Nigeria’s Reckless Devaluation of the Naira
Devaluation is an official lowering of a country’s currency within a fixed exchange rate system. In which a monitory authority formally sets a lower exchange rate of the national currency in relation to a foreign reference currency or currency basket [1] In 1972 $1 (one dollar) was equal to ₦0.66 (zero point six, six naira) [2] . This was one of the times when the Nigerian currency was strongest against the dollar. Things have drastically changed since then to a situation where in 2023 the current exchange rate is $1 (one dollar) to ₦768 (seven hundred and sixty eight naira). Fifty one years might seem like a sufficient amount of time for the change in the currency exchange rate, however between august 2013 to august 2023, a space of 10 years the naira has dropped by 376% (three hundred and seventy six percent) and this change in the currency exchange rate can be attributed majorly to the naira devaluation. There are certain advantages to devaluation such as, to reduce...