₦airaland Forum

989900:
1. I have written a few articles/topics here on NL about this devaluation thing, and many more comments too, which I am sure you've read some of -- no need regurgitating same ol' here . . . BTW, I'm one of the worst hit by the current situation -- I should clamor for devaluation if that would be a lasting cure.

2. You agree that currency devaluation is a 'symptom' , but you still prefer we go that same old route of treating symptoms in lieu of underlying causes -- surgery is painful, but we go thru it to correct maladies . . . you get the drift . . .

3. It's rather an obvious gap of grasp of the true situation in Nigeria, when people compare our situation with other countries, especially developed countries.

4. Are the central bank of England and the commercial banks in England major players in currency racketeering and profiteering as obviously done by the CBN and our DMBs?

5. Do central bank of England directors and deputy governors own 'Bureau de Change" by proxy?

6. At whatever time in recent history has England been as dependent as we are on imports?

7. Are you aware at all of the huge role played by hoarders and speculators?

8. There is over $20b sitting in different non-governmental dom accounts presently in Nigeria.

9. When the pros and cons of devaluation are weighed, can you justify the effect it will have on pump prices, govt external debts, workers wages, hyper-inflation and e.t.c?

10. Can you guarantee if we continue on this path of treating symptoms and devalue further (mind you, we officially devalued from N155 to N197 about a year ago), it would have the desired effect on BM rates, or the same hoarders and racketeers, won't play their hand in few months time, calling for the need for another round of 'official devaluation'?

can't you see its not working!!!!

plaetton:
You Don't seem to understand.

The reason for the timely and orderly devaluation is to forestall the possibility of a free fall, the type we experience in Nigeria.

This happens to us in Nigeria because we mix and substitute sentiments with economic rationality.

Egypt has demonstrated prudent economic and exchange rate management.

Can we ever learn?
Are we capable of learning ?

The main reason for devaluation is Egypt have a product to export to world. Which is Egypt itself.
A devalued currency will boost the Tourism industry, which accounts for large chunk of their GDP. Nigeria have zilch exports (apart frm crude) they don't dare try such in an import only economy.

Tourism has dipped in Egypt and its caused an economic downturn, so devaluation was a no-brainer.

I'm guessing the reason why we have this article now is really to justify the devaluation of naira. Naira is not going to be devalued. Egypt economy is totally different from Nigerian economy. It is not a monolithic economy like Nigeria. So, the comparison is totally off the mark.

courage89:
I'm guessing the reason why we have this article now is really to justify the devaluation of naira. Naira is not going to be devalued. Egypt economy is totally different from Nigerian economy. It is not a monolithic economy like Nigeria. So, the comparison is totally off the mark.

Yes o,
How can you compare a multi billion dollar tourism industry in North Africa with a mono economy at $38/barrel like Nigeria ?
Nigeria economy is already self-destructing and you want add explosive to the mix.