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Falling Naira: Manufacturers Cut Production By 50% - Politics (3) - Nairaland

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Re: Falling Naira: Manufacturers Cut Production By 50% by uchedydy: 11:12am On Aug 02, 2015
[quote author=loifez123 post=36519039]Dollar is crashing already. As at yesterday it was at 218 from 245 (I went to buy dollar from mallam so I am 101% sure.

We are too given to shortcuts which is why people shout when measures are put in place to safeguard the Naira. Should we have continued encouraging importation of goods we can manufacture locally which will in turn encourage exportation and bring value to the Naira

The panic buying was just for a short while and the ban is beginning to pay off..... Dollar is crashing big time.... if in doubt, call your bureau de change operator to confirm before quoting me and saying shenanigans.........

[/quote

U are correct bro, just called my mallam in PH now, he said 230, but wen I asked him for the last price, that I want to buy 1000 dollars, he said he would give me 225. I did not price sha..bottomline, we need to sustain ds policy. If U have legitimte business, buy from cbn, if U want to send upkeep cash for embody abroad, fund dia naira master card, they would withdraw dollar at prevailing rate. For the banned products, let our business men set up companies here, factor the price of your diesel and fuel, we will buy..its still better than import, at least U create jobs.
Re: Falling Naira: Manufacturers Cut Production By 50% by Dreamtouch: 11:16am On Aug 02, 2015
Finally change
Re: Falling Naira: Manufacturers Cut Production By 50% by themano: 11:23am On Aug 02, 2015
It's about a country's foreign reserves. When you transfer money from country A to country B, your local bank has to have the equivalent USD in their correspondent bank for your transfer to be given value, or else it won't fly. The local banks obtain most of their USD from the CBN through the interbank market. For your dorm account transactions, they use their own reserves at their correspondent banks to back it up. If they don't have much their, they won't transfer your money. If the CBN doesn't authorise them to fund your transaction from the interbank market, they won't open LCs for you or remitt for you as the case maybe, from your naira account. The developed countries have lots of USD reserves that encourage liberal exchange rate policies. Nigeria doesn't and the CBN says Nigeria doesn't have that much. A currency's exchange depends largely on the number of months of imports it's foreign reserves can finance. The more your reserves the stronger your currency and trust in your trade instruments. If CBN depletes our reserves without devaluing the naira, there will be serious wahala for all. Tough choices ahead
Re: Falling Naira: Manufacturers Cut Production By 50% by cana882(m): 11:31am On Aug 02, 2015
CBN said it was due 2 depletion of foreign. Reserves from last year till early this year. Naira is rising against dollar as I speak, $1=N214
Re: Falling Naira: Manufacturers Cut Production By 50% by Nobody: 11:38am On Aug 02, 2015
TechRev:


@ bolded what other way do your people state admittance?? I have told you to explain it to me and you are still asking me to admit i have no knowledge of it??
How do you mean small cash depositors?? what is small cash depositor to you?? If i want to import 30 containers of PMMA sheets (acrylic sheets) is the money small cash deposit??
Manufacturers are closing down and laying off workers cause they cannot get forex and raw materials and you are here defending.

It's not all manufacturers that aren't getting Fx. It's d importers of those 41 items. If that will shut down our economy then it deserves to be shut down.

Let me give u an example of a genuine Fx cash depositor. Imagine someone that's paying back the unfinished PTA after a trip.

I've told you to suggest alternatives. You haven't. You cannot.

The idea isn't to criticize everything under the sun. See the good in this for the good of the country.
Re: Falling Naira: Manufacturers Cut Production By 50% by porka: 11:52am On Aug 02, 2015
mbulela:

so in your mind, he 50% was cut in a week, hence the fall from 242 to 218 within 2 days?
production has been down for months and years, yet the exchange rate kept rising.

[size=13pt]You are saying currency users stopped their 'panic buying' in 2 days and pronto, naira has appreciated right?

Since you are showing a little interest in learning, I will try and assist you a little bit.

Currency market is driven by demand and supply, but there's the third force, it's called SPECULATION. Currency dealers anticipate the rise and fall in demand and supply of their product and they act accordingly.

When the CBN announced the blocking of 41 items from forex access, currency dealers would speculate that affected users would want to source currencies to take care of production activities in the immediate term, to prevent shutdowns. In the medium term however, companies will face realities and start making necessary adjustments.

Because production in Nigeria has been going down 'for months', and giving an incite into the corporate decisions of companies even before this Punch report, currency traders will normally speculate the trend of demand, hence the appreciation of the naira. It can happen over a period of time, and it can happen within the shortest time.

The cost of that appreciation are the reduction in production and subsequent job losses and reduction in GDP growth rate. While big companies can gradually adjust to the reality by cutting production, laying off non-essential staff, SMEs don't have that latitude, decisions are swift and very fundamental. As such, many people you know as workers today will be unemployed sooner or later. And many companies you see today will fold up soon.

Do you understand now?[/size]

2 Likes

Re: Falling Naira: Manufacturers Cut Production By 50% by luckyboss(m): 12:13pm On Aug 02, 2015
till security is maintained naira will assume its normal position.
Re: Falling Naira: Manufacturers Cut Production By 50% by Nobody: 12:35pm On Aug 02, 2015
The dullard comes to destroy that nation's economy further. He is a scam!
Re: Falling Naira: Manufacturers Cut Production By 50% by Nobody: 1:06pm On Aug 02, 2015
all4naija:
The dullard comes to destroy that nation's economy further. He is a scam!

Explain what you mean or you're the dullard
Re: Falling Naira: Manufacturers Cut Production By 50% by Nobody: 1:07pm On Aug 02, 2015
chigoizie7:
KK

U might think he is wrong but its a real disaster

What's the alternative?

It's not all manufacturers anyway
Re: Falling Naira: Manufacturers Cut Production By 50% by ifyan(m): 1:12pm On Aug 02, 2015
loifez123:
Dollar is crashing already. As at yesterday it was at 218 from 245 (I went to buy dollar from mallam so I am 101% sure.

We are too given to shortcuts which is why people shout when measures are put in place to safeguard the Naira. Should we have continued encouraging importation of goods we can manufacture locally which will in turn encourage exportation and bring value to the Naira

The panic buying was just for a short while and the ban is beginning to pay off..... Dollar is crashing big time.... if in doubt, call your bureau de change operator to confirm before quoting me and saying shenanigans.........


True talk bro
Re: Falling Naira: Manufacturers Cut Production By 50% by 19naia(m): 1:28pm On Aug 02, 2015
The Naira out of a corupt Nigerian economy is in no shape to bring the $ down. Rather, it is the naira finding creative ways to pull its head a bit above the bottom of the pit.

Peoples faith in the Naira is what will stabilize it. The dollar has immense faith from arond the world. People are free to trade dollar outside of forex and the banks. Even if the Naira value rises by this govt. control over $ trade in Nigeria, there is always a steady stream of $ into nigeria that is not earned by export or import of products to and from Nigeria, but rather simply casual people earning it abroad and bringing it in without any banks involved.

More dollars will always come in and the more dollars that circulate the streets, the less a corrupt Naira will be of interest as dollars stay available.

Bank transacted dollars are one thing and dollars on the streets are another thing. The more dollarized the economy goes, the less interest people will have in Naira and the value will drop further until it hits its true internationally equitable value that reflects the quality and standard of average life and productivity in Nigeria.

Many economies around the world are extremely dollarized by mere fact of people's faith in $. Some are completely dollarized and dont even print their own currency anymore, the people just spend dollars and enjoy minimal inflation. Panama currency is 1 to $1 value, but when you go there, you dont see their currency, you only see dollars in all transactions. Their national currency is down to 0 value as reflected in its non existence, yet the economy there is robust when compared to the entire region of countries. A few other countries in the region are US$ only countries.


All this currency transaction controls through banks is not much real effect ,it is just a poke in the side.
The real thing to do is to up productivity and standard of living in Nigeria to boost faith in the naira and its potential for stability.
Other wise people will continue to refuge in the dollar. The issue of coruption is a big road block in the way of productivity and general standard of living in Nigeria.
Faith in the Naira is the real road to follow and the toll gate to enter that road is backed up in traffic jam due to Coruption.
No way out except through coruption's riad block.
Re: Falling Naira: Manufacturers Cut Production By 50% by erico2k2(m): 1:48pm On Aug 02, 2015
Activa:


You said what I wrote makes no sense.

So I asked you a question and you're pushing it back. If you don't know it then admit it and we can start talking.

The answer to that will begin to tell u why the gap between the interbank and parallel rate is that wide.

The policy of d cbn and d 41 items isn't perfect just as any other policy. But nobody has been able to provide a better alternative.

I also admitted earlier that although some genuine small cash depositors might suffer but the aim is to frustrate d unpatriotic people who make huge and obscene profits at d expense of the country.

But I can see many ignorant people here making comments and abusing Buhari as if d problem started with him.

For example, what's the relationship of '1984 economy loading' which u wrote and d subject being discussed?
In a sane economy, there should be no other bank account to buy goods abroad, all there is is my bank transfer the money abroad in local currency converted at teh market rate, charge me,I fill and sign transfer form and deal is done.No need to physically hold the Dollar or any other currency.If I have 15M naira in my bank, I should be able to pay for goods in china with my visa Debit card and charged accordingly.This is the right way to go, we do not need no physical dollar account.
Re: Falling Naira: Manufacturers Cut Production By 50% by doncaster(m): 2:21pm On Aug 02, 2015
mbulela:

i bought 225 on friday.
i had an offer of 218 from another seller but the 225 guy was able to help me deposit the dollars in my dom account (which CBN has banned since friday morning)
How did he help you deposit when it was banned. Man no Man off course and that is part of the corruption and you support it.
Re: Falling Naira: Manufacturers Cut Production By 50% by mbulela: 2:25pm On Aug 02, 2015
mployer:


You don't know what you are saying.

Dollar transfer is only allowed electronically. How do you intend to fund your domiciliary account electronically when you are in naija and has no means of earning dollar from overseas?

btw, what do you mean by illegal domiciliary account?
Why should you fund a domiciliary account physically?
Is dollar the Nigerian currency?
seems we have gotten so used to doing the wrong thing, we think it is normal.
Re: Falling Naira: Manufacturers Cut Production By 50% by mbulela: 2:27pm On Aug 02, 2015
doncaster:
How did he help you deposit when it was banned. Man no Man off course and that is part of the corruption and you support it.
The forex teller had a pending transaction of the mallam that was still in progress by the time the bank sent out a directive for all new forex deposits to be stopped. So mine was included in the mallam's pending transactions.
I had several other deposits to be done but they were refused.
So it is not as clear cut as you make it.
Re: Falling Naira: Manufacturers Cut Production By 50% by mbulela: 2:28pm On Aug 02, 2015
erico2k2:

In a sane economy, there should be no other bank account to buy goods abroad, all there is is my bank transfer the money abroad in local currency converted at teh market rate, charge me,I fill and sign transfer form and deal is done.No need to physically hold the Dollar or any other currency.If I have 15M naira in my bank, I should be able to pay for goods in china with my visa Debit card and charged accordingly.This is the right way to go, we do not need no physical dollar account.
I agree with you.
My understanding of economics and banking is limited but i wonder why this is not the case.
Re: Falling Naira: Manufacturers Cut Production By 50% by mployer(m): 2:31pm On Aug 02, 2015
mbulela:

Why should you fund a domiciliary account physically?
Is dollar the Nigerian currency?
seems we have gotten so used to doing the wrong thing, we think it is normal.

So why do we have BDCs?


Are they operating illegally?
Re: Falling Naira: Manufacturers Cut Production By 50% by Nobody: 2:42pm On Aug 02, 2015
Activa:


Explain what you mean or you're the dullard
You are still asking what I mean when the title of the thread says it all. You are no brainier! Jeez! angry lipsrsealed undecided
Re: Falling Naira: Manufacturers Cut Production By 50% by abagoro(m): 2:48pm On Aug 02, 2015
rozayx5:


Some manufacturers have cut production by more than 50 per cent as the sector grapples with the current economic realities of continued drop in naira value and escalating production costs.
The President of the Lagos Chamber of Commerce and Industry, Mr. Remi Bello, confirmed this to our correspondent in an exclusive interview on Friday.
“Most industries have cut production by 50 per cent,” he said, adding that some companies were shutting down while those still in production were operating skeletal services.
The LCCI president blamed the current situation on the recent decision by the Central Bank of Nigeria to exclude 41 items from accessing foreign exchange through the interbank forex market.
The CBN had prevented importers of 41 items including rice, consumables and household items from accessing forex through the interbank market.
According to the central bank, the action is meant to encourage local production of the banned items.
Bello insisted that the ban had triggered off the panic that led to the increase in value of the dollar against the naira.
The President of the Manufacturers Association of Nigeria, Mr. Frank Jacobs, also told our correspondent in an email interview that production in the sector in the past one year had been greatly undermined.


The manufacturing sector, according to a recent CBN data, recorded a 15.41 percentage point decline in the first quarter of 2015, growing in real term by -0.7 per cent as against 16.11 per cent recorded in the corresponding period of 2014.
Jacobs said the sector was going through a very difficult period characterised by high interest rate

http://www.punchng.com/business/falling-naira-manufacturers-cut-production-by-50/

If the aim of this is to blame Buhari, Sorry Mr Poster you indicted Jonathan instead. Let us wait for quater 3 reports. Jonathan did January 1st to May 29th meaning quater 1 and 2/3rd of quater 2.

1 Like

Re: Falling Naira: Manufacturers Cut Production By 50% by Nobody: 3:07pm On Aug 02, 2015
all4naija:

You are still asking what I mean when the title of the thread says it all. You are no brainier! Jeez! angry lipsrsealed undecided

So you swallowed the title of the thread hook, line and sinker without thinking. It's not a surprise though. The issue here is above you.

And there you are calling someone else a dullard.

Moreover, the data being discussed here relates to d first quarter of 2015 when Jonathan was in charge!

Again, you're the king of dullards!

Fooooooool!!!
Re: Falling Naira: Manufacturers Cut Production By 50% by Nobody: 3:14pm On Aug 02, 2015
Activa:


So you swallowed the title of the thread hook, line and sinker without thinking. It's not a surprise though. The issue here is above you.

And there you are calling someone else a dullard.

Moreover, the data being discussed here relates to d first quarter of 2015 when Jonathan was in charge!

Again, you're the king of dullards!

Fooooooool!!!
What does that say about the present? If the incumbent is so foresight as you claim. Why is the situation getting worse? You see, you are just like your dullard of a president who promises to make =N=1 equals to $1. Bwahaha...
Re: Falling Naira: Manufacturers Cut Production By 50% by doncaster(m): 3:16pm On Aug 02, 2015
If this dollar fall is not cosmetic why are other currencies not falling as well. The pounds is rising, I don't know about the euro thou.
Re: Falling Naira: Manufacturers Cut Production By 50% by Nobody: 3:16pm On Aug 02, 2015
all4naija:

What does that say about the present? If the incumbent is so foresight as you claim. Why is the situation getting worse? You see, you are just like your dullard of a president who promises to make =N=1 equals to $1. Bwahaha...

You're an id.iot!

You called Buhari a dullard based on Jonathan's economic data. Is there a greater foooool than you?

Show where he said he'll make N1 equal to $1. You're so confused!

Buffoon! Retar.ded junkie!
Re: Falling Naira: Manufacturers Cut Production By 50% by Nobody: 3:23pm On Aug 02, 2015
Activa:


You're an id.iot!

You called Buhari a dullard based on Jonathan's economic data. Is there a greater foooool than you?

Show where he said he'll make N1 equal to $1. You're so confused!

Buffoon! Retar.ded junkie!
You are a blatant blockhead. It is sad you can't see how it is affecting the present economic situation of the country. You still want to continue blaming the past for the irresponsibility of the present to salvage the situation. There you go with your myopic reasoning again.

I can tell you most people would support any of the sources I might post on the one-Naira-to-one-dollar claim by the dullard. You are so confused on the issue not to be taken serious here.

1 Like

Re: Falling Naira: Manufacturers Cut Production By 50% by nwadiuko1(m): 3:23pm On Aug 02, 2015
There are some costs that don't go down with decrease in production........

Costs like electricity bill, staff salary, rent etc
So hw will manufactures gain by cutting production









Someone should help me out.....maybe I don't understand
Re: Falling Naira: Manufacturers Cut Production By 50% by adconline(m): 3:29pm On Aug 02, 2015
loifez123:
Dollar is crashing already. As at yesterday it was at 218 from 245 (I went to buy dollar from mallam so I am 101% sure.

We are too given to shortcuts which is why people shout when measures are put in place to safeguard the Naira. Should we have continued encouraging importation of goods we can manufacture locally which will in turn encourage exportation and bring value to the Naira

The panic buying was just for a short while and the ban is beginning to pay off..... Dollar is crashing big time.... if in doubt, call your bureau de change operator to confirm before quoting me and saying shenanigans.........

Stop blaming manufacturers! This has been going for more than a yr. We can't ban our way to economic freedom.. Stupidity is expecting Naija to be a manufacturing nation when it generates 4000MW.
Re: Falling Naira: Manufacturers Cut Production By 50% by Nobody: 3:38pm On Aug 02, 2015
all4naija:

What does that say about the present? If the incumbent is so foresight as you claim. Why is the situation getting worse? You see, you are just like your dullard of a president who promises to make =N=1 equals to $1. Bwahaha...

Let me give you a simple assignment that's beyond u.

What statistics did you base your conclusion on that the situation is getting worse?

Blockhead!
Re: Falling Naira: Manufacturers Cut Production By 50% by Nobody: 3:41pm On Aug 02, 2015
all4naija:

You are a blatant blockhead. It is sad you can't see how it is affecting the present economic situation of the country. You still want to continue blaming the past for the irresponsibility of the present to salvage the situation. There you go with your myopic reasoning again.

I can tell you most people would any of the sources I might post on the one-Naira-to-one-dollar claim by the dullard. You are so confused on the issue not to be taken serious here.

You're a grand i.diot!

Bring on the proof! Something that has been debated several times.

People like you are a disgrace to the Nigerian education system.

You started blaming the present govt for the title that's above your head. What's the alternative you suggest bumbling goat?
Re: Falling Naira: Manufacturers Cut Production By 50% by Nobody: 3:42pm On Aug 02, 2015
adconline:

Stop blaming manufacturers! This has been going for more than a yr. We can't ban our way to economic freedom.. Stupidity is expecting Naija to be a manufacturing nation when it generates 4000MW.

Point of correction.

Phcn generates about 4000MW.

Nigeria (or Nigerians) generate far more than that though in an expensive way.

It was not the 4000MW that made Nigeria become the biggest economy in Africa.
Re: Falling Naira: Manufacturers Cut Production By 50% by Nobody: 3:51pm On Aug 02, 2015
Activa:


You're a grand i.diot!

Bring on the proof! Something that has been debated several times.

People like you are a disgrace to the Nigerian education system.

You started blaming the present govt for the title that's above your head. What's the alternative you suggest bumbling goat?
There you have them:

1) From the Nigerian Vanguard.
http://www.vanguardngr.com/2015/03/ill-make-naira-equal-in-value-to-dollar-says-buhari/

2) The Nigerian Punch
http://www.punchng.com/politics/buhari-promises-to-bring-down-dollar-rate/

I can see you are the one with a problem here. You are aberrant in nature and want to continue to live in your primitiveness. That is a big shame on you.

How in the whole wide world can I be a disgrace to Nigerian education when I am not educated in that country? Bwahaha... You're always forward with your nonsense! You i d i o t!

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