But how bad is the value of Naira? I never thought about that question until I came across an analysis by veteran Nollywood actor Tony Umez.
The 56-year-old actor recently took to Twitter to explain how insignificant the value of Naira is when compared to the dollar. He wrote:
“Do you know if you save 1 Naira everyday for a whole Year, you wouldn’t still have saved a Dollar?#Recession2”
Do you know if you save 1 Naira everyday for a whole Year, you wouldn’t still have saved a Dollar?#Recession2
— Tony Umez (@toneroangel) November 22, 2020
That is actually true! Naira is currently rated at N380.50 per dollar, there are 365 days in a year, which is equivalent to 365 naira and it’s not up to a dollar.
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But what is currency depreciation and why is it affecting the Naira this much?
According to Investopedia, currency depreciation is a fall in the value of a currency in a floating exchange rate system. Currency depreciation can occur due to factors such as economic fundamentals, interest rate differentials, political instability, or risk aversion among investors.
Most people have attributed the fall in value of Naira to the political instability of Nigeria.
