In one of our previous article, we discussed some various reasons why the naira keeps falling against the U.S Dollar. But here we shall be looking at some very few possible ways of Strengthening Naira against U.S Dollar.
But before then, let us enlighten those of us who do not understand some few economic terms or probably the economy situation. It is important to note that the Dollar has not actually increased since Buhari became President. This is where many people tend to get it all wrong. Just continue to go through the following and you will definitely gain something.
Since Dollar is not our currency so dollar should not be our business, therefore our focus here will be on the Naira. Our problem with the exchange rate is not the government rather, it is our importers and consumers.
Ever since Buhari became President, Naira has remained at 197 Naira to 1 Dollar. President Buhari has promised not to devalue the Naira and he has maintained that promise. Both at the CBN and at inter-bank rates, Dollar has remained 197 Naira.
However, because we are too lazy to produce what we use in Nigeria, we therefore resort to importing almost everything, we even import toothpicks and matches. President Buhari does not like the importation of luxury goods because they are the major reason for corruption. That’s why he banned 41 certain products from having access to Forex.
When Nigerian Importers insisted on importing those 41 products, the Federal Government of Nigeria asked them to find their Dollar at the Bereau De Change parallel market also known as “Black Market”. And in a bid to discourage the pressure Nigerians are mounting on the Naira just to get Dollars for importation, CBN banned Department of Management and Budgets from selling Dollars to “Bereau De Change”
Hence, to survive the pressure of excess Dollar demands, Bereau De Change resorted to sourcing for dollars from neighbouring countries through illicit money laundering routes. Because of the high risks faced by the Bereau De Change to source for Dollars, and because of the increase in demand for dollars by importers simply because China just resumed from their business
holidays, Bereau De Change keep increasing the price at which they exchange Dollars to Naira which now is 400 Naira for One Dollar.
As the case may be, it does not mean that Government has changed the exchange rate, because if our genuine importers go to CBN and fill form to import raw materials for local production, they will get One Dollar at 197 Naira. Thus, the problem here is that we love to consume luxury foreign products yet we are too lazy to manufacture them here. And we base all our hope on the oil prices to stabilize the economy. How is that possible?
Given all these, it is in our place as Nigerians, to ensure and to endeavor to support local production of the petty products we use at least to vamp up our economy and also purchase Nigerian products over International ones to help our economy rise
In a nut-shell, as proud Nigerians and Patriotic citizens of this great nation, one major way we can strengthen our very own dear currency from further nose-diving in a free fall against the U.S Dollar, is to do well to support and choose to purchase locally made goods over foreign luxury products.
Do well to enlighten others by sharing.