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Cbn “optimistic” Naira Will Settle At 250 Per Dollar - Business (2) - Nairaland

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‘Anyone Caught Abusing The Naira Will Face Jail Terms’ – CBN Warns Nigerians / Naira Declines By 0.82%, Settle At N370/$ / N200 Per Dollar Proposal: Ifeanyi Ubah Stakes N500bn Assets (2) (3) (4)

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Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by ZUBY77(m): 12:34pm On Jun 17, 2016
chucksbadt:
Is this New CBN policy only going to affect the dollar?.......what happens to pounds and Euros?

Someone should please explain this for me in a Layman's term

Those two are the masters of currency manipulation. They are the Europeans, remember.
They already fixed themselves where they want to be, It is your naira that is falling up and down.

So in a laymans language, 90% of the people who uses Pounds don't know Naira exists.

1 Like

Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by josephobaro(m): 12:34pm On Jun 17, 2016
Make Monday reach fast fast.

2 Likes

Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by Infinitikoncept(m): 12:41pm On Jun 17, 2016
Jorussia:
I see the dollar falling to around 170 in next 18months due to increase in FDI and huge government spending. This is the first the country will be adopting a flexible exchange rate,i am optimistic that if well managed, this policy will be of great economic benefit to the nation
In your wildest dreams and imagination. I quoted you cox by December 2017 I'll remind you when it comes to Nigeria economics law don't hold water

1 Like

Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by linearity: 12:43pm On Jun 17, 2016
Jorussia:
I see the dollar falling to around 170 in next 18months due to increase in FDI and huge government spending. This is the first the country will be adopting a flexible exchange rate,i am optimistic that if well managed, this policy will be of great economic benefit to the nation

Huge government expenditure actually will lead to the fall of Naira and not the opposite as you have summised, that is economy 101.

When government spends, they flood the economy with more Naira notes and pour more of those paper weights into circulation, simple economy of supply and demand states that, when supply is high, value (aka price) goes down.

The reason is simple, Nigeria is not export oriented and those huge government spending will not drive an equal huge demand for Naira and as such the supply will out pace the demand...not too many people want Naira out there, in fact many people e.g. Airliners who have huge stockpiles of Naira because of the prior artificial scarcity will want to swap out their Naira stock piles now that the government seem to be walking back their prior policies, thereby pumping more dead weight Naira notes into circulation.

4 Likes

Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by PBundles(m): 12:43pm On Jun 17, 2016
Would you mind sharing what this is based on. [b]It seems I see more and more ppl looking towards good fortune and well wishing. Economics is not about how you feel. 1+1=2, on a good day, bad happy rain day etc etc you get the picture. [/b]I dont share your optimism. Its funnt when you say that it seems you are being nasty or unpatriotic. I would like for someone to tell me Im dying instead of saaying Oh no you will be just fine.

Let me tell why I dont share it.

When the CBN pegged the currency, even they didnt dare to say it would be 170 and miraculously according to you it will.

According to you this will happen due to FDI, really. What is FDI? Foreign companies at this moment have ONE THING ON THEIR MIND COME MONDAY...........GETTING ALL THEIR MONEY OUT!!! Simply because they wont take the risk of having their money tied down in Nigeria. You do realise that some airlines were evening contemplating leaving entirely.

Other foreign firms will actually stay on the side line and watch this evolve for the coming 1-2 years. Those already in Nigeria will need to increase their prices to match the real price and not what the CBN pegged, in short they have losses as we speak on their books.

Expect high inflation, why, the CBN MUST increase rates to match the already soaring inflation and coupled with free float (actually devaluation), inflation MUST OCCUR, BASIC ECONOMICS.

What the CBN is hoping to do is try and fight the rise when they free float buy pumping dollars into the market, which will prove a futile exercise when they realize that they can keep doing it while losing money, then you will see the dollar go thru the roof. Actually if the Naira to dollar is 500-1 in a year I would be HIGHLY SURPRISED.









Jorussia:
I see the dollar falling to around 170 in next 18months due to increase in FDI and huge government spending. This is the first the country will be adopting a flexible exchange rate,i am optimistic that if well managed, this policy will be of great economic benefit to the nation

1 Like

Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by Nobody: 12:44pm On Jun 17, 2016
Jorussia:
I see the dollar falling to around 170 in next 18months due to increase in FDI and huge government spending. This is the first the country will be adopting a flexible exchange rate,i am optimistic that if well managed, this policy will be of great economic benefit to the nation

Maybe or Maybe not.
We just have to diversify the economy.
If not! it is just for the main time till Govt exhaust she Forex.

1 Like

Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by marv1: 12:45pm On Jun 17, 2016
kazuna:
dont be stubborn if u ever become a leader....stubborness can greatly derail an economy.
What is the correlation?. U have made no point. Meaning?
Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by PBundles(m): 12:45pm On Jun 17, 2016
AHHH SO THERE IS HOPE....FINALLY SOMEONE WHO KNOWS WHAT THEY ARE TALKING ABOUT..... BLESS YOU I WAS LOSING HOPE.



linearity:


Huge government expenditure actually will lead to the fall of Naira and not the opposite as you have summised, that is economy 101.

When government spends, they flood the economy with more Naira notes and pour more of those paper weights into circulation, simple economy of supply and demand states that, when supply is high, value (aka price) goes down.

The reason is simple, Nigeria is not export oriented and those huge government spending will not drive an equal huge demand for Naira and as such the supply will out pace the demand...not too many people want Naira out there, in fact many people e.g. Airliners who have huge stockpiles of Naira because of the prior artificial scarcity will want to swap out their Naira stock piles now that the government seem to be walking back their prior policies, thereby pumping more dead weight Naira notes into circulation.
Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by ab4real15: 12:48pm On Jun 17, 2016
greatwaters:
Well, Mr Bubu is currently busy adjusting the currency. when he finally settles the naira at 250 to a dollar, he will present his WAEC certificate.
All u IPOdS are as foolish as ur dilector,if u dont have anything reasonable to say just shut dat stinking gutter u call mouth.
Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by greatwaters: 12:53pm On Jun 17, 2016
ab4real15:
All u IPOdS are as foolish as ur dilector,if u dont have anything reasonable to say just shut dat stinking gutter u call mouth.
E pain am sha!

4 Likes 1 Share

Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by nanauju(f): 12:53pm On Jun 17, 2016
vicadex07:
Make dem do quick abeg...this dollar bulshhhhi is really affecting my importation business
Mine has completely come to a halt.. For now sha. I follow dey optimistic
Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by zheroes(m): 12:57pm On Jun 17, 2016
lilprinze:
I thought buhari said when he becomes president he would make 1$ = 1N .
buhari and APC are the biggest scam in the history of Nigeria.
aren't you a scammer to have believed that? You want to reap where you didt sow? It doesn't work that way. The strength of a currency is built over time.
Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by Nobody: 12:57pm On Jun 17, 2016
vicadex07:
Make dem do quick abeg...this dollar bulshhhhi is really affecting my importation business
I don't mean it in a bad way bro, but you are part of the problem. Now is time to begin our journey to industrial revolution not importation .

1 Like

Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by zheroes(m): 12:57pm On Jun 17, 2016
lilprinze:
I thought buhari said when he becomes president he would make 1$ = 1N .
buhari and APC are the biggest scam in the history of Nigeria.
aren't you a scammer to have believed that? You want to reap where you didnt sow? It doesn't work that way. The strength of a currency is built over time.
Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by erico2k2(m): 12:59pm On Jun 17, 2016
chucksbadt:
Is this New CBN policy only going to affect the dollar?.......what happens to pounds and Euros?

Someone should please explain this for me in a Layman's term
Just do the conversation. Pounds to euro 1.2.
To dollar 1.4
Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by AmAlbert(m): 1:00pm On Jun 17, 2016
mikaelzX:
We hope so too. One day our naira will be more valuable than the dollar

Wake up Bros, e don neck 12:58pm and you still dey sleep?? And yhu dey even snore join am

Mtchewwweee!!!!!
No be valuable na VALUABILITY
Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by chuose: 1:03pm On Jun 17, 2016
[size=13pt]Wait on, no be N1 to $1 be the promise?

Which wan now na N250 to $1?[/size]
Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by Nobody: 1:03pm On Jun 17, 2016
$ at 250? How is that even possible with importers proudly waiting to pounce on it again.
Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by drizzymadbet(m): 1:07pm On Jun 17, 2016
Buhari with his fake economy team gambling on the lives and future of Nigerians. The same optimism kept us in this condition.

This amateur economic team I pity, people make noise bla bla that the oil prices are low, let them ask soludo how he was able to stabilize the naira to 120 during the world recession that reduced oil prices.

Niggas been blaming others for their incapabilities since 2015.

2 Likes

Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by meltiplexer: 1:10pm On Jun 17, 2016
hemucology:



Govn still on dat issue but I think by 2018


OK

You better mind this Govn the last time they petrol will sold for #60,we wake up to buy it @ 143.Just be expecting dollar to be at 500


i have to go and play today's Game with my naijabet account
Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by onatisi(m): 1:16pm On Jun 17, 2016
This is a very dangerous move and there seems to be a political division among the government, the tacit silence of the presidency on this matter shows that the presidency isn't too favorable to the whole idea

1 Like

Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by chucksbadt(m): 1:17pm On Jun 17, 2016
erico2k2:
Just do the conversation. Pounds to euro 1.2. To dollar 1.4
How?.......don't get
Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by chucksbadt(m): 1:18pm On Jun 17, 2016
ZUBY77:


Those two are the masters of currency manipulation. They are the Europeans, remember.
They already fixed themselves where they want to be, It is your naira that is falling up and down.

So in a laymans language, 90% of the people who uses Pounds don't know Naira exists.


So on the nut shell, the CBN rate for Pounds and Euros, will remain unaffected?
Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by neocortex: 1:20pm On Jun 17, 2016
Jorussia:
I see the dollar falling to around 170 in next 18months due to increase in FDI and huge government spending. This is the first the country will be adopting a flexible exchange rate,i am optimistic that if well managed, this policy will be of great economic benefit to the nation

Why don't you hold off your optimism till monday,
I believe CBN will also introduce some
restrictions because I don't think Buhari will ever
agree to a completely floating Naira.
Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by Jorussia(m): 1:30pm On Jun 17, 2016
neocortex:


Why don't you hold off your optimism till monday,
I believe CBN will also introduce some
restrictions because I don't think Buhari will ever
agree to a completely floating Naira.
I see a guided floating just like the case of the deregulation of the price of PMS.The Nigeria factor will always be an issue.
Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by 14(m): 1:37pm On Jun 17, 2016
Infinitikoncept:

In your wildest dreams and imagination. I quoted you cox by December 2017 I'll remind you when it comes to Nigeria economics law don't hold water

Where did all these CBN people go to school, it seems most of them are clueless. Nigeria first of all its dominated by informal sector, so that makes it difficult to get real meaningfull data.

From my observation, the CBN will burn all the reserves trying to protect the free fall of Naira. what gonna happen from now on, most companies want to repatriate their funds to their respective countries more than those who want to come in as investors. Remember those investors are still sceptical about investing in Nigeria where the government is busy fiddling their fingers in CBN business. CBN must be independent, and must take independent decision without government interferance.

So, anything can happen if the Naira nose dive to N500 to the dollar, you might see another intervension by the government, so investors are just not sure about Nigeria at this point, hence i say, most will just take money out which will drive the Naira south. The CBN is just deceiving themselves, we will never see N250 to the dollar in the next 24 months, especially if oil remains where it is. What i predict, is deplited reserves. We are talking about billions of dollars exchanging hands here every day, how are they gonna defend that. They will burn that $26bn in 2 weeks, take example of South africa which trades roughly $28bn every day and has only $42bn reserves, when their Rand is falling, they just watch helplessly without doing anything, because if they try to defend their currency, in 2 days south africa would be broke.

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Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by erico2k2(m): 1:45pm On Jun 17, 2016
chucksbadt:


How?.......don't get
£1 is €1.2 and $1.4
Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by Nobody: 1:48pm On Jun 17, 2016
How low can we sink, a country's central bank is now postulating on 'optimism'.

Fat shame!

1 Like

Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by ab4real15: 1:55pm On Jun 17, 2016
greatwaters:
E pain am sha!
Displaced people 4rom Isreal.
Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by 14(m): 1:56pm On Jun 17, 2016
linearity:


Huge government expenditure actually will lead to the fall of Naira and not the opposite as you have summised, that is economy 101.

When government spends, they flood the economy with more Naira notes and pour more of those paper weights into circulation, simple economy of supply and demand states that, when supply is high, value (aka price) goes down.

The reason is simple, Nigeria is not export oriented and those huge government spending will not drive an equal huge demand for Naira and as such the supply will out pace the demand...not too many people want Naira out there, in fact many people e.g. Airliners who have huge stockpiles of Naira because of the prior artificial scarcity will want to swap out their Naira stock piles now that the government seem to be walking back their prior policies, thereby pumping more dead weight Naira notes into circulation.

Man, you know yo story.

Airliners are waiting to repatraite their funds together with other businesses. My question is, who are those investors waiting to come in? especially in this current economic situation. Lets hope it wont get worst before it gets better.
Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by Peterwins(m): 2:55pm On Jun 17, 2016
The naira will continue to lose value if our balance of payment remains negative. However, a turnaround will occur if:

1. There is a consistent increase in crude oil prices.

2. We achieve our OPEC quota by stopping crude oil theft and vandalisation of pipelines, hence the need to dialogue with the militants in the Niger Delta.

3. Stop the importation of diesel and petrol which are the major forex outflows. The government needs to fix the refineries and/or wait for Dangote to complete his mega refinery in Lagos by 2018.

4. Stop the importation of other goods/products that can be produced in Nigeria. An example is rice.

5. Stop forex round-tripping, especially by banks.

6. Improve power supply to boost our manufacturing capacity.

7. Start the exploitation of other mineral resources for additional forex inflows.

Without these and other sound fiscal policies then the monetary policies will continue to hit a brick wall.

Nonetheless it is better for the naira to be floating than to be artificially fixed since it is antithetical to capitalism. We currently live in a world were capitalism rules.

1 Like

Re: Cbn “optimistic” Naira Will Settle At 250 Per Dollar by lanruma001: 3:02pm On Jun 17, 2016
250 @ official rate?

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