Now, Nigerians are seeing its ripple effects. It's good to 'unpeg' the Naira so that its exchange rate is determined by market forces(international and local) as is the case now but is it a timely intervention? I don't think so because the economy is getting worse.
Even though the world Bank and IMF advised in favour of it, claiming it would encourage more foreign investment but it seems the reverse is now the case due to reasons still fuzzy to me.
Though my understanding of economics is rudimentary, I make bold to say that it would have been better if the President and his economic team didn't go ahead with the devaluation, instead, I feel he should have continued with the policies of his predecessor and allowed for a considerable reduction of the deficit in Nigeria's trade balance; where our exports would have significantly improved, before embarking on this currency devaluation drive.
Fuel marketers are saying they will increase the price of petrol any
moment from now due to the scarcity of the dollar and it's corresponding
increasing value wrt the Naira. This is definitely going to make life a
tad more difficult for the average Nigerian. Mr President should
urgently review his economic policies or change his economic team.
- Simon Utsu
- Simon Utsu
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