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Naira Now At N158.95 To A Dollar by aljharem3: 6:11am On Oct 12, 2011
Naira Gains, Now N158.95 To Dollar

By FAVOUR AGBI, with Agency report

LAGOS – Naira increased slightly, yesterday, after the aggressive Central Bank of Nigeria’s, CBN, hike in interest rate.

The naira opened at N158.60 against the dollar on the interbank market, up 3.4 per cent from Monday’s close of N164.20 and five per cent firmer than the record low of 167.8 plumbed shortly before Monday’s unscheduled Central Bank meeting.

Naira, which gained three per cent after the CBN tightening measures, was the world’s best performing currency on the day, and the unit stood at N158.95.

CBN hiked the benchmark interest rate, the Monetary Policy Rate, MPR, by 275 basis points to 12 per cent and implemented several other tightening measures to counter pressures on the currency and inflation.

Most analysts had expected CBN to raise rates by 100 basis points at the extraordinary meeting, which was called in response to a sharp depreciation of the naira.

Dealers noted that, the tightening will create an incentive for investors to hold the naira and free up dollar supply, but the central bank will have to back its actions by meeting dollar demand at its auctions.

http://www.vanguardngr.com/2011/10/naira-gains-now-n158-95-to-dollar/

[img]http://t2.gstatic.com/images?q=tbn:ANd9GcTJcyZEi5wnnZ0ERiQAOY1IFL65hNw64v-hnZVUo085NBbX3hRJ[/img]
Re: Naira Now At N158.95 To A Dollar by aljharem3: 6:13am On Oct 12, 2011
while Iweala and GEJ are trying to reduce our money and hyper inflating the economy. SLS is trying to close in the gap between the dollar and the Naira

Iweala SMH

I mean a woman that is working for the World bank instead of Nigeria. That is the prime minister
Re: Naira Now At N158.95 To A Dollar by werepeLeri: 6:19am On Oct 12, 2011
On the other thread - someone said dollar to naira was 1 to 200 - many screamed their lungs out, calling people different names. Iweala thief, GEJ slowpoke, Sanusi goat- now, the Naira gains against the dollar marginally, yet, its still the same name calling.
Re: Naira Now At N158.95 To A Dollar by aljharem3: 6:22am On Oct 12, 2011
werepeLeri:

On the other thread - someone said dollar to naira was 1 to 200 - many screamed their lungs out, calling people different names. Iweala thief, GEJ slowpoke, Sanusi goat- now, the Naira gains against the dollar marginally, yet, its still the same name calling.

Nope Iweala and GEJ policies are decreasing the value of Naira.

one question, why does GEJ pay Iweala in dollars instead of Naira. Is she patriotic to Nigeria at all or patriotic to America ?

the other thread no one called SLS names

SLS is fixing the mess Iweala is creating for us !!
Re: Naira Now At N158.95 To A Dollar by ektbear: 6:23am On Oct 12, 2011
I wonder if this is a short-term bounce back though. Have the fundamentals changed in a way that the naira won't continue to depreciate?

I dunno. Probably best to hold a hard currency (e.g. dollars or euro) if you want stability.
Re: Naira Now At N158.95 To A Dollar by homerac7: 9:10am On Oct 12, 2011
we r truly a nation of fools wt short memories ruled by idiots . when d whole world economy dipped, didnt Nigeria's go down wt it? we resorted to lavish spending of ECA petrodollars wc took a new turn of prodigality when GEJ became d president; within space of 3 months, he pumped over 6billion dollars for extrabudgetary spendings into d economy in space time of less dn 3 months to settle governors in order to buy support for his presidential ambition. this craze continued unabated wt several uncontrolled release of such monies into d sick economy till presidentiial election went bye. consider also d handling of funds during UMYA hospitalization period.

it doesnt take an economic professor to tell dt d impact shock of such careless and wanton spending is what CBN has been having a (lost) battle wt all ds while. more unfortunately, d economy is not structured to take such high impact shock. so the whole outlook is not if d dam wil come down crashing, but when. Okonjo Iweala wasnt therre when ds madness took place, neither was SLS in any capacity to stop it. if culprits r to b named, start from GEJ himself to d cabal dt took d nation hostage wt UMYA's death and Aganga's foolish econometrics.
Re: Naira Now At N158.95 To A Dollar by Nobody: 9:46am On Oct 12, 2011
can we get someone to break this story down and update us on how this affect the ecomomy.
Re: Naira Now At N158.95 To A Dollar by omaojo1: 9:48am On Oct 12, 2011
homerac7:

we r truly a nation of fools wt short memories ruled by idiots . when d whole world economy dipped, didnt Nigeria's go down wt it? we resorted to lavish spending of ECA petrodollars wc took a new turn of prodigality when GEJ became d president; within space of 3 months, he pumped over 6billion dollars for extrabudgetary spendings into d economy in space time of less dn 3 months to settle governors in order to buy support for his presidential ambition. this craze continued unabated wt several uncontrolled release of such monies into d sick economy till presidentiial election went bye. consider also d handling of funds during UMYA hospitalization period.

it doesnt take an economic professor to tell dt d impact shock of such careless and wanton spending is what CBN has been having a (lost) battle wt all ds while. more unfortunately, d economy is not structured to take such high impact shock. so the whole outlook is not if d dam wil come down crashing, but when. Okonjo Iweala wasnt therre when ds madness took place, neither was SLS in any capacity to stop it. if culprits r to b named, start from GEJ himself to d cabal dt took d nation hostage wt UMYA's death and Aganga's foolish econometrics.
+1
Not even this continuous hike in rates can stop it. If the hike in rates persists, the cost of fund will increase and hence the prices consumption goods and services. This will make imports cheaper and will further weaken the naira against the dollar. Monetary policies can't be effective when fiscal policies are running at cross purposes.
Re: Naira Now At N158.95 To A Dollar by omosexy1: 9:54am On Oct 12, 2011
At some point I was asking myself why do people throw insults and jabs on nairaland whether it is positive or negative development. Till I got an Aha! sign. Some people do not understand the bowl of contention, they just feel like commenting. Sanusi still remains the best CBN governor in the whole of sub-sahara africa. Other CBN governors would have done nothing. For the first time, the naira hiked up to N200/dollar and after drastic efforts (which could also be linked to oil companies) the Naira appreciated rapidly. I also want to comment on fuel subsidy, we want development, how can we get that when we spend billions of dollars on fuel subsidies on a monthly basis. If you know your economics very well you would know that Government intervention via subsidy of any kind is a curse in disguise, what has fuel subsidy done for us, often times the government still deliberate on increasing the price of fuel, our refineries are in bad shape and the oil guys are getting fat. Please we should allow the Government free the funds for national development. It might hurt in the short term, but definitely we would be glad.
Re: Naira Now At N158.95 To A Dollar by Nobody: 9:56am On Oct 12, 2011
You people should sit the and continue complaining, If you cant revolt why complain here, They don't even come on N/L to see your complaints
Re: Naira Now At N158.95 To A Dollar by omosexy1: 10:02am On Oct 12, 2011
@ homerac7 what has government spending got to do with depreciation or appreciation of the naira. Please go and read about Wholesale Dutch Auction System (WDAS). For christ sake try to make some sense, I hope you become president someday, oh sorry they allow you for 1 day to become president, to appreciate the headache that man Jonathan might be going through. At least we have a president who wants to work. Please lets give him our support and stop these lame insults.
Re: Naira Now At N158.95 To A Dollar by homerac7: 10:14am On Oct 12, 2011
^

burying head in sand.

is it today we started WDAS? last year? two years ago?

truly i'm not an economist, but u havent refuted d connection of my cause and effect as i put it earlier. and please tell me it didnt happen and GEJ has been falsely accused,

also mention just one president or leader of any nation thats not having a BIG headache, just one,

also mention one president u know in history of Nigeria dt never wanted to work,

now u see y u r d one who needs to make sense?
Re: Naira Now At N158.95 To A Dollar by Ideyontop: 10:18am On Oct 12, 2011
omosexy1,God bless you for this post when you do,may you live long.

Lets support this man who wants to work and is working! Do you know the state the nation was in, when it was handed to him? Nigerians!!!!!!! Make we support this man oooo!!!!
Re: Naira Now At N158.95 To A Dollar by Nobody: 10:24am On Oct 12, 2011
Nigerians this is just one of the IMF's policies

Other adjustment policies also include currency devaluation, increased interest rates, “flexibility” of the labor market, and the elimination of subsidies such as food subsidies.

but
The impact of these preconditions on poorer countries can be devastating. Factors such as the following lead to further misery for the developing nations and keep them dependent on developed nations:

Nigeria is IMF's playground now , be prepared THINGS ARE GOING TO GET HARDER
Re: Naira Now At N158.95 To A Dollar by mjconcept(m): 10:51am On Oct 12, 2011
homerac7:

we r truly a nation of fools wt short memories ruled by idiots . when d whole world economy dipped, didnt Nigeria's go down wt it? we resorted to lavish spending of ECA petrodollars wc took a new turn of prodigality when GEJ became d president; within space of 3 months, he pumped over 6billion dollars for extrabudgetary spendings into d economy in space time of less dn 3 months to settle governors in order to buy support for his presidential ambition. this craze continued unabated wt several uncontrolled release of such monies into d sick economy till presidentiial election went bye. consider also d handling of funds during UMYA hospitalization period.

it doesnt take an economic professor to tell dt d impact shock of such careless and wanton spending is what CBN has been having a (lost) battle wt all ds while. more unfortunately, d economy is not structured to take such high impact shock. so the whole outlook is not if d dam wil come down crashing, but when. Okonjo Iweala wasnt therre when ds madness took place, neither was SLS in any capacity to stop it. if culprits r to b named, start from GEJ himself to d cabal dt took d nation hostage wt UMYA's death and Aganga's foolish econometrics.
guy man join politics and in the next election i will vote u for president.
Re: Naira Now At N158.95 To A Dollar by homerac7: 11:10am On Oct 12, 2011
^ lol

bring d money for campaign and i will hire Beaf as my spokesman. lolzzz
Re: Naira Now At N158.95 To A Dollar by mjconcept(m): 11:36am On Oct 12, 2011
bring d money for campaign and i will hire Beaf as my spokesman. lolzzz
[/quote
join first.
Re: Naira Now At N158.95 To A Dollar by omosexy1: 11:52am On Oct 12, 2011
@homerac7 its either you are far away from nigeria or you have lost touch of history. The question you asked "Name 1 Nigerian President that doesn't want to work", Gosh you sincerely need to ask kids in high school that question. Let me exclude the military catastrophe that has caused so much pain to this country. I will start with Obasanjo; Obasanjo had the opportunity to be one of the greatest presidents, oh sorry the greatest president cos we have never had 1, that have ever ruled this country. What did he do, he decided to use economic resources to fight his enemies, plot their downfalls and hush their mouths. Honestly, many of the economic decisions GED is trying to implement where brought before Obasanjo. What did he do, he wanted 3rd term because he was busy fighting in his 1st and 2nd tenure. Obasanjo would have given us steady power supply, increase our standard of living, but he chose not to rather he preferred to build a private university and secondary school, improved his farm and increased his net-worth. Jonathan is passionate about this country, he has recruited technocrats who are also passionate about this country. He has also taken a step forward to create an economic committee with the likes of dangote, aigboje, okonji e.t.c. We want quick fixes, for issues that have been existing since the inception of Nigeria. Please them no dey build bridge in 1 day. Lets support the man, he knows what he is doing, if he doesn't at least he has recruited people who know what they are doing.
Re: Naira Now At N158.95 To A Dollar by Nobody: 11:55am On Oct 12, 2011
s]make una stay there instead of starting calling una peeps for ame make dey send una doe so wen u change am e go make sense grin
Re: Naira Now At N158.95 To A Dollar by Nobody: 11:57am On Oct 12, 2011
wink
Re: Naira Now At N158.95 To A Dollar by blackky100(m): 12:03pm On Oct 12, 2011
I still de Luku Luku and Lafu Lafu
Re: Naira Now At N158.95 To A Dollar by homerac7: 12:11pm On Oct 12, 2011
@ omosexy,

@ homerac7 what has government spending got to do with depreciation or appreciation of the naira.


it is by intention i ignored ds ur earlier dumb comment hoping was only a slip. but ur last post showed how ignorant u r on d topic u hav chosen to dabble into. like i said earlier, i'm not an economist, but i know enough to tell u dat u r very confused. i wld hav loved to explain to u but it will take too long a u hav muddled many things together in manner that shows u dont hav good understanding of d basics.  i hope a nicer economist or allied professional will come on and help explain it out to u.
Re: Naira Now At N158.95 To A Dollar by MrWhy1(m): 12:23pm On Oct 12, 2011
This is short term gains. There are other factors that affects foreign exchange.

The CBN cannot defend the Naira forever through qualitative easing. If it continues to do that without fundamental changes to the economy to attract Foreign direct investment and increase foreign exchange earnings through other sectors. Nigeria foreign exchange reserve will further diminish.
Re: Naira Now At N158.95 To A Dollar by PointB: 12:34pm On Oct 12, 2011
The current crisis faced by the Naira has greatly exposed Sanusi's lack of vision and understanding of basic economic principle of demand and supply? Why deplete the foreign reserve in the first place to defend the indefensible naira?

After wasting our foreign reserve all these while defending the naira, he just woke up and realised it was a  pipe dream. Now all those money were simply a waste, What exactly did it achieve?

Going forward, I think the naira should be left to the forces of demand and supply - market forces. And Sanusi should be 'regulated'.
Re: Naira Now At N158.95 To A Dollar by omosexy1: 12:43pm On Oct 12, 2011
@homerac7 chief I thought you wanted to make sense. You just exposed your stupidity the more without saying anything. If you don't know about economics then why comment on issues that have to do with economics. Why dont you go and get books or go to the internet and start learning than post stupid comments. If you are lazy to read, go watch Bloomberg or CNBC Africa. FYI, Senators are deliberating on Fuel Subsidy and many of them are making sense about the removal of subsidy.
Re: Naira Now At N158.95 To A Dollar by homerac7: 12:48pm On Oct 12, 2011
^

tnx for d info. i'm done wt u sir
Re: Naira Now At N158.95 To A Dollar by MrWhy1(m): 1:02pm On Oct 12, 2011
omosexy1

@homerac7 chief I thought you wanted to make sense. You just exposed your stupidity the more without saying anything. If you don't know about economics then why comment on issues that have to do with economics. Why dont you go and get books or go to the internet and start learning than post silly comments. If you are lazy to read, go watch Bloomberg or CNBC Africa.
FYI, Senators are deliberating on Fuel Subsidy and many of them are making sense about the removal of subsidy

How are they making sense? That the removal of subsidy will strengthen the economy to benefit the average Nigerian or that it will push people further into poverty where a high percentage live on $1 day?
Re: Naira Now At N158.95 To A Dollar by dayokanu(m): 2:39pm On Oct 12, 2011
Welcome to Economics by Odechukwu Retardeen
Re: Naira Now At N158.95 To A Dollar by stv007: 4:02pm On Oct 12, 2011
@omosexy1, why not help youself by reading abt about how govt spending affects exchange rate.
Re: Naira Now At N158.95 To A Dollar by manny4life(m): 1:32am On Oct 13, 2011
@omosexy1,

I somewhat disagree with you; govt spending affects exchange to some extent depending on other macroeconomic forces pressuring against it. Take a good look at the Macroeconomic components of GDP

Y = C + I + G + NX , where

C =Consumption

I =Investment (Domestic or foreign)

G =Government Expenditures

NX =Net Exports (exports - imports) = value is > is positive and vice versa and is affected by strongly by exchange rate

Government Spending (GS) ---   Government spending (GS) are activities that is governed under Fiscal Policy (FP) authority. These actions include and NOT limited to goods and services it purchases and provides, the transfer payments it distributes (domestic or foreign) or Balance of payments, or the taxes it pays and or collects (domestic or international), and the list goes on. Bottom line is, GS greatly influences FP ; this will cause an increase in government expenditure (GDP Component). The result of this pushes the curve to the right; this shift causes local interest rate and income (GDP) to rise. Keep in mind that when there is higher interest rates, there is sufficient capital inflow; when there is capital, then you have investments (I). In addition, not only does that encourage investment, and due to sufficient inflows of capital, there's local and foreign investment, which increases income and local spending, this makes the domestic currency stronger compared to the $$$ or pounds or euro, better yet other competing foreign currencies. Please keep in mind I wasn't trying to go into heavily in-depth details about GDP (GS or GE is a component of) and it's correlation to exchange rate.


Therefore, I am siding with @honerac, increased government spending or expenditure (part of GDP component), does in fact affect our exchange rate; however, we have to look @ public debt profile as well because that can put to reversal the positive effect of government spending on the economy.
Re: Naira Now At N158.95 To A Dollar by PLENTYNAIR(m): 12:03pm On Oct 13, 2011
Bank Exchange Rate today 12 Noon at N153 - $1

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