Naira now at N170 to $1
NaijaRock
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Posted by Felix Okoli on March 05, 2009 at 06:57:31:
It is more like old news as there seems to be no redemption for the Nigerian naira which has been so battered ever since our oil based economy has been affected by the Us-led global recession. How deeper will the naira fall and how stronger will the dollar get. This may seem to be good news for those who still earn money in dollars but bad news for those who still earn theirs in Naira. Perhaps this seems to be the best time to convert one's savings to the US dollars. Who will saev us from the massive depreciation of our national currency which has been so humbled just within 4 months, only God maybe.
The funny thing is that even before now, some experts had predicted that the US dollar would soon reach N200 to a dollar. Oh Soludo, where art thou? Is the Central bank lacking in knowledge, yet we have men of good standing with good qualifications from reknown institions who are in power, men like Soludo, an economist for that matter, who are yet probably still jinxed about what is really happening in Nigeria.
Perhaps, the problem may not be with Soludo because as we know the govt had not heeded to every of his advices, but would have naira devaluation prevented all these or at least mitigated it, well i guessed some prominent Nigerians didn't want to be shortchanged within a short period of time. For the highly rich Nigerians who have got investments abroad, this is a good time to bring some 'ego' home, but what about the masses, civil servants, teachers and fixed income earners. What about manufacturers who cannot easily change the price of their goods overnight.
The US economy can be said to be solid now since the govt has bailed them out, but what about Nigeria, when Yaradua and Soludo are still pondering about where to get money for next year's budget after this year's own was almost truncated when oil prices fell, the remedy being Soludo's initial devaluation of the naira against the US dollar in order to withdraw from our reserves. The govt is thinking about increases and enforcing taxation to solidify next year's budget, but is it really too late to diversify our economy. If Nigeria's economy falls, a lot of our neighbours may suffer and not just Nigerians, because Nigeria is the biggest marketplace for Africa.
Comments:
It is more like old news as there seems to be no redemption for the Nigerian naira which has been so battered ever since our oil based economy has been affected by the Us-led global recession. How deeper will the naira fall and how stronger will the dollar get. This may seem to be good news for those who still earn money in dollars but bad news for those who still earn theirs in Naira. Perhaps this seems to be the best time to convert one's savings to the US dollars. Who will saev us from the massive depreciation of our national currency which has been so humbled just within 4 months, only God maybe.
The funny thing is that even before now, some experts had predicted that the US dollar would soon reach N200 to a dollar. Oh Soludo, where art thou? Is the Central bank lacking in knowledge, yet we have men of good standing with good qualifications from reknown institions who are in power, men like Soludo, an economist for that matter, who are yet probably still jinxed about what is really happening in Nigeria.
Perhaps, the problem may not be with Soludo because as we know the govt had not heeded to every of his advices, but would have naira devaluation prevented all these or at least mitigated it, well i guessed some prominent Nigerians didn't want to be shortchanged within a short period of time. For the highly rich Nigerians who have got investments abroad, this is a good time to bring some 'ego' home, but what about the masses, civil servants, teachers and fixed income earners. What about manufacturers who cannot easily change the price of their goods overnight.
The US economy can be said to be solid now since the govt has bailed them out, but what about Nigeria, when Yaradua and Soludo are still pondering about where to get money for next year's budget after this year's own was almost truncated when oil prices fell, the remedy being Soludo's initial devaluation of the naira against the US dollar in order to withdraw from our reserves. The govt is thinking about increases and enforcing taxation to solidify next year's budget, but is it really too late to diversify our economy. If Nigeria's economy falls, a lot of our neighbours may suffer and not just Nigerians, because Nigeria is the biggest marketplace for Africa.
Comments: