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NAIRA DEVALUATION, ITS EFFECTS AND POSSIBLE SOLUTIONS.pdf (360.17 kB)
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NAIRA DEVALUATION: ITS EFFECTS AND POSSIBLE SOLUTIONS

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posted on 11.02.2022, 18:07 authored by Adeyemi AnagunAdeyemi Anagun
Devaluation is the reduction in the value of the money of one country when it is exchanged for the money of another country. Devaluation of currency is an attractive option for nation in recession like Nigeria. This study looks at the effects and the possible solution of naira devaluation. The study adopts the use of secondary data of the Nigeria exchange rate spanning from 1972 to 2020.
The study then recommends that the Nigeria government should diversify the economy and that devaluation of currency should be the last resort to the economic imbalance.

History

Declaration of conflicts of interest

No conflict of research interest.

Corresponding author email

anagunade@gmail.com

Lead author country

Nigeria

Lead author job role

Independent researcher

Lead author institution

Lagos State University, Nigeria

Human Participants

Yes

Comments (2)

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Cheapening is the decrease within the esteem of the money of one nation when it is traded for the money of another nation. Debasement of cash is an alluring choice for country in subsidence like Nigeria. This paper looks at the impacts and the conceivable arrangement of naira cheapening. The paper embraces the utilize of auxiliary information of the Nigeria trade rate crossing from 1972 to 2020. The ponder at that point suggests that the Nigeria government ought to differentiate the economy which cheapening of money ought to be the final resort to the financial lopsidedness. Click here

Debasement decreases the taken a toll of a country's trades, rendering them more competitive within the worldwide advertise, which, in turn, increments the fetched of imports. In case imports are more costly, household buyers are less likely to buy them, advance fortifying household businesses. Click here