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Thread - The #Ifekaego FX Tutorial:
The most important determinant of the value of the Naira is whether or not the Nigerian economy is productive and competitive in international trade. That is to say, whether it has a diversified base of complex, value added products it exports
The most important determinant of the value of the Naira is whether or not the Nigerian economy is productive and competitive in international trade. That is to say, whether it has a diversified base of complex, value added products it exports
and earns forex from those exports. I am not talking about diversification to cashew nuts and yam tubers. No. Those are primary commodities, not complex, value added ones that are the product of serious engineering and innovation. Since we obviously don’t have such an economy,
our main FX earner is crude oil, which gives us 90% of our FX. Unfortunately, we don’t control the price of crude. Its pricing is volatile and unstable as a result of various international political and economic factors. This means that because we are essentially a one-
