Naira Depression and What Sanusi Can Do (I)c

The question is also the answer since ‘currency’ by its definition means rotation by any means of exchange. As such the paper fortune of currency is the simple fact of its usability. The example is to be appreciated if we are to understand why the role of Western Union, Vigo, Eastern conducting dollars and Euro to Nigeria without buying into the Naira. In essence, they force Nigerians who conduct over 7 billion dollars every year from different part of the world to use the dollar in Nigeria are the expense of Naira.

The usability of any currency of the world infers its demand and the demand for any currency in the world determines its value. Is like a tug of war between internet carrier systems such as Google, Aol, Yahoo, Bing etc, or pure plays such Face book, Twitter, Feboz, and like cell phones, where the more you use them the bigger they are, currencies of the world are like that. The more you use the dollars at the expense of Naira the bigger the Dollars, Euro, Pounds, etc, and the weaker the Naira. So those who ask you to send money in dollars from US or Europe and receive dollars, pounds, and Euro in Nigeria at a lower transmission price are betting on the collapse of your economy and a depreciation of your currency.

The soft and hard question is why…why would you send dollars to Nigeria and pick dollars at a lower price than pick up in Naira? By Rights, Western Union, Eastern Union and Vigo, are supposed to buy into the Naira as part of its faith in the economy. But they are evading the currency. By buying into the Naira would mean that these companies should conduct your 7 billion into Nigeria through their naira bait on the local banks.