The Governor of the Central Bank of Nigeria, Mr Godwin Emifiele Vie the Committee on Monetary polices, has announced the devaluation of the Naira from N155 to $1 to N168 to $1. which brings me to the question, How did we go from N116 to a $1 in 2008 to N168 to $1 in 2014?
Why do some countries with worse economies have a better rate to dollar than ours? How does the devaluation actually help our economy? Some experts say the depreciation of Naira will increase our Exports. How does this decrease inflation? One needn't be an analyst or economists to know that the cost of production and consumption will rise as a result of this development. In my Opinion, Unless there are plans to increase Per capita income which affects the living conditions of the average Nigerian, the Masses which make up over 50% of the Nigerian populace, will be most affected and are in for some trying times.
The CBN Governor, Emifiele, Maintains that given the level of excess liquidity in the banking system, it has become imperative for the CBN to address the sources of foreign Exchange Demand Pressure. To achieve this, Naira must be devalued. What do you think?
I think too many negative things are happening in Nigeria all at once. Many of which we caused.The thot of it is overwhelming. i dont see how devaluing the naira will help here. but time will tell if CBN has made the right decision or not. we are watching. God help us!
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