jinglesbaby:
How many things are "Made in England" despite their good roads, hospitals, education et all? It's mostly because of taxes! We all go to China, India, Pakistan, Bangladesh and Vietnam to import "common pant (what we call pata in Yoruba)"! Even Marks & Spencer where I buy my undergarments go to Asia to buy! If we can start running "sweat-shops" sha like we have in Aba, maybe we will attract foreign investment too. The only things that are made in UK these days are "mixed-race babies and sham marriages" ! 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.

tiwiex:


I don't think Buhari has any economic plan. The drop in naira was expected with the capital control. it was a futile effort. It didn't require an experiment to do what CBN just did. The demand and available supply already spelt the situation. So why delay the evil day and suffer while at it? Like I said, Buhari will deliver not because he knows what to do but because reality eventually leaves him with no choice. We didn't need to get to this point on FX and definitely not with the Niger Delta. CBN made the announcement 3 weeks ago but just released the modalities today. They were clearly not ready and just started work on it. Please help Nigerians beg him to slow down on his ego for the sake of the country. Let the advisers take charge. That is why they were appointed. Good move at last but Buharinomics just means trial and error without a need for the trial due to available expert advise.

Sure this means devalue of the Naira but its the devaluation that has been waiting to float after being held back by Naira Pegging and $ scarcity. The pegging was done to protect the dwindling oil dollar income without having to raise the price of Nigerian oil to compensate for the devalued Naira-(they cannot just raise oil prices because of international price standards,they would lose customers and ALL oil revenue, so they just peg the currency to an unatural high value instead -to stop naira devalution effects in the weakened oil market). Now that oil price is coming up to a stable place and reserves have started to stabilize, there is no more need to peg the naira and risk the imbalance it does to the economy as a whole.

Right now, the CBN stands to gain in this devaluation move because it is sitting on $ reserves valued at 199 per unit , that will soon become around 285 per unit or more. That is a very profitable move for them. They prevented massive losses as reserves dwindled by pegging naira at 199, and now they are ready to rake in massive naira gains by selling those N199 dollars for much higher.

This must be a joke right? We use our foreign reserve to fix the naira at 199 in the first place, so in a layman's term, the government is "cheating" itself for the greater good, that is the whole essence of fixing the currency in the first place, "fixed" means, use your reserve to create a false buffer for your currency, what happens when you lose your buffer That is where we are now, again, you forgot that at 285 to a naira, inflation has doubled so no the CBN has absolutely nothing to gain except that the reserves are shielded from currency manipulations, the CBN throws in or withdraws dollars from the market at will as an intervention unlike setting the pace every time, it is a clear signal that the CBN actually lost its capacity to maintain the 199 mark.

CBN retains the right to *move in from time to time* and that is the clause they need to move in and peg the Naira again down the road for when it favors them to set up for another round of collecting dollars under a high naira value and then releasing the naira peg later to bring in a profit. Also move in when the market goes rougue under wreckless influences. Free Market is prone to all kinds of economic disasters especially in corupt and greedy markets.

This is good proof also that CBN has confidence in stable future $ revenues coming in -but the Niger-delta damage to oil revenues has not yet settled. I recall it was forcasted to dent budget plans in months to come. Selling dollar futures is also a CBN hedge against dollar scarciry in the future, they can always print new Naira bills to pay the $ owed to those who bought dollar futures. Buying dollar futures from CBN is a bit of a risk because dollar scarcity is a clear possibility again in CBN coffers. But, you can get your Naira back even if CBN has to print Naira to pay you.

Low value currency is a good thing when you have lots to export for revenue income or to attract foriegn investors with money and essential services.

Any economy and government so heavily dependent on one product, is bound to ups and downs and extreme vulnerability if it is not the world leader of that particular market or does not have formidable military and international diplomatic influence around the world to use to shape market and governement policy beyond its borders.
Saudi Arabia is an example of being overly dependent on one product(oil) but having the advantage of world oil market influence and close support of a military and diplomatic superpower(USA). Saudi Arabia is the one that called for the drop of oil prices that caused all this problem to begin for Nigeria. Also productivity of oil world wide, influenced the Saudi decision and actually makes it better for the customer except in Nigeria where petrol prices have gone up because of complications with the government entwined oil market. Hence the privatization of sourcing fuel to depots and privatization of refineries in Nigeria, which will infact lead to the drop in fuel prices in Nigera in time when fully functioning in private hands. Dangote refinery is yet to be completed. Soon.

erico2k2:

Guy why are you talking like this , you are asking what is made in the Uk, realy?UK is 67M population and they control the worlds finance, have the highest diamond haul,produce the most expensive cars, produce civil and commercial air planes, arms etc
produce jaguar, land rovers, range rovers, vauxhall's,Austin martins,Rolls royce,Mini cooper,,Trains, U want me to go on? just say you do not buy what they have to produce

Horus:

https://www.youtube.com/watch?v=oLQI6zgdemE

[size=14pt]CBN Floats The Naira[/size]

anonimi:


Do you mean the RCCG Adeboye waiver scandal under Ebola Owu

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

hotdi:


It is called single window Forex.
CBN will no longer fix official price for exchange rate anymore, but let the demand and supply forces of the market determine the rate.
Single in the sense that they wouldn't be official price on one side, and parallel market on the other side.
In this case, the CBN ceases to be the only supply of e.g. Dollar into the market. Also, CBN becomes a participant in the market
instead of playing the boss. Its influence becomes minimal base only on regulatory roles.

Are u satisfied?