PassingShot:
Happy days are ahead of us.

With the news, the worst of our economic woes are behind us.

Kudos to the government for floating the Naira rather than devaluing it. A first in the history of Nigeria.

*Modified* What you wrote exists in ideal situation when all things are equal. Do you take cognisance of change in any variable for an instance, the sellers refuse to turn in the market. What happens to the exchange rate?

Some ignorant mourning wailers are saying floating the naira is same as devaluing it. Hell NO!

If you devalue the Naira, you fix an official exchange rate to it. E.g N250 to a dollar. With that approach, the black market rate will jump to beyond N400 to a dollar.

But with floating, many traders with high volume of dollars come in and trade dollars based on demand. In this approach, there is no official dollar rate set by the government. The rate is purely determined by how much dollars are demanded and how much dollars are available. This way, the Naira finds its true value.

. What you wrote exists in ideal situation when all things are equal. Do you take cognisance of change in any variable for an instance, the sellers refuse to turn up in the market. What happens to the exchange rate?

neocortex:


You are right but the monthly limit of $700 spending for most banks on online transactions
wouldn't help matter.

I believe that will also change as dollar liquidity improves...

currently:

257.75/$

See panic everywhere... SMH to people singing hallelujah already... so you think naira will change 280 against dollar? Where there is no subsidy? Lol. Anyway the inter-bank qoute is one of the Market tricks... it bring dollar down a little... but wait and see what happened in weeks to come. Well in all, floating naira is just one of those CBN risk let's see if it works.

tbaba1234:


It is currently at 257.. Let's see how the day ends... There is pent-up demand so it could end around 280 today... But it will still stabilize at around 250..

the he question is who will sell at that rate to you? Haba una no fit understand simple thing. #250/$ and then ? What ? Dollar will fall from heaven?

oshudu:
am not surprise because our so called leaders have lost their moral values no honesty no integrity so why naira we not loss value

GET OUT OF HERE...pple are talking implications of a policy that can either make us or break us nd u'r here talking nonsense

PassingShot:


The good quality of our president is he accepts sound advice/argument provided you're able to convince him.

He said he was not convinced that devaluing the Naira was best for Nigeria and he has been proved right.

Imagine what would have happened to our economy if he had devalued the Naira to say N250 to a dollar. I am sure it will have shot up to N500 at the black market.

But his refusal to do that, plus non-working of the two parallel rates (official and black market), have made Emefiele and his team to put on their thinking cap to find an acceptable solution to the problem.

Salute to PMB once more.

Zombism has no cure

neocortex:


You are right but the monthly limit of $700 spending for most banks on online transactions
wouldn't help matter.

Mr, before the total lock down GTB had increased theirs to $3000 for online spending.

Mftivi:
the he question is who will sell at that rate to you? Haba una no fit understand simple thing. #250/$ and then ? What ? Dollar will fall from heaven?

Dollar will come from people that have it... There will be demand and supply...

crazymommy:
As expected....about 3 days ago a guy on a thread said he wants to sell his 10000$ Which he said he bought at the rate of 302 but that he wants to wait till it gets to 400naira per dollar,I adviced him that he should better sell it at that moment when it was around 350 because anything can happen on Monday which is today because I believe that the market might possibly fall in between the official price and the last parallel market price and that should be around 250-290.guess what??the guy said I am deceiving myself...that he is very intelligent and he believes that the dollar price will even open higher on Monday which is today....I hope the overconfident ignorant fellow his reading this...the annoying thing about some people on nairaland is that they feel they know it ALL and they are not ready to hear the opinion of any other person especially if it is coming from a woman....smh...

ah leave am na. Shebi him wan learn d hard way. just like wan woman telling me because she worked in bank for 12 yrs in bank therefore if she couldn't predict financial meltdown of our stock market then neither could 'layman ' like me. when it was clear that everybody was just buying bank shares during soludo's tenure because of everybody was doing same

bennie1980:
. What you wrote exists in ideal situation when all things are equal. Do you take cognisance of change in any variable for an instance, the sellers refuse to turn up in the market. What happens to the exchange rate?

In a perfect market, all sellers cannot refuse to turn up for no reason.

PassingShot:

You said NOTHING.

The major factor in our currency losing its value was unavailability of government dollars to meet demand for dollars.

And the situation with crash in the crude price (largest earner of our foreign currency) plus squandering of the reserves we had by the last administration during the last election, mean that we do not have the capacity to defend the naira or provide dollars demanded by the market.

I disagree with what you said about the foriegn reserve you and I knew what happened to it.

PassingShot:

Sure. But easy and accessible dollars will help solve some economic problems.

Not so?

Not if it is artificially induced. Let's wait for what the aboki is selling for.

PassingShot:
Happy days are ahead of us.

With the news, the worst of our economic woes are behind us.

Kudos to the government for floating the Naira rather than devaluing it. A first in the history of Nigeria.

*Modified*

Some ignorant mourning wailers are saying floating the naira is same as devaluing it. Hell NO!

If you devalue the Naira, you fix an official exchange rate to it. E.g N250 to a dollar. With that approach, the black market rate will jump to beyond N400 to a dollar.

But with floating, many traders with high volume of dollars come in and trade dollars based on demand. In this approach, there is no official dollar rate set by the government. The rate is purely determined by how much dollars are demanded and how much dollars are available. This way, the Naira finds its true value.

na naija we dey o. If u know what i mean

Mftivi:
the he question is who will sell at that rate to you? Haba una no fit understand simple thing. #250/$ and then ? What ? Dollar will fall from heaven?

Many youths are demented. Walk to a bank now,they will tell you it is not available. For how long are we going to deceive ourselves. Please leave zombies to their ignorance.

AtlanticBreeze:

keep deceiving yourself.. This is not the first time Naira is being floated.. It was floated during babangida's regime and that was what crashed the strength of the naira to dollar then.. Let's see if naira doenst hit 500 to 1 dollar in few weeks time

Be optimistic for your own good. There's nothing patriotic about being pessimistic.

2sexycom:
Mr, before the total long down GTB had increased theirs to $3000 for online spending.

Is $3000 their current monthly limit ?

PassingShot:
Happy days are ahead of us.

With the news, the worst of our economic woes are behind us.

Kudos to the government for floating the Naira rather than devaluing it. A first in the history of Nigeria.

*Modified*

Some ignorant mourning wailers are saying floating the naira is same as devaluing it. Hell NO!

If you devalue the Naira, you fix an official exchange rate to it. E.g N250 to a dollar. With that approach, the black market rate will jump to beyond N400 to a dollar.

But with floating, many traders with high volume of dollars come in and trade dollars based on demand. In this approach, there is no official dollar rate set by the government. The rate is purely determined by how much dollars are demanded and how much dollars are available. This way, the Naira finds its true value.

This is really correct! Kudos to the CBN Gov., atleast rather than devaluing the Naira, its being floated. Yeh, we needed the Naira much as we need dollars in carrying our business transactions. Let the market forces determine the price...look it is maths, If I need maybe $20,000, i could decide I want to buy a dollars for 200, and another person want to buy for 150. I will certainly get the bid. Some how the price for dollar will fall very soon. We can even buy a dollar for N20 as the times pass bye (my prediction).

Mftivi:
I disagree with what you said about the foriegn reserve you and I knew what happened to it.

Please remind me of what happened to it.

The real Avengers are the yahoo yahoo boyz....

Bollinger:


Not if it is artificially induced. Let's wait for what the aboki is selling for.

Aboki currently sells for 340.

AtlanticBreeze:

you people are just mischievous. A novel idea and you already believe it will work? What are the indices? Even top economists I have spoken to criticized this move by CBN. I'm talking professors here

The same kind of professors akin to your phd touting clueless president Don't worry bros, we will pass.

I have read all the talk about this policy....I have had a discussion with a PhD friend of mine who is in support of this government and wants us to pray....lol

I love prayer but the institutional investors don't pray they act
the fundamentals are bad....the news is just an ill attempt to cover our exposed private parts

it wont work

watch us buy dollar at 600naira in a few months

oil is still down
manufacturing is down
power is down
insecurity is high
food is scare
this will only increase demands on the dollar.


trust me naira is tissue paper now with dry shit on it
no one will touch naira with a stick

martineverest:
didnt u hear dat 4billion dollars will be injected into d economy?...wailers everywhere

Primary school pupils have invaded Nairaland.

AtlanticBreeze:

keep deceiving yourself.. This is not the first time Naira is being floated.. It was floated during babangida's regime and that was what crashed the strength of the naira to dollar then.. Let's see if naira doenst hit 500 to 1 dollar in few weeks time

For your dreams, no nightmare. You don't want this country to succeed but your nightmares will continue.

aisammy4:


This is really correct! Kudos to the CBN Gov., atleast rather than devaluing the Naira, its being floated. Yeh, we needed the Naira much as we need dollars in carrying our business transactions. Let the market forces determine the price...look it is maths, If I need maybe $20,000, i could decide I want to buy a dollars for 200, and another person want to buy for 150. I will certainly get the bid. Some how the price for dollar will fall very soon. We can even buy a dollar for N20 as the times pass bye (my prediction).

What are u high on?

Adeoba10:
Aswear to God, ano understand anything, i just dey read comments based on likes... Floating n devalue just like dy/dx

Continue to read. You meant learn something

deflover:
I have read all the talk about this policy....I have had a discussion with a PhD friend of mine who is in support of this government and wants us to pray....lol

I love prayer but the institutional investors don't pray they act
the fundamentals are bad....the news is just an ill attempt to cover our exposed private parts

it wont work

watch us buy dollar at 600naira in a few months

oil is still down
manufacturing is down
power is down
insecurity is high
food is scare
this will only increase demands on the dollar.


trust me naira is tissue paper now with dry shit on it
no one will touch naira with a stick

What did your PhD friend suggest as a superior alternative?

deflover:
I have read all the talk about this policy....I have had a discussion with a PhD friend of mine who is in support of this government and wants us to pray....lol

I love prayer but the institutional investors don't pray they act
the fundamentals are bad....the news is just an ill attempt to cover our exposed private parts

it wont work

watch us buy dollar at 600naira in a few months

oil is still down
manufacturing is down
power is down
insecurity is high
food is scare
this will only increase demands on the dollar.


trust me naira is tissue paper now with dry shit on it
no one will touch naira with a stick

||||||||||||||||||||||||||||||||||||||||||||||||||||
Your comment is a pooo that's why I touched it with a stick.

AtlanticBreeze:

keep deceiving yourself.. This is not the first time Naira is being floated.. It was floated during babangida's regime and that was what crashed the strength of the naira to dollar then.. Let's see if naira doenst hit 500 to 1 dollar in few weeks time

Pls why are u just bin pessimistic? Pls of wht benefit is it to you, if actually u are right! Dont u tink an atom of gud news that has eluded us in a while, will be useful nao. If it doesnt work, wia dey dia togetha

deflover:
I have read all the talk about this policy....I have had a discussion with a PhD friend of mine who is in support of this government and wants us to pray....lol

I love prayer but the institutional investors don't pray they act
the fundamentals are bad....the news is just an ill attempt to cover our exposed private parts

it wont work

watch us buy dollar at 600naira in a few months

oil is still down
manufacturing is down
power is down
insecurity is high
food is scare
this will only increase demands on the dollar.


trust me naira is tissue paper now with dry shit on it
no one will touch naira with a stick

Which Yeye PHD friend you spoke with? Who knows him? Where are his written papers on the economy? So because you spoke with one Yeye thing that call himself a PhD holder, we shouldn't be optimistic going forward? You and your Yeye friend can keep you pessimism in your house. These biafrans sef!!