Rapid Drop Of Naira Value And Its Effects On The Citizens

Rapid drop of naira value can be referred to as the reduction in the value of money of one country when its exchanged for the money of another country. Because money makes the world go round. The strength of a country, its prosperity and flourishing, is best measured by the standing of its currency. In the sense that "a weak currency is a sign of a weak economy,  and a weak economy lands to a weak nation;" 

Naira has the attributes of a public usage for goods and services,  and as such has a class of commodities that freely benefit all members of the society. 

"Money fulfils three economic functions;

(1) A units of accounts 

(2) A store of value 

(3) A vehicle for facilitating transactions and its also a national symbol for an embodiment of a country. 

 

The following are the effects of rapid drop of naira value on the Citizens;

(1) It affects businesses by increase in inflation. 

(2) It reduces the purchasing power of the Citizens. 

(3) It increase unemployment among the Citizens. 

(4) It allows a degree of flexibility in exchange rate.

(5) It increase the price of domestic goods. 

Conclusively just as at 26 of January 20222 dollar to naira official market exchange rates; $dollar to naira N415.24.

Okpamen Lilian Ofure

OS/21B/4377

Federal polytechnic Auchi, Edo State

Edo State