WHY CAN’T ONE DOLLAR BE EQUAL TO ONE NAIRA OR WHY
CAN’T ALL CURRENCIES BE EQUAL?
There are several reasons why all
currencies cannot be equal, there are many reasons why 1 naira cannot buy one
dollar or 1 naira buy 1 pound. But the simplest reason is the problem of
Purchasing Power Parity (PPP)... Hmmm… don’t mind my grammar; what it means is
that the prices of the same goods are not the same in all the countries of the
world. A basket of tomatoes in Nigeria is not the same price as a basket of
tomato in London or in America. For instance, iphone 6 in Nigeria costs about,
215 thousand Naira while in America it’s just about 470 dollars. This is the
simplest explanation to why all countries monies can’t be equal.
BETWEEN NAIRA AND DOLLARS, WHICH ONE IS BETTER?
Obviously, the American dollar is
better because to buy just one dollar you have to pay 199 naira, but if America
wants to buy one Naira, they have to pay just approximate below 1cent which is
like below 1kobo in Nigeria.
stay glued for post 3; next……
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