₦airaland Forum

Allow me to blame Buhari and his devilish agents. If you are still a staunch supporter of this deputy devil, you will go through all the sicknesses that turned him into walking bone.

Though weak currency doesn't necessarily mean weak economy, Naija is unrepentantly, unchallenged and proudly the number one in the league of sh1thole countries.

You obviously do not know how currency and economy works. Go back to school

Emilokoiyawon:
You do not know how currency and economy work. Go back to school

Oh, wise one, please teach us something.

Please explain how 100 dollars moving from 16 thousand to 36 thousand naira suits the Nigerian population. Note that Nigeria now has the highest number of people living in extreme poverty on earth.

This is not China, which keeps its currency strong yet weaker than the dollar. China is excellent at manipulating the Yuan. On the other hand, Nigeria's naira is in free fall.

trillville:
Oh wise one, please teach us something.

Explain to us how 100 dollars moving from 16 thousand to 36 thousand naira is good for the Nigerian population. Note that Nigeria now has the highest number of people living in extreme poverty on earth.

This is not China that keeps it's currency strong yet weaker than the dollar. In China, there are great at manipulating the Yuan. Nigeria's naira, on the other hand is on a free fall.

Now lets educate you. Pay close attention. Answer these questions:

1. What is the exchange rate of the South Sudanese pound to the US dollar?
2. What is the exchange rate of Angolan kwanza to the US dollar?

After you have done your homework and answered these questions, and you still don't realize the lack of connection between exchange rate and poverty level, then kindly let me know so I can give you further homework to help you.

Emilokoiyawon:
You obviously do not know how currency and economy works. Go back to school

oshe prof.......teach us something

romme2u:


oshe prof.......teach us something

Okay. Go and do the homework posted above.

Emilokoiyawon:
You obviously do not know how currency and economy works. Go back to school

tell him! What has exchange rate got to do with level of economic development? Look at China, Japan etc,

Emilokoiyawon:
Now, let's educate you. Pay close attention. Answer these questions:

1. What is the exchange rate of the South Sudanese pound to the US dollar?
2. What is the exchange rate of Angolan kwanza to the US dollar?

After you have done your homework and answered these questions, and you still don't realize the lack of connection between the exchange rate and poverty level, kindly let me know so I can give you further homework to help you.

I don't get your point. The SSP is about 130 to the USD, and the Kwanza is about 230. Both countries have fewer impoverished people than Nigeria.

A better example to illustrate your point would have been the Japanese yen, which is about 109 to the USD. With a GDP per capita of 39 thousand USD, the Japanese are very wealthy people.

Back to our reality, if you were the president of Nigeria, would reduce the value of the naira cause more mass poverty because Nigeria is a highly import-dependent country with little productivity as a result of poor infrastructure, low-quality education, mass poverty resulting in insecurity and inadequate health services

or

Would reducing the value of the naira make imaginary Nigerian-produced goods cheaper for the rest of the world, thus reducing the overall rate of poverty and the number of poor people living in Nigeria?

Again, note that Nigeria currently has the highest number of people living in extreme poverty on earth and recently overtook India as the poverty capital of the world, even though India has 6 times as many people.

trillville:
I don't get your point. The SSP is about 130 to the USD and the Kwanza is about 230. Both countries have fewer extremely poor people than Nigeria.A better example to illustrate your point would have been the Japanese Yen at about 109 to the USD. With a GDP per capita of 39 thousand USD, the Japanese are very wealthy people.

Good job getting those numbers. However, poverty rate is a more accurate measure than raw numbers. Now, you see why you cannot draw a straight line between exchange rate and poverty index. Exchange rate means nothing in the final analysis. This is what I wanted you to learn and it appears you have done a good job. I have deleted the other stuff that is irrelevant to the issue.

Guy! u nor try... u for use 100 Naira notes after all na 100 dollar note u use kwa..

Nice1 OP....they dont like to hear the truth about themselves. Instead they start to deflect and even abuse you.

BUT, the sh.it is still there smelling worse and worse.


“BUHARI=walking bone” LOL

Emilokoiyawon:
Good job getting those numbers. However, the poverty rate is a more accurate measure than raw numbers. Now, you see why you cannot draw a straight line between the exchange rate and the poverty index. The exchange rate means nothing in the final analysis. This is what I wanted you to learn, and it appears you have done a good job. I have deleted the other stuff that is irrelevant to the issue.

Teacher, has the devaluation led to an increase in poverty or not? This is the central question and not your straight or crooked line.

What is the connection between exchange rate and the economy?

progress69:
What is the connection between the exchange rate and the economy?

Is this an attempt at sarcasm or a request for knowledge?

Please use Google or, even better, ask your parents how devaluing the naira in the 1980s ruined the middle class.

In fact, you are currently experiencing an experiment on devaluation. After devaluing a currency, an imbalance occurs. Citizens clamour for increases in minimum wage, which, if granted, will lead to an increase in demand for dollars. This, in turn, will cause foreign reserves to fall, putting further pressure on the currency and leading to further devaluation.

It's quite a vicious cycle. Your best bet is to invest in treasury bills, as rates are surely going to rise tremendously in the coming years.

trillville:
Is this an attempt at sarcasm or a request for knowledge?

Please use Google or even better ask your parents how devaluing the naira in the 80's ruined the middle class.

As a matter of fact, you are currently passing through an experiment on devaluation. You see, after devaluing a currency, an imbalance occurs. The citizens clamour for increases in minimum wage, which if granted will lead to an increase in demand for dollars, which in turn will make the foreign reserves fall putting further pressure on the currency and leading to further devaluation.

Quite a vicious cycle. Best bet is to invest in treasury bills as rates are surely going to rise tremendously in the coming years.

Mtcheew. U are just making noise. As in silly noise!

U know absolutely nothing about economics.

Weak currency does not necessarily mean weak economy.

The same "strong" US dollars didnt save US and others from a deep recession, that Nigeria with the weak Naira never slipped into during the last global recession.

progress69:
You are just making noise. As in silly noise!

You know absolutely nothing about economics.

A weak currency does not necessarily mean a weak economy.

The same "strong" US dollars didn't save the US and others from a deep recession that Nigeria, with Nairaeak Naira, never entered during the last global recession.

So it was weak sarcasm.

Who said a weak currency signifies a weak economy?

I said devaluationNairathe naira has created an imbalance that is making people poorer.

I said increasing the minimum wage would lead to further devaluation and poverty.

I never mentioned a recession. Provided oil prices do not fall before Nigeria bulks up its excess crude oil account (not foreign reserves), Nigeria may not witness another recession for 30 years.

This, however, does not mean the Nigerian masses would not be forced into mass poverty.

Note that Nigeria has the largest economy in Africa yet has the highest number of people living in extreme poverty on earth. Isn't it ironic?

trillville:
So it was weak sarcasm.

Who said a weak currency signifies a weak economy?

I said devaluation of the naira has created an imbalance making people poorer.

I said an increase in minimum wages would lead to further devaluation and further poverty.

I never said anything about a recession. Provided oil prices do not fall before Nigeria bulks up it's excess crude oil account (not foreign reserves), Nigeria may not witness another recession for 30 years.

This however does not mean the Nigerian masses would not be forced into mass poverty.

Note that Nigeria has the largest economy in Africa yet has the highest number of people living in extreme poverty on earth. Isn't it ironic, don't you think.

U are still.making more noise.

The OP posted a pic of a $100 bill and then some naira....

Using it as a criteria to attack the economy. I responded to that....

So where all this noise is coming from...i nor understand.

In b/w Nigeria does not have the highest number of people living in extreme poverty....stop saying nonsense.

progress69:
What is the connection between exchange rate and the economy?

Guys ignore this kind of people.

progress69:
U are still. Making more noise.

The OP posted a pic of a $100 bill and then some naira...

Using it as a criterion to attack the economy. I responded to that...

So where is all this noise coming from? i nor understand.

In b/w Nigeria does not have the highest number of people living in extreme poverty....stop saying nonsense.

Please Google "world poverty clock" and check out the methodology used for the research.

Please endeavour to read more.

trillville:
Is this an attempt at sarcasm or a request for knowledge?

Please use Google or even better ask your parents how devaluing the naira in the 80's ruined the middle class.

As a matter of fact, you are currently passing through an experiment on devaluation. You see, after devaluing a currency, an imbalance occurs. The citizens clamour for increases in minimum wage, which if granted will lead to an increase in demand for dollars, which in turn will make the foreign reserves fall putting further pressure on the currency and leading to further devaluation.

Quite a vicious cycle. Best bet is to invest in treasury bills as rates are surely going to rise tremendously in the coming years.

You seem to have some grasp of economics and I am therefore astounded by somethings you're saying.

You have some grasps of economics and yet you're sounding like Buhari.

During the lasy few months of the Jonathan administration, oil prices began becoming down rapidly. With the rapid deesent in oil prices, came lower forex inflow and a depreciation of the Naira from 150 in June 2014 to around 197 in by May 2015.

Upon Buhari assumption of office, he put a halt to further depreciation and fixed the Naira at 197. He "thought" this will halt this would halt a further depreciation of the Naira but was wrong. The devaluation simply shifted to the black market whe the CBN could not meet demand.
The uneconomic peg led to severe forex shortages that plunged the economy into a recession when companies could not get forex to buy raw materials and run their companies.

You treat devaluation as the problem when it is only a symptom of it. It is simply a response to the forces of demand and supply. If your forex inflow is increasing, your currency is bound to increase in value. If on the other hand, it will loose value.

Refusal to accept the reality will lead to the type of dreadful and totally unnecessary recession the economy just underwent.

The 1980's recession though it had dreadful effects on the middle class was 110% necessary.

The real devastation was not the devaluation but Babangida's reckless fiscal and monetary policies.

The Babangida years were marked with massive budget deficits that led to the persistent devaluation of the Naira yearly. The Naira was devalued to around N4.50 in 1986 and was N37.50 in August 1993 at the black market when he was stepping down.

If Babangida had been fiscally prudent and had gone much deeper with structural adjustments, the economy would have started booming within 2 years. The reckless profligacy has been of those years has been unmatched since independence

progress69:
U are still.making more noise.

The OP posted a pic of a $100 bill and then some naira....

Using it as a criteria to attack the economy. I responded to that....

So where all this noise is coming from...i nor understand.

In b/w Nigeria does not have the highest number of people living in extreme poverty....stop saying nonsense.

It's like Nigerians have not heard about South East Asia.

First and foremost let me make some clarifications.

Everyone's arguments are valid in seperate medium. A weak currency doesn't necessarily mean a bad economy. But a weak currency plus a bad economy is where Nigeria has found herself.

I used our currency to show how bad we are faring not only in economy but in all ramifications.

In 2015 I imported some Chinese tablets with latest OS at 12,000 per tablet. But unfortunately today thw same tablets are sold at 15,000 with the same old Android OS.

This shows a regression in our currency/economy (I leave this to you economics folks).

Don't let us deceive ourselves, what is bad does no have another name, It is BAD.