Vicotex:

What i said is a fact even the oba can verify it

Seun:
This shit is extremely painful, but they are probably right.

KoloOyinbo:


Investors look at the different countries to see where best to place their money.

An excellent example is tourism. When a country in Europe devalues, tourist flock to it. That increases a need for more infrastructure which investors rush to help provide.

Devaluation is a tried and tested tool. It is not something to be ashamed of as many people here seem wrongly to be.

KoloOyinbo:


Investors look at the different countries to see where best to place their money.

An excellent example is tourism. When a country in Europe devalues, tourist flock to it. That increases a need for more infrastructure which investors rush to help provide.

Devaluation is a tried and tested tool. It is not something to be ashamed of as many people here seem wrongly to be.

Activa:
A 10% devaluation which will put the official exchange rate at about N220 to a dollar will allow the naira to settle? Even if our quest for rubbish imports remains the same?

Why are they all focusing on the demand side and not the supply side?

Why are they not talking about the refineries, textile factories, rice mills and stopping importing rubbish?

Vock:
Devalue again and again and again, are we going the way of Zimbabwe?

Vicotex:
Gtb yoruba bank, very fraudulent.

Vicotex:
What i said is a fact even the oba can verify it

gists:

if gej gov was not wasteful, we wouldn't have been in this mess to start with.

lekjons:
kill these people right now!!

Flairoqy:

I see Unity in you rage! #KillEnemiesOfPeace.

Orikinla:

Who says GTBank is a Yoruba bank?
Have you seen the board of directors and IDs of the staff?
GTBank employs and serves the best interests of all Nigerians and doing many charities that the bank does not even boast about them such as spending millions of dollars on Orange Ribbon Initiative, an advocacy program designed to support children with developmental disabilities, most especially the Autism Spectrum Disorders and most of the beneficiaries are not Yoruba.

We must stop our tribal bigotry. It is primitive.

BigBen10:

. None of them is thinking how to develop the agro allied industries,textile, minning, even the oil gan they aren't think how to develop it further. Very daft generation of egbons we have.

Activa:
A 10% devaluation which will put the official exchange rate at about N220 to a dollar will allow the naira to settle? Even if our quest for rubbish imports remains the same?

Why are they all focusing on the demand side and not the supply side?

Why are they not talking about the refineries, textile factories, rice mills and stopping importing rubbish?

Seun:
This shit is extremely painful, but they are probably right.

KoloOyinbo:


Much of the Nigerian economy depends on the export of petroleum products. A devaluation makes your oil prices much more attractive and stimulates money coming into the country. This does have the effect of making imports more expensive for your guys but its a balance. (Also foreign investment is stimulated)

Exports bring money into the country and stimulate the economy.

Imports cost you money but raise the standard of living (often for a few only).

The only import you really NEED as opposed to 'would like' is food! As the agriculture sector continues its growth you don't need as much of this.

On balance the devaluation is probably both necessary and good for the economy as a whole.

Of course oil prices will eventually rise again and this will strengthen the Naira. Hopefully the recovery will be gradual so as foreign investment is not discouraged.

Be careful when considering the economy and the exchange rate.

While there are links a devalued currency does not automatically mean a weak economy.

This does highlight the need for self sufficiency in certain sectors/commodities (or at least as much self-sufficiency as can be had in todays global economy).

Ymodulus:


Disgraceful igbo bigot

magicminister:
Saw this coming when naira was hover at 170+
I predict a final devaluation of 225-230N to a dollar before year ends.

despite the fact that a devaluation would immensely favour me, It sickens me to know that my currency is gradually corroding away!!

ShowYourCertificate:
http://www.bloomberg.com/news/articles/2015-08-25/nigeria-s-currency-needs-devaluation-guaranty-trust-bank-says

The experts have spoken

Lalasticlala do the needful

IBBG:
we also import petroleum products as well. don't you tink we will be shooting ourselves on the foot if we sell our petroleum cheap n import a by-product of petroleum (kerosene, petrol diesel) very expensive due to devaluation. you know that will lead to inflation in the economy which will further devalue our currency.
Devaluation without self sufficiency is just total waste of resources especially in an economy like ours.

989900:


Oh Nigeria is a tourist destination now?

Have those countries had their currencies devalued by
roughly a 100% in the last7 years, or by roughly 1000% in the last 30 years?

Do we have a multi trillion dollar export economy like China or Japan?

Hell, we don't even have stable power supply, access to loans, infrastructure, anything resembling an enabling environment -- we can't even refine our own fuel -- we spend trillions of Naira importing refined products and you think devaluing like those countries will work for Nigeria?

KoloOyinbo:


Did you read the word EXAMPLE to illustrate the point! Sigh!

Devaluation is a wll known economic tool and certainly nothing to be ashamed of. It can successfully be used to stimulate an economy. The other problems you list need to be addressed also but an overvalued currency will certainly not do anything to assist them.

And yes, devaluing can well stimulate infrastructure etc. It is nothing to be ashamed of nor can it be used to criticise any particular political party as some fools here try. As I keep repeating. It is simply a useful and well known economic tool that can be very successful if uded correctly.

989900:

Read my submission again.
Everything you've just typed again, in practials, in real-time experience, is NOT TRUE.
You are free to believe what you want to . . . it won't still make it right. While our currency have depreciated from N22 to N220 to a dollar (with 'nada' to show for it), off the top of my head, I can give you over 50 countries who's currency have marginally remained same over the past 15 years -- while witnessing from steady, to tremendous growth.

KoloOyinbo:


Well you are free not to be believe in devaluation! But is has worked in the past, does work now and will in the future. And that for MANY differing and diverse countries.
#Sure it is a tool that some countries have preferred not to use and can (like any tool) sometimes be used wrongly but that goes for most monetary policies. And the 50 countries you mention are all different to Naija as to each other.

Not sure which bit of what I have said you feel is untrue unless you want to argue individual points (a waste of both our times) but the issue is simply does or indeed can devaluation work. Please don't argue that one with me - economists across the world use it in the appropriate circumstances so we know the answer to that. Or perhaps you feel that is NOT TRUE also!

Activa:
A 10% devaluation which will put the official exchange rate at about N220 to a dollar will allow the naira to settle? Even if our quest for rubbish imports remains the same?

Why are they all focusing on the demand side and not the supply side?

Why are they not talking about the refineries, textile factories, rice mills and stopping importing rubbish?

erico2k2:

Don't turn things the other way round.did you say same.when GEJ govt wanted to do exact same thing cos of reason you stated above? U guys seem to amaze us.U can't shift the goal post in the middle of the match.