coolzeal:
On one side it leads to improvement of current account and reduction in trade deficit after a certain time period, but it will eventually cause stress on imports, creates trade deficits for the counter party, and leads to rise in inflation, thus while deciding on Currency devaluation consequences both sides of the coin must be understood. Nigeria is a developing nation and cannot pull thay off. Perhaps, the reason China can get away with currency devaluation.

ibedun:


Deterioration of which fundamentals? I like to be sure you know what you are talking about.

repogirl:
Lol, I doubt this is the CBN governors mind.... He is speaking on behalf of his Oga, Buhari.

Chine12:
How does that Reduce the price of Garri??

ibedun:


You will nearly 'die alive' if you allow the Naira to collapse. Why can't you ignorant people keep quiet when issues beyond your knowledge are under discussion?

ibedun:


Please explain?

I can't understand how fiscal policies could offset the exchange rate/currency issues cause by drop in oil price and the reckless depletion of reserves accrued from the recent oil boom.

ibedun:


Please explain?

I can't understand how fiscal policies could offset the exchange rate/currency issues cause by drop in oil price and the reckless depletion of reserves accrued from the recent oil boom.

Originalsly:
I am still waiting to see policies to promote self sufficiency and develop local industries instead of waiting in vain for oil prices to rebound.

TonyeBarcanista:
Lack of fiscal policies is making the job of the CBN very difficult.

ibedun:


Please explain?

I can't understand how fiscal policies could offset the exchange rate/currency issues cause by drop in oil price and the reckless depletion of reserves accrued from the recent oil boom.

TonyeBarcanista:
Lack of fiscal policies is making the job of the CBN very difficult.

So, in essence, naira devaluation was and remains bad news that portends social and economic dislocations and deepening poverty; evidently, our trajectory in the last 30 years bears ample testimony to this reality.

Ultimately, the overwhelming pressure from International Finance Agencies, with the governments’ craving for international support for an illegal military junta, precipitated serial Naira devaluations from less than N2 to over N22=$1 by 1993. This rash decapitation of the naira exchange rate pauperized Nigerians, including University professors and technocrats and tragically triggered the brain drain to more stable economies in Europe and America; sadly this disenabling phenomenon has gathered speed and persists till date, as beneficiaries of our individual and collective sacrifices still abandon serving their country in preference for dollar pay packets abroad.

Indeed, wages soon became decimated by unyielding devaluation, such that it became necessary for most Nigerians, particularly civil servants to make awkward adjustments and engage in ‘Extra-curricular’ activities to supplement their paltry incomes; although the impact of Naira devaluation may not have been the origin of corruption in Nigeria, it certainly contributed to its spread and public apathy to the disease as more Nigerians became beneficiaries of the wages of corruption.

Okanokan:
I don't know how Mr Emiefele, the CBN Governor intend to hold out under the present harsh reality. Sounding Bohemian is not the solution to the current economic crisis, because when the envisaged fall of naira come, Nigerian will blame him for wrong advise to Mr President. Mr Emiefele should know that himself and Mr Kachikwu both from Delta State are the drivers of the economy. Wahala dey o!

OldJohn:




Again passing blames....

Pls read the last 2 paragraphs of the OP for better understanding


Zombie

Okanokan:


Oldjohn, definitely my seeing issues differently from your point of view, does not call for bitter insult. It quite disgusting when supposedly mature men display infantile mentality on the net.
What you must know, is that on all issues on the world space; there Always two side of the coin either in creating solutions or creating problems or third part which are normally at the edges, what Emiefele stated is self explanatory- no to devaluation, while others says yes to devaluation and others like myself who believe there is a third part to the solution by taking valid points from both extremes and creating an enduring solution to the economic discussion of devaluation or non devaluation. At times like this, civility is the answer to getting solution(audi alterem partem) hear the other side. Not calling somebody zombie.

OldJohn:



Pls read the part where you wrote everybody will blame Emefiele if the naira continues to fall because of his wrong advise to the President.


http://www.vanguardngr.com/2015/09/i-wont-devalue-naira-says-buhari/


I'm not too sure Emefiele does most of the advising. Buhari tells him what he wants and he carries out instructions. Right now, what Buhari understands as economic growth is 1$=1N. He doesn't understand that monetary policies can't and will not improve an economy. You need fiscal policies too. That a currency is better or equal to the dollar doesn't mean the economy is buoyant. An always ready-made example is Greece which uses the euro which has more value to the dollar. Yet one economy problem to the other. Bailout, debts, unemployment, austerity, etc..

External investors need to see a functional ministry geared towards improving a countries economy. Every country tries to draw investors from outside just to improve the economy, the biggest one wooing people right now to their country being china, considering the way they have relaxed emigration laws to encourage medium and sometimes small scale investors in their country. But no, not Nigeria, we drive them away simply because one man who is an island if his own, who even thinks he can stabilize oil price, has refused to set up a ministry.


Sorry for the zombie stuff though . Is just because sometimes most APC supporters can't see beyond their nose and like allocating blames. Right now, the problem isn't coming from the extreme end of the investors who feel naira should be devalued before they do business because they aren't seeing the value if the said naira at 224 But from our end. We should have first encouraged foreign investment, even if it means temporarily devaluing, then slowly start tightening the use of dollar and restricting many goods used during for ex trading. With a buoyant and diversified economy that's the only time we can start appreciating the naira and nobody will complain

INTROVERT:
hmmmm







GMB will remove emefiele before March and guess where his replacement will come from.

The Naira is going to fall/depreciate further...Iran has been let back into the International Oil Market..oil may fall
to $30 USD a barrel..it is possible..then what does Nigeria do then.....?

The Good thing about Nigerian Economy is that we can feed ourselves (Local Food Production)
that why we are not suffering the fate of Venezuela, Eygpt etc....

INTROVERT:
hmmmm

GMB will remove emefiele before March and guess where his replacement will come from.

bushdoc9919:


No....

Many Central ban governors in oil prducing countries have the same dilemma

Devalue the currency, or hoard dollars to buffer the currency.

Many are choosing the latter...

In Venezuela....the main brewery in the country is producing less beer, because the Venezuelan Central Bank won't release dollars for the brewery to import barley.

If the currency is devalued, it would make things worse.

The only ways out are

1.Pray for oil prices to rise again (Not going to happen.....everybody is producing oil, and the US is now self sufficient in domestic oil production).

2.Industrialise....the best option.