Convert Guyana currency to Naira
Economic Indicators Comparison: Nigeria vs. Guyana
| Indicator | Nigeria | Guyana |
|---|---|---|
| Interest Rates (Lending) | 26.25% ( may 2024) | 5% (Jun 2024) |
| Exchange Rates (Local Currency per USD) | ₦ (Nigerian Naira) 1490 | GYD (Guyanese Dollar) 205-210 |
| Inflation Rate | 33.95% | 4% (Jun 2024) |
| Unemployment Rate | 5% | 12.4% (2022) Trading Economics |
Discussion:
- Interest Rates: Nigeria has significantly higher interest rates to combat higher inflation.
- Exchange Rates: The Nigerian Naira is weaker compared to the Guyanese Dollar against the USD.
- Inflation Rate: Nigeria experiences considerably higher inflation compared to Guyana.
- Unemployment Rate: Unemployment is a serious challenge in Guyana while Nigeria’s relatively low .
The Evolution of the Guyanese Dollar
The Guyanese dollar emerged in 1839 as a bridge between the Dutch guilder and British pound sterling systems. Initially coexisting with the Spanish dollar, it facilitated the transition to the British monetary standard. In 1951, British Guiana aligned its coinage with other British Caribbean territories by adopting a decimal system.
To combat inflation caused by the declining British pound in the early 1970s, Guyana, as part of the Eastern Caribbean Currency Authority, pegged its currency to the US dollar in 1975. This marked a significant shift in the dollar’s trajectory.
Unique to Guyana, the four pence groat coin persisted beyond its abandonment in other territories. Moreover, dollar accounts were established early on, unlike other regions which maintained a dual currency system until 1951.
The modern Guyanese dollar took shape in 1966, coinciding with the nation’s independence, solidifying its identity as a distinct currency.
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The Evolution of the Guyanese Dollar
The Guyanese dollar (GYD) has been the national currency of Guyana since 1965, replacing the British West Indies dollar. Its history reflects the country’s economic development and political stability.
Early Years and Currency Union: Before independence, Guyana was part of the British West Indies Federation and used the British West Indies dollar. After gaining independence, Guyana continued to use the British West Indies dollar until 1965, when it was replaced by the Guyanese dollar.
Economic Challenges and Currency Volatility: Guyana has faced a number of economic challenges throughout its history, including political instability, fluctuations in commodity prices, and dependence on agricultural exports. These factors have put pressure on the Guyanese dollar and contributed to its volatility.
Currency Reforms and Floating Exchange Rate: In 1976, Guyana abandoned the fixed exchange rate with the US dollar and allowed the Guyanese dollar to float freely on the foreign exchange market. This move gave the country greater flexibility in managing its monetary policy.
Recent Developments: In recent years, Guyana has experienced significant economic growth, driven by the discovery of large offshore oil reserves. This economic boom has led to an appreciation of the Guyanese dollar against the US dollar. However, Guyana remains vulnerable to external shocks, such as fluctuations in oil prices and political instability.
Sources:
World Bank
Central Bank of Nigeria
Trading Economics
Central Bank of