a few months ago, I was excited about the current situation of the country because the currency was performing well against the US dollar, but I know that the government has been pumping the country’s reserve into Fx just to maintain the value of the currency and in the beginning, this was working, but when I look at the situation of the currency now it has even become worst because one naira now equals to 1500 which is a terrible place to be. so many people can’t even survive on a monthly salary again.
The main reason why it is very difficult for salary earns to survive now is because most of the things we consume in the country are imported, and those goods are valued in USD. When The price of USD is so high, it has a great effect on the Nigerian population, to survive becomes a very hard job to do if you are not earning Dollars. this is the main reason why it is so hard for the citizens to survive because we rely so much on imported goods which are valued in dollars.
The funniest part is that the US dollar has not been performing well against the other currencies but against Naira It has made over 400% in less than one year, which shows how terrible Nigeria is and why so many investors are avoiding the country. the major problem here is that the market USD/NGN liquidity is so small that if you trade $500,000 will move the price of the naira greatly.
what is making this worse is that nobody actually believes in the country's currency again and everybody is taking it out without holding the currency, people are trying to convert their money into USD just because of how terrible the currency has been. The small liquidity in the market is of those who want to sell and nobody is trying to buy. I believe one of the major problems is that we’ve not been able to attract investors and also we’ve not been able to manage those crypto merchants that are manipulating naira.
We need system that works
all the Nigeria problems are a result of a lack of management and people not intentionally solving the problem at hand just because some people are benefiting from it. This is why we don’t have a working system in the country. Anytime government officials are benefiting from a sector instead of making it work, they will leave it like that just to embezzle money and not help the citizens. How can we have a working system when everybody is trying to steal and not trying to make anything work?
The main reason why we can’t stop the crypto merchants that are manipulating the naira is because so many government officials are trading USDT. the main reason why we can’t solve corruption in Nigeria is that people in charge of solving corruption are only looking for opportunities and as long as it’s favoring them nothing will change about it.
Thanks for your time.
OMG, dollar keeps rising and most good are imported that's going to create some serious levels of struggle for you guys.. it's so sad.mm I really hope your government starts making the right decisions and I hope your businesses start establishing more local made products
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STOPThe government and economy there needs to add value to the currency. If you just rely on imports then it's obvious that things will deteriorate in terms of currency strength.
On the background, they're probably the main reason why the naira keeps depreciating against the dollar. I hope they find a way to reverse course and start adding more value to the country's currency before more people stop believing in it. Some are already saving all their money in USDT.
I believe corruption is the biggest problem for struggling countries.