Truth234:


There is nothing like flooding the market with dollars, you just need to understand how the CBN works. Currently, the institution is generating about $2.4 billion-$2.8 billion in forex a month, and since this new policy was introduced a total of $610 million ($370+$240) has been auctioned.

Meaning, the CBN is saving more than its spending, and don't forget our output is near all time low 1.6mbpd but once the trans forcado pipeline is open by the second quarter, we should be able to up our production to about 1.8mbpd-1.9mbpd and increase our revenue generation even more.

Once the manufacturers can access forex at a moderate rate, the consumer prices (inflation rate) will cool and job creation will increase. So will consumer spending and gradually the economy will once again come alive. There is no point saving all the money while the economy dies of scarcity.

seunmsg:



It is not a matter of Buhari or Osinbajo. CBN is simply flooding the market with dollars and naturally, the market will respond to the laws of demand and supply.

With this policy, we are back to the era of throwing our forex around to defend the naira so, it is nothing new or magical. The down side is that CBN may likely stop building the reserve in order to sustain this policy and any slight drop in crude production, sustainability will become an issue.

Truth234:


There is nothing like flooding the market with dollars, you just need to understand how the CBN works. Currently, the institution is generating about $2.4 billion-$2.8 billion in forex a month, and since this new policy was introduced a total of $610 million ($370+$240) has been auctioned.

Meaning, the CBN is saving more than its spending, and don't forget our output is near all time low 1.6mbpd but once the trans forcado pipeline is open by the second quarter, we should be able to up our production to about 1.8mbpd-1.9mbpd and increase our revenue generation even more.

Once the manufacturers can access forex at a moderate rate, the consumer prices (inflation rate) will cool and job creation will increase. So will consumer spending and gradually the economy will once again come alive. There is no point saving all the money while the economy dies of scarcity.

Truth234:
There is nothing like flooding the market with dollars, you just need to understand how the CBN works. Currently, the institution is generating about $2.4 billion-$2.8 billion in forex a month, and since this new policy was introduced a total of $610 million ($370+$240) has been auctioned.

Meaning, the CBN is saving more than its spending, and don't forget our output is near all time low 1.6mbpd but once the trans forcado pipeline is open by the second quarter, we should be able to up our production to about 1.8mbpd-1.9mbpd and increase our revenue generation even more.

Once the manufacturers can access forex at a moderate rate, the consumer prices (inflation rate) will cool and job creation will increase. So will consumer spending and gradually the economy will once again come alive. There is no point saving all the money while the economy dies of scarcity.

Truth234:


Foreign exchange research analyst

gowaga68:
It surely will as fear is into the market now.

alfredfrddy:

Are you talking about the prodigal president?

seunmsg:
I hope they can sustain this policy of flooding the market with forex. A little fall in the price of crude oil or drop in crude production as a result of renewed violence and we will be back to square one.

seunmsg:


My initial post was to address some people who are erroneously attributing the success of the policy to the acting president.

And yes, CBN is flooding the market with dollars right now because they have the means. As at this time last year with foreign reserve at around $25billion and crude production at an all time low coupled with the price of crude then, they couldn't have rolled out this type of policy.

The simple summary is that, we are now earning more forex due to the sustained price of crude oil at over $50 and the steady rise in production due to ongoing peace negotiation. If these two variables decline sharply, we will be back to square one again. So, those who are concerned about the sustainability of this policy are not wrong because CBN does not control these two variables.

Truth234:


Lol.. Me of course, sarrki source quoted CBN stipulated BDC's rate. It doesn't really change.

Whereas, this is about the parallel market, the segment that is eating us all up, and the CBN efforts at ensuring there is enough forex liquidity for all.

Good Morning unclezuma.

seunmsg:



It is not a matter of Buhari or Osinbajo. CBN is simply flooding the market with dollars and naturally, the market will respond to the laws of demand and supply.

With this policy, we are back to the era of throwing our forex around to defend the naira so, it is nothing new or magical. The down side is that CBN may likely stop building the reserve in order to sustain this policy and any slight drop in crude production, sustainability will become an issue.

author=kolaaderin post=54037929]

kolaaderin:


It has changed a lot, tried to change the little hundreds of dollar $500 on me yesterday Friday and be hold those mallams got no chill, I was offered N400 at federal Palace Hotel with warning that by Monday it might be selling at N350. I could not hold my anger because I will be losing about 100k from the
Money which I should have changed last week.
Drove angrily out of the compound straight to Eko hotel hence the same horror music to my hear and it was done on me I have kept this for a bit too long. Called a colleague who deals in forex more regular if he could get me a deal from his numerous abokis and at last he told me to go to Ikoyi southern sun hotel where the aboki offers N430 believe me I droped the dollar and ran out of the place before the mallam go they speak in aliens language too. He also said by Tuesday the money is crashing more.

agarawu23:
Lalasticlala, update the topic, $-# is presently 460/$

989900:


Pipeline vandals are a major draw back on our collective progress. Less vandalism brings in more dollars, more power generation, which ultimately translates to less fuel consumption and by extension less Forex consumption.

nwabobo:


Where will the supply to sustain the momentum come from? Even at $100 per barrel of oil, it can't be sustained.

urpee28:
I got it at N450 to a $ on Friday.positive change

kolaaderin:


It has changed a lot, tried to change the little hundreds of dollar $500 on me yesterday Friday and be hold those mallams got no chill, I was offered N400 at federal Palace Hotel with warning that by Monday it might be selling at N350. I could not hold my anger because I will be losing about 100k from the
Money which I should have changed last week.
Drove angrily out of the compound straight to Eko hotel hence the same horror music to my hear and it was done on me I have kept this for a bit too long. Called a colleague who deals in forex more regular if he could get me a deal from his numerous abokis and at last he told me to go to Ikoyi southern sun hotel where the aboki offers N430 believe me I droped the dollar and ran out of the place before the mallam go they speak in aliens language too. He also said by Tuesday the money is crashing more.