During Economic Growth and Economic Recessions the Naira depreciates, Despite recording an average economic growth of 7.1% from 1999 to 2010, a GDP growth from US$59.37 billion to US$361.45 billion (508.8%) the Naira still depreciated from an official rate of N21.89 to about N150 (585%).
Today the official exchange rate of the Naira is about N411 due to the slow economic growth and recession, the only deference is the rate of depreciation. During Economic growth the rate of depreciation is slower than when the economy is in recession, and the reason is when the economy is booming and Nigerians are making money they switch to luxury goods which also puts pressure on the Naira. The only way to curb the continuous depreciation of the Naira is through industrialization and hard-line economic and social policies!
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