Interview with Dele Ashiru, political economist, and lecturer, Department of political science,
How would you evaluate the volume of trade between the
The volume of trade between both countries is negatively skewed against
What is the implication of this?
The implication of this is that because
If this is the case, does the current Wall Street problem affect
Of course, it has an imperialistic effect on the Nigerian economy. What I mean by that is that an average Nigerian, and indeed the Nigerian government conduct their fiscal policies in dollars. I need not emphasize that the dollar is the American currency. Therefore, you should expect that if there is a problem at the Wall Street, it would have a multiplying effect on the Nigerian economy. Because we are tired to the apron strings of the American economy, there is no way what is happening in America will not affect our economy, particularly the exchange rate, the world reserve is conducted in US dollars, even though it is not even the strongest currency in the world. It makes one wonder why many countries of the world including
How does the crash at Wall Street affect our Stock Market?
It is obvious, from what is happening at the Nigerian Stock Exchange, that local and foreign investors are not happy with the way it seems tired to the economy of the
Apart from the Nigerian economy, does the crash at the Wall Street affect global economy?
Yes, it does, because as I said earlier, nearly every country in the world including
…And does it affect our foreign reserves? If it does, how does it happen?
Yes, it affects our foreign reserves. Look, our foreign reserves are not cast in iron. Our foreign reserves are monies that belong to the Nigerian people, but lodged in foreign banks. These banks use these monies for economic activities and that is why some of us question the rational behind foreign reserves when there are developmental projects that these so-called foreign reserves can be put. Those in whose custody these monies are kept use them for other purposes, and that is why I suggest that we must rethink this idea of foreign reserves. These monies should be used to cushion the effects of the economic hardships of government policies instead of hiding them somewhere in the name of foreign reserves.
I cannot categorically say that
…Alternatives” What do you mean?
I mean that there must be to a very large extent, equal foreign exchange between
How do I tell the ordinary trader at Ojuelegba that Wall Street has crashed at it affects him?
The way it affects the ordinary Nigerian is that the Wall Street crash will affect the fiscal policies of government. It will affect our thinking faculty in dollars. As long as fiscal policy is calculated in dollars and nearly everything is done with the dollar in mind, whatever affects the dollar, will also affect