SEC-S15W5: "Foreign Exchange"

Hello family and friends, It is another wonderful time to share my entry before the expiration of this contest. This contest is coming at a time when my dear country Nigeria is experiencing hard times relative to the availability of foreign exchange or what we call forex in the country. This has caused so much pressure on the economy and the current depreciation of local currency due to the hyperinflation caused therein. Let's get started, guys...

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My dear country Nigeria earns her foreign currency through the following ways;

• Direct Foreign Investment
• Exports
• Diaspora Remittances

Direct Foreign Investment simply implies that the country depends on foreign investments made in the country. some multinationals feel that the African market depends majorly on the country being the largest black race in the world. Since it has the market potential for every new and existing business idea, it has remained an attraction for foreign investment. The more direct foreign investment in the country, the more foreign liquidity and availability therein.

Exports is a simple world that entails that there is a shipment of goods and services to where comparative advantage is strong and hence this brings about the injection of liquidity in the country. The more exports over imports that are made simply means determines the availability of liquidity in the system.

Diaspora Remittances is another aspect of direct foreign investment the government has succeeded in putting out more strings from. These are monies sent from other countries into the country using reaching out to relatives, families, and friends. Since government attention was drawn to this new source of forex, it has introduced some form of incentives that encourage the channel to expand.

The export channel or sector has been the most attractive for foreign exchange in the country. Nigeria's export path has continued to increase due to the developmental strides since in this singular channel. The country is almost termed a mono-economy where it majors on oil exports. The oi industry since its discovery has been a cash cow to the development of the country irrespective of the numerous misappropriation of funds found therein.

Nigeria is the 6th largest exporter of oil in the world and about the 2nd in the continent. It has continued to attract so much forex into the country as a major exporter of oil and also an attraction for direct foreign investment. To date, I believe it can do more to ease the deficiencies found in the system through liquidity unavailability.

There are still other sectors that bring in foreign exchange in the country that hitherto help in the foreign reserves but this majorly has its stronghold from that of the oil sector. The oil sector irrespective of the unbundling that emasculates it, has remained the biggest player in foreign reserves.

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My cou try is already facing crises in those mentioned areas and sources of foreign exchange. Many concerns are limiting the country and we cannot remove the population size that keeps growing with lean resources and expansion seen available and on the ground to meet this demand.

We cannot also remove the monumental corruption and diversion of public funds that have plagued the sector with little or no effort to curb this menace. The country is plagued with bad leaders who have little or no interest in the masses and hence the conscious looting observed in all sectors.

The limited fore available in the country has seen that the country is subjected to hyperinflation. A scenario that has increased the cost of living and devaluation of the local currency. For every USD, the Nara exchanges for 1,600 NGN which is the most tragedy the country has faced in a lifetime.

Foreign exchange is the life wire and streamlines of every country's economy. Having stronger sources or foreign exchanges where Exports and Direct Foreign investment are the key deliverables for a stronger and better economy.

Thank you...

I am inviting @chilaw and @ruthjoe