wheesin:
how is this new ? Still looks like the miserable exchange rate i saw last week.
Today, I went to the cafe to buroaws, Just to purchase 1 hour to chat with my Facebook babes, I had to pay #150 from the normal #100. Which kin economy is this ? Tomtom 1 for #10, purewater 1 for #10, even coconut biscuit of GEJs era for #5 is now #15 for 2. I hate this, I swear. The BARBER is really giving the economy a low cut from the Afro that GEJ left for us
I have been against the dullard since 2007 elections and I am still against him, He is too dull to rule, too dull.

P.S : I am the official First to Commenter, Forget the mischievous OP on top of Me.

musicwriter:


The exchange rate will keep getting better and better as long as the Buhari government keep doing their homework well and show no sign of accepting IMF and world bank loan. Eventually, the Naira would come back to around N220 to $1, naturally.

In fact, if we put our feet on the accelerator and speed up our economy, the Naira could trade back to N150 to $1 over some years.

This's what scares the IMF and world bank, cause our model for solving this economic crises would become an inspiration to other third world countries to by-pass the IMF and world bank predatory loans.

donphilopus:
When it was within 320 - 321, we saw how a set of people usually flood here to jubilate over it. Today, it's 317 now and hopefully it would go down to 250 before the 2nd half of the year.

Oh ye celebrants of bad news, flood this thread and celebrate this as well!

grandstar:


You are praising hubris. Soludo, Sanusi and Utomi have all condemned Buhari's statist policies.

The naira will crash to 400 within 2 years if this expansionary budget is passed because it will flood the economy with lots of naira.

Instead of him to devalue the naira officially which will make it fall to around 250 at the black market, he is still being obstinate.

Are you ready to sell dollars at 197? Are you happy when you receive your WU at 197? Don't you think its cheating? Then why are you supporting Buhari's policies? You are focusing on the man's integrity. You should focus more on his policies. They are a complete disaster.

Look at the petrol scarcity for instance. The primary problem is 3 fold:

1. There is no forex for private marketers to import fuel to augment government efforts.

2. The government's refusal to fully deregulate the price of petrol as advised by Kachickwu

3. The collapse of the naira at the black market means that the price of petrol is super cheap in CFA prices across the borders. The CFA always retains its value because it is tied to the Euro at 500 CFA to 1.

So lets say, the price last year was N87 last year April, that is 44.16cents

At N87 today, at 317, it is 27.44

That means it is super lucrative to smuggle the fuel across borders. It also means that the true cost of subsidy borders on the ridiculous. That means the subsidy may be as much as 25 cents per litre which times 40 million litres is $10m a day. This is unsustainable. The fuel scarcity will plague the country throughout this administration. This is the plain truth if reforms are not carried out.

wheesin:
how is this new ? Still looks like the miserable exchange rate i saw last week.
Today, I went to the cafe to buroaws, Just to purchase 1 hour to chat with my Facebook babes, I had to pay #150 from the normal #100. Which kin economy is this ? Tomtom 1 for #10, purewater 1 for #10, even coconut biscuit of GEJs era for #5 is now #15 for 2. I hate this, I swear. The BARBER is really giving the economy a low cut from the Afro that GEJ left for us
I have been against the dullard since 2007 elections and I am still against him, He is too dull to rule, too dull.

P.S : I am the official First to Commenter, Forget the mischievous OP on top of Me.

wheesin:
how is this new ? Still looks like the miserable exchange rate i saw last week.
Today, I went to the cafe to buroaws, Just to purchase 1 hour to chat with my Facebook babes, I had to pay #150 from the normal #100. Which kin economy is this ? Tomtom 1 for #10, purewater 1 for #10, even coconut biscuit of GEJs era for #5 is now #15 for 2. I hate this, I swear. The BARBER is really giving the economy a low cut from the Afro that GEJ left for us
I have been against the dullard since 2007 elections and I am still against him, He is too dull to rule, too dull.

P.S : I am the official First to Commenter, Forget the mischievous OP on top of Me.

wheesin:
how is this new ? Still looks like the miserable exchange rate i saw last week.
Today, I went to the cafe to buroaws, Just to purchase 1 hour to chat with my Facebook babes, I had to pay #150 from the normal #100. Which kin economy is this ? Tomtom 1 for #10, purewater 1 for #10, even coconut biscuit of GEJs era for #5 is now #15 for 2. I hate this, I swear. The BARBER is really giving the economy a low cut from the Afro that GEJ left for us
I have been against the dullard since 2007 elections and I am still against him, He is too dull to rule, too dull.

P.S : I am the official First to Commenter, Forget the mischievous OP on top of Me.

donphilopus:
When it was within 320 - 321, we saw how a set of people usually flood here to jubilate over it. Today, it's 317 now and hopefully it would go down to 250 before the 2nd half of the year.

Oh ye celebrants of bad news, flood this thread and celebrate this as well!

donphilopus:
When it was within 320 - 321, we saw how a set of people usually flood here to jubilate over it. Today, it's 317 now and hopefully it would go down to 250 before the 2nd half of the year.

Oh ye celebrants of bad news, flood this thread and celebrate this as well!

wheesin:
how is this new ? Still looks like the miserable exchange rate i saw last week.
Today, I went to the cafe to buroaws, Just to purchase 1 hour to chat with my Facebook babes, I had to pay #150 from the normal #100. Which kin economy is this ? Tomtom 1 for #10, purewater 1 for #10, even coconut biscuit of GEJs era for #5 is now #15 for 2. I hate this, I swear. The BARBER is really giving the economy a low cut from the Afro that GEJ left for us
I have been against the dullard since 2007 elections and I am still against him, He is too dull to rule, too dull.

P.S : I am the official First to Commenter, Forget the mischievous OP on top of Me.

Evergreen4:
We are yet to see and feel the effect of the Nigeria-china deal. #317 to 1$ is still too high.

musicwriter:


First of all, I'm no Buhari supporter. As a matter of fact, I'm apolitical and don't trust any politician.

Soludo, Sanusi and Utomi, just like you have only economic theories to offer. Theories are mere models and doesn't solve real life problem as we have it now, because there're so many variables at play. Put Soludo, Sanusi, Utomi. at Aso Rock and we'll be in same crises.

You are wrong on this. The economy was in much better shape when they were around. The economy was growing by an average of 7% a year despite some hiccups such as in 2009 when the price of oil collapsed to $35 from $148 in 2008. The crisis the economy is facing is due to the senseless peg of the currency to the dollar by Buhari.

Of course, you don't understand Ms. Christine Lagarde is only trying to do business, and not here to help anybody. Slavery began that way!. White people began from subtle commodity trade with our ancestors, and before anybody knew what was going on it had turned to slave trade. We went from commodity trade to slavery because they African people among us who offered no resistance to imperialism.

People misunderstand the IMF. No country likes to be a candidate of the IMF, none.

Britain in the late 1970's was one and it quickly paid off its loan to get out of its claws. Ireland turned to the IMF in 2010 and was quick to dispose of its loan to escape its claws as well.

If you personally are under financial crisis caused by a collapse in income, painful sacrifices will be made to make yourself solvent. Its the same for a country.

Devaluation is the solution to our economic problem!. Neither the IMF nor world bank hold solution to our problem. Even if they knew the solution to our problem they would not tell us. Because, telling us solution to our problem would put them out of business. Simply because they're like banks. They're not charity organizations, they're businesses giving loan to make profit. If we stop taking loans from them, they'll not make money!.

The Bretton Wood sisters are not a business. They were set up to rescue the world's economic system. They have nothing to gain from your economy collapsing.

We don't manufacture anything that's the root cause of our problem. If we solve our electricity problem and do other things right, the Naira would bounce back to N150 per $1, naturally.

The naira can never touch 150! Never! What parameters are you basing it on? Even if we had surplus electricity and we were exporting. It is a stretch.

Stop taking white people at face value!. We've worked with IMF and world bank in the 80's during IBB regime. But, it didn't end well. Both the IMF and world bank told us the devalue our currency and the Naira went from around N15 per $1 to about N90 per $1 within 8 years!. That was the beginning our economic woes in this country. Only a fool will keep repeating same thing and expect a different result.

The IMF was not the cause of the sinking naira value during IBB's regime. IBB was extremely reckless with government's funds and was running massive deficits which were highly inflationary and was the primary cause of the ever depreciating naira. IBB even resorted to printing money.The IMF had no hand in it. The IMF always recommends small budget deficits. It criticised the recent budget becuase of the excessive cost of servicing it.The initial devaluation of the naira in 1986 was that of the IMF and it was necessary as the officla rate then was $1=1 but was like N4 at the black market. The difference should never be more than 3% . That is a super strong signal for a devaluation. Once that devaluation was done, agriculture started reviving especially cocoa exports and many factories as well.


It's even better we fail with China than to fail with the same people that've been exploiting us since 1425. Let's try something new my brother.

Finally, one problem with your school of thought is that you people seem not to understand whether we devalue the Naira or not, there're disadvantages.

Devalue the Naira- there're disadvantages that come with it.
Don't devalue the Naira- there're disadvantages that come with it.

Devaluation must be determined by market forces and not by what I, you or the IMF likes. The advantages of devaluation at this point are immense. Any disbenefit is miniscule. The artificial scarcity caused by a refusal to devalue is devastating the economy.

Devaluing the Naira would benefit western nations than Nigeria, that's the problem. So, what president Buhari has done is that he took the least bad option.

How will devaluation benefit Western nations? By devaluing you make their goods more expensive in your country limiting importation.

Your currency depreciate naturally when your forex revenue nosedives and appreciates when it increases. It is due to market forces. A devaluation on the other hand occurs when the government orders a depreciation of the currency. This usually occurs when the government does not have enough forex to defend the present rate. Buhari does not have enough forex to defend the current rate yet he refuses to devalue? Makes no sense. The IMF does not have to tell you these things. They are found in economics textbooks.

See disadvantages of the IMF at http://www.africason.com/2016/04/disadvantages-of-imf-international.html