By Adesoji Gabriel (AngelGabby)
I have been reading about economics lately, particularly on the topic of foreign currency inflows and their impact on the Naira. I noticed and understand that excessive savings of foreign currency in banks can have an adverse effect on the Naira’s value. When individuals and businesses hold onto large amounts of foreign currency instead of converting it to the local currency, it reduces the supply of Naira in circulation and can lead to depreciation.
Additionally, I also understand that the production and consumption of local goods and services play a crucial role in shaping the value of our Naira. When there is a higher demand for imported goods and services than for locally-produced ones, it can lead to a larger outflow of foreign currencies to pay for those imports. This, in turn, puts downward pressure on the Naira.
To strengthen the value of the Naira, it is essential to promote domestic production and consumption. Encouraging local industries, supporting entrepreneurship, and fostering a favorable business environment can all contribute to stimulating the production and consumption of local goods and services. This, in turn, can reduce the reliance on imports and alleviate pressure on the Naira.
It’s important to note that the value of a currency is influenced by various factors, including inflation rates, government policies, global economic conditions, and market forces. Understanding the complexities of these factors is key to comprehending the dynamics of currency valuation.
Now, I understand why His Excellency Biodun Abayomi Oyebanji has been Hammering on importance of domesticating all goods and services especially those one’s available in Ekiti state and those that are not available are brought in, in little percentage then we bring our people to learn from them and then domesticate such expertise.
I am learning and still open to learning, and with this, I see a state with the SHARED PROSPERITY vision of the Governor beyond sloganeering of it.