Dollar Inflation- Naija current state.

It is a known fact that when the dollar- Naira exhange rate increases, prices of things generally tend to spike. Now most of us even those that don't know the initial dollar rate keeps shouting on top of their voice "na Buhari cause am na as e stop corruption". Abeg madam/oga na how Buhari cause am, that's when they start to fidget.


Exchange rates are determined by basic supply and demand factors. The demand for a currency is influenced by factors, such as interest rates, economic growth and inflation. For example, if there was greater demand for American goods then there tend to be an appreciation(increase in value) of the dollar. If markets were worried about the future of the US economy, they would tend to sell dollars, leading to the fall in the value of the dollar. Don't get confuse let me break it down again. Dollar inflation can likely happen under some circumstances, the value of government debt can influence the exchange rate. Change in competitiveness; If US goods become more attractive and competitive this will also cause the value of the exchange rate to rise. Yes na so e be because it determines the long run value of the pound which is similar to low inflation. If speculators believe dollar will rise in the future, they will demand more now to be able to make a profit. Therefore movements in the exchange rate do not always reflect economic fundamentals.



Now back to the issue at hand.
Central bank has opposed devaluing naira currency despite oil drop inflation to average above 10%, imposing restricttions on imports and curbing foreign-currency supply instead to cope with a more than 45% slump in oil prices since early last year 2015. Rather than protecting consumers- the justification used by President Muhammadu Buhari in rejecting calls for a weaker currency. The policy threatens to stoke inflation as it boosts import costs and pushes the naira to record low on the black market. We are currently experiencing an economic melt-down. Everything don 'dear' for the nation. products that are imported or bought abroad such as Mobile phones are usually at the forefront of the price increase. Now that we completely understand the 'dollar inflation' now can someone please tell me how dollar increment tay affect food stuffs? The average consumer is already facing a de facto devaluation and this has driven up prices. The country can survive this depreciation of dollar but to play with persin belle?... now that's not up for a conversation. An Ogu(Pumpkin) seller go just throw big lie say na dollar o. SHUUUUU! I angrily asked one tomato seller why was shouting "dollar don increase" if she knew the initial dollar rate and she said "yes na 40naira before for one dollar now na 250naira ma sister you see wetin we de suffer for this country so?"hahahahahahahhahahahaha Yes am complaining bitterly because these are local produces. Yes agriculture is included in our sector but the masses are not happy.


About a decade ago the contribution of revenue from sale  of crude to Gross Domestic Product (GDP) was in excess of 60 % while its contribution to National income was well over 90%. However by Jnauary 2015, the contribution of revenue from crude to National income has come as low as 68%, while GDP was less than 20%. Rising food costs, which make up about half of the consumer price index, have pushed inflation to 9.6% in January, the same rate as the previous month and the highest level in three years.

Honestly i do not know what to say to aviate the whole dollar palava. Not a political analyst. Just pray everything works out just fine. Feel free to share your views nonetheless.

Some of you are already bored with the whole gist. I just say maik i enlighten you with the country's current state. At least maik you de fully aware of the country's state maik you get something to talk if your mates de talk about the matter u dig?

Promise to start writing daily. In other news, my Birthday is 2 days away. #ShinesTeeth
Signing out.
Mwah!