Let the Naira compete


Attract foreign investments and encourage local production.

magicminister:
Saw this coming when naira was hover at 170+
I predict a final devaluation of 225-230N to a dollar before year ends.

despite the fact that a devaluation would immensely favour me, It sickens me to know that my currency is gradually corroding away!!

Bross b4 you vex check the value of the Chinese yuanne to the dollar.

I support the idea that naira needs to be devalued. However considering that Nigeria's main commodity export is crude oil and relies on importation of other commodities early devaluation of naira may make the books look good but will have little impact on real economic growth. It will likely lead to rise in inflation and for a country that depends on imporatition of basic commodity it may be too early.

Mumu

Greedy bank.

That way they can make: N20 on all the over $5B in their shop abi, already they sell at N226. Crappy!

ShowYourCertificate:
http://www.bloomberg.com/news/articles/2015-08-25/nigeria-s-currency-needs-devaluation-guaranty-trust-bank-says

The experts have spoken

Lalasticlala do the needful

If the CBN will agree.

Hmmmmm


in other news,order your football jerseyshttp://www.nairaland.com/2447345/2015-2016-new-jerseys-available/3

Why do GTB still want devaluation when they are already selling dollar at 225

Ymodulus:


Disgraceful igbo bigot

ur mad, i dare u 2 insult hausas like dat, let me c if ur head will still be fitted on ur body. IDIOT

Vock:
Devalue again and again and again, are we going the way of Zimbabwe?

good question

when Jonathan devalued they called him names.
now their yoruba brother agrees.

Hmmm... devaluing sounds like we are going backwards instead of progressing.

NAIRA NO VEX NA D WRONG COUNTRY DEY USE U.

Vicotex:
Gtb yoruba bank, very fraudulent.

Who says GTBank is a Yoruba bank?
Have you seen the board of directors and IDs of the staff?
GTBank employs and serves the best interests of all Nigerians and doing many charities that the bank does not even boast about them such as spending millions of dollars on Orange Ribbon Initiative, an advocacy program designed to support children with developmental disabilities, most especially the Autism Spectrum Disorders and most of the beneficiaries are not Yoruba.

We must stop our tribal bigotry. It is primitive.

Activa:
A 10% devaluation which will put the official exchange rate at about N220 to a dollar will allow the naira to settle? Even if our quest for rubbish imports remains the same?

Why are they all focusing on the demand side and not the supply side?

Why are they not talking about the refineries, textile factories, rice mills and stopping importing rubbish?

Much of the Nigerian economy depends on the export of petroleum products. A devaluation makes your oil prices much more attractive and stimulates money coming into the country. This does have the effect of making imports more expensive for your guys but its a balance. (Also foreign investment is stimulated)

Exports bring money into the country and stimulate the economy.

Imports cost you money but raise the standard of living (often for a few only).

The only import you really NEED as opposed to 'would like' is food! As the agriculture sector continues its growth you don't need as much of this.

On balance the devaluation is probably both necessary and good for the economy as a whole.

Of course oil prices will eventually rise again and this will strengthen the Naira. Hopefully the recovery will be gradual so as foreign investment is not discouraged.

Be careful when considering the economy and the exchange rate.

While there are links a devalued currency does not automatically mean a weak economy.

This does highlight the need for self sufficiency in certain sectors/commodities (or at least as much self-sufficiency as can be had in todays global economy).

erico2k2:

Don't turn things the other way round.did you say same.when GEJ govt wanted to do exact same thing cos of reason you stated above? U guys seem to amaze us.U can't shift the goal post in the middle of the match.

if gej gov was not wasteful, we wouldn't have been in this mess to start with.

erico2k2:

Bross b4 you vex check the value of the Chinese yuanne to the dollar.

1 dollar is abojt 6 chinese yuan

yommys01:
I am ashamed of people like you. You quoted the right thing yet you believed the headline which is sensational and outright misleading.

Typical of the press misquoting people, taking things out of context and just generally getting things wrong!

gists:

Thank you jare. God bless.

Don't mind all these advocates of devaluation.

Just last year Naira was N165. Cbn has devalued twice. Where will it stop? What will happen after naira is devalued by another 10%?

What are the effects of devaluation on the poor masses of the country Moreso when Nigeria doesn't have goods to export?

Let's focus on building our collapsed industries. Let's make sacrifices. This is the way to tackle poverty and increase the employment of our youths.

Vicotex:
Gtb yoruba bank, very fraudulent.

Na wa o. Bruh that is so insensitive. And for the record GTB is a great bank, and they are tech-enthusiasts, too.

Just don't resort to killing the masses with mean policies.

gists:

if gej gov was not wasteful, we wouldn't have been in this mess to start with.

Thank you for your very illustrative graph on the Historic Exchange Rate. (see above folks)

The influx of 'petro dollars' etc should have strengthened the Naira but instead it continued to weaken! (Wonder where the benefit all went - I think we all know and those people got rejected!) I had realised this in general while changing money during my many visits over the years but your graph illustrated it to perfection!

KoloOyinbo:


Much of the Nigerian economy depends on the export of petroleum products. A devaluation makes your oil prices much more attractive and stimulates money coming into the country. This does have the effect of making imports more expensive for your guys but its a balance. (Also foreign investment is stimulated)

Exports bring money into the country and stimulate the economy.

Imports cost you money but raise the standard of living (often for a few only).

The only import you really NEED as opposed to 'would like' is food! As the agriculture sector continues its growth you don't need as much of this.

On balance the devaluation is probably both necessary and good for the economy as a whole.

Of course oil prices will eventually rise again and this will strengthen the Naira. Hopefully the recovery will be gradual so as foreign investment is not discouraged.

Be careful when considering the economy and the exchange rate.

While there are links a devalued currency does not automatically mean a weak economy.

This does highlight the need for self sufficiency in certain sectors/commodities (or at least as much self-sufficiency as can be had in todays global economy).

How will devaluation make our oil cheaper when crude oil price is not determined by us? We don't even determine the quantity sef?

Did we sell more oil when naira dropped to N197 compared to when naira was N160?

Ymodulus:


Disgraceful igbo bigot

You are not different.

Yep...let's be honest....the Naira may be devalued.

Due to the fact that dollars to prop it up are becoming scarce.

Another ''benefit'' of being a resource dependent economy.....and another reason why Buhari MUST diversify.

Activa:


Don't mind all these advocates of devaluation.

Just last year Naira was N165. Cbn has devalued twice. Where will it stop? What will happen after naira is devalued by another 10%?

What are the effects of devaluation on the poor masses of the country Moreso when Nigeria doesn't have goods to export?

Let's focus on building our collapsed industries. Let's make sacrifices. This is the way to tackle poverty and increase the employment of our youths.

Rebuilding should progress irrespective of the value of the Naira. Devaluation will however increase the chance of inward investment.

Activa:
A 10% devaluation which will put the official exchange rate at about N220 to a dollar will allow the naira to settle? Even if our quest for rubbish imports remains the same?

Why are they all focusing on the demand side and not the supply side?

Why are they not talking about the refineries, textile factories, rice mills and stopping importing rubbish?

Thank you for highlighting this point. These so called policy makers and economic brokers have their greedy eyes permanently focused on the demand angle forgetting that lesser demand equates to excess supply of the dollar. Obviously this will gradually reduce their annual profit

Do we need to employ foreign economic advicers to strongly strike home this aspect of the economy into their skull. Get the refineries working, ensure adequate power supply, provide loans to kick off agricultural transformation via mechanised investment. These bankers are just too lazy and no one will quench their thirst for foreign imports they are addicted to.

I am glad the president is going ahead with granting refinery licenses to investors. The same way the western economies are using all within their disposals to control the global economy, we should equal put in place measures that will cushion the ripple effect of a stronger dollar.

KoloOyinbo:


Much of the Nigerian economy depends on the export of petroleum products. A devaluation makes your oil prices much more attractive and stimulates money coming into the country. This does have the effect of making imports more expensive for your guys but its a balance. (Also foreign investment is stimulated)

Exports bring money into the country and stimulate the economy.

Imports cost you money but raise the standard of living (often for a few only).

The only import you really NEED as opposed to 'would like' is food! As the agriculture sector continues its growth you don't need as much of this.

On balance the devaluation is probably both necessary and good for the economy as a whole.

Of course oil prices will eventually rise again and this will strengthen the Naira. Hopefully the recovery will be gradual so as foreign investment is not discouraged.

Be careful when considering the economy and the exchange rate.

While there are links a devalued currency does not automatically mean a weak economy.

This does highlight the need for self sufficiency in certain sectors/commodities (or at least as much self-sufficiency as can be had in todays global economy).

Oil is not going to rise again. The era of high oil prices is over. Especially as the US is almost self sufficient.

Nigerians need to stop looking at oil as a saviour. Because it isn't. Sorry.

KoloOyinbo:


Of course oil prices will eventually rise again and this will strengthen the Naira. Hopefully the recovery will be gradual so as foreign investment is not discouraged.

Oil prices aren't likely to go up in the near term.