Naira Vs Dollar: The Crash Of A Pampered Currency?

If the economic sequence of the last few days is anything to go buy, the naira seems to be collapsing, what does this mean for the Nigerian economy as at last count it was N130 to $1 from N117, Will it continue to fall, i'm predicting N145 to $1 before the end of the week.
Should Nigerians oversea take advantage of this drop to send money home?,

Certainly, you're right!, Prices of goods and services will go up even those goods that has nothing to do with dollars cos' the Nigerian market react sensitively to the reaction of dollars. The budget announcement by Mr. president finally bursted the bubble cos' of the deficit involved. Its gonna be a free fall we shall be lucky if it stabilizes at N160 cos of the global financial crunch and down wards oil price, i only hope it wont affect fuel prices, cos' crude oil is refined oversea with USD. I dont think there is much the CBN can do at this time cos' the law of demand and supply is playing itself out in the currency market,except if the prices of crude oil goes up to between $70-$80. That is when the CBN could inject more USD to meet demand.
However if we had a smart government, this would have been the time for hard sacrifices especially from the presidency, Senate and govt parastals. All their elaborate allowances could have been reviewed so that govt can divert the wasted funds to people oriented projects rather than creating a huge deficit. e.g Oversea allowance should have been brought to 0% cos' oversea trip for govt officials add huge pressure to the dollars, also considering the fact that their trip oversea is always an avenue for them to take stolen funds abroad.
This could also have been an opportunity for the govt to step up the fight against corruption and such recovered loot e.g Ibori and lucky's loot could help fund our budget in this trying times. Cos' if care isnt taken we could see the naira slum N200 to $1.

While it is very usual for the naira to fall against the dollar and not fall against the pounds going by past trends, take note that our foreign reserve is in USD,our crude oil is sold in USD equivalent. So there is more pressure on the US dollars as compared to pounds. The USA has the largest and most resilent economy. That is why world countries including china invest in US economy by buying bonds from the reserve bank.

In today's paper Soludo said he is gonna ensure that forex speculator loose money by purging the market with dollars,
Question?,  where was the CBN when the Naira was collapsing?, why didnt he purge the market with enough dollars to meet supply, isnt he suppose to be the generic prof with brilliant ideas or is he just a duplicate?
Could you imagine that the forex market was closed yesterday, cos of shortage of dollars after naira had its biggest 1 day loss of N10.
Its high time Nigerian leaders stop sugar coating and start tell us the bitter truth so we can adjust. I m sure if Yaradua's economic team werent missing in action they could have advise him more on the budget which would have allowed in include painstaking sacrifices on govt officials.
Soludo we are waiting for your maggic stick, i hope it wont be late enough to send the prices of goods and services in Nigeria skyrocketing, cos' right now there is panic in the system, even those who have nothing to do with dollars are brazing up to buy it at all cost.

damola1, Really?,
I havent heard that oh, but thanks for updating me. Where is soludo in all these? where are the dollars he promised to pump into the market to fallstall demand?.
I'm waiting for the interbank forex market, i'm sure the N142 would be black market price, all thesame i see it on a free fall, next week wednessday after muslim holiday we shall know if the fall is controlable.

hbrednic,

I see your point, like you i would love to take advantage of the weak naira to send money home for specific projects. But the truth is that at the end of the day, we weakness of the naira will come back hunting!, its not about the quantity but quality of the naira. I believed the naira has been pampered and the right price for it should have been N130 -$1 from the get-go!. The only disadvantage of having a strong naira is that we dont have the fundamentals to keep it floating as a strong currency, so its almost like a bubble waiting to burst and with the present decline in the oil market there isnt anything Soludo can do. Plus over time state governors have taken advantage of the strong naira to steal dollars and send oversea, now with a weaker naira it means those political thieves will have to pay more naira to obtain dollars they intend to keep in their oversea accounts.

This is Christmas time and there is always pressure on forex market around this time every year because a lot of people are traveling (?) . Traditionally more pound sterling used to be purchased but as the pound has fallen in value against the dollar it seems to make more sense to more people  to buy dollars , thus the heavy pressure on supply of dollars . Don't forget activities of speculators also who have been battered by the fall in value of pound sterling over past few months and are probably holding back on dollars to drive the price up. I predict that it will come back to "normal" in the new year.

Ironically my regular mallam who changes money  for me (without asking to see my mother)asked me to buy more pounds about a month ago as it will soon go up and I thought why should I (of all people)  take investment advice from an illiterate currency trafficker. Serves me right ?

Guys Get ready Naira is going to 175 or above.  In the UK we are filling the pains of the pounds. Someone is giving our Queen a knock on the head and she is caving in,  from N260 - to N175  the money market do not forgive when speculation starts.

Pls, who knows the exchange rate for pounds and dollars today at the black market?

any one out there , Exchange rates ,  pleaseeeeeeeeeee

good brothers and sisters i need the exchange rate for british pound and euro please against the naira in the black market.i am landing this week in abuja and need the prices there .
thank you in advance ,i need the black market rate please so dey no cheat your brother.

I beg  i get dollars for sale for $125 for plenty. Make I know if anyone wan buy

i highly doubt this guy go gree sell you dollar at 125 when even yahoo is saying 139 and yahoo is usually at least few naira short of the true picture at black market.

Whats the exchange rate in the black market in lagos to the USD today. They said that the CBN will intervene today or tomorrow and get the rate lowere, anything true about this,

Tha-dude, thanks for the info. Oil is over 45$ now, so maybe the naira will appreciate a little. Tha-dude what Naira to dollar value you expect the naira to get to. thanks

Whats the black market value now.
I need to get some USD in lagos.
Crowne Vic I tried to email you your email does not work

che someone actually bothered to email .do u think anyone for real will sell u at 125 when they can get 140+ in the black market for it?my guy just came back from nigeria few days back and it was 150 then