Not devaluing naira Buhari’s wise decision

Let’s define devaluation: devaluation is a deliberate downward adjustment to the value of a country’s currency, relative to other currency, group of currencies or standard. Devaluation is a monetary policy tool of countries that have a fixed exchange rate or semi-fixed exchange rate. Devaluation causes a country’s export to become less expensive, making them more […]

Let’s define devaluation: devaluation is a deliberate downward adjustment to the value of a country’s currency, relative to other currency, group of currencies or standard. Devaluation is a monetary policy tool of countries that have a fixed exchange rate or semi-fixed exchange rate.
Devaluation causes a country’s export to become less expensive, making them more competitive on the global market. This in turn means that imports are more expensive, making domestic consumer less likely to purchase them.
The devaluation of the naira will lead to a lot of reactions many of which may not have intended result because Nigerian economy depends mainly on oil.
The devaluation of naira will drive export of local products which do not exist in the required volume from one but will create an additional burden on the populace the reason being that the cost of consumable across the board increase.
In developed nations when currencies are devalued, it is to encourage exports because the price of local products serves as an incentive and a toast for foreign buyers. in the process, they earn foreign exchange, increase production and create more jobs. Unfortunately that is not the position with Nigeria.
We do not put more concentration on our local production not to talk of exporting. it greatly surprise me when i found out that items such as chew stick, toothpick, palm oil, palm kanel, egg etc are being imported into Nigeria. These are items we have and can produce locally i wonder why they are being imported.
If items as small as these are being imported permit me to ask this question what are we devaluing the naira for?
The step that President Mohammed Buhari took of not devaluing the naira is a very good one kudos to him for that. It shows that as a father he knows that is good for his country, he was able to see things in the light that Nigeria is not yet mature to devalue its currency. The fact is we have to look inward boast our local production, little items that we have should not be imported instead we should start thinking and working toward exporting our local product in mass not just crude oil.

Sarah Gogo Yisa, IBBU, Lapai, Niger State