₦airaland Forum

retsonbiz:
Unfortunately you sound like a child struggling to understand monetary economics.....If you are old enough, I dare ask you, how did Ghana do it?

This is possible within months, governmental policies and structural economic realignment is necessary.

fallout87:
That is one of the stupidest utterances in this election if it is true.

Does this Buhari not understand inflation? He obviously doesn't understand a thing about GDP or the economy...

PapaBrowne:
Are you serious Your speech just gave you off as someone who lacks complete understanding of Economics>



Illiteracy no be moi moi oh!! Ha! So if someone tells you he will equate the value to the dollar you would just swallow it hook line and sinker??
What were you doing when others were attending Economics class??

For the Naira to be equal to the dollar, you would need to see our dollar reserve rate go to something like a trillion dollars!! Even with 20 years of 20% economic growth rate, we would probably not be there!!


Now the bigger lesson for you is that a very strong Naira is not good for our country especially if you want to produce goods and export competitively..
Now let me explain that to you:
A bag of Dangote cement sells for 1500 Naira.
When the dollar was 160 Naira, that bag of cement was equal to $9.
At the new rate of 215 Naira, that same bag of cement is now equal to $7.
That means if Dangote wants to sell his cement in Albania, he has a better price point than he would have had 5 months ago.

Now imagine the Naira is exchanging at 5 Naira to a dollar.
That same bag of cement would now be equal to $300. Where on planet earth would he be able to sell his bag of cement at that price??

Any country that desires to produce and export to the rest of the globe, prays for a weaker currency to allow its goods better pricing amongst competitors. If Buhari understands economics, he will never pray for a very strong Naira except of course he wants us to keep importing everything!!

balladin:
Did he really say that? Shame on you Buhari. Tufia! May you never smell Aso rock.

mickey45:
I agree with u, but I want to believe not all of them would've escaped If Soludo himself oversaw the wholeshow given his position then. At least not those who were not cowtowing to Obasanjo's whims then. Obasanjo for one know's how to pick his fights just as it would've been fool hardy trying to shield patricia Etteh etc.Backthen.
A few ultraconnected Ones would still scale through but a great many would feel the brunt too.

Werehkpe:
[size=13pt]PLEASE WHERE DID HE SAY HE WILL MAKE THE DOLLAR EQUAL TO THE NAIRA? Its all these fake headlines that have helped put us in this present mess.

VANGUARD SHOULD BE ASHAMED OF THIS HEADLINE AND EVEN SUED[/size]

manny4life:
I asked for Soludo's presentation and you referenced someone's blog, by their own content; their own words and understanding and you want to misguide me as well as others this is what Soludo suggested? Biko, go get me something noteworthy, then I will comment. For now, you're floating, don't forget to let me know when you land.

Besides, I have asked numerously, on what basis? Favorable or unfavorable conditions? This is why I asked to see Soludo's presentation (I know him as someone who argues with fact).

patmaine:
go and study Ghana economy since the revaluation...it's worse. didn't work for them..

the exchange rate is favorable to Nigerian produced item....with the recent emergence of Nigerian in d agriculture sector..it 'll be favorable to Nigerian exporters and subsequently Nigerian economy..because more people will be inspired to export..earning foreign exchange..

Ask companies like ibeto who export motor batteries to the USA. I am sure he 'll surely 've increased patronage because Nigerian products will be cheap in the international market...

Ask companies like innoson technical company. they 'll tell you thr plastic and vehicles now 've much international patronage...

u na a pc too dull joor

PapaBrowne:
Are you serious Your speech just gave you off as someone who lacks complete understanding of Economics>



Illiteracy no be moi moi oh!! Ha! So if someone tells you he will equate the value to the dollar you would just swallow it hook line and sinker??
What were you doing when others were attending Economics class??

For the Naira to be equal to the dollar, you would need to see our dollar reserve rate go to something like a trillion dollars!! Even with 20 years of 20% economic growth rate, we would probably not be there!!


Now the bigger lesson for you is that a very strong Naira is not good for our country especially if you want to produce goods and export competitively..
Now let me explain that to you:
A bag of Dangote cement sells for 1500 Naira.
When the dollar was 160 Naira, that bag of cement was equal to $9.
At the new rate of 215 Naira, that same bag of cement is now equal to $7.
That means if Dangote wants to sell his cement in Albania, he has a better price point than he would have had 5 months ago.

Now imagine the Naira is exchanging at 5 Naira to a dollar.
That same bag of cement would now be equal to $300. Where on planet earth would he be able to sell his bag of cement at that price??

Any country that desires to produce and export to the rest of the globe, prays for a weaker currency to allow its goods better pricing amongst competitors. If Buhari understands economics, he will never pray for a very strong Naira except of course he wants us to keep importing everything!!

Articul8:
Rather,u'r d illiterate here.Can u read @ all? Read d caption and read the body and c d difference.Ppl like u fail easily and claim u read hard 4 d exam.Shame on u!!!

ajalaolanr:
On the other hand, there are ways to revalue the currency of a Nation, Ghana did it and thats why their currency has more value than the Naira. Charles Soludo wanted to do it but the FGN at the time kicked against it. Don't criticise Buhari yet, instead ask him how? I was quick to make a comment saying it was a desperate move, but no, it is not. It can be done. It's called revaluation.

Please read below.

Currency Revaluation
The active decision of a government to increase or decrease the value of its own currency in relation to other currencies. Revaluation occurs exclusively in fixed currencies, when the currency in question is pegged to another currency. A government generally revalues its own currency when it wishes to make adjustments to its peg to another currency. If the revaluation is a devaluation, it makes the country's exports less expensive in foreign markets.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

So it is doable and for a non exporting nation like Nigeria, we really do not need our Naira been devalued, we actually need it to be revalued. If we were an exporting nation of goods, merchandise and services, devaluation may favor us as it will promote sales and demand of our local export products.

But alas, we do not manufacture nada!

Pavarottii:
GHANA That our currency is still stronger than even with the recent fall in oil price and devaluation of Naira.
Go and get ur fact right.

fallout87:
I am still waiting for one of you Buhari lovers to tell me what he will do??

- Saying he will do it without an explanation is not an answer.

- Saying stolen money would fix it is not an answer. That is false.

Tell me the actual tactic he will use. Will he increase interest rates? Will he still dollars and buy up naira?

Use intelligence to respond. I will be waiting

Omooba77:
Owerri – The All Progressives Congress (APC) presidential candidate, Gen. Muhammadu Buhari, on Monday said he would ensure that the Naira was equal to the dollar in value, if voted into office.
Buhari stated this during the South-East presidential rally of the party at Dan Anyima Stadium, Owerri.

“It is sad that the value of the naira has dropped to more than N230 to one dollar; this does not speak well for the nation’s economy,’’ he said.
He urged the people to vote for APC, noting that he would ensure that corruption was tackled headlong if elected.

Earlier, Gov Rochas Okorocha had urged APC supporters to vote for the party’s candidates at all levels, noting that a vote for Buhari without support to others at the state would amount to nothing.
Okorocha said Buhari would address the problem of electricity, bring back the kidnapped Chibok girls and promote industrial growth.

He said that Buhari was loved by the people in the region and urged them to elect him and other APC candidates during the March 28 and April 11 general elections.

Former governor of Anambra, Mr Chinwoke Mbadinuju and former Minister of Education, Chinwe Obaji, were formally welcomed to the APC at the rally.

The rally was attended by APC supporters from Abia, Ebonyi, Anambra, Enugu and Imo. (NAN)


http://www.vanguardngr.com/2015/03/ill-make-naira-equal-in-value-to-dollar-says-buhari/#sthash.eALwzZ4V.dpuf

Princecalm:
This is someone that understands the economy speaking and not the clueless one who keeps Naira unstable.

Princecalm:
This is someone that understands the economy speaking and not the clueless one who keeps Naira unstable.

fallout87:
That is one of the stupidest utterances in this election if it is true.

Does this Buhari not understand inflation? He obviously doesn't understand a thing about GDP or the economy...

Princecalm:
This is someone that understands the economy speaking and not the clueless one who keeps Naira unstable.

dollarlander:
So you joined Nairaland this year January, because you think you have something intellectual to contribute in this forum. Your aim is to have platform to attack buhari who ruled Nigeria when you were never born and whose intention is to help build you a nation void of corruption so that for ones you can live as a human being in a place you call your country.

A 13 year old boy came to me, he said daddy please help me vote buhari, I said can you convince me 5 reasons why I should vote buhari he said he did not know there was a man who is capable of putting all these big men, who are stealing Nigeria money, in prison and collect all our stolen wealth from them. I was short of words.

If a 13 years old boy, who wasn't born in the 80's when 1$ was 1.44 naira could reason that way how much more you that is an adult should have reasoned provided you are in your right senses.

Buhari has his facts to propel naira back to where it was before corruption was legalised in Nigeria.

All he needs to do is to make war against corrupt people like you. Collect all the billions of dollars you have stolen and place them back in reserve. If this is done within one year alone, you won't believe where naira value will be.

Then restructure economy from hyper dependence on oil and stop exporting crude oil and importing refined products.

Assuming that you are a normal human being, a normal Nigerian who desire to live like a king in his own country. At least I lived before 80s and I know what it is to live when things are good. You will support agenda that diversifies economy and reenergise all sectors of economy for growth.

The shale oil in America will kill many economies around the world who depend on oil to survive. The oil money will continue to fall and American dollar will continue to be stronger because they are self sufficient in the area of oil.

Nigeria naira will continue to depreciate as long as we cannot refine our oil and distribute ourselves which cannot be sufficient for our local consumption because of our local demand

Bros, don't allow politicians who lived before you give you inverted stories that will continue to deplete your life as a Nigeria citizen. You can live better than this if you have a leader with the right focus like buhari.

I'm waiting for your reply. I dey house for you this morning.

lastpage:
I would have loved to do a detailed analysis of your post but its late in the night for me, but l will summarize.

Dont know how old you are but l can tell you that l was old enough to handle a Dollar, when the Naira was EQUAL to the Dollar..... and our reserve was not anywhere a TRILLION, not even a Billion Dollars, back then.
Check the exchange rate in the early 70's and confirm my point.
Back then, Nigeria was exporting a lot of Cocoa, ground nut, Palm Oil, Rubber, e.t.c

It was done then, it can be done now... Period!

2.) To say a very strong naira is not good for Nigeria, to justify the worse-than-Zimbabwean "Naira' we are spending today, is not doing "full justice" to economics!
I wont go on a long analysis of Dangote or Ibekwe but let us just "invert" your statement and see how it pans out.

Can we say "A very strong Dollar is NOT GOOD for America"?.....
.....and despite at almost #240 => Dollar, has it stopped Nigerians from importing from America (most of our imported cars are from there, just to mention one item) or scrambling to buy the Dollar?
More importantly, has it STOPPED America from exporting its products all over the world, especially to Nigeria?
Answer is obviously NO!

Finally, as educated people, we must refrain from espousing what l will call "half knowledge", deliberately or otherwise, especially when doling out "economic precepts". Our analysis has to be "balanced" and reflected on all possibilities.

Let me make bold to say that what YOU THINK may be LOST from a "strong local currency" can be, .....and IS actually NEGATED by the following:

a.) Superior Products (which are always in demand, irrespective of higher prices)

b) Reputation (E.g, America has a "reputation" for "full options" vehicles thus, despite the additional cost, people will rather inport an "American Spec", than one from japan or Europe.

c.) Strong Local Market (Countries with Big population which has "HIGH PURCHASING POWER" can still take advantage of their strong currencies without much negative effect as MOST products from their Factories get consumed locally)

4.) Selective Production (This is similar to (a) above but here, emphasis is on producing goods that are either termed "luxury" or very 'high-tech" and or "uncommon" e.h high class armaments, expensive cars that gets Russians buying , e.t.c.

Bottom line: A Strong currency is NOT a disadvantage to a nation or its export (as you asserted) ...... if you have the right people managing the "MIX" of Economic policies!

I understand that such economic "management" is beyond a "I know Nothing" President or his thieving cohorts, more so in a Nigeria where the leaders stiLl dont recognize the fact that calling you "economic giant of Africa or ranking you #1 on some utopian index" MEANS NADDA, IF YOU CANT EVEN POWER YOUR HOMES OR FACTORIES FOR AT LEAST 12HRS IN A DAY!

We have been trying to do two things since the days of Shagari, without success!

1) Convince foreign INVESTORS that Nigeria is 'the country' to invest. Except for a few "crooked" investors who themselves are only here to scam our system, with the collusion of their local crooks, l have not seen any serious investors in Nigeria, for decades! Some are doing what is called "window-dressing", being around "on paper" .... just in-case something crops up

2.) Export Promotion by keeping a weak currency: This one is a no-brainer! What do we really produce in this country, that is "competitively" worth exporting, ..............using Generator and Diesel as the source of industrial power?

Please, our leaders should stop scamming the populace!
It will not happen, not with Buhari, certainly never with GEJ......unless power becomes at least 80% stable.

Lastpage!

Omooba77:
Even Japan,China can not achieve this