12.2.15

Should we be worried about the rise of exchange rate in Nigeria?

 
 
Should this rise of the exchange rate in Nigeria be a thing of worry? As at today, a pound to naira is now N311 while a dollar to naira is now N204. After a lot of research conducted, it looks like the naira has devalued by more than 25% in the last few years while as at yesterday the naira to a pound was 304. It devalued by 2.5%.

On the other hand, Venezuela's  currency only devalued by 9% even though they were more affected by the fall in oil prices because they were able to put economic policies in place to reduce the rate of the devaluation in the same time period and reduce the impact of the reduction in oil prices.
 This is just within the time frame of 5 years (2011-2015). Will this result to hyper inflation?

"At this rate of devaluation, our currency could end up like the Zimbabwe Dollars and become worthless within the next few years if necessary economic policies are not put in place." an Economist said
Can the reduction in demand of oil and the fall in oil prices be used as an excuse for what's going on? Please share your thoughts

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