lafuria1:

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.

LordIsaac:
Did anyone observe that non of our so called economists and accountants could break the simple theory down to a lay man.....Yet, if you asked them, they'd say they graduated from Covenant with a first class!!

Vessi:


Wonderful international politics. What caused the emergence of Eastern Libya as an independent state?

erico2k2:

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.

wolextayo:
God will see us through. How I wish I can be the president, I'll kill all the so called leaders and start afresh. This country! O ti su mi

designking:

With the flexible FX market regime, sourcing your dollar for your export activities will no longer be an headache.

erico2k2:

U need no more explanation

2sexycom:
So what with the market determinants be? where will the price land?

naijamd:
After wasting billions of dollars worth of our foreign reserves defending an artificial rate, Bubu goes back and shallows his vomit

yusufu16:
I think there is light at the end of the tunnel.

jinglesbaby:

Yeah but at almost double the present rate! Is that not another headache that we have created because salary will still remain the same but we have to spend more!

Guyman02:
I want to digress to Libya Central bank from our own CBN as international economic politics also has effects on our policies.

How many people here know that Libya now has 2 currencies and 2 Central banks in Tripoli and Tobruk with 2 different governments since after Nato backed regime change?.
The Central bank in Eastern Libya has its Dinar now printed in Moscow Russia (recognized by Russia and China) while the Central Bank in Tripoli prints a different Dinar in London recognized by US and the West.

The IMF recognizes the Central Bank Governor of Eastern Libya as legitimate but not the bank while the Bank in Tripoli is recognized as legitimate but not the Governor. Confusion!

Russia and China have decided to get their fair share of Libya resources as the country is now on the verge of partition like Ukraine by supporting the Government in Eastern Libya led by General Khalifa Haftar against the UN backed Unity Government of Prime Minister Fayez al-Sarraj in Tripoli.
Most of the oil is in Eastern Libya and the west has decided to back the militia group called 'the Dawn' from Misrata as the new Presidential guard and a new war is anticipated to commence soon to recapture Eastern Libya from Russian backed Libyan National Army led by Gen Haftar by the western backed militia.

This is how Libya has been exploited since the murder of Gaddafi by Nato backed forces with most of their gold reserves and money about $200b in foreign reserves stolen by western banksters.
This is why many of us are angry with PMB when he calls us corrupt in front of western press and leaders who loot the continent in connivance with their installed puppets.

jinglesbaby:
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!

docadams:
Or, worst still, GEJ import waiver

collins011:
ADEBOYE, REDEEM CHURCH LEADER IN N20 BILLION IMPORT WAIVER SCANDAL

The General Overseer of the Redeemed Christian Church of God, RCCG, Pastor Enoch Adejare Adeboye has been linked to a scandalous import duty waiver said to have cost Nigeria a whooping N20 Billion in revenue loss between 2006 and 2007.

A Fiscal Commission source in Abuja preferring anonymity told Pointblanknews.com during the week that pastor Adeboye, tapping into his well-known ties with former President Olusegun Obasanjo benefited from the shady import duty waiver in which Alhaji Aliko Dangote, Chief Mike Adenuga, Alhaji Saminu Turaki, Mr. Donald Duke and others were prime beneficiaries.

According to the impeccable source, the duty waiver granted Adeboye was said to have been used “dishonestly” by the church to import luxury Sport Utility Van, SUV (usually called Jeep in Nigeria), building materials and Digital Recording equipment some of which were said to belong to top members of the church both within Nigeria and abroad. In other words, the source surmised that Adeboye used his high level connections to “aid and abate” his church members to defraud the nation by not paying the requisite importation fees.

The source said that many of the RCCG’s faithful in Nigeria and abroad had celebrated the “unlawful act” as a “testimony to the goodness of the lord.” It was said that a Pastor Ghandi of the Jesus House, RCCG in Washington DC where the late first lady Mrs. Stella Obasanjo used to worship whenever she was in the United State, was a facilitator of the deal.

Many of the luxury cars that were said to have been imported through the deal were not meant for private use. They were said to have been sold at several car dealerships across the country. The source explained to pointblanknews.com that even if the items were not traded, it was unheard of that “people would import duty-free luxury items into any country.”

The official did not rule out the possibility of a thorough investigation of the deal which he said could make Adeboye to pay and possibly face charges.

A document made available to pointblanknews.com indicated that in 2006, RCCG got an import waiver of N9,831,109,309.00 through certificate no.,BO/REV/12235/S.2/T.133 to import construction materials; generators and vehicles. The value of the imports was N49,155,546,846.00.

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In 2007, another import waiver was granted. This time through a certificate number BO/R10260/V111/161, RCCG was granted rights to import building/construction materials with value put at N48,988,454,876.00 with a total waiver of N9,757,690.975.20. The two waivers total N19,588,800,284,20, while the bulk transactions amount to N98,144,347,130.20.

Also 300 luxury cars with value put at $6,923,000, 100 Jeeps (SUV) valued at $8,000,000, Video Equipment valued at $12,000,000.00, were all part of the shady import deals.

It would be recalled that the comptroller General of Nigerian Customs Services, Mr. Jacob Gyang Buba had been investigated by the independent Corrupt Practices Commission, ICPC in connection with an annual loss of N50 Billion in respect of the importation tariff waiver introduced by the Government of President Olusegun Obasanjo.

The spiritual depth of some practices of the RCCG has been subject of concern amongst growing conservative Christian worshippers. Adeboye is often criticized for being interested in quantity and not quality. He is said to have broken his church to model parishes were prosperity theology is often preached. The other class of followership is usually called Redeemed Classical. They are more mortified and often completely scriptural. Apart from Adeboye’s too cozy with the high and mighty elite, he was said to have given tacit blessing to ex-president Obasanjo’s third-term Presidential dream that was truncated with sudden humiliation.

designking:

No, it has not created a double problem but an opportunity to attract investors to Nigeria. Our large population should be a great selling point for foreign manufacturers to setup factories in Nigeria. Two factors has made them less interested namely:

1.) Our businesses feels more comfortable running to china, taiwan, dubai, london etc to buy their goods at exorbitant prices. Why build a factory in Nigeria when these companies target trade volume for Nigeria is regularly achieved without moving an inch. We have a 200million buying population and that is enticing enough for any foreign business. Why do you think MTN is very interested in Nigeria after a fine of over $1billion.

2.) Inability for foreign investors to repatriate funds back to their home country as a result of restrictive FX policies.

happney65:


omolola15 come and see..the same thing he said he wont do he eventually did after destroying everything.. WU and MG sef don dey give us 300naira per dollar..The highest so-far in the History of this Nation..Oya continue...Eyin weeere

davide470:



http://nairametrics.com/its-official-cbn-floats-the-naira-the-implications-for-you-and-i/

GreatEngineer:


You are right there will more foreign investors coming into the country to invest and we forex will be available. Now the common man like me would suffer the more cos price of things will go up while my income remain the same.
Can you explain what is cap, does it mean govt. fixing a point for the exchange not to exceed?

alexistaiwo:
this is getting stale. Have lost faith in this pathetic government. If CBN like let them put naira @ 10000 to dollar. The average Nigerian that will succeed in this shithole called Nigeria will succeed and I am definitely one of them.
enough said

collinsVP:
What is the naira - dollar cycle

Inflow:

1. Oil export
2.reparterations from Nigeria experteraits
3.other non oil exports( agricultural products)
4.expertrates coming into the country for tourism and investments etc.

Outflow:
Import of goods
Payments of fees in dollars abroad
etc.

The point is if the difference was negative naira will continue to suffer.

Fact is; the economy is such that no foreign investment will be attracted and the incessant changes in government policy among other factors will continue to scare foreign investment.

I see a deeper exchange rate

Shym3xx:


What they're telling you in layman's term is that: salary will remain the same, but prices would double, thus slowly but surely wiping out the "middle class" who're the backbone of every economy and it will triple the poverty rate lol.

Population means nothing when there's no viable middle class and as an investor, I won't want to invest in a country like that unless I only deal with luxury goods the upper class can afford.

jinglesbaby:
How many things are "Made in England" despite their good roads, hospitals, education et all! We all go to China, India, Pakistan, Bangladesh and Vietnam to import "common pant (what we call pata in Yoruba)"! We dont have all these basic social amenities that would attract foreign investors no matter how willing they are to invest because of the foreign exchange policies. There are always two sides to a coin at the end of the day.

jinglesbaby:
Yeah, my dear. A price it must not exceed

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.