IbeOkehie:


Will government still remain in control of the value of the naira as part of this plan? Will there still be a CBN rate, IFEX rate and parallel market rate? Curious about your thinking.



Nobody is afraid of the dollar losing value. NAIRA is the currency being decimated by inflation. In short, let's say it bluntly - this is an attempt to seize dollars from Nigerians. Anyone that deposits dollars and takes that "instrument" or whatever, is NEVER going to get their dollars back.

This has happened in Argentina, Lebanon, Zimbabwe and Venezuela. It's the USUAL step taken by bankrupt governments to steal from their people. This guy is a former investment banker, right? How can he prescribe something like this? Alarm bells should be ringing, it's a very bad sign of things to come.



And I thought it was just crazy thoughts on my part. Glad to read some sense here.

Cheers.

I like your analysis though I'm yet to research on the mentioned countries.

It's obvious such questions may come up and govt has to give a security to secure depositors funds or explain how they plan to mitigate the Argentine experience.

Since they said it is work in progress, I want to see the final work so we'll know if they are serious or not.

Nice one from you.

ambale:




First and foremost, the government needs to be sincere with themselves and their citizens

So many mistrust and it makes any policy succeed even if it's the right one

Isn't it obvious that the populace and the government are on different divides

I wonder how we want to succeed sha

I agree with you, trust has been eroded. Everyone views every govt. policy with suspicion. However, I'll wait and see if the instrument is security backed or not since they are still tinkering the executive order.

lexy2014:
who are those people?

Currently, some people are hoarding the naira because of the season. Those are part of the "they".

erniok:

Currently, some people are hoarding the naira because of the season. Those are part of the "they".

who are these people?

why is the Govt obsessed with forex ...And having no real policies to control inflation surely that makes more sense in saving the value of the naira

erniok:

I agree with you, trust has been eroded. Everyone views every govt. policy with suspicion. However, I'll wait and see if the instrument is security backed or not since they are still tinkering the executive order.

Yeah that's why most times 90% of their policies fails, cos the people are not even ready to follow it through

I think the government needs to start going slow and putting simple things in order first, that way the citizenry gains their trust, then it's easier to roll out policies

How can you trust a financial institution where you received 100k and in less than 24hours that amount has been pummeled in the name of bank charges?

erniok:


I think local production is still on the table. Pls bear in mind I'm not holding brief for him but based on the thread. The machineries and spare parts will be imported and that is where fx comes in.

Productivity of any kind in Nigeria will remain depressed and below potential until the naira is floated. No naira float, no growth in productivity. That's an ironclad promise, mark it here. Again look around the world, the most productive countries have floating currencies OR they actually take measures to SUPPRESS their currency.

Fixed currency value is a guaranteed way to destroy an economy. Again the lessons are in plain sight in Lebanon, Argentina and even Switzerland....yes, Switzerland, look up what happened when they fixed their currency around 2014.

Fixed and controlled naira value has always been the MOST IMPORTANT CAUSE of economic underdevelopment in Nigeria.

Good Luck to Nigeria.

Start doing and stop talkingStart doing and stop talking...

I hope this isn’t another trial and error policy that’ll only be rescinded as soon as it proves impractical? This govt within a short period in office already has a plethora of such.

This aghado government just assembled mõrons. Obasanjo still remains our best president with the high calibre of appointments he made.

I'm disappointed, I never expected anyone to be worse than Buhari. We're already 7 months in and this jokers are still talking. Stop talking and start acting!

sulaak:


That the only solution, but how do you transform a unproductive country into a productive society.

Put and end or a moratorium to the cancer called 'contracting'.
Let Nigeria top to bottom start cooking her meals instead of visiting the restaurant.
Half of our budget is lost to corruption, commissions and wanton profiteering.
The true value of every naira accrued to the economy via government is no more than 30 percent.
The rate at which government builds roads, feeds prisoners and buys office stationary is just ridiculous. A complete waste of resources.

sulaak:


That the only solution, but how do you transform a unproductive country into a productive society.

1. Have a solid plan with timeline
2. Show total commitment to the plan
3. Tackle corruption brutally
4. Drive and support local innovation
5. Don't play with infrastructure development...


Nigeria can transform within 10 years if there's a commitment to a solid Economic plan.

BennyDGreat:


1. Have a solid plan with timeline
2. Show total commitment to the plan
3. Tackle corruption brutally
4. Drive and support local innovation
5. Don't play with infrastructure development...


Nigeria can transform within 10 years if there's a commitment to a solid Economic plan.

Nigeria culture will not work with your 5 points. Unless the country deals with its cultural and structural problems, no plan can work in Nigeria.

All foreign currencies should paid into the bank to make available for looting as usual

HelloWhatsup:
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun has said that President Bola Tinubu has directed the implementation of an executive order that will ensure that all foreign exchange held in private hands across the care paid into the banks.

sulaak:


Nigeria culture will not work with your 5 points. Unless the country deals with its cultural and structural problems, no plan can work in Nigeria.

Dealing with underlying problems would be addressed in the plan.

Introduction of tech in some places would take care of some of the problems.

Restructuring to allow resource control by state government will stop free money being shared monthly... everyone will work for what they spend.

RepoMan007:
Bound to fail and the reason for that is simple to comprehend.

The private earners have virtual dollar/forex accounts they keep their forex. The private buyers of forex within Nigeria too have similar accounts. At exchange stage, they communicate through channels CBN don't have control over. Channels like Whatsapp, Telegram and co.

This approach is dead on arrival.

Forex crisis is political that's all. Al politicians are culpable.

erniok:


You didn't read it properly.

What he sai is lets says you have $10k cash, you pay that into your account and get an instrument of $10k. This way, you do not need to worry that inflation will erode the value of the 10k since it's an dollar instrument not naira. Anytime you want your $10k, you will get it back.

I think it's anbrillant order as most people fear is inflation eroding the value of the dollars.

So who is going to be the buffer for the inflation? CBN?
I thought you guys said Emefiele is bad

Kukutente23:

So who is going to be the buffer for the inflation? CBN?
I thought you guys said Emefiele is bad

Do you mean what is going to be the buffer? Emefiele was bad, let's not pretend about it. Would cardoso be better, time will tell.

erniok:

Do you mean what is going to be the buffer? Emefiele was bad, let's not pretend about it. Would cardoso be better, time will tell.

Whichever? Someone or something must be the hedge against inflation. What that will be is not clear.
I've not said Emefiele was good. But if the people who declared him bad can't make cogent workable policies but just making open ended statements, what's the difference between them and Emefiele

Kukutente23:

Whichever? Someone or something must be the hedge against inflation. What that will be is not clear.
I've not said Emefiele was good. But if the people who declared him bad can't make cogent workable policies but just making open ended statements, what's the difference between them and Emefiele

Emefiele had more than 8 years to work but couldn't even get a single policy right. Cardoso has been in office less than 6 months and you want to compare both. Really?

erniok:

Emefiele had more than 8 years to work but couldn't even get a single policy right. Cardoso has been in office less than 6 months and you want to compare both. Really?

Here we go
So you think we should give him 8 years too right?
Anyways it should interest you this is Edun speaking about monetary matters and not Cardoso
You've still not answered who or what will foot the bill of the inflation not affecting dollarised naira

Kukutente23:

Here we go
So you think we should give him 8 years too right?
Anyways it should interest you this is Edun speaking about monetary matters and not Cardoso
You've still not answered who or what will foot the bill of the inflation not affecting dollarised naira

You brought in CBN Gov into the topic, not me. So I had to make that statement on comparing both governors.

On the issue of footing the inflation because we can't wish that away, their plan is to shore up the external reserve with what they have in mind and you know quiet well that the value of a currency is tied down to it's reserve which has a ripple effect on inflation. If you read well, he said it's work in progress. Let's be patient to see the final work done and know if it can work or not.

[quote author=IbeOkehie post=127463530]

Will government still remain in control of the value of the naira as part of this plan? Will there still be a CBN rate, IFEX rate and parallel market rate? Curious about your thinking.

Most of those CBN rates are aimed at cushioning the effect of the naira losing against the dollar.

When we toe the line of producing even if it's 40% of all our needs, demand for dollars will reduce..naira would gain automatically and will stabilize.