grandstar:


A devaluation will be helpful.

1. If they devalued officially, the rate will converge to between 230-250. The black market will move close to the official rate. That is far better than the 305 that is presently on ground.

2. It will put an end to round tripping. People will no longer be sble to buy at 197 and sell at 305.

3. The CBN will be able to meet all demand for forex. Presently, billions of dollar demand is left unfunded and Nigerian companies are being blacklisted. This has been the scenario since Buhari introduced thesr restrictions.

4. It will encourage an inflow of forex.Most people are not ready to receive funds at the official exchange rate. People wjo receive $100 Westetn Union are complaining.

I for one wanted to go into exportation but because I will have to change my forex earnings at the official rate, I lost interest

If people are not bringing forex in, how will the FX reserves grow.

Foriegn investors are refusing to bring money in and many are taking it out.

There are many reasons to devalue. At best, it makes a bad situation from becoming dreadful as it presently is. The naira is heading to 400 by year ending

grandstar:


A devaluation will be helpful.

1. If they devalued officially, the rate will converge to between 230-250. The black market will move close to the official rate. That is far better than the 305 that is presently on ground.

2. It will put an end to round tripping. People will no longer be sble to buy at 197 and sell at 305.

3. The CBN will be able to meet all demand for forex. Presently, billions of dollar demand is left unfunded and Nigerian companies are being blacklisted. This has been the scenario since Buhari introduced thesr restrictions.

4. It will encourage an inflow of forex.Most people are not ready to receive funds at the official exchange rate. People wjo receive $100 Westetn Union are complaining.

I for one wanted to go into exportation but because I will have to change my forex earnings at the official rate, I lost interest

If people are not bringing forex in, how will the FX reserves grow.

Foriegn investors are refusing to bring money in and many are taking it out.

There are many reasons to devalue. At best, it makes a bad situation from becoming dreadful as it presently is. The naira is heading to 400 by year ending

TippyTop:

Same Nwobodo is now a chieftain of the APC.

benpedro:
guy relax, your emotions are high but it has NOTHING to do with the VALUE of the naira.Who doesn't want something good for his country? In fact I want the price of a naira to be equal to the US dollar but the point here is that the naira is already devalued, the law of economics says that the policy of pegging the price of the a currency leads to a disaster and so it will inevitably be unless the President retract it's step.He can only achieve his goal If he also peg the price of naira to a dollar in the black market (which is impossible).The same economist news that says that GEJ is an ineffectual buffoon which I agrees he is even more than that is also saying that Buhari's policy of pegging the currency value is ineffective and will only lead to a disaster.Procter and gamble is just a firm, we need more investors, buhari is not a fool for traveling all over the world trying to woo other investors. Moreso, nigerians in the diaspora which is one of the basic avenues the nigerian economy receives dollars will be slowed down.Why? If you send a dollar through Western Union, they will give you 197-199naira but if you want to transfer that money back to the US, the bank charges you 270-290.As a diasporan, would you risk sending your hard earned money to Nigeria?

grandstar:


As a practical econmist. the following should be done:

1. Devalue the Naira. Allow it to float. Let it find its true vslue.

2. End the import restrictions on the 41 products excluded from the CBN window.

3. Slash import duties. High import duties simply rncourage smuggling.

4. Lift all import bans. Same reason as above.

5. Slash company tax to 18%.

6. Pay the monthly allocations to the 3 tiers of government in dollar certificates. This will end the persistent excess liquidity and also lead to a massive slash in inflationary pressure and interest rates


7. And so on

Wallade:


My brother, your economics is appalling! I don't agree with your school of thought.
Meanwhile, there is no point itemizing my disagreement with you because you can't understand me.

Best regards.

grandstar:


A devaluation will be helpful.

1. If they devalued officially, the rate will converge to between 230-250. The black market will move close to the official rate. That is far better than the 305 that is presently on ground.

2. It will put an end to round tripping. People will no longer be sble to buy at 197 and sell at 305.

3. The CBN will be able to meet all demand for forex. Presently, billions of dollar demand is left unfunded and Nigerian companies are being blacklisted. This has been the scenario since Buhari introduced thesr restrictions.

4. It will encourage an inflow of forex.Most people are not ready to receive funds at the official exchange rate. People wjo receive $100 Westetn Union are complaining.

I for one wanted to go into exportation but because I will have to change my forex earnings at the official rate, I lost interest

If people are not bringing forex in, how will the FX reserves grow.

Foriegn investors are refusing to bring money in and many are taking it out.

There are many reasons to devalue. At best, it makes a bad situation from becoming dreadful as it presently is. The naira is heading to 400 by year ending

grandstar:


you wrote nothing

grandstar:


The present government economic policies are an outrage.

The foriegn exchange restrictions is killing the economy.

If the fall in oil prices left the econony half dead, the present statist policies will finish it off.

If this expansionary budget is passed which they wrongly praised. it will cause a drop in the naira to 400 in the nlack market by year ending at the latest. I am actually suspecting by July this year

grandstar:

As a practical econmist. the following should be done:

1. Devalue the Naira. Allow it to float. Let it find its true vslue.

2. End the import restrictions on the 41 products excluded from the CBN window.

3. Slash import duties. High import duties simply rncourage smuggling.

4. Lift all import bans. Same reason as above.

5. Slash company tax to 18%.

6. Pay the monthly allocations to the 3 tiers of government in dollar certificates. This will end the persistent excess liquidity and also lead to a massive slash in inflationary pressure and interest rates


7. And so on

mrmetoo1:


I'll start out by saying I'm not an economist, so please take it easy with me when I err. As much as I understand some of your points, I don't think it captures the whole picture. To me we're romanticizing devaluation without looking at the short and long term impact. Income is not going up, in fact incomes might be slashed but we're talking about devaluation in an import based country. This is not a country where its Nigerian made vs Imported, devaluation would have made Nigerian made for attractive but we solely rely on imported goods. The pain will be unbearable, inflation will be crazy and we'll be talking poverty like we haven't seen. Purchasing power will be greatly reduced, low purchasing power is an anti-stimulant. The poverty and low purchasing power is enough to discourage investors. As far as investors not coming in because of devaluation, I strongly disagree. The wrong kind of investors might not be coming in but investors will come in. We need the right kind of investors, manufacturers, solid minerals investors, those that want to invest in Agriculture, those are the ones we need. Those ones have been promised all the support they need as far as availability of forex. This is the reason CBN has promised Dangote all the support he needs for his refinery because investments like those are what is important to Nigeria. Nigeria doesn't need investors that want to go bring in their products to just come and sell and carry money back to their country. My friend told me about his cousin that brought Chinese guys over to Nigeria to start manufacturing his own brand of ACs, this is what we need. What people had done in the past is go to China, they'll have it manufactured there, they'll slap their names on it and bring it to Nigeria to sell.

arresa:



And like I said, it's up to us to clean up our house and formulate the best economic and financial policies for us, not the portfolio investors with zero care for us and our welfare..

Portfolio investors crying all over the place because they want to make a quick buck, but who cares, physical investors are still entering Nigeria and setting up shops daily and creating jobs.


Procter and gamble, the world's largest manufacturer of consumer products just expanded into Lagos with another huge manufacturing plant, this is there 3 plant after Ogun and Oyo state plants and many more are making the same moves. This is the economic power of 150 million people. This is what we need, not portfolio investors and currency speculators.


We are not under any kind of illusion that things are going to be rosy within a year or even 2 after the rot, pillage and decay we just suffered in the last 16 years and in particular, the last 5 years..

We survive when oil was selling for less so what's your point.

Biafrarep:
It will be a miracle if one dollar does not exchange above 500 naira before the end of march! Buhari & Economic team are fighting a lost battle, stock of forex has drastically reduced & soon CBN will be forced to devalue the naira whether it tickles Buhari's ego or not. Nigeria is facing serious crises.

grandstar:


Dangote does not need any preferential treatment from the CBN. He can easily get all his funds from abroad. Even cement manufactureres he being numbrr 1 that they detest selling their export earning to government at the officisl rate. This what you get when government picks winners.

The exchange rate policy is scaring away a lot of genuine investors. You don't know the nightmare of sourcing forex.

You put in for $10,000,000 and after 4 weeks, government hsnds you $1,000,000. Because the naira is heavily underpriced, weekly demand is $1.5b which the government can never meet.


I doubt the country has any comparative advantage in making airconditioners. Its also 100% dependent on imported components. With the forex restrictions in place, this is not practical

grandstar:


As a practical econmist. the following should be done:

1. Devalue the Naira. Allow it to float. Let it find its true vslue.

2. End the import restrictions on the 41 products excluded from the CBN window.

3. Slash import duties. High import duties simply rncourage smuggling.

4. Lift all import bans. Same reason as above.

5. Slash company tax to 18%.

6. Pay the monthly allocations to the 3 tiers of government in dollar certificates. This will end the persistent excess liquidity and also lead to a massive slash in inflationary pressure and interest rates


7. And so on

grandstar:


The Economist was too soft on PMB.

The FX and import restrictions are an outright disaster!

Even the expansionary budget is a curse becsuse the FX restrictions will adversely affect it. Expansionary budgets alwsys leads to a loss in a currency's value. Since the CBN will not allow the to lose value officially, the pressure will be on the black market. I foresee the naira touching 400 year ending

grandstar:


His statist policies will wreck or is already wrecking the economy. I had to forgo to business ideas because of these policies.

tsdarkside:

their shall be no devaluetion...period......

ellechrystal:
Ok na, very soon they will also give him a name or insult him. Sometime they can be really unprofessional,by the way, the policies by the present administration is a complete disaster, n may end up destroying the economy. I ve never seen.

grandstar:


His statist policies will wreck or is already wrecking the economy. I had to forgo to business ideas because of these policies.