«Home

The Naira Is Gaining Back Its Value?

For the past, One month now the Nigerian Naira has bn gainin back its value. Not because the Nigerian government has bn puttng immense effort to improve the economy but because of the falln of the value of dollar in xchange wit other currencies.

Avatar
Newbie
45 answers

This is an urgent matter now in NIgeria. Everyone is interested in learning dollar to naira course. So, READ ALSO: What is black market naira to dollar exchange rate?

https://ask.naij.com/business/what-is-black-market-naira-to-dollar-exchange-rate-i24044.html

0
Avatar
Expert

Some thirty years ago the largest Naira note was 20N. Presently this sum is not a significant one. The dollar went up considerably and the naira dropped down. Some people still remember those times when one could buy a whole TV set for little over 200 naira and it’s just one dollar today.

Naira has significantly devaluated. Surely the government can take some actions to fix this problem. However, inflation cannot be mended by currency revaluation or other such means. The entire economy of the country and its people’s wellbeing has to increase to produce any significant results.

0
Avatar
Expert

yeah am gonna be suing some peeps but its gonna be the alchoholic beverages company,all of em cos they aint making me think straight.

i guess i didnt concentrate on reading ur post cos i was busy with my sys and some other things sha,i retract my statement and my apologies.cheers

0
Avatar
Newbie

[quote="Seun001"]i guess u don't know that it's the CBN thats been keeping a tight rein on the free falling of the naira.

i can believe what u just posted.total rubbish and u better go and reconfirm your info .[/quote]

The CBN has not been able to sell its Dollars at the Dutch Auction. Common sense should tell you that

1) Supply exceeds demand

2) There is a new source of forex outside the CBN

This does not seem like a free fall of the Naira

I would advise you sue every educational institution you have attended for obtaining by false pretenses(419)

0
Avatar
Newbie

Naira is appreciating against British Pounds as well not only against the US Dollar. So this noise about the weak dollar is not the only reason for this N119/$ rate.

The chart below shows you the performance of the Naira against British Pounds in the past [over] 30 days.

0
Avatar
Newbie

This thread elucidates why Nigerian parents need to stop wasting money sending their children to learn how to get jobs instead of an education and learning to think for themselves.

1) CBN is having a problem selling its dollars. If anything based on demand and supply the value of the dollar would have crashed in Nigeria. Forex in Nigeria is sold in dollars, the banks are not demanding forex from the CBN, that is why the price is crashing. Thanks to western Union, IPO's and foreign investment, getting forex is not a big deal anymore.

2) 90% of government revenue is derived in dollars. For the Naira to remain at par with the dollar the internal economy would ALSO have to keep pace of the mega-trillion, easy credit facilities, mega-consumer spending US economy, just to stay at par. The Nigerian economy cannot be standing absolutely still. Nigeria also imports all major capital goods and a lot of consumer goods. A falling dollar without Nigerian growth would mean increased inflation.

3) Everything used in Nigeria is not imported from the US. If the Nigerian economy was not growing, everything from Beer(made with imported Hops and Malt) to fruit Juice(serviced with foreign machine parts and imported concentrates) would be up since they have to be purchased in more expensive Euros, pounds, or other currencies.

You do not need an Oxford Phd to understand this.

0
Avatar
Newbie

Truth is as always the dollar would raise again, afterall this ain't the first time it's depreciating. It's gon' make a comeback before you know it.

0
Avatar
Newbie

It's a prayer nd i say Amen.

0
Avatar
Newbie

SOULONFIRE

has said most of what need saying.

Currency appreciation and depreciation is one thing, the basic fundamental in an economy is another matter.

Corruption is the president and chairman of our Economy, he takes the lion share.

What we need is power,power, power and good transport network and infrastructures. If we have 50% of the UK road and rail networks and airports(that is for the population of 60 million compare to 140 million) majority of people will have work in Nigeria.

We have to have things that we export apart from oil and small agricultural stuff. We need to start to manufature, reduce our over reliance on imports. and stop 'imported goods' mentality.

In a nutshell we need leaders with a VISION, in the short term a lot of powerful people will not like the idea as it will displace them but it is the only thing Nigeria needs. In the long term we would have a true middle class.

Dollar is weakining and the Naira is not necessary strong. there is no fundamental reasons for the Naira to be strong. the main stay of our economy apart from the oil is banking and GSM phone industry , not unless you wanted to count Pure water, Churches as business.

May God help us and give us a dynamic and visionary leaders (not one visionary leader- but many)

0
Avatar
Newbie

I have a dream that one day in the nearest future that the naira will be Equal or

more than the dollar. Please, help keep this dream alive.[/color][color=#990000]

0
Avatar
Newbie

what products are produced in St Vincent and Grenadines that their dollar is 2.10 to the US$?

Product export is not the only thing that determines currency - japan exports far more that we, but they even try to ensure their currency remains low compared to the US$.

So in conclusion Mr. Iraq, there's more to a currency than simply 'imports'/'exports'

0
Avatar
Newbie

How can the naira appreciate against the dollar on the long run when all the cars on our roads are produced abroad?

When all the appliances in our homes are produced abroad?

When all our clothing are from abroad?

When we are so useless we even had to import petro from abroad?

Can somebody name any nigerian product that can be found on the streets of UK or the US? You may wanna ask Yar'dua if he knows.

0
Avatar
Newbie

The naira is not appreciating because our economy is doing well,it is because the dollar is doing badly at the moment and i reckon this would only last for a while because a country like ours and the other black African nations who produces nothing-other than natural resource-but consumes everything produced abroad will help to pull it back to where it belongs and that is at the top. If we want to measure the perfomance of the naira it would be wrong to do it against the dollar and pounds or the rest of the developed world because they are not in our league.They are the producers and we are one of their numerous consumers.Nigeria would not be able to do well untill the present crop of politician leaves power or when we as a nation becomes tired of being led by people who knows nothing about running a one man business let alone running a multi-cultural nation. The day we get the power sector fixed would,in my opinion,be the day nigeria would start moving forward tradewise. We only need to go abroad once to know what we are up against.

0
Avatar
Newbie

at 181.00 to just €1 i dont think so.

0
Avatar
Newbie

the good news will be,'when the dollar starts getting it's strength back the naira should be able to weather the storm.

0
Avatar
Newbie

Its good news for us. I just hope it stays up.

0
Avatar
Newbie

That's for sure, the young shall grow, but then they grow when they are well nutured , like you said finger crossed

0
Avatar
Newbie

Let's keep our fingers crossed till 2020 and see if the Naira wouldn't appreciate or not.

I'm quite sure it will

0
Avatar
Newbie

the naira appreciated against the dollar because of the US economy.but it doesnt mean the naira value has increased in relation to other currencies.its simple unless u want to ignore the dollar entirely which is impossible since the general exchange denomination is the dollar.so the naira has not gained anything.

0
Avatar
Newbie

@ Sweet T - you mean IF Hilary comes into power.

I think in general, this is good news. Even though the dollar is losing its value - everything works according to US. dollars. The most common currency in the world is US. dollars so i think it is pretty cool. Apart from that, some canadians are ecstatic now because their dollar is stronger than ours. George Bush admin is screwing the economy in their last days. Well come Saturday - elections are going underway, we'll know if it's either Clinton, Obama or some other person.

0
Avatar
Newbie

@seun

Look here bro' most of these politician all have the same views on Iraq but they just won't openly admit it. We are stuck in Iraq because America needs a base in the middle East just like they needed a base in Japan after the world war and America has been in Japan and Korea now for over 50 years ! Middle East is very important to America not only for oil but also to curb the presumed excesses of Iran. Don't believe the hype, most of these politicians are all the same on most views except fo welfare and health policies. The only reason i want Hillary to win is because Bill Clinton can not run anymore and he has a lot to offer being behind Hillary.

Ron Paul is the only radical candidate running and it will be disastrous if he wins.

0
Avatar
Newbie

According to an article I stumbled upon recently, Hillary Clinton's views on the war are similar to that of GW Bush.

0
Avatar
Newbie

Don't worry fellas, when Hillary Clinton gets into office it will be back to the good 'ol days when Clinton was in power !

0
Avatar
Newbie

this is for the administrator

Seun please, longest time but i cant get into my "new posts"

i know it has been long i visited the site but i'm back now

so please if u can reactivate my account and let me into

my replies please, thanks in advance.

0
Avatar
Newbie

i concur!! Naira Will always remain Naira No Value! Dollars is deppreciating even here 1$ = 59LD i guess its the season!

0
Avatar
Newbie

I don't think the naira is appreciating only because of the fall of dollars, I think the fact that foreign investment is increasing contributed to that!

0
Avatar
Newbie

I read on Thisday that Nigeria is planning on pegging the Naira to the dollar at 117 by 2008.

Other economies have pegged their currencies with the dollar in the past though I've not really studied enough to know whether it gave them a leverage in the long run.

Is this a good time to peg the Naira to the dollar?

0
Avatar
Newbie

lost is equal to the value gained

0
Avatar
Newbie

@Doyin

You are right.China's fixed currency rates has been partly responsible for this problem,for where market forces are allowed free reign,a strengthening of China's currency would have helped matters.Many other "Asian Tigers" ,short of fixing currency rates,also manipulate their currency to keep their value low.

In the 80s,when there was a similar problem,there was an accord entered into between the US and countries like Japan which co-ordinated decisions that helped manage the dollar's fall.

Today,there will be pressure for the ECB to cut interest rates if the dollar keeps falling at Europe's expense.In the last trade figures given,US trade deficits with other major trading regions fell except China.While the deficit with the EU fell 37%,that with China rose 5.5%-http://afp.google.com/article/ALeqM5jokcLCqwnflI9lZyie2Hf-m5lqVA

0
Avatar
Newbie

Let us pray it fall to 1 to 1 so that the lost Nigs. abroad will come back to their father's Land to rebuild this country.

0
Avatar
Newbie

@I-man

Most of the cheap imports come from China, and as long as the Chinese refuse to let market forces control the value of

their currency, I do not see the trade deficit diminishing by any reasonable margin any time soon

It is the European industries that the current fall in the value of the dollar hurts the most.

0
Avatar
Newbie

Naira is not gaining anything. I still changed pounds to naira few weeks ago(last week in sept) at 1 pound to 260 naira. If I,m right, last year it was 1 - 240.

0
Avatar
Newbie

The dollar's fall is due to huge current account deficits which has 2 causes-trade deficits and budget deficits.Bush is responsible for the latter and not the former.The trade deficit for August(latest 12 months) was $810.7bn.Budget deficits was in the region of $150bn.Obviously,in a $13.9 trillion economy,its easy to see why an Iraq war,costing about $100 bn per annum,can't be cited as a reason for dollar depreciation.

In recent months,the dollar's depreciation has been propelled by a slowdown in the US economy.This has prompted interest rate cuts by the Federal Reserve which prompts further depreciation.

At the moment,the dollar's fall is good for the economy since it makes US exports cheaper and imports more expensive.If you look back 10 years ago,the dollar's strenght was the cause of concern for US policy officials.The current account deficits accelerated,prompted by cheap imports, in the 90s until it became unbearable recently.So,falling dollar value is good for the US economy provided the fall is not too steep as to precipitate inflation in the US.

For Nigeria,the key concern is diversifying our foreign exchange reserves from dollar denominated reserves into Euros and other viable currencies.Leaving our reserves in dollars means that it is losing value with time.

0
Avatar
Newbie

My friend, how did you come to that conclusion? Naira is not gaining value it's the American Dollars that is losing value. Just try and compare Naira to the Euro or pounds then you'll know the reality of things.

0
Avatar
Newbie

well i think the naira is gaining back the values we must commend the cbn governor and the federal goverment

0
Avatar
Newbie

Even when the government puts in place efforts to make the economy better, Nigerians will still not be grateful - they'll say it wont suceed.

Fools get what they wish for themselves.

0
Avatar
Newbie

u cant compare naira to dollar

0
Avatar
Newbie

Good 1 from seun an gud question, mayb forex trade is finally hittin on the dollar ( this is a long stone throw guez). Howeva, removal of zeros or not is not the Nigerian issue. Ths counrtries like Ghana that practiced this experiment had more inflation than b4 the experiment. Nigerian headache is power!!!! u cant bring such an experiment into an economy whr nada works, it dont min more jobs etc. No power, no infrastructure, no maintainance culture, no value system, how on earth does the zero reduction resolv all these. Crude is now being sold fro $100. the Nigerian govt budgeted $38 wich min a suplus of $42. Assuming the subsidised Kero is being paid for etc. at $5. wot on earth happens to the balance?

Do u witness its change in the economy? Naa becos ur pa and my pa and our mothers are busy making us look better by doin 1 or two "deals"!!

Like Chief Akinyele said " We are all corrupt, the person who stole, the person who knew of how and wen it was stolen and dint tell on the stealer, and the person(S) wu benefit from the steal"

The solution, is put some stuff in the economy, power, infrastructure, erase useless and obsolete curiculum from our universities and other educational institutions, corect our value system ( all these among other tins probably) and watch the economy grow!!

Most of us leave Nigeria not cos we ohter countries are beta off but because the standard of livin here is poor!!!

0
Avatar
Newbie

The truth also is our economy is picking up, lets not forget that,

0
Avatar
Newbie

where is d prove that this has nuttin to do with any improvement in d economy ,or has d ever negative perception of anything nigerian set in again ?

0
Avatar
Newbie

The naira is not gaining any value; it's the dollar that is losing value.

Try comparing the naira to the pound, and you'll understand. There's nothing to celebrate.

0
Avatar
Newbie

So is it really gaining value? Or is the American Dollar depreciating in relation to the Naira?

To the Euro, The Pund, The Yen, The Naira is still worth what it was when the USD was trading for 140 =N=

0
Avatar
Newbie

What can Nigerian's do to support the government,   I learnt that it is  still flunctuating between 116 - 119.

0
Avatar
Newbie

Yes, seun is right. The Naira is not gaining value at all, Instead its the Dollar losing value due to various fundamental analysis. You can tell that by the price of a barrel of oil skyrocketing to $98/barrel.

0
Avatar
Newbie
Your answer
Add image

By posting your answer, you agree to the privacy policy and terms of service.