Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 3,143,330 members, 7,780,854 topics. Date: Friday, 29 March 2024 at 12:44 AM

CBN Claims Responsibility For Parallel Market Crash - Business - Nairaland

Nairaland Forum / Nairaland / General / Business / CBN Claims Responsibility For Parallel Market Crash (26779 Views)

Nigeria Naira Appreciates To N364 Per Dollar In Parallel Market / Naira Gains, Dollar Crashes At Parallel Market / Naira Strengthens Further Against Dollar On Parallel Market (2) (3) (4)

(1) (2) (3) (Reply) (Go Down)

CBN Claims Responsibility For Parallel Market Crash by simtosul: 9:32am On Feb 26, 2016
Dollar rebounds, hits N330
THERE are strong indications that the efforts of the Central Bank of Nigeria (CBN) to stabilise the Naira may have started yielding positive results, as the “first test-run” of the measures has hit the speculators.

Top sources at the apex bank who pleaded anonymity, yesterday, said that the deployment of a number of measures by the institution had proved that turning the tide in the forex market is not impossible, especially with the “severe punishment suffered by currency hoarders and speculators” on Wednesday.

It will be recalled that the CBN had said that speculators were behind the market burble, which made a mince-meat of the Naira, sending it crashing to an all-time low of N400 to the dollar.

A source said even though the rates at the parallel market may fall again as speculators may persist, they will only be “gambling” with what is left of Wednesday’s loss, which they will eventually lose with further “strike” from the plans.

The naira’s exchange rate to the dollar had on Wednesday assumed multiple pricing trend at various centres across the country, with the lowest price at N220 to the dollar, while the highest was N300.

“Some parallel market operators revealed that they bought from sellers at the rate of N272 and sold at N295. A good number of the sellers who had suffered huge losses confessed that they had bought at the rate of N380 hoping to sell at N400 before the sudden turn in fortunes,” one of the officials said.

But with the return of speculators to mop up “cheap” dollar at the parallel market yesterday, the exchange rate of the naira to the dollar immediately rose to N330.

The acting President of the Association of Bureau De Change Operators of Nigeria, Alhaji Aminu Gwadabe, said: “Hoarding and speculative activities have returned to the market almost immediately, pushing down the naira’s value again.”

Also, a currency trader said “many people have been asking to buy the dollar today (yesterday), while not many people are coming to sell to us.”

Analysts said the sudden drop was a failed expectation of devaluation, as the Federal Government and the CBN unanimously agreed to resist the pressure, mostly from foreign portfolio investors and their local counterparts.

The Executive Director, Finance, BGL Capital, Femi Ademola, said the recent appreciation may have been response to the persistent advice of the International Monetary Fund (IMF) for the country to adopt a floating exchange rate policy.

By the policy, CBN would remove the peg on the exchange rate, but intervene in the critical sectors of the economy, which would end the struggle for the foreign exchange, as banks would begin to sell at rates determined by market demand.


http://www.ngrguardiannews.com/2016/02/cbn-claims-responsibility-for-parallel-market-crash/

Re: CBN Claims Responsibility For Parallel Market Crash by Aufbauh(m): 9:35am On Feb 26, 2016
DOLLAR = N197

Please let me explain to those of us who don't understand Economic terms. Dollar has not increased since Buhari became president

1. Dollar is not our currency so dollar should not be our business

2. Our problem is not d government but
our problem is our importers and consumers

3. Naira has remained at 197 naira to 1 dollar since Buhari became president

4. Buhari has promised not to devalue the Naira and he has maintained that promise

5. Both at CBN and at interbank rates,
dollar has remained 197

6. However because we are too lazy to produce what we use in Nigeria we import even toothpicks and matches

7. Buhari does not like d importation of luxury goods because luxury goods is d reason for most corruption, that is why he banned 41 products from having access to forex

8. However when Nigerian importers insisted on importing those 41
products, FG asked them to find their dollar at d BDCs parallel market also known as black market

9. And to discourage the pressure Nigerians are mounting on the Naira just to get dollars for importation, CBN banned DMBs from selling dollars to BDCs

10. To survive the pressure of excess
dollar demands, BDCs resorted to sourcing for dollars from neighbouring countries through illicit money laundering routes

11. Because of the risks faced by BDCs to source for dollars, and because of the increase in demand for dollars by importers because China just resumed from their business holidays, BDCs keep increasing the price at which they exchange dollars to naira and now it is 400 Naira to 1 dollars

12. However that does not mean
that govt has changed the exchange rate because if our genuine importers go to CBN and fill Form M to import raw materials for local production, they will get dollars at 197 naira each

13. So the problem is that we love to consume luxury foreign products yet we are too lazy to manufacture them here.

14. For example u will see a dull girl using
iPhone 5 without even knowing simple physics and computer engineering part of how that phone was produced

15. I want Buhari to ban every foreign
product from Nigeria until Nigerians learn to produce and use Made in Nigeria products

16. Let us stop complaining about dollar as if dollar has become Nigeria's currency

17. It is even bad enough that most of those complaining about the high exchange rate of dollar do not have 1 single dollar in their purse.

#Copied.

235 Likes 27 Shares

Re: CBN Claims Responsibility For Parallel Market Crash by Nobody: 9:40am On Feb 26, 2016
ok
Re: CBN Claims Responsibility For Parallel Market Crash by yhemsy62(m): 9:40am On Feb 26, 2016
Re: CBN Claims Responsibility For Parallel Market Crash by GEJ2019(m): 9:41am On Feb 26, 2016
Abegi,governmt of mouth

5 Likes

Re: CBN Claims Responsibility For Parallel Market Crash by Tokety7: 9:43am On Feb 26, 2016
Who cares what greedy criminals do in the parallel market. Left to me below is the real exchange rate.

13 Likes 1 Share

Re: CBN Claims Responsibility For Parallel Market Crash by Interesting15: 9:46am On Feb 26, 2016
Ha

1 Like

Re: CBN Claims Responsibility For Parallel Market Crash by Emekamex(m): 10:08am On Feb 26, 2016
The best way to solve this forex palaver is to find something besides oil to export.

1 Like

Re: CBN Claims Responsibility For Parallel Market Crash by mavinc4u(f): 10:16am On Feb 26, 2016
Tokety7:
Who cares what greedy criminals do in the parallel market. Left to me below is the real exchange rate.

you are very funny because nobody cares about that N199 since they can't buy dollar at that rate. why can't cbn ask bank to sell dollar at N199 to their customers at least that one would make a lot of sense.

29 Likes

Re: CBN Claims Responsibility For Parallel Market Crash by plaetton: 10:20am On Feb 26, 2016
Aufbauh:
DOLLAR = N197

Please let me explain to those of us who don't understand Economic terms. Dollar has not increased since Buhari became president

1. Dollar is not our currency so dollar should not be our business

2. Our problem is not d government but
our problem is our importers and consumers

3. Naira has remained at 197 naira to 1 dollar since Buhari became president

4. Buhari has promised not to devalue the Naira and he has maintained that promise

5. Both at CBN and at interbank rates,
dollar has remained 197

6. However because we are too lazy to produce what we use in Nigeria we import even toothpicks and matches

7. Buhari does not like d importation of luxury goods because luxury goods is d reason for most corruption, that is why he banned 41 products from having access to forex

8. However when Nigerian importers insisted on importing those 41
products, FG asked them to find their dollar at d BDCs parallel market also known as black market

9. And to discourage the pressure Nigerians are mounting on the Naira just to get dollars for importation, CBN banned DMBs from selling dollars to BDCs

10. To survive the pressure of excess
dollar demands, BDCs resorted to sourcing for dollars from neighbouring countries through illicit money laundering routes

11. Because of the risks faced by BDCs to source for dollars, and because of the increase in demand for dollars by importers because China just resumed from their business holidays, BDCs keep increasing the price at which they exchange dollars to naira and now it is 400 Naira to 1 dollars

12. However that does not mean
that govt has changed the exchange rate because if our genuine importers go to CBN and fill Form M to import raw materials for local production, they will get dollars at 197 naira each

13. So the problem is that we love to consume luxury foreign products yet we are too lazy to manufacture them here.

14. For example u will see a dull girl using
iPhone 5 without even knowing simple physics and computer engineering part of how that phone was produced

15. I want Buhari to ban every foreign
product from Nigeria until Nigerians learn to produce and use Made in Nigeria products

16. Let us stop complaining about dollar as if dollar has become Nigeria's currency

17. It is even bad enough that most of those complaining about the high exchange rate of dollar do not have 1 single dollar in their purse.

#Copied.

My friend, stop deluding yourself and deceiving others.

The exchange rate is whatever obtains at the open Market, which today, is N330, certainly not N197.

N197 is the subsidized rate. Government subsidizing fraud and robbery.

No matter what ad-hoc measures the CBN might be politically motivated to adopt to shore up the Naira in this short term, it will be very costly to the economy in the medium and long term.

No nation in the world wages a war against exchange rate gravity and comes better for it. None whatsoever.

51 Likes 8 Shares

Re: CBN Claims Responsibility For Parallel Market Crash by Motherfucker2: 1:06pm On Feb 26, 2016
Why can't they blame Buhari ??
Oh, he will fire them ??

I wish $1 would exchange for 9,000 naira

2 Likes

Re: CBN Claims Responsibility For Parallel Market Crash by truthspeaks: 1:06pm On Feb 26, 2016
Ok
Re: CBN Claims Responsibility For Parallel Market Crash by repogirl(f): 1:07pm On Feb 26, 2016
Good for them
Re: CBN Claims Responsibility For Parallel Market Crash by Nobody: 1:08pm On Feb 26, 2016
Now that dollars is going up again, will they accept responsibility? Confused people!

5 Likes 1 Share

Re: CBN Claims Responsibility For Parallel Market Crash by bolt000(m): 1:09pm On Feb 26, 2016
this cbn is not serious ooh. tongue tongue
Re: CBN Claims Responsibility For Parallel Market Crash by qualityovenbake(m): 1:09pm On Feb 26, 2016
Ok
Re: CBN Claims Responsibility For Parallel Market Crash by femimike1(m): 1:09pm On Feb 26, 2016
undecided lubbish
Re: CBN Claims Responsibility For Parallel Market Crash by Sunnycliff(m): 1:09pm On Feb 26, 2016
Everyone is good and fast in admitting success but none wants to take responsibility for failure just like APC and the GEJ blame syndrome!

8 Likes

Re: CBN Claims Responsibility For Parallel Market Crash by 2sex(m): 1:09pm On Feb 26, 2016
mavinc4u:


you are very funny because nobody cares about that N199 since they can't buy dollar at that rate. why can't cbn ask bank to sell dollar at N199 to their customers at least that one would make a lot of sense.
my sister that is the same question i have been asking and yet no body has been able to give us an answer

1 Like

Re: CBN Claims Responsibility For Parallel Market Crash by Originality007: 1:10pm On Feb 26, 2016
Aufbauh:
DOLLAR = N197

Please let me explain to those of us who don't understand Economic terms. Dollar has not increased since Buhari became president

1. Dollar is not our currency so dollar should not be our business

2. Our problem is not d government but
our problem is our importers and consumers

3. Naira has remained at 197 naira to 1 dollar since Buhari became president

4. Buhari has promised not to devalue the Naira and he has maintained that promise

5. Both at CBN and at interbank rates,
dollar has remained 197

6. However because we are too lazy to produce what we use in Nigeria we import even toothpicks and matches

7. Buhari does not like d importation of luxury goods because luxury goods is d reason for most corruption, that is why he banned 41 products from having access to forex

8. However when Nigerian importers insisted on importing those 41
products, FG asked them to find their dollar at d BDCs parallel market also known as black market

9. And to discourage the pressure Nigerians are mounting on the Naira just to get dollars for importation, CBN banned DMBs from selling dollars to BDCs

10. To survive the pressure of excess
dollar demands, BDCs resorted to sourcing for dollars from neighbouring countries through illicit money laundering routes

11. Because of the risks faced by BDCs to source for dollars, and because of the increase in demand for dollars by importers because China just resumed from their business holidays, BDCs keep increasing the price at which they exchange dollars to naira and now it is 400 Naira to 1 dollars

12. However that does not mean
that govt has changed the exchange rate because if our genuine importers go to CBN and fill Form M to import raw materials for local production, they will get dollars at 197 naira each

13. So the problem is that we love to consume luxury foreign products yet we are too lazy to manufacture them here.

14. For example u will see a dull girl using
iPhone 5 without even knowing simple physics and computer engineering part of how that phone was produced

15. I want Buhari to ban every foreign
product from Nigeria until Nigerians learn to produce and use Made in Nigeria products

16. Let us stop complaining about dollar as if dollar has become Nigeria's currency

17. It is even bad enough that most of those complaining about the high exchange rate of dollar do not have 1 single dollar in their purse.

#Copied.
hope u are not refering to me. angry angry angry

5 Likes

Re: CBN Claims Responsibility For Parallel Market Crash by mondob2k(m): 1:11pm On Feb 26, 2016
CBN claims responsibility like say na terrorist attack.... Let them do their job jare.

4 Likes

Re: CBN Claims Responsibility For Parallel Market Crash by Nobody: 1:12pm On Feb 26, 2016
An economy being tossed like a ship without sail, Trial and Error approach to economic stabilization: This is what you get when you have a semi-literate head of government who insists on tyrannical and crude approach to governance. Thankgod he has yielded to superior reasoning and 'plans' to convene an economic summit to listen to better informed Nigerians since his economic team is made up of fellow dunces like him.
When we try to talk and point things out, his foot soldiers here who have also eaten Aisha's rice would come out, taking offence, even being more tyranical than their paymaster. They tried to bury us, they didn't know we're seeds, they tried to drown our voice, they didn't know we speak with the wind.

8 Likes

Re: CBN Claims Responsibility For Parallel Market Crash by TechWalker007: 1:13pm On Feb 26, 2016
Tokety7:
Who cares what greedy criminals do in the parallel market. Left to me below is the real exchange rate.

I hope you know this was the exchange rate when GEJ was in office and APC printed billboards and were on TV blasting him for Naira crash using black market rate?

13 Likes 2 Shares

Re: CBN Claims Responsibility For Parallel Market Crash by Bevista: 1:13pm On Feb 26, 2016
There is a limit to how CBN can use rhetorics to shore up the value of the Naira. It is usually successful when speculators are buying strengthening your currency but you prefer it devalued. In that case, you can simply print Naira and buy as much dollars as possible to weaken the Naira. But a case where you want to strengthen the Naira, where do you get plenty dollars to sell. You can't print dollars, so you are constrained.
---
I suspect that the CBN may soon bow to pressure and allow the Naira to be devalued by a few basis points - say N220/$.
Re: CBN Claims Responsibility For Parallel Market Crash by megama: 1:14pm On Feb 26, 2016
mavinc4u:


you are very funny because nobody cares about that N199 since they can't buy dollar at that rate. why can't cbn ask bank to sell dollar at N199 to their customers at least that one would make a lot of sense.
yesss
Re: CBN Claims Responsibility For Parallel Market Crash by techmart(m): 1:14pm On Feb 26, 2016
God help us
Re: CBN Claims Responsibility For Parallel Market Crash by chuose: 1:15pm On Feb 26, 2016
Bi
Re: CBN Claims Responsibility For Parallel Market Crash by Kx: 1:15pm On Feb 26, 2016
OIL Oil,oil oil oil!!!!
The countries that dont have oil but still maintain and sustain their currency valuation over time, how come the value of their local currencies against the dollar is not experiencing what naira is going through?

Excessive importation, greed and speculative activities is the bane of our naira, not fall in intl price of crude.

Its a shame that we blame God's gift in the form of oil as the beginning and end of our problem instead of blaming poor leadership and management of the proceeds of the natural resources.

7 Likes

Re: CBN Claims Responsibility For Parallel Market Crash by TechWalker007: 1:15pm On Feb 26, 2016
Aufbauh:
DOLLAR = N197

Please let me explain to those of us who don't understand Economic terms. Dollar has not increased since Buhari became president

1. Dollar is not our currency so dollar should not be our business

2. Our problem is not d government but
our problem is our importers and consumers

3. Naira has remained at 197 naira to 1 dollar since Buhari became president

4. Buhari has promised not to devalue the Naira and he has maintained that promise

5. Both at CBN and at interbank rates,
dollar has remained 197

6. However because we are too lazy to produce what we use in Nigeria we import even toothpicks and matches

7. Buhari does not like d importation of luxury goods because luxury goods is d reason for most corruption, that is why he banned 41 products from having access to forex

8. However when Nigerian importers insisted on importing those 41
products, FG asked them to find their dollar at d BDCs parallel market also known as black market

9. And to discourage the pressure Nigerians are mounting on the Naira just to get dollars for importation, CBN banned DMBs from selling dollars to BDCs

10. To survive the pressure of excess
dollar demands, BDCs resorted to sourcing for dollars from neighbouring countries through illicit money laundering routes

11. Because of the risks faced by BDCs to source for dollars, and because of the increase in demand for dollars by importers because China just resumed from their business holidays, BDCs keep increasing the price at which they exchange dollars to naira and now it is 400 Naira to 1 dollars

12. However that does not mean
that govt has changed the exchange rate because if our genuine importers go to CBN and fill Form M to import raw materials for local production, they will get dollars at 197 naira each

13. So the problem is that we love to consume luxury foreign products yet we are too lazy to manufacture them here.

14. For example u will see a dull girl using
iPhone 5 without even knowing simple physics and computer engineering part of how that phone was produced

15. I want Buhari to ban every foreign
product from Nigeria until Nigerians learn to produce and use Made in Nigeria products


16. Let us stop complaining about dollar as if dollar has become Nigeria's currency

17. It is even bad enough that most of those complaining about the high exchange rate of dollar do not have 1 single dollar in their purse.

#Copied.

Suddenly it's now the fault of Nigerians that Naira is crashing?
But when it crashed to N197 under GEJ it was GEJ's fault?
Even though we know GEJ pushed for local content in automobile, agriculture and even oil sector.
Zombies keep deceiving zombies

19 Likes 3 Shares

Re: CBN Claims Responsibility For Parallel Market Crash by dunkem21(m): 1:15pm On Feb 26, 2016
So no be fall in oil price again
Re: CBN Claims Responsibility For Parallel Market Crash by 989900: 1:18pm On Feb 26, 2016
The xchange rate is a"developing story".

I see 'speculators' getting burnt though.


#fingerscrossed

1 Like

(1) (2) (3) (Reply)

My Experience After Serving My Oga For 7years Including My Gain And Loss / See Today's Naira Exchange Rate / Naira Firms On Black Market After Central Bank Action - BDC Traders

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 54
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.