Truth234:
The dollar free fall continued as the Naira strengthened across all segments.

The Nigerian Naira gained N20 against the US dollar on Tuesday to close at N425, from N445 it traded on Monday.

At the Bureau De Change segment, the local currency was sold at N425 to a dollar and bought at N415. While the Pound Sterling was bought at N500 and sold at N510, the Euro was sold for N425 and bought for N420.

Some of the BDC operators said that the provision of forex by the CBN to the commercial banks was responsible for the appreciation of the naira in the market.

Mr Sani Ahmed, one of the operators said that the best way to crash the high rate in the market was the continuous injection of liquidity into the market.

According to him, the appreciation of the naira is a good development for the BDC operators and other investors who require forex for their businesses.

He said, “Now that the naira is appreciating, we make more profit because if you buy at the lower rate, you sell and make gain.

“When the cost of dollar is high, we make little profit; but when it is low, we make more profit because we buy more to sell.”

He, however, said that there was the challenge of accessing the forex from the commercial banks because of the stringent measures stipulated by the deposit money banks to obtain the forex.

“If someone applies for forex from the banks, it takes time and the process is frustrating; sometimes, they make additional demands before they issue forex to you,” Ahmed said.

Experts have, however, expressed concern about the sustainability of the measures by the apex bank.

An economic expert, Prof. Uche Uwaleke, admitted that a complete currency float was capable of unifying rates and reducing round tripping and speculative activities in the market.

He, however, said that such a measure could be suicidal for an import-dependent economy that derived much of its forex inflow from a single commodity.

He, therefore, recommended coordinated fiscal policies designed to encourage import substitution and enhance competitiveness of local production to help reverse the downward trend in the value of naira.

http://investorsking.com/dollar-free-fall-continues-sells-n425dollar/

omenkaLives:
Theirs is understandable because they tend to import a few things that assist in the production processs. I was referring, in my earlier post, to things like "bushmeat". An antelope which used to cost 8k is now being sold for no less than 11k and when one protests, they are told "oga, dollar don go up, things cost"!

You are left dumbfounded, wondering what the dollar has got to do with some unlucky antelope!

tifany89:

This one u r coming to the defence of ipob, hmm seems ur redemption is finally underway. Go n sin no more

omenkaLives:
Deal with the currency issue and then confront inflation. Some Nigerians appear to be taking undue advantage of the situation. The prices of items, some of which have got absolutely nothing to do with our exchange rate, have been rising astronomically and these guys have found a convenient excuse in the cost of the dollar.

Akpan107:
[s]You are sounding so aggressive and frustrated at the same time!
Where did i call Fayose my hero?
The true change Pastor Osinbanjo is bringing into the system is a welcome devolpment.
Every sane Nigerian must support him, atleast, to stop the killing of innocent persons by the Fulani herdsmen. You may agree with me that Pastor Osinbajo has done alot on that area than Buhari[/s].

omenkaLives:
Just look at the crap one has to put up with all because one is somehow constrained to share the same space with these toddlers. Look at the kid.

If i met someone like you outside, with this, i'd hold you up on one hand, pull your skirt down, and flog the crap out of you with the other hand.


@ Greenpasture:

I do appreciate your points, very valid.

There are indeed some measures the government could take to further ease the pressure on the naira like a couple of those you mentioned, but as you rightly pointed out, the country isnt ripe for them.

Raising tariffs on nonessential imports like those you stated could see a revolt from certain blocks and unfortunately, these people make up a major fraction of importers, and their wrath isn't one you wanna incure especially given the current state of affairs where the government seems to trying to put some lustre on her image. The attendant political backlash would be enormous.

In addition, there are certain policy makers in and out of government making a killing out of the current situation and would do whatever they can to ensure we never get out of the woods. These are moneybags with tons upon tons of forex stashed away in secret vaults across the country and what they tend to do is use fronts to keep mopping up whatever forex is injected into the market by the Central Bank, creating a perennial scarcity. I have no idea how the government can deal with these ones.

We are at a crossroads of our National experience as the choices we make today would, whether right or wrong, would form the basis upon which we make decisions, both political and economic, in future- except our leaders so what they seem to do best; show their disdain for learning. I am especially glad the solutions being preferred so far are home grown and not some IMF or World Bank prescription that almost always tend to send patients into the ICU.

omenkaLives:
Just look at the crap one has to put up with all because one is somehow constrained to share the same space with these toddlers. Look at the kid.

If i met someone like you outside, with this, i'd hold you up on one hand, pull your skirt down, and flog the crap out of you with the other hand.


@ Greenpasture:

I do appreciate your points, very valid.

There are indeed some measures the government could take to further ease the pressure on the naira like a couple of those you mentioned, but as you rightly pointed out, the country isnt ripe for them.

Raising tariffs on nonessential imports like those you stated could see a revolt from certain blocks and unfortunately, these people make up a major fraction of importers, and their wrath isn't one you wanna incure especially given the current state of affairs where the government seems to trying to put some lustre on her image. The attendant political backlash would be enormous.

In addition, there are certain policy makers in and out of government making a killing out of the current situation and would do whatever they can to ensure we never get out of the woods. These are moneybags with tons upon tons of forex stashed away in secret vaults across the country and what they tend to do is use fronts to keep mopping up whatever forex is injected into the market by the Central Bank, creating a perennial scarcity. I have no idea how the government can deal with these ones.

We are at a crossroads of our National experience as the choices we make today would, whether right or wrong, would form the basis upon which we make decisions, both political and economic, in future- except our leaders so what they seem to do best; show their disdain for learning. I am especially glad the solutions being preferred so far are home grown and not some IMF or World Bank prescription that almost always tend to send patients into the ICU.

dominique:


So true and very frustrating, what is the business of garri with dollars? Manufacturers now reduce quality and quantity of their products then increase the price of their products blaming on the dollar rise. A lot of greedy people are making huge profits at the expense of the poor folks.

Kondomatic:

No1 Is Red Oil.

SamuelAnyawu:



Oga I'm from the east tooand live in Maiduguri right now goods here are more expensive than southeast.

NubiLove:
The summary of the new forex policy is this: the dollar would be freely available to people that need them, BUT what you can use your dollar to spend on would be limited. Federal Government is likely going to increase import duty on some items and ban some items from being imported.

You can transact freely online if you have a domiciliary account that has forex inflows from outside Nigeria. If people begin opening domiciliary account just to deposit dollar to buy all sorts of things online, banks would take action and restrict your spending (except you have forex inflows from outside Nigeria).

CBN seems to have found a policy that is working for now, so they would do everything to maintain it.

celestialAgent:
These is not very reasonable as a policy, hence the reason why I said Naira is still bound to crash further.

Until CBN desist TOTALLY from selling to burea de change, and instead sell to the populace directly and easily for the accepted purpose, then can we say we have a reasonable solution. But apparently CBN is so broke that they cannot afford to accommodate the demand from the public, hence the reason why the black market remain relevant. It will only take a few week before CBN seize all these pumping for the sustenance of the treasury.

The best way to control this is what I have said already. If CBN should seize selling to black market and instead sell directly to the populace, black market operators will feel useless substantially and take to the tune of the government to sustain their market. That way black market and CBN can co-exist at a reasonable rate. Otherwise, it remains fruitless.

**if you have ever had to deal with the banks on Form A transactions at official rate, then you will understand me better if I say that banks prefer to sell to black markets than a regular citizen.