SalamRushdie:
When I said in the past that under Buhari the Naira was the worst performing currency on earth some zombies argued and now we can all see I was right..Even though the Angola currency performed in short run worse than the Naira, in the long term the Buhari Naira is a far worse performer and that's why the Angola Kwanza still has more value than the Buhari Naira

Bros, as a student of English, I think you ought to know that 'worst performing currency on earth' is quite different from 'most battered oil currency. Be reasonable

ZeOptimist:
Bros, as a student of English, I think you ought to know that 'worst performing currency on earth' is quite different from 'most battered oil currency. Be reasonable

Buhari Naira clearly fits into both brackets square and fair so what's your problem?

grandstar:


You first need to understand that I am apolitical. I don't even vote. So I am speaking from a strictly independent point of view. I can as well provide such views about the Ghanaian or Argentine economies.

However, in 2015, if I was told which of the 2 candidates I would have preferred between Jonathan and Buhari, Buhari would have been my No.1 choice hands down. So, my criticism should be seen in a rather constructive light rather than petty bias.

Why do I blame Buhari for the recession, for the collapse of the economy and for even the present dire state?

Let me use an illustration

Imagine everyday, you had a N1,000,000 with you and you went to the black market to buy $10,000. What will the exchange rate be? Most likely N100 to $1.00. And it has been like this for a long time.

One day, you go to the market with your usual 1m and want to buy your $10,000. However, the traders say there is not much dollars available and all you can get is $7,000. If you choose to buy the $7,000, will they sell it to you at the same rate of N100 to $1 or will they ask for a mark up? I am sure you will say they will of course demand a higher price for the $7,000. The price will not remain the same.

Well, Buhari said it must remain the same. By fire by force, it must remain the same.He said he does not believe in the depreciation or devaluation of the currency. who gives a damn what you believe? Market forces will reign supreme.

Upon assumption of power, the continual depreciation of the Naira which you acknowledged was occuring during the last months of the Jonathan administration due to the declining dollar inflow into the country due to the rapidly collapsing oil price was put to a halt.

Buhari hijacked forex policy from the semi-autonomous CBN and fixed the Naira at 197 to $1. Since nature says the Naira should continuously continue to lose value due to declining dollar inflow, it was a recipe for disaster. Before long, the CBN could no longer satisfy the demand for forex. Businessmen turned to the thinly traded black market and the Naira value started crashing against the dollar.

The overvalued official exchange rate discouraged forex inflow and chased away foreign investors. To understand why, imagine your uncle sent you $100 through WU and your bank offered you 19,700 at the official rate. Meanwhile, the black market rate is N300. Will you be willing to exchange? Will you want to bring your dollars in? If you at $100 can not afford to make losses on your money, is it someone with a $100m?

The artificial scarcity of forex caused by his ineptitude deprived companies of much needed foreign exchange and before long they started collapsing, their collapse devastating other businesses as well, triggering a severe recession.

Lamido Sanusi was relentless in condemning Buhari's exchange rate policies. He was seething. Other economist refused to keep quiet. Soludo and Utomi condemned his statist policies.

The condemnation of Buhari isn't personal but strictly business.

The depreciation of the Naira during the last months of Jonathan admin was in order. Dollar inflow was dropping very fast. Buhari should have let the market do its work but he interfered ignorantly, his cure was worse than the disease itself.

If you owned a $1b company and you wanted someone to head it, will you simply choose someone who is 100% honest but has never run a N1M company before? Do you think this will be wise?

The stock market collapsed to a 3 month market low upon Buhari's announcement that he is running for a second term. That is how little faith the business community has in his policies. It was a vote of no confidence.

No one is shirking off Jonathan's lapses but they are a poor excuse for Buhari's failures.

I will share this same reply with all those who replied me.

You have made a very good point. The refusal to let the Naira float freely caused a huge problem.

SalamRushdie:


Buhari Naira clearly fits into both brackets square and fair so what's your problem?

First of all, it's Nigerian naira not Buhari naira. Then the Kwanza, in reality, does not have more value than the Naira. The official value is different from what is really obtainable in the market. Angola is only trying to forcefully defend her currency. Finally, your insistence that the naira is really worst on earth is quite derisive and unreasonable considering that there are many currencies having an exchange rate of over 1000 even up to 10000 to the dollar.

ZeOptimist:
First of all, it's Nigerian naira not Buhari naira. Then the Kwanza, in reality, does not have more value than the Naira. The official value is different from what is really obtainable in the market. Angola is only trying to forcefully defend her currency. Finally, your insistence that the naira is really worst on earth is quite derisive and unreasonable considering that there are many currencies having an exchange rate of over 1000 even up to 10000 to the dollar.

I didn't say the Buhari Naira is the least valuable currency in the world but the worst performing currency in the world ..No currency has performed worse in the last three years anywhere on earth ..do your research sir .