Treasure17:
Birds of a feather threatening themselves.

😂😂😂😂😂😂😂😂😂😂

Acidosis:




The argument that a high exchange rate (such as N1600 to a dollar) would discourage imports overlooks many facts, one of which is that most of the goods Nigerians import lack local alternatives. We have numerous examples to support this claim, such as phones, gadgets, electronics. The senate president recently allocated over N3bn for freezers for his constituency. Not one will be produced by a Nigerian manufacturer in Nigeria.

In fact, I could argue that prices of domestically produced goods currently exceed those of imported ones. The only reason local rice is cheaper is because of differences in quality.

If we ever see a reduction in the demand for foreign exchange at present or in the near future, it wouldn't be because Nigerians now produce more local goods. It is likely going to be due to two main factors:

1. firstly, local investors finding it increasingly unaffordable to manufacture goods. We have seen reports of manufacturing plants closing down. If the current N1600 will truly encourage local production, why are more manufacturing plants closing shop than ever?

2. secondly, a significant decrease in the rate of japa due to (i) Nigerians facing affordability issues and (ii) stricter border controls in many destination countries, like the UK, for instance.

The only thing N1650 to a dollar will achieve is a drop in japa rate. In terms of local production, BAT will never see a significant gain in the foreseeable future.

We can still maintain a reasonably low exchange rate (say, between N500 and N700) while imposing heavy taxes or outright bans on imports of specific items like food, rather than imposing such measures on everyone, including those who wish to purchase foreign products that we know no Nigerian company will produce in the next 100 years. How long will Nigerians have to pay N2 million for a common iphone because we are waiting for a Nigerian company to produce a phone. LOL. A dream and effort in futility. The concept of "comparative advantage" was coined for a reason.

Their going to ignore you, these pseudo economists just Dey talk nonsense. They don’t know inflation kills domestic exporting or manufacturing businesses all the time and booms importing ones. As they are able to put price of products low enough so that they are competitive against domestically produced products but high enough so they are able to take advantage of the inflation environment

garriAndsugar:


For those supporters of Tinubu who will pretend not to see this, I have bolded it Incase hunger don reduce una sight.

Tinubu the so called master Strategist should know that all this trial and error method he is
doing won't work

Shut up!! Do you have better alternative?. So keep quiet. Nigeria was run underground by Emefiele snd Buhari. Those are the sticking points of this news item. Not what you shaded in bold

bjdon:
This has to be fake news. No central bank governor, anywhere in the world can achieve a set exchange rate. Exchange rate is a function of demand and supply

why not prune the demand. They are encouraging the demand by openly trading the currency. Is that what need now?

DeLaRue:
I suspect the CBN will not want naira to go higher than say N1300 for a while yet.

In my view, N1450 - 1650 is the pain point range where imported goods becomes less and less affordable, and investment in local alternatives can begin to take shape. This is a higher priority for the government.

If you're one of those who believe we need to go from consumption to production, then you need to know that, that transition is unlikely to happen if dollar rate is at N700. At that rate, imports will be too cheap.

The Cbn will not even allow the naira to go anywhere near N700 for a few years to come, otherwise we will be back to square one where we are back to importing everything under the sun, with no production capacity of our own. These unbridled imports will then need to be funded by government borrowing dollars for future generations to pay.

It ain't happening.

Let's try and produce more of what we use.

production? What is the cost of energy in nigeria?

seunmsg:





I am sure you read the part in bold. Tinubu is not the problem but years of wrong policies. Tinubu is only trying to fix the problem that was created over 4o years ago. He can't fix the problem in 10 months. Stop putting the blame on the person that is doing everything to fix the problem.

he is part of the problem. He floated the currency because the oil is not coming as much. However, he played a big advisory role in the previous govt. He also doesnt know that when you float currency , you open it up to big players like the banks who muscle everybody out to get the big pir

a4cube:
You are blaming Buhari now abi. Hahaha the failure igbos saw 9 years ago is what you and your naive people are seeing now.
Rest the Omo Igbo abeg.

Our Igbo brothers and neigbours are miles ahead to detect a would - be fool & failure.

When I said there is no tribe that trully wants the development and progress of Nigeria than our brothers & sisters, i definitely stand with my full chest with what I mean.

Hate them, jealous them, victimize them, marginalizs them, they are a great, industrious, wonderful group of humans.

God will continue to bless the Igbo people worldwide

DeLaRue:
I suspect the CBN will not want naira to go higher than say N1300 for a while yet.

In my view, N1450 - 1650 is the pain point range where imported goods becomes less and less affordable, and investment in local alternatives can begin to take shape. This is a higher priority for the government.

If you're one of those who believe we need to go from consumption to production, then you need to know that, that transition is unlikely to happen if dollar rate is at N700. At that rate, imports will be too cheap.

The Cbn will not even allow the naira to go anywhere near N700 for a few years to come, otherwise we will be back to square one where we are back to importing everything under the sun, with no production capacity of our own. These unbridled imports will then need to be funded by government borrowing dollars for future generations to pay.

It ain't happening.

Let's try and produce more of what we use.

all these are idiotic ramblings. Buhari and friends said the same thing. Lock borders, do this do that, rice pyramids etc in the end rice became totally unaffordable for the people. Whom is government supposed to be serving, the people or a few business men? You can't starve the people just so a few businessmen can survive. Everybody has right to affordable food, if you can't do that, it's better to collapse the govt and return to trade by barter or hunter gatherer stage

seunmsg:





I am sure you read the part in bold. Tinubu is not the problem but years of wrong policies. Tinubu is only trying to fix the problem that was created over 4o years ago. He can't fix the problem in 10 months. Stop putting the blame on the person that is doing everything to fix the problem.

Tinubu is not doing anything. He's not fixing anything. Tell me how he's fixing it

If he likes let him give him matching pass

Taaaah!

Don't believe this news.

DevilsEqual:


Which Igbos??
Igbos wey vote Ikpeazu for their own region??

U guys should stop tribalising lil issues abeg

Ikpeazu and the likes came in like tinubu came in. Rigging.

Saying the truth is now tribalising.

Did we we not warn you guys about Buhari and Tinubu. Instead of listening, you guys called us hater and wailer. Why is he blaming Buhari now when he supported him all those days he was messing the economy up.

Instead of you to accept your mistake you have carried it to tribalism.

Respect Igbos abeg.

Spandau:


I don't know why you carry Nigeria matter for head like gala. You people are no longer Biafrans?

Who took away your bubble gum? Sorry I forget its too expensive now for your parents.

seunmsg:





I am sure you read the part in bold. Tinubu is not the problem but years of wrong policies. Tinubu is only trying to fix the problem that was created over 4o years ago. He can't fix the problem in 10 months. Stop putting the blame on the person that is doing everything to fix the problem.

Tinubu caused this current economic woes Nigeria is facing

bjdon:
This has to be fake news. No central bank governor, anywhere in the world can achieve a set exchange rate. Exchange rate is a function of demand and supply

So why exactly where you people hailing his appointment that time?

a4cube:
Who took away your bubble gum? Sorry I forget its too expensive now for your parents.

When your own parents are nothing to you, why won't you abuse and insult other people's parents. You are so uncouth, untrained and uncivilized. People who are well brought up don't insult other people's parents.

Weird

DeLaRue:
I suspect the CBN will not want naira to go higher than say N1300 for a while yet.

In my view, N1450 - 1650 is the pain point range where imported goods becomes less and less affordable, and investment in local alternatives can begin to take shape. This is a higher priority for the government.

If you're one of those who believe we need to go from consumption to production, then you need to know that, that transition is unlikely to happen if dollar rate is at N700. At that rate, imports will be too cheap.

The Cbn will not even allow the naira to go anywhere near N700 for a few years to come, otherwise we will be back to square one where we are back to importing everything under the sun, with no production capacity of our own. These unbridled imports will then need to be funded by government borrowing dollars for future generations to pay.

It ain't happening.

Let's try and produce more of what we use.

There will be a benefit to the country if the Naira is weak, but your desired rates makes it too weak which is counterproductive.

A very weak Naira would make sourcing of foreign capital goods and raw materials pricey and unaffordable. The other day, I bought $40 for 76,000. It was outrageous. I want to buy a measly $100 and paying N160,000 for it now is quite burdensome. Now, think of those who want to purchase $1,000,000.

I feel an exchange rate of 1,200 will just be fine for now. Tinubu's quest for $1-900 if true is just irritational. It can be achieved but interest rates will have to hit 40% which will drive the economy into a recession.

Tinubu wants to have his cake and eat it too if what's this article said was true. He is behaving like a deluded ruthless criminal boss who want his underlings or soldiers to achieve the impossible. I sense Cardoso had foolishly promised him heaven and earth when he wanted to mount the saddle. "Hell" is only what Tinubu is now seeing.

How can you strengthen the Naira with a loose monetary policy? If Tinubu expects a strong Naira with negative interest rates, his reasoning isn't sound. Unless interest rates hits 28-30%, will when the Naira appreciate to the 1,200 range. Anything stronger would hurt the economy.

Next, he has to deregulate the petrol price and get a foreign loan, preferably from the IMF. This were one of the reasons it was set up. It could easily lead the country $20bn, which would stabilize things.

A petrol price of 1,200/litre if the exchange rate is 1,200 should be feasible.

seunmsg:





I am sure you read the part in bold. Tinubu is not the problem but years of wrong policies. Tinubu is only trying to fix the problem that was created over 4o years ago. He can't fix the problem in 10 months. Stop putting the blame on the person that is doing everything to fix the problem.

He is not trying to fix the problem of over 40years. It's the mess Buhari left over 8yrs he is trying to fix.

Again, Tinubu came out denouncing the oil subsidy removal of 2012, despite knowing very well it was seriously hurting the nation's finances.

In that area, he has to carry his load there.

Jessyjeff:
Is this wrong policies of years ago not mainly from an APC controlled government?

The present government has also gone back to another APC's vomit by selling US dollars cheaper to BDCs at about 1, 350 Naira per 1 USD. 10,000 USD for each registered BDC 2x a week will definitely run into a big amount annually. In other words, Mr. Tinubu has secretly gone back to defend the Naira he floated. What a flip flopping government!

When Charles Soludo as CBN governor commenced the sale of forex to the BDCs, the purpose was to close the gap between it and the black market. This worked like a charm.

This immediately strengthened the back market rate and it closed the wide gap with the official rate. The differential was only about 1-2% when he introduced the policy.

Lamido Sanusi continued the policy until he was suspended.

If the CBN has any fault now, it is selling to them to cheaply. Perhaps, the price should be increased to 1550

Spandau:


When your own parents are nothing to you, why won't you abuse and insult other people's parents. You are so uncouth, untrained and uncivilized. People who are well brought up don't insult other people's parents.

Cry more. I can get you the bubble gum if you humble yourself. Ebi npa wa

DeLaRue:
I suspect the CBN will not want naira to go higher than say N1300 for a while yet.

In my view, N1450 - 1650 is the pain point range where imported goods becomes less and less affordable, and investment in local alternatives can begin to take shape. This is a higher priority for the government.

If you're one of those who believe we need to go from consumption to production, then you need to know that, that transition is unlikely to happen if dollar rate is at N700. At that rate, imports will be too cheap.

The Cbn will not even allow the naira to go anywhere near N700 for a few years to come, otherwise we will be back to square one where we are back to importing everything under the sun, with no production capacity of our own. These unbridled imports will then need to be funded by government borrowing dollars for future generations to pay.

It ain't happening.

Let's try and produce more of what we use.

Excellent, thoughtful analysis.

a4cube:
Cry more. I can get you the bubble gum if you humble yourself. Ebi npa wa

Ebi naa l'onpa manamana ku. Afi ki ebi yen maa pa e lo. Sebi chewing gum lo je dagba, ehn ohun naa ni wa a je darugbo. Bubble gum bandits everywhere. No proper training.

Can someone take the illiterate president to a room and explain the laws of demand and supply as explained by A O Lawal in his high school economics textbook?
Everyday, evidence of lack of basic education rears its ugly head among our policy makers. We all know about his high school education and that Chicago state university stuff.

Believe this news at your own risk. This is fake news to the core..