Alright, buckle up Slay Politics Tribe, because we’re about to dive into the absurdity that is the current state of the Nigerian Naira. If you thought the world of cryptocurrency was volatile, just wait until you hear about the rollercoaster ride that is the Nigerian currency.
First things first, let’s talk about the Central Bank of Nigeria’s (CBN) latest obsession with getting the Naira to sub-1000. Apparently, some mysterious analyst decided that the Naira’s real value should be in the 900 range, without ever bothering to explain the logic behind this assertion. And just like that, the Naira went from nearly 1900 per USD to a mind-boggling 980 Naira within a month. Yes, you read that right – the best performing currency in the world, even outshining the ever-volatile world of crypto. Seriously, it’s like a bad joke that no one asked for.
But here’s where things get really interesting. Despite the CBN’s best efforts, the official market is still clinging to a 1250 Naira rate. Meanwhile, the black market is sitting pretty at less than the official rate. How is that even possible, you ask? Well, my friends, only in Nigeria could such a baffling contradiction exist.
And let’s not forget about the Nigerian government’s role in this whole circus. Instead of addressing the root causes of the Naira’s woes, they’ve resorted to desperate measures like depleting foreign currency reserves just to prop up the currency. It’s like trying to fix a leaky faucet by throwing buckets of water at it – ineffective, wasteful, and ultimately self-destructive. In the end, they’re just replacing a currency crisis with a debt crisis, all for the sake of appearances.
It’s a sad state of affairs when a country’s leaders are more concerned with putting on a show than actually solving the real issues at hand. The people of Nigeria deserve better than this callous disregard for their well-being. It’s time for a reality check, a wake-up call, a swift kick in the pants – whatever you want to call it. The Nigerian Naira deserves better, the people deserve better, and it’s high time that those in power start taking responsibility for their actions.
What has fundamentally changed in the Nigerian economy in the last month to warrant such a turnaround? What can feasibly change that quickly?
Only changes are: increase in foreign remittances from the diaspora, foreign investments in high yield local debt, clearance of fx backlog and fx sales to BDC (all no doubt with the proceeds of the local debt sale)
So basically, other than foreign remittances, the Naira’s value is predicated on sizeable short term debt
But tbf to CBN, they are essentially doing what they are supposed to do
It is up to the federal government and Nigerians to change the fundamentals
The annoying thing is the misleading messaging coming out of CBN, as though Nigeria has made an actual turnaround.
So, here’s the bottom line: enough with the smoke and mirrors, enough with the empty promises, enough with the cosmetic surgery. It’s time to get real, roll up our sleeves, and tackle the tough issues head-on. The Nigerian Naira may be performing better than crypto for now, but let’s not kid ourselves – this is no cause for celebration. It’s time to dig deep, get to the root of the problem, and start making real, meaningful changes for the betterment of all before Nigeria ends up like Lebanon or Venezuela. Nigeria, it’s time to step up and do what’s right.
The Nigerian govt continues to hurt its citizens with cosmetic surgery so sad so callous. They’ve taken the foreign currency reserves to prop up the Naira all for show and no tangible real results Replacing a currency crisis with a debt crisis
