The Fluctuating Naira-Dollar Exchange Rate: Implications and Perspectives.
The current price of the naira is falling, and gradually the price of the naira in dollars is appreciating. This is a thing of joy to most Nigerian citizens, but to some that have kept many dollars in their wallets, this is a big problem for them. This afternoon, I was checking through the market system, and I was able to see that the current price of a naira to a dollar is now 1,100 naira to 1 dollar. This is a good take, but does that really mean we are getting things at a better rate? What do you think about this?
In every area of carrying out transactions, it is good when you are at the end that is profitable and not always at the losing end. Why did I say this? When the price of dollars depreciated, it was a very good thing for me because I was happy even when the price of things went so high. I was still happy because I was able to get more naira, and it was even sufficient for me to sort some bills that did not fluctuate with the varying price of dollars.
During this period, when the price of the naira lost its value, the price of house rent did not shake. Even when some did, we were still able to cope because most of us earn in dollars, and for those that do not earn in dollars, they find it a bit hard to cope with. I sometimes thought that if I had my way, I would not have allowed the price to drop at all because it was beneficial to me, and it was helping me solve a lot of things within a short time.
This is also the way it is when we say something goes up, and some will say they do not want it to come down. Definitely, they are getting something from it, and this will benefit those earning from it and some won't. Now the price has dropped from about 1800 naira to 1100 naira. What do we expect to see next at this price? Some will predict that it will still go down from where it is now, and some will pray for it to go up. Even I want it to rise again for some reason.
Part of the reason is that we are just seeing the price of the naira appreciate, but there is no change in the commodity we buy with the money we earn. So I am sure it is better if we just let it be at a high rate, so those earning in dollars will be able to have more naira, and then they can be able to do whatever it is they want to do. Now as it is, you will have to work hard to earn more in dollars to be able to have more naira with you, which was not so before. Let us hope for what next and what the next movie is for the current exchange rate. Will it favor those earning in dollars, or will it be against them? Let's hope.