Why cant we have NAIRA - YUAN exchange so as to diffuse the current pressure on NAIRA - DOLLAR. We can even have a third, NAIRA - RUPEE.

Since most of our imports are done in China and India and not in U.S.A, will it not make economic sense to try out this option? We have a lot of Chinese and Indians in Nigeria , why not let them bring in their currencies directly and be able to exchange it into naira directly. America is no longer buying our crude so why should we be holding all of our external reserve in DOLLARS! we should have some in YUAN and Rupee to backup imports from these two countries. Why should our importers have to convert nairas to scarce dollars each time they want to bring in things from countries other than U.S.A? are we bewitched by America? to hell with currency triangulation with almighty dollar as the major beneficiary! we need to save our economy fast.

When NITEL was the only telecom provider, telecom services were very expensive but when MTN , ECONET etc came on board, NITEL's stronghold on nigerians died a natural death. Let us do the same with the Dollar.

Because of the triangulation system imposed on the world by IMF, what ever happens to your currency with respect to the dollar will automatically be felt with other currencies. However, China and India are our major trade partners for now (import wise) and so, if we can forge a bilateral agreement to establish currency exchanges with each of them directly, then the demand for dollar will reduce.

Let us assume that $3 billion is the amount needed monthly to foot our import demands and CBN can only provide $1.5 billion? CBN can only do what they are doing right now (dollar rationing and restrictions). The parallel and backyard markets will then have to provide the rest on their terms (higher rates) and this is the main reason for this currency crisis.

But my point is, if most of these dollars sourced for import purposes are spent in China and India and not in America to bring in electronics, drugs etc, why cant we have some break off the U.S dollar? if we use Yuan and Rupee too for our international trade, the demand pressure on dollar will reduce. This will in turn bring down the value of dollar to naira (law of demand and supply)

While industrializing the country is the long term solution, in the short term, we can play smart and diffuse the situation with this initiative.

By means of loan, bond floating and divesting of some of our dollar reserve to create reserves in Yuan and Rupee and allowing direct exchange to take place between us and these duo, the naira will gain more respect from the almighty dollar. If we want to import from America and Europe, we can use the dollar but if we want to import from Asia, let us make use of Yuan or Rupee. Let us spread the demand pressure across these three so that we wont be at the mercy of any of them.

Where are the economic gurus in the land? are we going to allow this nose diving nature of our currency to continue? before a general uproar or civil unrest breakout , President Buhari, please do the needful.

j

Op u have a point. Imagine some1 travelling to dubai will have to first convert naira to dollars in Lagos airport before changing it to dirhams in Dubai. Why can't Nigeria jst allow a BDC who changes Naira to dirham at MMIA directly. Am speaking from my personal xperience. Only few person travel to America for trade related purpose. If you must pass thru a particular individual before gaining acesss to others in arson ll always feel too important and be proud. I think the dollar has become proud.

U my bro have a point, Zimbabwe did that with Yuan and i believe they are better off.

Would they ever listen?

[b]....there are very many commentary on depreciation of ₦ nowadays expecially in parallel market, although parallel or black market can be manipulated by the traders, they either do it on their self interest, so those who doesn't beleive in the prosperity of nigeria can harbour $ as they can on imported goods hereby cause hike!
But in my own point of view the depreciation of ₦ is a great success to this nation if well manage to nigeria situation today. the looted fund is in $ and it must be refunded back in $, so if $1 is ₦198 when the money is looted, then if the money is refund today at $1 to ₦350 the nation has gained ₦152!
imagine if $1=₦1000, the gain is ₦902!
So in conclusion if the government managed to refund the $trillion looted and the refunded money, change it in parallel market, this will reduce the pressure on ₦ and the scarcity of $ in parallel market so the ₦=$.

(take note all the money took out of CBN during jonathan regime were changed in parallel market before ditributed)

you have other opinion?[/b]

ayemerbarth:
Op u have a point. Imagine some1 travelling to dubai will have to first convert naira to dollars in Lagos airport before changing it to dirhams in Dubai. Why can't Nigeria jst allow a BDC who changes Naira to dirham at MMIA directly. Am speaking from my personal xperience. Only few person travel to America for trade related purpose. If you must pass thru a particular individual before gaining acesss to others in arson ll always feel too important and be proud. I think the dollar has become proud.

who told you that the BDCs do not sell Dirhams?

hopeforcharles:
U my bro have a point, Zimbabwe did that with Yuan and i believe they are better off.

How are they better off? Has their economy improved? The Yuan that you are hailing how much i it does the Chinese keep as reserves compared to dollars?

I like your post, but if buhari attempts to do this, the western powers will unseat him from power. Thats just the truth. I support ur idea, but america may assassinate him covertly without any1 knowing its americas doing.

divineappo:
I like your post, but if buhari attempts to do this, the western powers will unseat him from power. Thats just the truth. I support ur idea, but america may assassinate him covertly without any1 knowing its americas doing.

We are not going to do away with dollar completely but as a 3rd world country with her citizens having low purchasing power, Asia is our best bet to pitch our exchange tent with. Most of the goods brought into this country are mainly from China and India and these people also have a huge presence here so why cant we think smart.

CHANCEMAN:


How are they better off? Has their economy improved? The Yuan that you are hailing how much i it does the Chinese keep as reserves compared to dollars?

You cannot keep your own currency as your reserve and be able to engage in international trade. Your local currency has nothing to do with imports, it is your hard currency which is kept as reserve.

oyinkinola:
[b]....there are very many commentary on depreciation of ₦ nowadays expecially in parallel market, although parallel or black market can be manipulated by the traders, they either do it on their self interest, so those who doesn't beleive in the prosperity of nigeria can harbour $ as they can on imported goods hereby cause hike!
But in my own point of view the depreciation of ₦ is a great success to this nation if well manage to nigeria situation today. the looted fund is in $ and it must be refunded back in $, so if $1 is ₦198 when the money is looted, then if the money is refund today at $1 to ₦350 the nation has gained ₦152!
imagine if $1=₦1000, the gain is ₦902!
So in conclusion if the government managed to refund the $trillion looted and the refunded money, change it in parallel market, this will reduce the pressure on ₦ and the scarcity of $ in parallel market so the ₦=$.

(take note all the money took out of CBN during jonathan regime were changed in parallel market before ditributed)

you have other opinion?[/b]

First and foremost, do you think the FG can recover the so called "$ trillions" intact the way it was stolen? Never! Majority of that sum has passed through different hands and has gone with the wind forever.

Secondly, the FG cannot take dollars to the parallel market when they have banned BDC's. What they will do is add that $trillion to its reserves and the CBN then redistributes into the economy through the commercial banks.