330% loss of Naira in USD Value in 21 Years of Uninterrupted Democracy in Nigeria

in hive-167922 •  2 months ago  (edited)

I've been looking up some economic issues in Nigeria while still ruminating on the 2020 Democracy day celebration which was marked yesterday, June 12. Nigeria prides in telling the world that she had enjoyed 21 years of Uninterrupted democracy.

My perspective is that the nation Nigeria should be weeping at where they Re rather than celebrate. Many political enthusiasts have claimed that the democracy of the 1993 which was tuppled by a military coop is far better than the new century democracy that is plaguing the nation.

A friend yesterday argued that things are going well for Nigeria, reminding me when in 2014, he recieved a $3000 from his aunt in the US which only purchased a laptop and a few other things. He noted that that sum today would make him worth a Naira millionaire.

That's a sarcasm to the dwindling economy of a formerly African Giant. Then in 2014, $1 was worth officialy NGN160 but today, it's NGN390. Quite double the exchange rate as at 2014. After our conversation, I decided to dig the history of the NAIRA with from when we started enjoying the acclaimed uninterrupted democracy rule.

Image source

You can quickly google "Naira exchange rates from 1999" and see he outcomes for yourself. It saddens my heart to see that the Nigerian Naira has lost 330% in value to the US Dollar. Where are we heading from here?

From the above screenshots, $1 was selling for maximum NGN 90 in 1999 but today, we buy USD1 for as high as NGN 420 in the currency market. What a sad downtrend. Who knows whether $1 could be worth NGN 1,000 in the next 5 years. That would mean more Naira for those who hold foreign currencies amx willing to exchange to Naira, but, how about merchants who wish to buy from other countries?

Even investing fiat into cryptocurrency could become near impossible of this Naira downtrend continues especially as USD remains a global exchange module for cryptocurrencies as well. This would mean that earning cryptocurrency via blogging or gigs could e the best way to acquire cryptocurrencies for Nigerians.

How do we rescue our economy from here?

You can read my yesterday's muse here

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Always great to learn about currencies in different countries. The present is great time to get into cryptos as all fiat loses money over time.

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Yes, and the best option is to earn cryptocurrency. Buying is quite exorbitant from this end. There's inflation daily and depths in international debt profile of the country. I just hope our leaders could learn from China to adopt cryptocurrency as a legal tender .

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as one from the US, i want to thank you for your insights.
We tend to locally as to the value of our currency

another reason to consider crypto as a currency one may use.