If the Nigerian Naira falls to N400 by January 2017
NaijaRock
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Posted by Felix Okoli on Tuesday February 16, 2016 at 14:46:25:
The Nigerian Naira has seriously depreciated against the US dollar in the black market because it now sells for about N320 per dollar even though it's official price is still pegged at about N199 by the Federal government.It's been almost a year since the Buhari administration took office and it was on a platform of an opposition party which became the first to win an election against a ruling political party. One of the commonly used words by APC and Buhari campaigners during the famous 2015 general elections in Nigeria was "Change". What many Nigerians are now pondering on is whether this is a positive or negative change.The value of the Naira in the black market has fallen so low and many Nigerians now have a lower purchasing power than they did before the APC took power as they could, for instance, buy a 50kg bag of rice that now sells for N13000 in 2016 at about N8000 in 2015. When it comes to purchasing goods that are mostly imported from the Nigerian market, the average Nigerian now has less purchasing power than he did in 2015 thanks to the policies of the Federal government through the CBN.What is causing the value of the Naira lose so much value under an APC government within a space of 1 year when it didn't do the same the year before under the PDP led government? In January 2015, the value of the US dollar to a Naira at the black market was about N208 and by January 2016 which includes about 8 months of Buhari and the APC's rule, it has fallen to over N310. This means that the average Nigerian who buys goods from a market that is already filled with imported goods will be spending more money to buy the same things he used to buy. The exchange rate has fallen drastically low by as much as 45% and if the trend continues, it may fall to N400 by the time January 2017 rolls in.If the Nigerian Naira keeps falling the way it has been falling over these 7 or 8 months of Buhari's rule, it could fall to as low as N400 for 1 US dollar at the black market and many Nigerians would be made poorer because of it and may be seriously looking for another change in government since they would not be so happy with the financial decisions made by the APC led government under Buhari.The new and somewhat inexperienced government needs to do something urgently to stop the rate at which the Nigerian Naira has been losing value against the US dollar because people find it disturbing and given the fact that we as a country rely a lot of imported products with the exception of a few things like cassava and crude oil, having a stable exchange rate makes life easier for many Nigerians. A falling foreign exchange rate makes Nigerians lose trust in their government and encourages them to start looking for change. It would be indeed ironic if Nigerians now start asking for a change of government before a government that got into power through their campaign for change.Will the Naira fall to as low as N400 to 1 US dollar by January 2017? It would indeed be a record and would dent the image of the new government which has made many drastic financial policies within a short time frame.
The Nigerian Naira has seriously depreciated against the US dollar in the black market because it now sells for about N320 per dollar even though it's official price is still pegged at about N199 by the Federal government.It's been almost a year since the Buhari administration took office and it was on a platform of an opposition party which became the first to win an election against a ruling political party. One of the commonly used words by APC and Buhari campaigners during the famous 2015 general elections in Nigeria was "Change". What many Nigerians are now pondering on is whether this is a positive or negative change.The value of the Naira in the black market has fallen so low and many Nigerians now have a lower purchasing power than they did before the APC took power as they could, for instance, buy a 50kg bag of rice that now sells for N13000 in 2016 at about N8000 in 2015. When it comes to purchasing goods that are mostly imported from the Nigerian market, the average Nigerian now has less purchasing power than he did in 2015 thanks to the policies of the Federal government through the CBN.What is causing the value of the Naira lose so much value under an APC government within a space of 1 year when it didn't do the same the year before under the PDP led government? In January 2015, the value of the US dollar to a Naira at the black market was about N208 and by January 2016 which includes about 8 months of Buhari and the APC's rule, it has fallen to over N310. This means that the average Nigerian who buys goods from a market that is already filled with imported goods will be spending more money to buy the same things he used to buy. The exchange rate has fallen drastically low by as much as 45% and if the trend continues, it may fall to N400 by the time January 2017 rolls in.If the Nigerian Naira keeps falling the way it has been falling over these 7 or 8 months of Buhari's rule, it could fall to as low as N400 for 1 US dollar at the black market and many Nigerians would be made poorer because of it and may be seriously looking for another change in government since they would not be so happy with the financial decisions made by the APC led government under Buhari.The new and somewhat inexperienced government needs to do something urgently to stop the rate at which the Nigerian Naira has been losing value against the US dollar because people find it disturbing and given the fact that we as a country rely a lot of imported products with the exception of a few things like cassava and crude oil, having a stable exchange rate makes life easier for many Nigerians. A falling foreign exchange rate makes Nigerians lose trust in their government and encourages them to start looking for change. It would be indeed ironic if Nigerians now start asking for a change of government before a government that got into power through their campaign for change.Will the Naira fall to as low as N400 to 1 US dollar by January 2017? It would indeed be a record and would dent the image of the new government which has made many drastic financial policies within a short time frame.