Home News Revealed! The IMPACT OF THE DOLLAR ON The NAIRA – By Financial Analyst, Dr. Osifo Samson

Revealed! The IMPACT OF THE DOLLAR ON The NAIRA – By Financial Analyst, Dr. Osifo Samson

by Reporter
OSIFO SAMSON IGBINOBA

The United State of America was colonized by the British, France, Spain and the Netherlands.

Finally, it was colonized by British America from 1707 to 1775 because its flag was sited while America got its independence from the British on July 4, 1776.

 America due to its large size of land measuring about a 9.835million km square,  established about 50 states in 1959 and population of about 332,403,650 as of January 1, 2022, the above factors had made the country so powerful and to be among the country to reckon with among committees of nations.

The united states of America became preeminent globally between 1898 and 1945 due to a series of wars won by the country through its land size, population, and location of the country. They controlled the world’s single largest economy, accounting for almost 22 percent of global output while the country has been a  member of the world trade organisation since 1, January 1995 and a GATT since 1, January 1948.

The United States through her influence in the world trade center such that only the dollar is accepted as a medium of exchange all over the world and ensures that this is acceptable by the rest of the world since the head office of WTO is located in Geneva in Switzerland while looking at the economy of the united states you noticed they do not accept goods from other countries but they ensure you come into their country and produce your products and they create the standards, this singular act has strengthened the economy till date because it will make the economy stronger as well as the dollar, for instance, Toyota is a Japanese product but is manufactured in the United States not allowed to be imported, Benz is a German product but it is manufactured in the United States and not allowed to be imported into the country and named America spec and many more products. The methodology adopted has strengthened the United States economy to date.

In international financing, we were made to understand that dollar is weak internally and strong externally. I have practiced this analogy severally and it works. For instance, if you live in the states, you spend more on rent, mortgages, food, and other items with the same dollar without any comparison but immediately you are taking the dollar out of the system it begins to appreciate in value because of it relatively scarce. It is needed everywhere in the world and once is scarce its value appreciates immediately without a comparison of currency and economic indices that indicate the growth in the value of the dollar.

Nigeria was colonized by the British got her independence in 1960 and became a republic in 1963 with a population of over 215.87million and a land size of about 923,768 km square according to the world bank report 2022.

Nigeria has about 36 states with three identified tribes, the Yoruba, the Hausa, and the Igbo this form the six geopolitical zones of the country. The population and land size of Nigeria has made Africa called Nigeria the giant of Africa.

Nigeria has become the dumping ground of products produced in Euro, Asia and America due to the lack of political and economic will of the country to take advantage of the population, land size, and location of the country rather than looking up to the so-called war power for survival. Most of the products produced in most of the development economy its final user is in Nigeria, this has  contributed to the fall of the naira severally due to lack of comparison when it comes to products and good substitutes in the world market while the demand for more dollars in the market weakens further the value of the naira

My opinion: Nigeria should immediately take the advantage of her population, land size, and location by introducing an economic policy that will strengthen the naira by imposing a sanction on all imported products and ensure that all manufacturers of all kinds of needed products in Nigeria come down to Nigeria to establish their plants while the country should create a Nigeria standard that will ensure that all manufacturers meet the set standards meaning Nigeria will have Toyota made in Nigeria, Benz made in Nigeria and encourage local businessmen to go into airline business and buildings of refineries by giving license to operate both locally and internationally once this is established it will increase economic growth and development while all other things follow and Nigeria economy comes back strong and waxing due to the above implementation by government

I believe the above assertions will resolve the issues of unemployment, weak naira, and low internally generated revenue as these will bring a strong financial system and economic activities in the long run once fully implemented.

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