Wonderboy1:
What is the essence of him travelling to China to sign a memorandum when he knows that he will still do this.....Nigeria which way??

Check my signature...

What do u even know dat they are doing. If I ask u to summarise all dat is written there now I bet u wudnt know jack

Exactly the sentiments I share. In UK and US, there is efficiency in the financial markets in that they are well regulated and there is no insider trading! We are in Nigeria, where is the efficiency and regulation strictly enforced in the financial markets even if they exist! Adeosun has brought her British experience here but unfortunately, I cannot see how this will not lead to greediness, insider trading and an increase in the amount of naira we have to pay to get a dollar even if it means that fx will be avaiable everywhere! Fine, fx will b everywhere like fuel but we will have to pay more! Are we not paying aalmost double for fuel now? By the way, is there a cap on the fx exchange rates? If not, this is the most silly decision ever and Buhari should not be elected for second term! These economists and all the other analysts are just there for the mention, imo!

This is Nigeria not UK/US! Have you ever tried investing in shares in Nigeria? All the stock-brokers, insurance companies and PFAs be spending pple's hard-earned income on junk shares and then they charge you for commission and management fees only to give you peanuts for dividends even after 20years of investing! I am not talking about company-run share scheme here!


Buhari and his ministers are just full of garbage! Why cant we peg our currency and make it readily available? How difficult is that?
Can you just imagine paying 400# for one dollar?


Personally, if I were to start working in Nigeria, I would prefer a lump-sum gratuity to pension! I would rather invest my pension contribution in property! I am dead-serious and I am not even kidding you at all! If I dont have that option, I would ask for a lump-sum amount to be paid to me from my pension contribution immediately upon retirement (this is allowed in UK!) and then allow the rest to b annuitised!

macherie1:
And the plot thickens. Why would CBN throw everyone to the interbank market when we know banks are only after the profit? In a country with so many greedy people like Nigeria, competiton rarely puts downward pressure on prices. The implication of this is that the rate of dollar will rise astronomically in the coming weeks since a very high demand has been automatically placed on greedy Nigerian banks. Wether the rate will decrease anytime soon is unknown.

Oga Bubu sef

idupaul:


Same thing you said about fuel and electricity

@FREDN, why do you think the price will first rise before it comes down?

Now, we are getting somewhere. I have said it long before now, the government has no business fixing the price of things generally. Things should be allowed to be determined by the law of demand and supply. I can say to everybody who cares to listen that, finally, we have a government who has the balls to curb all the in appropriate way of doing things which we have found our self.
The basic implication of this is, the naira will simply be priced at its original value and not speculative which has been the other. Value of goods and services will definitely be priced at a fair exchange rate determined by what level of dollar is in circulation and on how much each is ready to buy and sell. this will connect us to the international market.

My only concern is the practice of the CBN when it comes to the sharing of proceed. Henry Boyo gave a very good analysis of this abnormality. States should be given their part in the same currency in which the proceed is made. Here is assuming that the state in turn will go straight to the market to seek exchange. This will lead to an increase in the amount of dollar in circulation thereby, reducing its value. This is a sharp contrast to the CBN collecting the proceed in Dollars or other currency, and printing Naira. what this does is the make dollars scares thereby increasing its value against the Naira.
To my Aboki friends, you guys should better go look for another job.

Thanx.. But Will d CBN put up a ceiling to d exchange rate d bank will adopt? .

lafuria1:


Each bank will tell you, by Monday we will know, the good thing is no difference between the bank and the aboki BDC, you probably will go to where it's cheaper. No short term benefits now, long term is Naira will be stable and might come down because some might decide to sell their dollars cheaper, competition for customers.

The policy is aimed at saving the economy in general at this moment and not to make the exchange rate go down immediately.

I really don't understand wot this is all about I wish I can print original dollars in my house

truthspeaks:
e pain am. Evry1 ain't like zombies. I understand evry bit of wats written thr n it simply means devaluation of d naira. D word wasn't used so as to save ur bubu's face. Or probably if we r wrong y not prove us right if u r so intelligent to engage in such conversation. Dundi olodo

I have reported u

I think the lady in charge of economy and his CBN boss is nothing but just a financial learners. No wonder our society has been littered with hardship and hunger, commoner can't even put amala and Egusi for table all commodities price have risen skyrocketly. Which way my people? CBN is now a financial teaching centre for Madam Olodo from Ogun state. Buhari is a great disaster to our noble country.

I suggest the CBN, APC and Buhari return to the pre-election forex policy era.

With this new policy they created today,
a continuous high demand for the dollar would only
lead to a weaker Naira.

What is difficult to simply devaluing the Naira to a much sustainable level and
back it up regularly by selling dollars to BDC, importers, Banks or the dutch auction system.
I don't want to hear we don't have enough foreign reserves.

If the CBN create the right policy which they know how to do,
Black market rate for the dollar should not exceed N260-280

Unfortunately, some highly placed cabals are benefiting from
round tripping and forex arbitrage.

Nigeria was never a Country!

I think the lady in charge of economy and his CBN boss is nothing but just a financial learners. No wonder our society has been littered with hardship and hunger, commoner can't even put amala and Egusi for table all commodities price have risen skyrocketly. Which way my people? CBN is now a financial teaching centre for Madam Olodo from Ogun state. Buhari govt is a great disaster to our noble country.

I am still searching for the implications in the write up.

designking:
Nice move!

This government is really focused and plans deeply. You don't make forex policies by using sample data from very long past time frame. The best way to build a true forex system is to put out a strategy(demo) and test it against the current market fundamentals over a period of time; then re-access your system, adjust or approve it for full scale(live) use.

What this government has done is opening the Naira for real trading, creating more investors confidence, better volatility and liquidity. This will surely place the Nigeria economy ahead of most Africa economies.

please can you explain what confidence this regime has instilled in investors? I don't see any with virtually all of them leaving Nigeria.

Odani:


What do u even know dat they are doing. If I ask u to summarise all dat is written there now I bet u wudnt know jack

Mr. Kachikwu, please explain to us....

Nuahall2k14:
How much Will banks then be charging wen one is withdrawing from ATM abroad. Which xchange rate Will they be using?

find out by Monday.

Temmytea70:




Park well johr... .. Wey i don dey think say u wan break am down for me

hotdi:


There is right time for everything. The right time is now.
Point of correction, this is not Naira devaluation he rejected.

What is it ?

repogirl:
CBN will not fix the price at N197 but will allow the demand for the forex determine what the exchange rate will be.

So what with the market determinants be? where will the price land?

Please forgive me cos and not an economist/ financial expert, but this policy sounds like the exchange rate would now be determined by forces of demand and supply in conjunction with the parallel market, while the Government sit and watch the whole thing.
I was thinking govt. Would have shifted their goal post from 199 to act 280-300 and watch the parallel market rate crash down to govt. Price, then after sometimes, govt. Can move it down further and so on.
But what am seeing now look like leaving us in the hands of parallel market operator in the name of flexibility.
Can a financial analyst or an economist help me out on how this will work and benefit us the common man.

still havent seen the " implication for you and i" .... pls break down so it will make some sense

Pavore9:


Whatever it ends up at will not bother me because am linked to local production and export earning FX.

How about your raw materials and machinery?

GreatEngineer:
Please forgive me cos and not an economist/ financial expert, but this policy sounds like the exchange rate would now be determined by forces of demand and supply in conjunction with the parallel market, while the Government sit and watch the whole thing.
I was thinking govt. Would have shifted their goal post from 199 to act 280-300 and watch the parallel market rate crash down to govt. Price, then after sometimes, govt. Can move it down further and so on.
But what am seeing now look like leaving us in the hands of parallel market operator in the name of flexibility.
Can a financial analyst or an economist help me out on how this will work and benefit us the common man.

U need no more explanation

The only advantage of this new policy that I can see is increased foreign investments! My problem exactly is that the disadvantages far outweigh the advantages for Nigerian citizens who reside in Nigeria and earn NGN.
It's a free-for-all market now so fx "SHOULD" be easily accessible ! The prices of the things will definitely increase and it will snow in hell if there is no cap on it!

GreatEngineer:
Please forgive me cos and not an economist/ financial expert, but this policy sounds like the exchange rate would now be determined by forces of demand and supply in conjunction with the parallel market, while the Government sit and watch the whole thing.
I was thinking govt. Would have shifted their goal post from 199 to act 280-300 and watch the parallel market rate crash down to govt. Price, then after sometimes, govt. Can move it down further and so on.
But what am seeing now look like leaving us in the hands of parallel market operator in the name of flexibility.
Can a financial analyst or an economist help me out on how this will work and benefit us the common man.

blackpanda:


I have reported u

Meringe:
In all sincerity, this CBN gov is the worst so far. Under his care, naira lost 100% value in the market. How can you justify that? His actions caused most of this wahala, not necessarily the fundamentals. In short, the actions of this govt caused this wahala. Policy somersault is a very dangerous one. You don't go on experience tour with the lives of 200 million Nigerians.
In the height of militancy and economic meltdown, Soludo and Sanuisi managed the situation respectively.


The much i expected the dollar to naira is 220 at low price of crude oil.


Conclusion : They economy management team are serious learners.

And your president is....
Who appointed the economic team?
I bet he's absolved of all the blame

jinglesbaby:
Exactly the sentiments I share. In UK and US, there is efficiency in the financial markets in that they are well regulated and there is no insider trading! We are in Nigeria, where is the efficiency and regulation strictly enforced in the financial markets even if they exist! Adeosun has brought her British experience here but unfortunately, I cannot see how this will not lead to greediness, insider trading and an increase in the amount of naira we have to pay to get a dollar even if it means that fx will be avaiable everywhere! Fine, fx will b everywhere like fuel but we will have to pay more! Are we not paying aalmost double for fuel now? By the way, is there a cap on the fx exchange rates? If not, this is the most silly decision ever and Buhari should not be elected for second term! These economists and all the other analysts are just there for the mention, imo!

This is Nigeria not UK/US! Have you ever tried investing in shares in Nigeria? All the stock-brokers, insurance companies and PFAs be spending pple's hard-earned income on junk shares and then they charge you for commission and management fees only to give you peanuts for dividends even after 20years of investing! I am not talking about company-run share scheme here!

Buhari and his ministers are just full of garbage! Why cant we peg our currency and make it readily available? How difficult is that?
Can you just imagine paying 400# for one dollar?

Personally, if I were to start working in Nigeria, I would prefer a lump-sum gratuity to pension! I would rather invest my pension contribution in property! I am dead-serious and I am not even kidding you at all! If I dont have that option, I would ask for a lump-sum amount to be paid to me from my pension contribution immediately upon retirement (this is allowed in UK!) and then allow the rest to b annuitised!

I don't think a lot of them understand the implications of this idiotic policy. What other emerging economy that's unstable and heavily dependent on one commodity, that also has its problems with militants, operates a pure float monetary system? It's not even managed float - it's pure free float with market forces determining the value based on demand/supply.

The economic theorists who read utter nonsense and think you can apply just every economic theory to whatever clime, without doing proper feasibility study are already lauding this idiocy of throwing a very weak currency to the wolves. It will dawn on them when hyper-inflation hits the unstable economy and the naira becomes toilet paper. They might as well start planning to adopt the dollar as the future currency of Nigeria lol. I see a default on the horizon.

Regardless, you can't blame Adeosun cos she was outspoken against everything the IMF tried to sway the government to implement this policy. Blame her superiors who most likely cut a deal somewhere.

Nuahall2k14:
Thanx.. But Will d CBN put up a ceiling to d exchange rate d bank will adopt? .

No they won't because it will end up creating a parallel market which will defeat the goal of floating.

The fear is the banks can decide to sell at 500 naira to a dollar but you see the fixed rate of 199 naira per dollar didn't stop the rate to go as high as 350 naira per dollar. Nevertheless, there are guidelines to mitigate against greed stoping the banks from exploiting the system.

The one major reason we are floating is because our reserve is going down and we can't keep depleting the reserve to fix the naira, and as you can see its not working, the black market are winning. We are no more getting dollars as we usually are due to fall in oil prices.

Fingers cross to see how the banks and BDC react when the policy kicks in on Monday. I'm curious as to how much CBN will sell to banks or let me say how will banks source for forex.

Super Explanation..

agitator:



1. CBN go sell dollars to the banks for market price. In other words cbn to find out wetin aboki dey sell then sell close to that price.

2. Dem go create new set of dealers wey go dey between the CBN and banks.

3. If Hilary Clinton won bring money come start akara business for 9ja, the new set of dealers go buy the dollars from her then sell to banks at the market rate she ready to sell. before she go transfer the money come then bank go give her N199 naira for $1 but when she want to take any money out, banks go sell $1 for N330. (before this 1 na real 419 na-im make oyibo no gree come do business for 9ja)

4. People wey dey export goods like starch, garri, palmwine go fit buy dollar if dem need am for the price wey bank dey buy from each other. before banks dey show how much dem ready to buy dollars and how much dem dey sell, but when bank want to buy from another bank, the bank dey remove small for the other bank so dem fit make small gain too.

5. the 41 items we federal government bin ban still remain ban. Pesin no fit buy dollar for the price CBN or their dealers dey sell to bank to order for these item. but no wahala because the price difference no go much maybe between $2~$5. So this one no get real meaning.

6. You fit pay for dollars then in future collect you dollars for the rate of that day. Example today na 14 Jun and if dem day sell dollar N350 you fit pay for am then for September if dollar dey sell for N450, you go still collect the dollar for N350, this one be like saving you dollars.

jpphilips:




What has this got to do with the subject? you see why Buhari is justified to call you anything anywhere because your brain is still on hire purchase, NONSENSE!!

so can you break it down for people to understand?

Nawa for Naija economics o..

They shld keep playing gamble with our currecncy..

designking:

The naira has never been rightly valued. You can't just determine the value of a currency by politically pronouncing a value. The true price of a currency should always be determined by the forces of demand and supply (True Market).

The current government is setting things right, and that may mean taking us back to the fundamentals or foundations, which is usually a lower state or starting stage.

Many stats, ratings and figures previously bandied about by past governments are mostly fictitious and fraudulent.

How Will This Affect You and I

Dollar is not our national currency, there is too much attention given to dollar because of the make-shift value attached to it. Our politicians spends dollars and stockpile their funds in dollar because they believe it is scarce and heavily hoarded. With a very volatile and liquid forex market, you wouldn't want to keep your funds in dollar if you are not an FX trader, because it becomes ever changing with the tick of the second. You can lose a sizable percentage of your income if you keep your funds in dollars.

The CBN don't protect the dollar but the naira, but improving trade balance, the dollar will gradually weaken and find a base price, that is stable and regular.

Our economy is determined by the price of Dollars. It's the only international curency we trade in.for now.our budget is based on Dollars. Some of us earn in Dollars.
I have pounds but x change to dollars makes more sense to me.The Nigerian economy is not matured enough to through us at the mercy of the Banks. They are mega greedy. Who will co trolley them efficiently. I can't go to China to buy goods for my warehouse cos of unsteady dollars in Nigeria.

joseph1013:
After crashing the economy with his stubbornness, Buhari goes back to his vomit and does the same thing he swore not to do, both on local and international media.

May we not be cursed with leaders whose egos are bigger than their love of the common good of the masses.

He didn't change Jonathan's CBN Governor and policy because we had a shock to absorb. I believe the CBN team has tried and it's for that reason Naira didn't reach 800 to a Dollar like I predicted in early 2015. This came at the right time.