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Buhari’s Exchange Rate Policy Not Sensible – IMF - Business - Nairaland

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Buhari’s Exchange Rate Policy Not Sensible – IMF by alcmene: 2:42pm On Feb 08, 2016
The head of the International Monetary Fund (IMF), Christine Lagarde has described the current forex policy of Nigeria as not sensible.

Speaking on the sideline of a press conference in Washington DC, Lagarde says that Nigeria has to adopt sensible forex policy in the sense that it should not deplete the foreign reserves.

“The IMF remains available to all its members, so the moment we are asked to help, we’ll do the best we can to help,” she said.

“Both countries, Azerbaijan and Nigeria, have been hard hit by the oil price decline shock, because their economies depended heavily on oil exports, both in terms of trade, and in terms also of revenue.


“When you lose a lot of that, because the price decline was about 70 percent, then clearly it puts the economy under shock.” While saying Nigeria’s response to the economic shock had not been good enough, she applauded Azerbaijan’s fiscal approach to the same problem. “Policies adopted by the two are different. Azerbaijan has certainly taken a good fiscal approach, is reassessing spending, is really trying to restore its position, and it’s also using the exchange rate as a buffer.

“Nigeria is not there, and we certainly hope that in terms of identification of fiscal resources, removal of oil subsidies, an exchange rate policy that is sensible, in the sense that it is not going to waste reserves, we have in particular indicated that a persistent pegging of the naira would not be such a good idea.

“So, they have to adopt their policies, they have to adopt their model, and if they need IMF’s help, we’ll be ready to help. No question about that, and no stigma associated with it.

“They are clearly victim of an external shock, and they have to face a response, which is a national response to that situation.”





http://www.theheraldng.com/nigerias-exchange-rate-policy-not-sensible-imf/?utm_source=dlvr_nnd&utm_medium=twitter

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Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by northvietnam(m): 2:45pm On Feb 08, 2016
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Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by OVI75(m): 2:46pm On Feb 08, 2016
Evrytin about Buhari not sensible,from shia killings to arestin and detaining Metuh,to declaring Tompolo wntd and asking Gbaramatu elders to produce him,to repealing Uni @warri et all,to his endless trips to Islamic countries,Evry tin is senseles

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Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by OVI75(m): 2:47pm On Feb 08, 2016
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Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by OVI75(m): 2:48pm On Feb 08, 2016
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Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by OVI75(m): 2:49pm On Feb 08, 2016
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Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by jejemanito: 2:51pm On Feb 08, 2016
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Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by princemillla(m): 2:52pm On Feb 08, 2016
What if the policy is ok and you are just trying to frustrate the effort to stand out from your loan bondage?

I dont trust largade one bit....

In femi kuti voice "the white witch"

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Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by seunmsg(m): 2:53pm On Feb 08, 2016
Nonsense. You guys can keep the pressure on but we are not going to devalue the Naira. We can't keep devaluing our currency to satisfy foreign interest. Foreign speculators can keep their hot money, we will survive this recession without them.

4 Likes 1 Share

Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by Opinedecandid(m): 2:58pm On Feb 08, 2016
That one is even small.

Now tell me, which policy of Buhari-led Administration is sensible, which one?

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Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by Montaque(m): 3:02pm On Feb 08, 2016
Hope she is IPOB? ??

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Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by babyfaceafrica: 3:03pm On Feb 08, 2016
IMF na scam...they encouraged SAP under IBB..where did that get us?

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Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by koboko69: 3:10pm On Feb 08, 2016
Trust this people at ur own risk okonjor's friends that helped finished Nigeria, at the same time lie to the world that Nigeria was Africa's biggest economy.

IMF we nor need ur help...thank you

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Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by alcmene: 3:15pm On Feb 08, 2016
Typical Nigerians.....

They welcomed the IMF boss with both hands and even cheered her for visiting the country

Now the same boss have come hard on Buhari's idiotic and antiquated economic policies only for them to call her names.....

Nigerians are really a double-faced sword

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Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by Tokt: 3:16pm On Feb 08, 2016
The mere fact that IMF speaks against it suggest that we are on the right track. Local industries aren't complaining. IMF can go ffuck herself. We dont need her help. This is an home grown solution for the damage caused by jonah-daft and his co fools. Kudos General.

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Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by EternalTruths: 3:28pm On Feb 08, 2016
Unfortunately, wailing and IPOB forms are finished grin

Buhari the Cattleman of Daura cheesy
Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by AlfaSeltzer(m): 3:36pm On Feb 08, 2016
Tokt:
The mere fact that IMF speaks against it suggest that we are on the right track. Local industries aren't complaining. IMF can go ffuck herself. We dont need her help. This is an home grown solution for the damage caused by jonah-daft and his co fools. Kudos General.

"The water is getting warmer" - said the boiling frog

1 Like

Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by Flexherbal(m): 3:40pm On Feb 08, 2016
Don't we have sound economist that can remedy this situation?
Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by baralatie(m): 3:59pm On Feb 08, 2016
Flexherbal:
Don't we have sound economist that can remedy this situation?
Problem is PMB does not want an economic team for reasons best known to him
Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by Nobody: 4:02pm On Feb 08, 2016
all the grammar by IMF means only one thing.

BUHARI SHOULD DEVALUE NAIRA OFFICIALLY TO 250naira to a dollar

That is what IMF want. That is what Pat Utomi want. That is what Sanusi want.
Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by Super1Star: 4:59pm On Feb 08, 2016
tuale4u:
all the grammar by IMF means only one thing.

BUHARI SHOULD DEVALUE NAIRA OFFICIALLY TO 250naira to a dollar

That is what IMF want. That is what Pat Utomi want. That is what Sanusi want.

What is the gain of the devaluation?

Will the rate at the parallel market not move up accordingly to accommodate the adjustment of the official rate?

The bottom line is this is the golden opportunity for us to boost local manufacturing activities. This is the opportunity for our SMEs and manufacturing companies to look for substitutes within the country.

We cannot keep wasting our national reserve on consumption. It is insanity of the highest order. Can you imagine, we were using our National Reserve to import tooth pick(what is broom doing), matches, all sorts of sub-standard junks from China.

We are in the right direction, except I can see a superior argument on the devaluation.

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Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by 989900: 4:59pm On Feb 08, 2016
Buhari is doing the right thing, the hard way; he needs genuine help though.

Devaluation so far for us, has proven to be nothing but a cosmetic solution to an endemic situation (treating symptoms in-lieu of causes).

IMF wants us at all cost . . . uhmmm, last time we took $6b loan, it ended up accruing to over $31b, we were later 'pardoned' after we paid $16b . . . uhmmmm!

I posted the below some days ago:

https://www.nairaland.com/2914056/naira-10-questions-gov-emefiele

The current situation (helpless slide/depreciation of the Naira), cannot cease to be a big case for worry for those who truly can grasp the enormity of this catastrophe -- impoverishment! Unfortunately, most of do not realize the magnitude of this malady. If the gov't were to increase PMS pump price to N120/litre tomorrow, or reduce minimum wage from N18,000 to N9,000, we would have taken to the streets -- but that's what just basically or 'technically' (Mr. Lai I see you) happened.

In order to keep this as short as possible (avoid writing a book), especially with our "too long can't read" cousins in mind, I'll express my thoughts in form of questions to the CBN governor or those that can help him answer the following (of course we know fall in oil prices and 'yada, yada, yada'):

1. If demand and supply basically control the exchange rate, why is it that, despite the reduction in foreign expenditure from our Nigerian bank accounts from $3,000 daily to averagely $300/day has had no effect in curbing the 'unabated-downward-spiral' of the Naira?

2. Why is the CBN in bed with commercial banks bleeding the people dry? Why would they get dollars at N199 and charge us at N280-N300 (roughly a profit of N100,000 on every $1,000)?!

3. Why is the FG (PMB) and CBN (Gov.Emefiele) abetting arguably the greatest instigator of excess liquidity (the constant substitution of Naira allocations for dollar denominated revenue).
https://www.nairaland.com/844884/solution-fuel-subsidy-wahala-look

Read more at: http://www.vanguardngr.com/2014/08/much-talk-dollar-certificates/

4. Can the CBN Governor kindly explain to us: how going from paying N2.6 trillion for petroleum products subsidy, to paying nothing, to actually making excess of N4 on every litre of PMS sold/bought has had no positive impact in propping the Naira?

5. If we truly enjoy a bit of better power supply than say 1-2 years back, do we still consume the phantom, "imported 40 million litres of PMS/day"? If not, how has this helped, or not helped the demand and supply brouhaha of the Naira vs Dollar hide and seek?

6. If we truly are tackling corruption head-on, and the customs service is doing a better job (checkmating refined products smuggling across our borders and e.t.c.) than 1-2 years back, do we still consume the phantom, "imported 40 million litres of PMS/day"? If not, how has this helped, or not helped the demand and supply brouhaha of the Naira vs Dollar hide and seek?

7. If truly our refineries are working to the recently publicized capacity, do we still consume the phantom, "imported 40 million litres of PMS/day"? If not, how has this helped, or not helped the demand and supply brouhaha of the Naira vs Dollar hide and seek?

8. If the BDCs are being 'dealt with', what alternative positive measures have you Mr. Governor put in place . . .?

9. If you Mr. Governor are no longer getting orders from the present C-in-C to disburse them dollars to them Dasukis, and with the implementation of proper accounting of remittances from NNPC and others, why is it not helping the Naira?

10. Lastly, why would you preach 'agric', but say 'agric' does not need power supply to practice? Duh
Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by OlujobaSamuel: 5:02pm On Feb 08, 2016
imf oooooo
the last place naija should look up to in this period of meltdown is any world bank group.
who una opinion don help, please cite examples of countries you reshaped their destiny for good.
pls, nobody should come here to tell me they are professional in this field, na professional doctors, lawyers, accountants etc dey steal our money too for here.
Skilled but wicked souls.

2 Likes

Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by 989900: 5:10pm On Feb 08, 2016
What we need are: laws, change in policies that would make our environment investor friendly. We have an inviting market-share already.

Fix power supply.
Make the laws investor-friendly.
Lower taxes if you have to . . . better than those soft loans that will end up in some people's pockets.
The stern anti-corruption crusade would help too.
Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by drss(m): 5:43pm On Feb 08, 2016
While saying Nigeria’s response to the economic shock had NOT been good enough, she applauded Azerbaijan’s fiscal approach to the same problem. “Policies adopted by the two are different. Azerbaijan has certainly taken a good fiscal approach, is reassessing spending, is really trying to restore its position, and it’s also using the exchange rate as a buffer.

“NIGERIA IS NOT THERE.
while other countries ar busy implementing sound fiscal policies to boost their economies, d zoo govt ar busy witch hunting opposition. dis is wat u get when an illitrate nepa cert holder is d president.
$1 = N310, yet buari dullard is busy enjoying himself in london. una zoogerians don enta one chance.
Re: Buhari’s Exchange Rate Policy Not Sensible – IMF by drss(m): 5:50pm On Feb 08, 2016
koboko69:
Trust this people at ur own risk okonjor's friends that helped finished Nigeria, at the same time lie to the world that Nigeria was Africa's biggest economy.

IMF we nor need ur help...thank you
high ranking zombies spoted.

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