way better than Kenya and Ethiopia combine .

Wuoche:
Safari rally starts tomorrow, this time round it's called Equator rally.

rvp2018:
Will WRC happen this year?

Shma2020:
This moniker makes sense Mr Vlain.

Now bring your a*s here and stop playing gimmicks

I though this moniker will come with good grammar but man!!!

rvp2018:
We are turning our Sowetto like low rise gov owned houses into high rises. I don't think after Nairobi has delivered say 100,000 units - Any Sub Sahara City will come close in terms of the size of the city. 500,000 units - that is huge - and that city of 2m people.

We are demolishing 17,000 Soweto like houses - so we can deliver more than 100,000 units. Phase alone will deliver 70,000 units.

https://www.youtube.com/watch?v=hQnTf5WdhBo