obailala:
Still where we are.

Besides the already known sweet potential benefits of floating the Naira (i.e. stimulating FDI and cancelling the feast of forex rogues), what exactly are the potential demerits of floating the Naira which has made the govt/CBN vehemently resist this move for ages?

I understand floating would certainly push the Naira into the N600+ realm to a dollar with injurious effecta on inflation and on poor masses. But a good number of economists believe that would be beneficial to Nigerians. Explanations really needed from experts here...

mykeljosef:
of coz investors want to invest wisely


in other news who has listened to Nicki funeral song by remy?


come n cry with me

4Play:


The Naira is not floating. In a floating exchange rate system you won't have multiple exchange rates. So to say that Buhari "answered the West's advice" is preposterous. Na wa for una, such a gullible citizenry.

ncoolsome:






people keep saying free the naira,free the naira do u know such implications?Nigerian travel they need dollar,a very high % school abroad they need dollar,medical trips they need dollar,manufacturing they need dollar etc..if naira is freed it won't last with all this pressure for dollar couple with the fact we are a mono economy,the Fg can only intervene by releasing dollar at interval and pegging the naira to the dollar rate until when the economy can hv a better trade balance that's my take..

BekeeBuAgbara:
cry ke

twosquare:
I said this in one of my threads Seun refused to push to the front page: https://www.nairaland.com/3659780/forex-narration-nigeria-why-it

But if it is Tonto Dikeh now, they will fast track it like lightning. I've said it, and I will say this again...the forex intervention by CBN cannot be sustained, and it will only have a minute short term effect..now..it is N460 to a dollar, and it will still crash... I only laughed at those who called EgunMogaji unpatriotic in one of the threads I read this morning. Nigerians are easily fooled or should I say throw caution to the wind when our politicians and those in the corridors of power entices them with one small candy like little children. Now, they are shouting Osinbanjo is working or so. What CBN is doing does not impress foreign investors one bit because those people are not just intelligent to see through the deception but want a long-term solution from the economic team of the Nigerian government.

No sane investor will put his money in "wuruwuru" kind of forex naira appreciation that is artificial....but if you talk, they will say you be one of the speculators...I think a lot of Nigerians do not know the trouble we are in..CBN is just trying to do a cover-up...Plantain dey rot, you talk say no e dey ripe (Ogede n baje, e lo n pon)...I know for sure that they cannot continue to intervene, if not..the Venezuela situation is loading....

Even if people resort to panic selling, and sell all their dollars...yeah, naira will appreciate a little, for a while, and then gradually go up again and crash like auto crash for Lagos-Ibadan expressway until we begin to address the main issues which are industrialization, electricity generation and massive assistance of SMES...then export increase.

*Don't laugh yet at those who predicted N600+ to a dollar*

JustinSlayer69:


Please don't mind them. What does Nigeria have to export but oil? If the Naira is " allowed to find it's true value and floated" without any protection, the implication would be dire. When Naira starts exchanging for #2000 to 1$, it's the same folks who would castigate Buhari.

They kept pressurizing PMB to devalue, to "float" , when he did it partially, the effects were catastrophic.

All these clamour for Naira to find it's true value will only work if Nigeria is conducive for business and we are exporting other commodities and not just oil. This would work when we have diversified, electricity supply is stable, our local refineries are in working order.

Until then, if we don't protect the Naira, it's suicide

jpphilips:


People say things within their microscopic viewpoint hence such opinions should not be taken seriously, for the financial speculators who are pro free float, we all know whose interest they serve, the government see it through your lens while speculators, Foreign portfolio investors are all interest groups waiting to make a killing as soon as the naira floats, so let us ignore them completely.

Do we need to float the naira? Yes to bridge the gap between exchange rates,
How did we get there in the first place? we lost our major source of forex to sabotage and Global oil shock, these two factors have recently subsided and the market is gradually returning back, unsurprising why the usual unintelligent youths think Osibanjo is doing some magic.

Are we ready to relax our grip on those 41 items? NO [/b]because we have not enough liquidity yet to sustain them.

[b]Is the Naira ready to float yet? NO because while the liquidity is gradually bouncing back, the factors that mount pressure on forex liquidity have not been addressed so floating the naira at this point is a suicide mission with huge political consequence, way too high stakes folks!

What are these factors? Energy (Gas, LPG, all petroleum products) [/b]are mostly imported or priced in usd and being essential commodities, mount a constant pressure on forex liquidity.

[b]Infrastructure (rails, electricity etc) a developed infrastructure will relax the pressure mounted by those energy sources, most Nigerians don't know that once Naira floats, they may not be able to afford electricity bills, that will swell the overhead cost of SMEs, with high cost of imported petroleum products at the same time will force most businesses to close.

Local production capacity for crude oil and gas will create a resource pool for our energy industry (refineries and electricity) shielded from the dynamics of the global energy market.