What can be done to increase the value of money in Nigeria?

10 Ways to Make Nigerian Naira Regain Value

• Expanding exports.
• Ease pressure on the foreign exchange market.
• Sell foreign exchange assets and buy their own currency.
• Higher interest rates.
• Reduce the country’s gross demand for dollar.
• Currency Credible Assurance.
• Demonetization the Naira.
• Reduce inflation.

How can we increase the value of currency?

How to increase the value of a currency

1. Sell foreign exchange assets, purchase own currency.
2. Raise interest rates (attract hot money flows.
3. Reduce inflation (make exports more competitive.
4. Supply-side policies to increase long-term competitiveness.

Why did the value of naira drop?

The naira has lost 13\% of its value since July 28 after the central bank stopped sales of the U.S. dollar to money traders. It closed at a record low of 570 naira to the dollar on Friday on the parallel market compared to its largely unchanged average rate of 411 naira to dollar at the controlled central bank window.

How do you beat inflation rate?

The primary way to beat inflation is to invest your savings for a better return than you can get in money market accounts or savings accounts. Investing in virtually anything else inevitably involves more risk than an FDIC-insured account. But you can choose investments that are appropriate for your risk tolerance.

How do you value a country’s currency?

Currency prices can be determined in two main ways: a floating rate or a fixed rate. A floating rate is determined by the open market through supply and demand on global currency markets. Therefore, if the demand for the currency is high, the value will increase.

Why is naira so weak?

Nigeria has seen two major recessions in five years. The 2015-2017 recession was triggered by the fall in global oil prices, while that of 2019—2020 was attributable to the novel coronavirus crisis. Recession undermines public finances while dampening overall business confidence and further crippling the naira.