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Nairaland Forum / Nairaland / General / Politics / The CBN New Dollar Policy: The PDP Is Right (6488 Views)
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Re: The CBN New Dollar Policy: The PDP Is Right by hinwazaka: 11:46am On Aug 03, 2015 |
FearGodinall:Its amazing how uninformed people are in our country. People just don't read. I didn't study biology or chemistry in school but I still find time to read up on both disciplines. The argument that excess of a foreign currency can be solely blamed for a drop in the local currency's viability is a joke. A nation's purchasing power parity is an index of a failing economy not a root cause. What happened to the production capacity of the country, is that not something we should look at. Our balance of payments is poor, yes we know that, but it doesn't mean we should just identify that as the cause. What we need to do is find out how we can improve our production might, where we can find new markets and how we can protect our local industries from MNC's This should be the direction of the non existent economic team not fostering our hope on our apex bank. |
Re: The CBN New Dollar Policy: The PDP Is Right by trillville(m): 11:48am On Aug 03, 2015 |
hinwazaka: How should Nigeria raise its low production capacity higher? Will a stronger Naira help businesses and the government afford much needed infrastructure for industrialisation? Do you realise that oil prices may remain low for the next 5 years. Do you understand the impact of a lower oil price on our Naira and therefore our local businesses. What solutions can you come up with to deal with the current situation we find ourselves in? It is always easier to criticise than to come up with solutions. |
Re: The CBN New Dollar Policy: The PDP Is Right by Nobody: 12:03pm On Aug 03, 2015 |
arm4u: Abeg guy I don't agree with u, the policy is dat if u have any international transaction in dollars, go to CBN directly, wats wrong abt dat except u too av an hiden agender. Or u are also laundaring money for politicians too. The president is not a fool he knows wat he is doing. They just want to checkmate those who loot our money in dollars and store them at home. |
Re: The CBN New Dollar Policy: The PDP Is Right by Opinedecandid(m): 12:04pm On Aug 03, 2015 |
Truth is the value, necessity and advantage of quality education cannot be circumvent. Buhari lacks those, his actions will expose the absence of those. |
Re: The CBN New Dollar Policy: The PDP Is Right by Chiaka(f): 12:13pm On Aug 03, 2015 |
arm4u: Pay via your debit/credit card or raise an LC . lol! 1 Like |
Re: The CBN New Dollar Policy: The PDP Is Right by Atlantian: 12:20pm On Aug 03, 2015 |
Elementary Economics taught me that when the demand is high, the price goes up. The demand for dollars is high, so we have too much naira chasing after a dollar in today's Nigeria. Why is the demand for dollar's high and how do we address it without resorting to quick fixes that are becoming a shock to the economy. The demand is high because Nigeria depends on crude oil income, the price of crude oil has gone less than half of what it used to be, while the running cost to drill, bunker and ship crude oil remains same. So, business is bad, far less dollars comes in and so, this creates a macro economic problem. How do we solve it ? Diversify the economic, stop scouting for new oil fields, stop selling more blocs and use the funds we have to explore other avenues. Stop sharing revenues with the states, it is time to change how governance is done in Nigeria, allow the states to exist independently as economic models and generate their own resources to finance their projects as its done in China and USA. Nigeria as it is will NOT work. Buhari has put up no Economic Team, and he is not an Economist, he is leading Nigeria to the abyss with these temporal fixes that are destroying the Businesses which are by the way, employers of labour. My business depends on fx to bring in products, I am running at a loss due to loss of revenue occasioned by marginal fluctuation differences in the fx market. I am laying off workers next week instead of increasing the price of goods. This is called unemployment. And the Buhari is directly manufacturing Unemployment. This is practical result, I assure you, I am adding at least 10 people into the unemployed statistics after my audit next week. |
Re: The CBN New Dollar Policy: The PDP Is Right by Nobody: 12:44pm On Aug 03, 2015 |
Atlantian: I'm just imagining what will happen in the next 3yrs and 9months.. Una nefa chee chomchin.... |
Re: The CBN New Dollar Policy: The PDP Is Right by byteem: 1:01pm On Aug 03, 2015 |
I DONT UNDERSTAND WHAT ALL THE FUSS IS ABOUT .. THE MOST PEOPLE AFFECTED BY THIS POLICY ARE 1 CORRUPT POLITICIANS WITH PLENTY DOLLARS STASHED AWAY.. PDP AND APC ALIKE 2 BUREAU DE CHANGE MALLAMS 3 AND MONEY LAUNDRY CROOKS AM PERSONALLY NOT A FAN OF BUHARI BUT THIS IS A COMMON SENSE POLICY.. IMAGINE BLACK MARKET HAS DROPPED FROM 247 TO 205 IN LESS THAN 3 DAYS .. SO IL SAY CARRY ON .. BUT AM SURE THE POLITICIANS WILL KICK AGAINST IT COS IT AFFECTS THEM MOST.. IF YOUR BIZNESS IS LEGIT YOU HAVE NOTHING TO FEAR.. JUST TRANSFER FOREX TO YOUR BIZ PARTNERS USING NORMAL EXCHANGE RATES.. ABI.. LOTS OF BANKS AND REMITTANCE COMPANIES OFFER SERVICES IN WHICH YOU CAN TRANSFER MONEY ABROAD FROM UR NAIRA ACCOUNT.SO BIZNESS CAN STILL GO ON FINE.. CASHLESS POLICY SHOULD NOT ONLY BE FOR NAIRA TRANSACTIONS IT SHOULD ALSO BE FOR FOREX ..ALTHOUGH AM KINDA OF WORRIED AT THE RIPPLE EFFECTS OF THIS INSTABILITY OF NAIRA .. .. WHAT AM HOPING SHOULD HAPPEN SOON IS TO ALLOW NAIRA ACCOUNT HOLDERS TRANSFER TO THEIR DOM ACCOUNTS FOR ONWARD TRANSFER TO PARTNERS ..IF I HAVE 100000 IN MY ACCOUNT AND NEED TO SEND 200 DOLLARS TO A BIZ PARTNER I SHOULD BE ABLE TO TRANSFER SAME EIDR DIRECTLY FROM MY AC COUNT OR TO THE PARTNER OR TRANSFER TO MY DORM THEN SEND ...THAT WAY THE BLACK OR PARALLEL MARKET NO LONGER DETERMINES THE EXCHANGE RATE NICE ONE... HMMMNN AM BEGINNING TO LIKE THIS PAPA BUHARI .. 1 Like |
Re: The CBN New Dollar Policy: The PDP Is Right by docadams: 1:28pm On Aug 03, 2015 |
Firefire: You are a TANoid with a difference. We don't live our life in NL but on the street. @topic, domiciliary account is an aberration. If at all there are benefits to be derived from operating it, the evil genius in us makes it a curse to the country. |
Re: The CBN New Dollar Policy: The PDP Is Right by hinwazaka: 1:58pm On Aug 03, 2015 |
trillville:its funny that you just browse this things online without knowing the terminologies or theories that propound them. You ask me how the government should improve the production levels of our manufacturers. Didn't you see in my writeup some suggestions I gave out on doing so. If you had been keenly watching the fiscal and monetary policies of the last administration you would not ask me such an ignoble question. A stronger purchasing parity is the dream of every nation but not at the expense of international trade. So you believe that by denying people access to foreign currencies our Naira will all of a sudden take flight. The gains we witnessed this weekend will in the future reverse their numbers if we don't tackle the real problems that plague our failing economy. Are you aware there are international debates on the impact and effects of contractionary monetary policies and austerity measures. The instruments being utilised now are elements of the infamous SAP policy which to some schools of thought crashed our industrial sector. Foreign currencies where denied to manufacturers then as well, even though palliatives were supposedly given. It's a big hurdle to access funds in a free flowing economy, imagine how it would become a year or two down the road. The fact is that the government want to return us to a government prone economy and unfortunately for them such things never work out in our country. I recommend you read up on Monetary Economics by Jinghan and also development economics by the same author. You can also throw in Global finance before you start claiming you know what you are saying |
Re: The CBN New Dollar Policy: The PDP Is Right by hinwazaka: 2:10pm On Aug 03, 2015 |
byteem:if you think that corrupt elements of our society will suffer this policy, you are terribly mistaken. They will simply adjust and then push the bulk to us. There is the silly belief that these will crash the parallel market. Silly is what silly does. Our borders are very porous and these elements will simply come up with ingenious ways of moving currencies in and out of the nation. This is simply another outdated textbook measure which doesn't take into cognisance the most important and fundamental element, which is MAN. In economics there is the notion of CETARIS PARIBUS: all things being equal. In our society the best of policies hardly ever bear fruit because we never consider the challenges that will befall them. And once again we have made that mistake. |
Re: The CBN New Dollar Policy: The PDP Is Right by adetboy: 2:30pm On Aug 03, 2015 |
PvtParts: The year of our Lord Nineteen Hundred and Eighty Four! 1 Like |
Re: The CBN New Dollar Policy: The PDP Is Right by trillville(m): 3:12pm On Aug 03, 2015 |
hinwazaka: When countries take the austerity measures path, they devalue their currencies, cut jobs, pay back debt, increase taxes and try to right size their economies. What is going on in Nigeria today is the government is trying to fight corruption in the form of people using the u.s. Dollar as a store of value. Government is forcing people to sell dollars they have in storage and store the money in Naira. This will take the value of the Naira up and spur manufacturing in the long run. You fail to realise that Nigeria is in dire times and textbooks hardly hold the answers in times like this. Please give me concrete ideas of how you would spur industrial growth in our current crisis. Remember to indicate how you would fund whatever plans you have. |
Re: The CBN New Dollar Policy: The PDP Is Right by trillville(m): 3:16pm On Aug 03, 2015 |
hinwazaka: From all indications, Buhari wants them to take their ill gotten wealth through our "porous" borders. This should be clear to any right thinking person. It is like leading a bull to the slaughter house. This is the whole aim. Give them no other option than to commit crimes and then to lock them up. |
Re: The CBN New Dollar Policy: The PDP Is Right by hinwazaka: 4:21pm On Aug 03, 2015 |
trillville:The fact that the government doesn't tag it an austerity measure doesn't mean it isn't one. And besides I indicated that this are elements that were part of the SAP policy. And also what is really going on in the country is that the government is trying to, through the CBN, close the economy and thus the country. They are trying to achieve a crowding out effect so as to reduce or curb the influence of the private sector. The efforts of the government, according to you, to shore up the value of the Naira at the expense of the dollar with a feasible robust industrialisation policy is ridiculous. The one product we sell is right now next to worthless and the next thing is to increase the flow of the naira, to buy what. We don't produce enough goods to meet the demands of Nigeria. We are likely to see a rise in inflation in a year or two.With a lopsided rise in the value of a forced naira to the dollar we will witness a funny structured economy. And also I have already given some pointers in my earlier thread on how to stabilise the economy for now till the price of oil improves in the future |
Re: The CBN New Dollar Policy: The PDP Is Right by SIRTee15: 4:43pm On Aug 03, 2015 |
hinwazaka: now you ague we should boost our production and industrial capacity. that I agree. but is it going to happen overnight? if we start planting cocoa, cotton and palm oil trees that will yield millions of tonnes of products and help in favourable trade balance, dont u think that will take time? if we embark on massive industrialization of our economy, do you think by next year we will become an export regional power? so what do u want the govt to do till then? fold their hands and allow the naira attain junk status? no serious govt will allow that. I dont know what u do, but this policy will favour manufacturers on the long run. factories import raw materials that they process into finished goods. They will surely benefit from a strong naira. OR you prefer the devaluation of the naira. Most factories in the eighties collapsed due to naira depreciation courtesy SAP. 1 Like |
Re: The CBN New Dollar Policy: The PDP Is Right by hinwazaka: 4:51pm On Aug 03, 2015 |
trillville:From all indications, Buhari underestimates how ingenious people can become to beat the system. Also it is now apparent he has no idea how corrupt Nigerians are. It will be a good time for the customs. He is the one who will be taken to the cleaners after the perilous elements out manoeuvre him. |
Re: The CBN New Dollar Policy: The PDP Is Right by hinwazaka: 4:54pm On Aug 03, 2015 |
SIRTee15: |
Re: The CBN New Dollar Policy: The PDP Is Right by hinwazaka: 5:03pm On Aug 03, 2015 |
SIRTee15:look through the last administration's economic policies and you will see your answer. Rather than battling the MNC's which induce corruption and harm our local industries we are going against our local industries and giving a branch to MNC's. Read up on SAP, really read up on it and you will see the elements that destroyed our local industries. It wasn't depreciation of the naira but rather refusal of the CBN to release foreign currencies needed to purchase machineries and products meant to drive the industry. This is why I said that people don't read anymore |
Re: The CBN New Dollar Policy: The PDP Is Right by Smooyis(m): 5:23pm On Aug 03, 2015 |
keeeem: You killed it bro |
Re: The CBN New Dollar Policy: The PDP Is Right by ibietela2(m): 6:14pm On Aug 03, 2015 |
APC dogs like Passingshot appreciating the move by the CBN, but one dog NgeneUkwenu wanted the governor gone. |
Re: The CBN New Dollar Policy: The PDP Is Right by san316(m): 6:19pm On Aug 03, 2015 |
arm4u: Well, do not blame the government, blame the corrupt politicians and the speculators that hoard the dollars.if people are not allowed to hide their dollars in banks, they will have no choice than releasing it into the economy. Now talking about the economy, it is a two edged sword. Either way, it hurts the country. But the govt made its choice, let the minority dollar users be hurt than for the majority non dollar users who are being affected by the rise in dollar. You do business in dollar, I feel your pain. I'm a banker, this has affected me too. Less deopsit n transaction for me. |
Re: The CBN New Dollar Policy: The PDP Is Right by olawalepopoola: 8:15pm On Aug 03, 2015 |
Anything wea dem like make dem talk about PMB. As a researcher that needs to publish in SCIRP, Elsiever, Springer and IEEE journals, a fall in dollar-naira ratio is a good news! Whether economics or no economics I support the policy |
Re: The CBN New Dollar Policy: The PDP Is Right by Boewulf(m): 2:12pm On Aug 04, 2015 |
Has any of those advocating Form A and M ever made a request for it? Banks actively discouraged this by making it very difficult to get and sometimes outrightly rejected such requests and encouraged domicilliary accounts and now, there is a sudden uturn? Or try transferring from Naira to dollar using Western Union and see if you will be successful. I believe the major cause of the fall in naira is a direct result of our dependence on oil exports and the recent fall in oil prices. Should there be policies to shore up the naira in the short term, yes; but these should be measured considering all factors not draconian policies that affect everybody (corrupt and legitimate alike). Extreme measures are never good in the long term and unless the government has a long term plan >10years, this is a short sighted solution to the imbalance between the naira and dollar. For those hailing this, know that there is a tendency to apply such mentality to everything (remember Maslow's hammer-Law of instruments: All problems look like a nail when you have a hammer). The next policy might affect you in a meaningless manner |
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