NewStats: 3,262,087 , 8,176,038 topics. Date: Saturday, 31 May 2025 at 06:25 PM 3o2bf

Hello.

Recently i have been hearing about the dollar going up in value.

And this has brought about a hike in the prices of commodities in the market and has also brought about a hike in the cost of living of the average Nigerian.

So things are tough in the country now because of this dollar phenomenon

So i would like to know what determines the value of a country's currency and why the Nigerian Naira appears to constantly reducing in value while that of America keeps going higher and higher.

Anybody with meaningful information is welcome. Thanks.

Export, import, demand, supply.

It is not that Dollar is going up

Instead it is your naira that is diving downwards.

@ topic

1. Fisical responsibility and ability.
2. The level of greed & corruption.
3. Human rights law.
4. Foi.
5. Ease of doing business
6. Level of insecurity
7. Amount of export to import.

I think these points are sufficient

Gross Domestic Product, Balance of Payment and Foreign Reserve.

When you don't produce anything that another country would need, your currency falls

If what you are producing is wanted by another country, your currency will be strong

Problem is that we depend on oil as we cannot produce any other thing, so when we were producing and selling oil at high quantities, our currency was stable.
Now that most buyers of oil are looking elsewhere, we don't sell enough to balance what we are buying from other countries, so our Naira falls

I believe this is "layman" enough

productive capacity

VeeVeeMyLuv:
It is not that Dollar is going up

Instead it is your naira that is diving downwards.

@ topic

1. Fisical responsibility and ability.
2. The level of greed & corruption.
3. Human rights law.
4. Foi.
5. Ease of doing business
6. Level of insecurity
7. Amount of export to import.

I think these points are sufficient

so doing business in Nigeria isn't easy? how do you mean?

how does insecurity affect the country's currency value

doesn't nigeria export oil among other things?

SporaD8:
Gross Domestic Product, Balance of Payment and Foreign Reserve.

So you're saying Nigeria does not produce anything and we don't have enough foreign reserve? Please explain what foreign reserve is. Thanks

ITbomb:
When you don't produce anything that another country would need, your currency falls

If what you are producing is wanted by another country, your currency will be strong

Problem is that we depend on oil as we cannot produce any other thing, so when we were producing and selling oil at high quantities, our currency was stable.
Now that most buyers of oil are looking elsewhere, we don't sell enough to balance what we are buying from other countries, so our Naira falls

I believe this is "layman" enough

so the reason for our currency devaluation is because we don't export anything besides oil? But what about UAE? Isn't it the money they make from oil that's the reason their country is the way it is?

Hismasterpiece:


So you're saying Nigeria does not produce anything and we don't have enough foreign reserve? Please explain what foreign reserve is. Thanks

Those Nig.Govt asset, products or services outside Nigeria, having a fixed price in Naira but will obviously be paid for in currencies of the country they are needed/sited. e.g Nigeria embassies in foreign country issuing visas etc
In summary, picture the economy of any country like a Mega Trader's market and their currency, the value worth of their goods - A Trader with bussiness that's not making sales or profit but keep spending/consuming and expecting working Capital from Loans and sales of Crude oil(OPEC/forces outside Nigeria control oil price) will sooner or later go bankrupt(their currency will become worthless!)

so the reason for our currency devaluation is because we don't export anything besides oil? But what about UAE? Isn't it the money they make from oil that's the reason their country is the way it is?

Even Crude oil is not priced in Naira!
UAE having excess money to throw around from sales of oil doesn't mean their currency is strong.

ITbomb:
When you don't produce anything that another country would need, your currency falls

If what you are producing is wanted by another country, your currency will be strong

Problem is that we depend on oil as we cannot produce any other thing, so when we were producing and selling oil at high quantities, our currency was stable.
Now that most buyers of oil are looking elsewhere, we don't sell enough to balance what we are buying from other countries, so our Naira falls

I believe this is "layman" enough

Exactly how I wanted to explain.

I don't understand too... Mods should do the needful so others too can explain...

VeeVeeMyLuv:
It is not that Dollar is going up

Instead it is your naira that is diving downwards.

@ topic

1. Fisical responsibility and ability.
2. The level of greed & corruption.
3. Human rights law.
4. Foi.
5. Ease of doing business
6. Level of insecurity
7. Amount of export to import.

I think these points are sufficient

Also the amount of foriegn direct investment that comes into the country, Gross National Product, Gross Domestic Product etc

Hismasterpiece:


so the reason for our currency devaluation is because we don't export anything besides oil? But what about UAE? Isn't it the money they make from oil that's the reason their country is the way it is?

The truth is, Nigeria can be like(or more than) UAE but corruption and greediness will not let us. We sell the same oil, but why are they progressing and we regressing? CORRUPTION.

Apart from oil, UAE exports other mineral products, machniery, electrical equipments, transportation equipments, precious metals, precious stones(gold, diamond etc they have it in excess), aluminum etc..

Hismasterpiece:
Hello.

Recently i have been hearing about the dollar going up in value.

And this has brought about a hike in the prices of commodities in the market and has also brought about a hike in the cost of living of the average Nigerian.

So things are tough in the country now because of this dollar phenomenon

So i would like to know what determines the value of a country's currency and why the Nigerian Naira appears to constantly reducing in value while that of America keeps going higher and higher.

Anybody with meaningful information is welcome. Thanks.

If Nigeria can produce 90% of things consumed in the country and export them too our naira would be more valuable than the dinar.

Hismasterpiece:


so doing business in Nigeria isn't easy? how do you mean?

how does insecurity affect the country's currency value

doesn't nigeria export oil among other things?

Take for instance someone from abroad want to invest, start a company, the person will have to settle the governor, give some percentage of funds to elders, community leaders, thugs and what have you. This way, so many a investor could not invest in our country. These investors would have greatly helped in reducing the chronic unemployment (shebi u sef see how foolish these people upstairs are?).


When there is high perception of insecurity, people including the leaders, the led, the foreigners looking to invest, tourists will be thinking about avoiding the country, divesting, or trying to run away from their motherland!
FDI will be running away. Young persons who are thinking of starting a family, building house or investment will think twice or be reluctant to do that.

The moment more persons lose hope and faith on the country that is when there has to be drastic change to correct the problem.

Yes the oil export is not enough (or let's say the economic people made us believe that). In addition it has been dwindling over the years.
The world is turning to alternative green energy/electric cars. Another painful aspect is that the same export is been imported as refined fuel (of which govt claims to pay heavy subsidies).

Import and export

Simply put. Our leaders are not productive. The nation is not productive.
When you don't produce , you lose international respect. So naira is losing respect!
I'm not an economist but I understood the basic concept of economics.

Don't believe anything this the long awaited change

ITbomb:
When you don't produce anything that another country would need, your currency falls

If what you are producing is wanted by another country, your currency will be strong

Problem is that we depend on oil as we cannot produce any other thing, so when we were producing and selling oil at high quantities, our currency was stable.
Now that most buyers of oil are looking elsewhere, we don't sell enough to balance what we are buying from other countries, so our Naira falls

I believe this is "layman" enough

Instead of Nigeria to produce, they'd rather borrow from China.

When ranking the laziest country in the world, I don't think Nigeria will have a competitor.

It will be unopposed.

Buhari said Nigerian youths are lazy. He was referring to the country as a whole.

When you don't work - when you don't produce - you lose value. You become a mere consumer.

Most of all, you lose respect!

That's what's happening to Nigeria. Now ask yourself - is it happening to me, too?

Are you LAZY and UNPRODUCTIVE?

Though you are in Nigeria, I beseech you, don't be like Nigeria.

Your actions and inactions, determine your future!

We are not a plug for anything in the world. We are not even the plug for crude oil.
Some countries use tourism as their major source of revenue.

VeeVeeMyLuv:
It is not that Dollar is going up

Instead it is your naira that is diving downwards.

@ topic

1. Fisical responsibility and ability.
2. The level of greed & corruption.
3. Human rights law.
4. Foi.
5. Ease of doing business
6. Level of insecurity
7. Amount of export to import.

I think these points are sufficient

Your are correct. In the last 6 months dollar has only fluctuated 4.3% in value exchange with pound and 4.2% against the Euro.

Lack of manufacturing export

We only focus on import...

Our income revenues are supposed to be invested on our economy

Rather, some few guys are Chopin it...

This and many more will hav an effect

Dubai is a tourist country,the people living in dubai are less than the people that go for tourism there.

Hismasterpiece:


so the reason for our currency devaluation is because we don't export anything besides oil? But what about UAE? Isn't it the money they make from oil that's the reason their country is the way it is?

Hismasterpiece:


so the reason for our currency devaluation is because we don't export anything besides oil? But what about UAE? Isn't it the money they make from oil that's the reason their country is the way it is?

the only difference is that unlike Nigeria, UAE does not import refined fuel back to the country. that this imported fuel is paid for in scarce dollars.

ITbomb:
When you don't produce anything that another country would need, your currency falls

If what you are producing is wanted by another country, your currency will be strong

Problem is that we depend on oil as we cannot produce any other thing, so when we were producing and selling oil at high quantities, our currency was stable.
Now that most buyers of oil are looking elsewhere, we don't sell enough to balance what we are buying from other countries, so our Naira falls

I believe this is "layman" enough

Why isn't Chinese yuan stronger than that of British pounds, because China is among the major export country in the world.

I don't know about others, but bubu promised to make it equal to the dollar.
Thank God I never believed that dull@rd

When we are running a petrol base economy ...the only thing that invites dollar in large quantity to this country is petrol... Secondly we more of consuming nation, we are not producing anything we can export to other nations

The federal last blame forex traders....the government are right