Off Economic phenomenon. - page 3. | Bitcointalksearch.org

Gozie51

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Quote from: Bitco55 on March 27, 2024, 04:06:19 AM

Now, AI and search engines will only try to give me theoretically logical explanations, but I want something practical and out of experience from people of other countries. What do you think this Economic phenomenon is and what exactly is causing it? Has your country been in a situation like this throughout it's history, and how was it resolved?

AI will give you the answer that will be global phenomenal and that may only be theoritical and also making its solution so. Therefore, these issues are country based and not to be generalized. If government has stylishly caused the exchange rate to reduce then it possibly means they also caused it to increase in the first place. So you are going to look at corruption as a cause and that is why I said it is not global but country based.

Another factor to consider are how are the other economic indices functioning with the policies of government. Exchange rate must have to increase if there is pressure and demand for the major currency for import. This is a point to look at, how proficient is your countries.manufacturing sector and exportation of manufactured products? This is important to consider because forcing exchange rate down is not all but there must have to be good policy for natural growth of the economy and not artificial.

stompix

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Quote from: Bitco55 on March 27, 2024, 04:06:19 AM

Now, AI and search engines will only try to give me theoretically logical explanations, but I want something practical and out of experience from people of other countries. What do you think this Economic phenomenon is and what exactly is causing it? Has your country been in a situation like this throughout it's history, and how was it resolved?

It's pretty simple since I saw you're from Nigeria.

Your government runs a budget deficit, so it runs on debt that needs to borrow funds.
Your country runs a trade deficit, which means that you need more hard currency to import than you get from your exports.
So you get the decline in Naira!

Now your CB raised in March the rates by 200 points 24.75%, just as a comparison, The US and EU are at 4,5 and 5,5 South Korea and China at 3.5 and Japan just increased it from -0.1 (yeah minus) to 0.

So just as the fed rising interest rates have strengthened the dollar your own CB rising them has strengthened the naira!

But as long as inflation is still at 31.7% those hikes won't do much.

WillyAp

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Quote from: Bitco55 on March 27, 2024, 04:06:19 AM

a lot of countries are still doing better than others, and the development rate isn't reducing as the standard of living is still by far well to do.

There is no logical reason that all countries have to perform equally well.
Each Country has the government it deserves. You have mainly dumb people in your country? Look at the government.
That equation only works in societies where mostly fair elections happen.

Bitco55

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Quote from: jrrsparkles on March 27, 2024, 08:26:48 AM

If your country's fiat is doing worse against the dollar means the government is printing more money or the paper money is not accepted for exchanges of other currencies or the reasons could be anything but its not in your control to make any changes that can bring positive effect its in the hands of government to make ways that strengthen the economic structure and further progress.

Maybe I didn't ask the questions properly, or you probably didn't get me. The question is, can you explain this Economic phenomenon and give countries that had such an experience and what was done in order to stop it. It really doesn't matter if I am the one stopping it, or an NGO, or the the government themselves. Simply what was done to stop it ?

Also, this kind of economy makes it difficult for individual to thrive on their own, what advice would you give to people from my country who are still willing to increase their income regardless of the economy?

jrrsparkles

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If your country's fiat is doing worse against the dollar means the government is printing more money or the paper money is not accepted for exchanges of other currencies or the reasons could be anything but its not in your control to make any changes that can bring positive effect its in the hands of government to make ways that strengthen the economic structure and further progress.

Kelward

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This currency devaluation is the same problem that most underdeveloped countries are facing because they have incompetent leaders who have no business being in the helms of affairs, they're so corrupt that they don't care if their economies are crumbling, so far they're enriching themselves. Most of these underdeveloped countries even with natural resources that is supposed to boost their economies still rely on foreign made goods and grants from developed countries to survive, instead of creating enabling environment for businesses to thrive and providing basic amenities like water, electric light and good roads. As long as mediocre and corrupt politicians are still rulling these countries, their currencies will keep depreciating and and turning to shitcurrencies.

davis196

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Quote from: Bitco55 on March 27, 2024, 04:06:19 AM

Good day everyone.
Where I come from, there's been harsh economic problems for a while now. It's no news, that there's a global inflation due to a few reasons, but even in the midst of all that, a lot of countries are still doing better than others, and the development rate isn't reducing as the standard of living is still by far well to do.

My country has been battling with the dollar exchange rates. It's been soaring high, making the prices of food and other commodities soar high as well. But recently, the exchange rates dropped by over 37%, and everyone became happy ( of course apart from those who earned in $), and the prices of goods and services even went higher, further decreasing the standard of living in the country.

Now, AI and search engines will only try to give me theoretically logical explanations, but I want something practical and out of experience from people of other countries. What do you think this Economic phenomenon is and what exactly is causing it? Has your country been in a situation like this throughout it's history, and how was it resolved?

The global inflation was a thing back in 2022 and 2023. Right now, the inflation isn't truly global, because the average inflation rates in the EU countries are around 2-3%. Maybe the rest of the world is suffering from high inflation, but the inflation in the European Union is pretty low.
I don't know in which country do you live. Turkey? Argentina? Some African country? It seems to me that the merchants in your country use everything as an excuse to raise the prices of goods and services. Maybe there isn't a truly functioning market economy where you live and the markets are controlled by cartels and monopolies. If there was a real competition between the merchants, the prices would go down, when the national currency goes up against the US dollar(this means that the imported goods and raw materials would become cheaper, resulting in cheaper consumer goods).

Dunamisx

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Quote from: Bitco55 on March 27, 2024, 04:06:19 AM

Good day everyone.
Where I come from, there's been harsh economic problems for a while now. It's no news, that there's a global inflation due to a few reasons, but even in the midst of all that, a lot of countries are still doing better than others, and the development rate isn't reducing as the standard of living is still by far well to do.

You may not have to depend on the government as well as stop comparing your country to others, you need to be independent on yourself because the government will not be responsible on how you have seen to economy for your own good, create time to find an alternative for yourself in the economy, don't be too dependent, work on yourself to have value and make effective use of these to your own benefits, things have always been that bad ever, but not being too dependent will make every economic conditions sustainable on you.

mu_enrico

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Quote from: Bitco55 on March 27, 2024, 04:06:19 AM

My country has been battling with the dollar exchange rates. It's been soaring high, making the prices of food and other commodities soar high as well. But recently, the exchange rates dropped by over 37%, and everyone became happy ( of course apart from those who earned in $), and the prices of goods and services even went higher, further decreasing the standard of living in the country.

Correct me if my interpretation is wrong. From this information: (1) the dollar (I assume USD) exchange rate vs local currency went down 37%; (2) even though the USD rate went down, prices (in local currency) still went higher.

IMO, The continuous depreciation of local currency vs USD is a sign of massive inflation of the local currency (compared to the US inflation). Then, The USD exchange rate was intervened by the government so that it went down without the necessary fundamentals to support it. It means the inflation problem still exists. This means prices in local currency will still increase.

So what's the effect of a 37% decrease in the USD exchange rate?
- If goods and services are sourced in USD, then if the USD rates go down, the price of goods and services will go down as well. The problem is that if the goods and services are not sourced in USD then tweaking the exchange rate won't affect local pricing.
- If the government budget can't sustain the USD exchange rate intervention, the exchange rate will come back to the equilibrium price.

Alphakilo

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Economic explanations for recession and inflation in a country is different. However there are generic explanations for these issues.

I think that when there is a poor economic policy and implementations.

Also, incompetent leadership of the country and corruption.

Thirdly, more imports and non export.

Fourth, insecurity could also lead to it. It will make people scared of going out to do their business.

Fifth, interference from foreign bodies. When foreign bodies interfes in the economy of a country, they bring in their own solution instead of a local solution that will work locally.

Solutions
* Corrupt leaders should be punished
* More indigenous industries should be created and things should be locally produced and consumed. Then they should explore exporting their products outside to other countries.
* Fight insecurity.
* Solutions should be local. What works for the UK may not work for Ghana.

Bitco55

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Good day everyone.
Where I come from, there's been harsh economic problems for a while now. It's no news, that there's a global inflation due to a few reasons, but even in the midst of all that, a lot of countries are still doing better than others, and the development rate isn't reducing as the standard of living is still by far well to do.

My country has been battling with the dollar exchange rates. It's been soaring high, making the prices of food and other commodities soar high as well. But recently, the exchange rates dropped by over 37%, and everyone became happy ( of course apart from those who earned in $), and the prices of goods and services even went higher, further decreasing the standard of living in the country.

Now, AI and search engines will only try to give me theoretically logical explanations, but I want something practical and out of experience from people of other countries. What do you think this Economic phenomenon is and what exactly is causing it? Has your country been in a situation like this throughout it's history, and how was it resolved?

Topic: Off Economic phenomenon. - page 3. (Read 591 times)