PBundles:
Thing is this is not sustainable and the CBN knows this. Their aim is to try and hold out as long as possible while trying to ringfence the selling of $ via the black market, but Im sorry to say this wont last. Its like someone with leaks in his roof saying, no problem I know where to buy buckets for the leaks. Yes initially its cheaper if you plan to eventually fix the roof, if you dont, it will collapse. Look this is economics its not magic or witchcraft.

Yes the CBN has intervened in the past, but then the naira was floating freely which is a BIG difference.

As the SWISS they tried it against the EURO and after 2 years came to the same conclusion.

This is a short term solution. Personally, we need to free float the Naira. The market is already telling its worth.

jpphilips:


naira has never floated freely in history, the day that happens, you will not be here on nairaland

Jesusloveyou:
and i stil blame the cbn for all this mess we found ourselves.
All this speculators would have release their dollars they are be hoarding since last year.
Cbn were building reserve instead to release atleast 1b dollars every month. That means he should have defend the naira thru-out last year with atleast 10b dollars and we would have still arrive at 30b dollars in reserve with alot of economy gain.
Cbn stil need to release atleast 1b dollar to force the price to atleast 250naira.
Buhari is stil the best, and cbn is stil our problem.

vizkiz:
100m from that amount will be deposited in someone's account. Not the exact estimate

modath:


Dey try lie small small... 280? Evidence please... thank you....

As much as i am on Nigeria's side , i don't see how this will pay us in the long run... Some banks couldn't sell PTA friday & yesterday cos CBN hadn't released their allocation... It's a vicious circle of feeding the beast, it won't end till there is nothing to give...



989900 .... You still haven't answered my earlier kweshon, i hope you know... Anyway, how ya doing?

jpphilips:



At what rate and limit are the banks selling PTA?

modath:


They dare not, they know their limit, it is this cosmetic band aid thing they stop at...

El Rufai for all his loyalty to the powers that be has said his own, sanusi & madam oby same thing, let's patiently see where bus stop dey ...

olowobaba10:
THIS IS ONLY A TEMPORARY MEASURE , THE CBN CANNOT SUSTAIN THE SUPPLY, LET NAIRA FLOW AND LET MARKET FORCES DETERMINE THE VALUE .

modath:



N375, $4k PTA. .. ....


By the way, it's CBN that instructed them to sell @ 375..... They are practically dependent on CBN so they can't flout the rule.

jpphilips:



El rufai said that last year, its stale news that was why they leaked it, most of his concerns have been overtaken by events, why do we need to give BDCs forex when the banks can have it and allow us higher limits on debit cards?

jpphilips:


The profit margin for the bank is way too much, how are the banks allowed to make that much profit on forex?

jpphilips:


Where will CBN get $1b monthly last year to give you?

jpphilips:


naira has never floated freely in history, the day that happens, you will not be here on nairaland

modath:



Ask CBN...

https://www.thisdaylive.com/index.php/2017/02/18/cbn-pegs-dollar-rate-for-school-fees-pta-at-n375/

JustinSlayer69:


Economics isn't magic or witchcraft.

PLEASE i have just one question for you....

Was Naira actually worth 150 Naira to 1 Dollar during the 2008 global recession

Sorry, couldn't resist the temptation to ask another... Why did the Naira to Dollar value remain fairly constant between 2009 - 2014?

It was because we were exporting goods or because the global oil prices were high and we were propping up the Naira with our reserves.

You are very funny

PBundles:
Actually is what the CBN Governor propagated in June I believe. Its actually officially in full float as we speak. Dont believe me check the CBN website or internet, old news. Thing is there are strings attached so they said one thing but did another.

JustinSlayer69:


Economics isn't magic or witchcraft.

PLEASE i have just one question for you....

Was Naira actually worth 150 Naira to 1 Dollar during the 2008 global recession

Sorry, couldn't resist the temptation to ask another... Why did the Naira to Dollar value remain fairly constant between 2009 - 2014?

It was because we were exporting goods or because the global oil prices were high and we were propping up the Naira with our reserves.

You are very funny

Jesusloveyou:
@obailala
where are they getting the dollars now.
When they were building reserve from 23b dollars to 30b dollars last year, why not release just a little 100m dollars/month even at that stage when it was 23b dollars.
This 100m dollars cbn is releasing every month is too small to defend the naira. I was expecting atleast 1b dollars to force the dollar to 250 naira.

jpphilips:


CBN said they will float the naira last year, at implementation they did a dirty float if you understand what that means, I repeat, naira has never floated freely in history, the day that happens, so many people will no longer have access to nairaland.

PBundles:
https://www.nairaland.com/2870351/us-eu-officially-lift-nuclear/6#42090871

PBundles:
[s]Thing is this is not sustainable and the CBN knows this. Their aim is to try and hold out as long as possible while trying to ringfence the selling of $ via the black market, but Im sorry to say this wont last. Its like someone with leaks in his roof saying, no problem I know where to buy buckets for the leaks. Yes initially its cheaper if you plan to eventually fix the roof, if you dont, it will collapse. Look this is economics its not magic or witchcraft.
[/s]
[s]Yes the CBN has intervened in the past, but then the naira was floating freely which is a BIG difference.

As the SWISS they tried it against the EURO and after 2 years came to the same conclusion.

This is a short term solution. Personally, we need to free float the Naira. The market is already telling its worth. [/s]

obailala:
I asked you a question b4, can you give what you do not have?

Dollar supply is higher now because oil now sells at an average of $55 per barrel unlike $40 average which it sold for last year. In addition, oil production has now increased to 2 million barrels daily as against 1.1 - 1.5 million barrels which was the case last year. Hope you now see the difference?

Jesusloveyou:
@jpphilips

i always know the difference,
But a little 100m dollars last year as they are doing now would have help the economy last year.even when the reserve stand @23 b dollars.100m dollars even from 20b dollars wouldn't have affect the reserve.
And now that the oil price is up and the reserve has be built to 30b dollars, so why cant the cbn release upto 1b dollars now.

obailala:
I asked you a question b4, can you give what you do not have?

Dollar supply is higher now because oil now sells at an average of $55 per barrel unlike $40 average which it sold for last year. In addition, oil production has now increased to 2 million barrels daily as against 1.1 - 1.5 million barrels which was the case last year. Hope you now see the difference?

JustinSlayer69:


Your link to that comment contained facts. Congrats. But i also predicted that range without any textbook.

You didnt predict you guessed. There is a BIG difference.

You actually didn't answer any of the 2 questions. At all.

I did but I guess you dont understand the basics of economic equilibrium, its simple demand and supply

A free float as developed world is proposing would be calamitous. It would work perfectly if we had the infrastructure, regular electricity supply, minimal corruption etc.

Actually the things you mention have no factoring for a free float. The one major impact is the need for FX. If you reduce that you will be fine. Our problem is the huge demand for foreign products, that includes schooling, medical treatment etc. What the government needs is not the main problem.

Sorry, Oga Lecturer, what you were taught in the textbooks designed for Western world would simply fail here. An example- Buhari came and was trying to force a currency peg. The West kept clamouring for a free float (knowing fully well the consequences), Buhari capitulated and what subsequently happened to the Naira? IT FELL EVEN FURTHER.

For the record I lecture PT at a Business School in Europe. I earn my wage by structuring business transaction mainly in developed countrties but have done so in Morocco and Ghana, so the developing world argument doesn't hold.

A free float has never ever happened in Nigeria. It can't happen...As someone said, you definitely won't be here on Nairaland when it does.

I actually answered this by simply stating that the CBN governor actually said so in June 2016, but I guess others know better.


"subliminal shots", "looking silly" is your personal choice to feel like that - But if you poke at me with an argument, you have to know your onions otherwise, i might poke back. That's what i did and you really couldn't answer point for point.

Simple observation I have made, no feelings hurt believe me. You will go living your life and I will mine.

And finally.... Comparing Swiss Francs vs Euro to Naira vs Dollar is frankly just silly. Do we have same economies and infrastructure?

You just contradicted yourself, yes we can compare these currencies, arent people exchanging them for Naira, so they are comparing. When people exchange indirectly that is what they are doing but, forget that, if demand and supply hasnt sunk in, this argument wont either. And yes our economy is as large as many of these so called developed countries. Food for thought, South Korea was at the same economic level of Nigeria in the late 80s, they have progressed. I was there a couple of years ago and its astonishing that we could have been the same.

If you had chosen Egyptian Pound, then i would have said you had a tangible argument. Leave those textbooks, Sir. Real world is different.

Egypt, really. Ask anyone who has been to Cairo. Why do we always reduce our potential? This is not a case of textbooks, its theory meeting practical. Ive been hearing that dumb argument for years, while the Dangotes of this world use the knowledge either those trained or hiring to build. Well they say, one gets what they deserve. If this is the main thought process of Nigerians, then yes I guess we have the government and as such the economy we deserve.

NAIRA has never been floated.

jpphilips:


We did less than 1m bbls when we lost most of our export lines at some point, no one is surprised at what is happening, so long as oil remains above $50, CBN can sustain this policy, next is the DSDP that will start in April because Forcados is back online, that will likely push down the cost of energy petrol especially, gradually inflation and recession will subside.
Only m0r0ns thought that buhari was the problem.

obailala:
I think it's all just political sentiments, these thing are quite commonsensical but even with thorough explanations, quite a lot of people wilfully do not still get it because they feel more comfortable and happy with the pointless political theories.

awelekiti:
Unfortunately, nigerians are not good speculators

olowobaba10:
THIS IS ONLY A TEMPORARY MEASURE , THE CBN CANNOT SUSTAIN THE SUPPLY, LET NAIRA FLOW AND LET MARKET FORCES DETERMINE THE VALUE .