Photo Credit: This Day Live
The lawmaker decried the constant devaluation of naira to other currencies while using the Sierra Leonean economy to compare that of the Nigerian economy. The lawmaker rhetorically questioned if the Sierra Leonean and Ghanaian economies are doing better than that of Nigeria while strictly urging CNB (Central Bank of Nigeria) to do something fast and end the rapid devaluation of naira as it surges above N500 per dollar.
However, after going through the lawmaker's statement I deduced 2 important things he may have failed to consider or may not be aware of, and this article is meant to point out those 2 stringent things.
#1: Economic conditions
Economic conditions tend to influence the currency of a country negatively when global demand for the country's export is relatively low. Similarly, this incident tends to reciprocate itself when a country imports a high volume of goods and commodities.
#2: Political activities
Consequently, according to a laid down research, it was proved that a political situation of a country could trigger either the appreciation or the depreciation of a country's economy. Especially when a country is facing threats of possible war or intensified civil unrest, the investments of such country tend to suffer terribly, thus leading to a depreciation of such country's currency because investors may be forced to start withdrawing their assets and investments when it seems as if the situation of things is getting worse.
Photo Credit: Nairametrics
Similarly, the case of Nigeria is different because the days of war have long gone, but still these factors need to be put into consideration when a country is battling to retain its currency value. Thus, the lawmaker can't just come out and urge the CBN to bring the constant depreciation of naira to an end, in as much as it's what every right-thinking Nigerian would want.
What are your thoughts?
Content created and supplied by: Chesterman (via Opera News )
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