By
Sampson iroabuchi Onwuka
The depreciation of any currency in the world with huge foreign investment like Nigeria is almost a guarantee that the country will default on its foreign debt. Case in point is Sinopec, the Chinese outfit, who were said to have signed a MOU with Nigeria about its 23 billion dollar investment in the country. Second case in point is the accrued repository for a second bridge over the river Niger and widening the road between Nigerian and Cameroun. This will mean that Sinopec will build three oil drilling factories and agro-chemical industries in presorted areas. The backdrop to this is that Sinopec proves itself a ‘Bond’ for the general public and lien for credit swaps. That is a form of guarantee that Sinopec will revert to bank coverage should business fails.
But the group did not at anytime mention the role of Western Union, Vigo, Eastern Union, etc, companies providing international services without buying into the local currency in damaging the Nigerian Naira. Neither did the group raise the attention of Sanusi neglecting his role as the real manager of Nigerian Naira which has gotten bad publicity.
The chosen question for many countries of the world is how to make their currency much more competitive, to essentially withstand the strain of hard currency penetration. Since the perform grade of any economy is ultimately noted by its currency, the challenge faced many Central Banks is how to develop a working dynamic for their unit of exchange, how to create a form of price and wage control.
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