It is shameful to watch our economy criss cross in and out of different crisis (local and international) every year, subjecting our currency to the whims of demand and supply, speculative attacks from foreign and local institutions, political, infrastructure, educational and security risks that continues to constraint Naira from appreciating.

A cursory look at the historical performance of Naira from 1983 till date (~0.7 naira / 1$ - 220 naira/ 1$), devaluation decisions couple with economic performance over the years concludes the rationale for our decreasing global competitive advantage, hence reason for our compounded poor economic performance over the years.

My question is simple, how can Nigeria strengthen its currency? What policies, structures, system and other enabling parameters do we put in place to reverse the problem/crisis emanating from devalued naira.

Buhari's body odour to the rescue, don't worry.

by re denomination make New naira change 200 Old naira for New 1 naira 5000 naira become 250 New naira

In dere dreams

by Nebuchadnezzar(buhari) decree

mikolo80:
by re denomination
make New naira
change 200 Old naira for New 1 naira
5000 naira become 250 New naira

I will not subscribe to the idea of redenomination of Naira, if not backed by necessary policy structure and system. It's a short term solution which will eventually compound our economic woes over time. Redenomination will lead to increasing inflation if not backed by proper structure, similar to what we are witnessing in Ghana currently.

courage89:


I will not subscribe to the idea of redenomination of Naira, if not backed by necessary policy structure and system. It's a short term solution which will eventually compound our economic woes over time. Redenomination will lead to increasing inflation if not backed by proper structure, similar to what we are witnessing in Ghana currently.

Hey he asked, I just answered his kvestion
but yeah 1 naira to $1 is not the solution.
tractors and power plants are

mikolo80:
by re denomination
make New naira
change 200 Old naira for New 1 naira
5000 naira become 250 New naira

Redenomination is usually the removal of zeros.

So lets say $1 = N100

After redenomination it is now $1 = N1.

The way you did it up there will be a mathematical nightmare. You'd be shocked at how even educated people are bad at simple maths how much more illiterates.

grandstar:


Redenomination is usually the removal of zeros.

So lets say $1 = N100

After redenomination it is now $1 = N1.

The way you did it up there will be a mathematical nightmare. You'd be shocked at how even educated people are bad at simple maths how much more illiterates.

I was arguing with a lady about this issue.she said Nigerians cant go to South Korea to hutsle because our currency is stronger than theirs.
I was just laughing

Yes we Can ......In our dreams

grandstar:


Redenomination is usually the removal of zeros.

So lets say $1 = N100

After redenomination it is now $1 = N1.

The way you did it up there will be a mathematical nightmare. You'd be shocked at how even educated people are bad at simple maths how much more illiterates.

yet everyone can change dollar, pounds and euro without mistake

mikolo80:
yet everyone can change dollar, pounds and euro without mistake

How many people change currencies? Everyone on the other hand will deal with the redenominated currency on a daily basis.

Also, in every profession, there's a method things are done. That's why it's always best to leave it to expert. The way it's done in economics is simply removal of a zero or zero.

So let's say it $1 = N300

If you redenominated, it can he $1= N3

It can't move from $1 = N300 to $1 = N1. It will be $1 = N3.

That's the best practice and it has to be respected. If we have better ideas and can defend it before the profession credibly, it can be implemented.

The best practice is best from experience and is the best impkementable.

Try voodoo economics!

Every student of economics and international politics knows that the reality of value of a currency is that it depends heavily on two things; the actual demand for it and on the perception of its value. Every other thing na ogboju (braggado).

1. Improve productivity to the point that you dont need to always search for the dollar in your local and international dealings. Strong economy is about high productivity, that is all.

2. Promote regional and international corporation such that you can travel to all african countries and and change naira directly to their currency and they can come here and do the same with their currency, without the dollar being demanded for a business that does not involve buying and selling with the USA. This is the secret that drives the dollar and pound sterling globally.

3. Related to the last point, make your citizen and outsiders to have a good perception of your currency, thereby raising the demand for it and the ability to hold it as a means of savings.

4. Related to 3 above, have intelligent people managing your economy so that the value of your currency in the market does not keep rising and falling, so that people would happily keep your currency thereby raising its value. it is not the value of a currency that increases its demand, it is its stability at whatever value that does it. A particular amount must never drop in value in the international market.

5. Have everyone wanting to come to your country, and insist they do business in local currency whenever they come.

6. It is easier said. It requires real seriousness.

Ikemba007:
Every student of economics and international politics knows that the reality of value of a currency is that it depends heavily on two things; the actual demand for it and on the perception of its value. Every other thing na ogboju (braggado).

1. Improve productivity to the point that you dont need to always search for the dollar in your local and international dealings. Strong economy is about high productivity, that is all.

2. Promote regional and international corporation such that you can travel to all african countries and and change naira directly to their currency and they can come here and do the same with their currency, without the dollar being demanded for a business that does not involve buying and selling with the USA. This is the secret that drives the dollar and pound sterling globally.

3. Related to the last point, make your citizen and outsiders to have a good perception of your currency, thereby raising the demand for it and the ability to hold it as a means of savings.

4. Related to 3 above, have intelligent people managing your economy so that the value of your currency in the market does not keep rising and falling, so that people would happily keep your currency thereby raising its value. it is not the value of a currency that increases its demand, it is its stability at whatever value that does it. A particular amount must never drop in value in the international market.

5. Have everyone wanting to come to your country, and insist they do business in local currency whenever they come.

6. It is easier said. It requires real seriousness.

I will appoint you into the CBN when I'm president.

You can submit your details now.

Awol1:


I will appoint you into the CBN when I'm president.

You can submit your details now.

Thank you. And if God make me President I will appoint you for having had a good intention towards me.

Ikemba007:


Thank you. And if God make me President I will appoint you for having had a good intention towards me.

Lol.