Now that you do not need Dollars for international trade in Nigeria, why should prices increase. – Abayomi Odunowo.
I told them. Those who have been changing their precious Naira in fear of the weakening value of the currency will soon be crying as the Nigerian government is in the process of making the dollar irrelevant in the country. It’s official, there will be no more trading in dollars for international transactions in Nigeria. This revolutionary step has been facilitated by the International Money Operators (IMTOs) and is in line with the latest directives from the Central Bank of Nigeria (CBN). This is a bold move that has the potential to reshape the economic landscape of the country and could have a significant impact on individuals and businesses alike.
For too long, the dollar has been the dominant currency in international trade in Nigeria. This has led to a situation where the Naira has been undervalued and has struggled to compete with the dollar in the global market. The high demand for dollars has led to a scarcity of the currency in the country and has further weakened the Naira. This has had a detrimental effect on the economy and has made it difficult for businesses to thrive in the international market. However, the recent directive by the CBN and the collaboration with IMTOs is set to change all of that.
This development marks a significant shift in the way that international trade will be conducted in Nigeria. With the impending irrelevance of the dollar, businesses and individuals will be forced to adapt to using the Naira as the primary currency for international transactions. This will have a number of implications, both positive and negative, for the Nigerian economy.
One of the positive implications of this move is that it will bolster the value of the Naira. With the reduced demand for dollars, the Naira is expected to strengthen and stabilize. This will have a positive impact on the purchasing power of individuals and businesses and will make it easier for them to conduct international trade. It will also reduce the country’s dependence on the dollar and will give the Nigerian government greater control over its own currency.
However, there are also potential drawbacks to this development. Businesses and individuals who have been hoarding dollars may find themselves at a disadvantage as the currency becomes irrelevant. They will have to find alternative uses for their dollars or exchange them for Naira, which may lead to a loss in value. Additionally, there may be initial challenges in adapting to the use of the Naira for international transactions, as businesses and individuals will have to adjust their processes and systems to accommodate the change.
Despite these potential challenges, it is clear that the move to make the dollar irrelevant in Nigeria has the potential to have a significant impact on the economic landscape of the country. It represents a major step towards strengthening the Naira and reducing the country’s dependence on the dollar. It is a bold and courageous move that has the potential to reshape the way that international trade is conducted in Nigeria.
In conclusion, the impending irrelevance of the dollar in Nigeria is a development that has the potential to have far-reaching implications for the country’s economy. With the collaboration of the CBN and IMTOs, the Naira is set to become the primary currency for international trade in Nigeria. While there may be potential challenges in adapting to this change, it also represents a major opportunity for the country to strengthen its currency and reduce its dependence on the dollar. It will be interesting to see how businesses and individuals adapt to this change, and how it will ultimately shape the future of the Nigerian economy. As for those hoarding their dollars, the time to make a decision is now, because the brain is certainly stronger than muscle.
Otunba Abdulfalil Abayomi Odunowo
National Chairman AATSG
9th February, 2024.
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