This is where I wish I were adept in finance and economics and all things monetary...
This news article from the Nigerian Tribune speaks of plans for Nigeria's currency:
Apparently we are trying to take the value of the Naira back to what it was before SAPs (structural adjustment programmes) supposedly caused things to go down hill.
My question is, and maybe I just need to understand this better, how does moving the decimal point to the left twice, save an economy???
This news article from the Nigerian Tribune speaks of plans for Nigeria's currency:
Apparently we are trying to take the value of the Naira back to what it was before SAPs (structural adjustment programmes) supposedly caused things to go down hill.
My question is, and maybe I just need to understand this better, how does moving the decimal point to the left twice, save an economy???
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4 comments:
j...nigeriaworld has some good articles that break down the effects simply. here's one link but i'm sure there are others...http://odili.net/news/source/2007/aug/15/212.html. i'm quite excited about it as a whole...but really nervous about the payment in dollars issue. with the existing level of controls...that sounds like one of the dumbest ideas ever...its like nonsense....
thank u H
The mere movement of the decimal point with respect to the Naira exchange rate cannot change the economic fortune of Nigeria. In the Nigerian case however, if an articulated pricing policy is not put in place, the the policy is bound to fail. That was why, the SAP initiative(s) of the 1980s could not yield the expected results. That is why I would like to call the current Soludos move as a gamble. Good luck to Nigeria anyway.
if it is anything like what Zim did - as I havent read the article and am responding based on your question - removing zeros is NOT going to the root cause of the ailment...it's just treating surface level stuff! But I should probably read the article and give you better insight!
Moving the decimal points without necessarily treating all the other ailments...does nothing. In ijsolation, removing decimals hold the economy at bay for a while...but not for long...
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