Introduction
Good evening to all the steemians in this wonderful community and to all the steemians Reading this post, I really appreciate the organiser of this contest for giving me the privilege to participate on this great contest (SEC-S15W5: "Foreign Exchange")
Name 3 major ways your country earns foreign exchange. Briefly explain how each method works.
Foreign exchange simply means the exchange of currency of one country for another at prevailing exchange rates. Let us take a close look at the meaning of foreign exchange. Different countries have different currencies. Foreign exchange converts the currency of one country into another.
In another way round foreign exchange simply means the exchange of goods or minerals resources to get back cash in return (some people refers this goods or products as cash products or cash crops)
The following belows are the 3 major ways my country NIGERIA earns foreign exchange :
Trade: it's known that most of Nigeria foreign exchange comes from crude oil .This is the exchange of natural resources to some other country in return of what they want ,this can be money or other foreign products .
Economics trivia: In this 21st century, Nigeria continued to face an unsteady revenue flow, which the government make an encounter by borrowing from international sources, introducing various austerity measures, or doing both at the same time. this process also leads to foreign exchange cause by the time the economy isn't favourable the government will definitely runs to other country to borrow money or give something in return of it.
Industry: some countries comes in to Nigeria to buy some goods and products from our industries,like the rubber,cocoa and even our crude oil industry. By the process the comes in to buy goods from our industries foreign exchange is been taken place.
Which sector contributes the most to your country's foreign exchange earnings? Why?
All Nigerians knows that oil sector contribute most to Nigeria foreign exchange cause the crude oil is one of the most traded resources on earth due to the usefulness of the oil,it can be transform to petrol, kerosene, diesel etc and almighty god blessed Nigeria with alot of oil land unlike Akwa Ibom state.
Does your country's foreign reserves depend on this particular sector or are there many other sectors as alternatives?
My country (Nigeria)is not depending on the oil sector only but the oil sector is the major sector in Nigeria . Nigeria have other sectors like the iron ore,gold etc
What kind of problems do you think your country will face If this sector somehow collapses?
If the oil sector collapses in Nigeria o really think Nigeria will face huge amount of financial crisis,the economy will be very bad for citizens to survive
Conclusion
In Nigeria the major way which we earn foreign exchange is the oil sector,cause Nigeria has a huge lot of oil fill with oil unlike Akwa Ibom state.
I will like to invite the following steemians to participate in this wonderful contest
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ACHIEVEMENT-1:MY INTRODUCTION POST ON STEEMIT BY @toflex
hope you are doing great. I read your post it is great. Foreign exchange is where currencies meet, influenced by global events, driving trade and investment. best of luck in future.
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