For how much can you buy one dollar right now? What is the future of Nigerian economics? Find out the answers in this article!
Nigeria is going through the severe economic crisis right now. That’s why exchange rate dollar to naira had decreased dramatically. Right now 1 US Dollar equals 283.50 Nigerian Naira.
This exchange rate is pretty scary because it’s not what we were promised by the government.
About one year ago the population started to be worried about the US dollar exchange rate as the value of Naira was getting lower and lower. The change was so quick that it’s no surprise everyone was terrified.
For the past few years (2012-2015) the rate stayed almost the same – about N180-N190. But since the spring of the last year things began to get worse.
Even the black market is no longer able to provide the customers with the cheaper price.
The economical experts have different opinions about it. Some of them suggest devaluing the Nigerian national currency so that its condition can eventually get better and become comparable with the American dollar.
However, the exchange rate today is so low that the other specialists claim that it would be too dangerous to change something so dramatically.
The other problem is that the difference would be harder to track as most people don’t use the official market.
Both local and foreign businessmen are feeling the crisis very deeply. That’s why the trade is slowing down and now is not successful at all. A lot of foreign industries simply shut down.
Moreover, there are no optimistic forecasts for the coming future. Some experts say that the situation can get even worse and that the rate is too close to 300 right now.
The rate falls monthly so all the attempts of the financial experts and businessmen in general to fix the situation are failing. Every day those numbers change and no one is sure what to expect from the next day.
The Central Bank of Nigeria states the exchange rate as 283.50 to 1 right now. However, the reality is a little bit different. Just like the bank did one year ago, it’s not showing the real cost.
It is still lower than that if you want to go and actually buy dollars. However, the bank will eventually change the exchange rate but it will probably take them some time to do it.
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The difference between the real rate and the one the National Bank shows can reach up to 20-30 naira. But even black market prices are a not that different.
Right now the situation is so bad that there are no cheaper alternatives of buying dollars. You can track the changing almost every day but the bank holds on to the same price for weeks or even more.
According to everything that is happening with the currency now the experts can’t promise that it would go up again. The other problem is that we are having the deficit of the foreign currency.
Right now it’s not even affordable and possible for everyone to exchange naira to dollar. That’s why it is ridiculous that the National Bank keeps on hiding the truth from the population as it is quite obvious.
Why does Nigeria have a crisis?
The other problem with that is that the oil which is Nigeria’s main money-maker has suffered too.
First of all, we experienced a lot of terrorist attacks which slowed the manufacture down and led to the shortage of workers and the product itself. Moreover, the prices for crude oil are getting lower and there is no way to stop it.
All the experts admit that right now our country really is in danger. But the government really needs to focus on the country’s main business which can be helpful to fight with the growing global crisis.
Because of this global oil crises the workers suffer badly too. Most of the employers are not able to pay the same salary anymore. That’s why when the amount of allowance money gets lower the productivity gets lower too.
And some of them even refuse to work anymore. All those factors make the situation even worse. The only solution that the government finds satisfying is to print more money which is obviously not going to help change the situation.
That’s the main reason why the future development of the crisis is so inevitable.
The oil crisis influences not only those people who work in this area but all other people too as the things that the government is doing to prevent the catastrophe are basically only making it come faster.
Last spring the prices were a lot different than now. For example, one barrel of crude oil cost about 50 dollars which was very cheap even then. And now it is 20-30% cheaper which is noticeable.
The gas prices are lower than in the most countries in Africa right now. The heads of the gas companies promised to change it last year but the situation is still the same.
If the crisis continues to be like that or even become worse, Nigeria might lose one of the few sources of income.
The only good thing is that the government is trying to cut out the expanses for some non-important things in order to help save the businesses.
However, it would have been more useful if they worked out a special plan to end the crisis forever.
Right now a lot of banks are advised not to give new loans. That’s understandable because now not everyone is able to pay their old debts.
Even though the concern is huge, there is always hope that we will overcome the hard times soon!
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