Lancasterman:


If the naira has been devalued, then why has even the IMF been clamoring for devaluation of an already devalued currency. Is it that you are wiser than the IMF or what. Those who trade fx on platforms online trade at $1=N199. That's the real exchange rate. Anything else is a lie and a fallacy..

U don't get it. The true value of the naira is 320 as obtained in the parallel market. Any valuation lower than that is subsidized. It is like the subsidy in petroleum that is a massive corruption conduit. IMF are asking for official devaluation by eliminating the forex subsidy thereby allowing for ease of business and economic transactions with the rest of the world!


The fake value of 197 is creating a rent seekers,job losses due to increasing costs of production,inflation without money and general recession. Even as the reserve shrinks!

AntiMahdi:


Education always sounds boring to the ignorant pleb.

If you are in desperate need for entertainment then go and watch one of those your yoruba nollywood videos.

Nobody is here to entertain or educate you.

zombie

keep self serving yourself online with my most alluring posts. Besides, am not in the line of the zombies. count me out. More so, am not a Yoruba.

Is this how much your education has taught you?
Wrong guess all the way.

lol. pathetic

AntiMahdi:


The Naira is pegged to the dollar. Our foriegn reserves are in Naira you nitwit. If the dollar falls so does the naira

Nigeria maintains a fixed NOT a pegged exchange rate system. If you must call someone a nitwit, at least, don't say something completely idiotic yourself.

The budget is a deficit budget coming in a year of dwindling govt earnings that means the budget is based on loans and the effect of 6 trillion naira on a double digit inflation economy is set to see inflation soar and thus the naira weaken further

Deficit budget - sure!

But you betrayed your own lack of indepth analysis by completely ignoring a few other facts.

- The finance ministry expects one major new source of non-oil revenue into the federal government budget to come from its re-appropriation of the surpluses of Ministries, Departments, and Agencies (MDAs).

- Following the launch of the Treasury Single Account (TSA) in late 2015, the federal government expects NGN1.5 trillion in recurring revenues each year from the MDAs (a tripling compared with previous years) through setting performance targets and requiring revenue in excess of approved expenditure to be returned to the federal government.

- The government also expects to generate NGN350 billion by recovering stolen funds, and it aims to reduce current expenditure by increasing coverage of the payroll system and eliminating ghost workers as well as improving overall efficiency.



Of course, it's not all roses - and there is a lot of execution risk. It's likely that fundamentals deteriorate further in the short term, but a lot has been priced in already. But if you must make economic argument, at least look at things from different angles.

AntiMahdi:


The last time he came and mess things up, it took nearly 32yrs to sort things out.

I am afraid the business world will not have the patience to tolerate the possibility of another dunce like buhari ruling Nigeria and we all know come 2019 Buhari will never vacate Aso Rock when and not if he loses out.

You have raised another solid point which many of us have already predicted about this man called buhari. Don't be surprised if buhari starts printing more naira notes .

mekaboy:
op the budget is the reason the dollar will increase. As money circulates, contracts awarded, importation of material increase, demand for dollars increase.

as demand increase it will mop up with the flow of yuan in the economic system because the value of dollers is too high

Charly68:
. Why are u so pessimistic ! Can't u be optimistic for once..it is like you people want things to go wrong so that u can cast blame on somebody .

they are diluted as there Monika

Charly68:
God bless u tthey are too pesimistic and I wonder their problem : Even when it is apparent things are going to be better they will still have one reason or the other not to believe .

blaming was there birth right

bookface:


Nigeria maintains a fixed NOT a pegged exchange rate system. If you must call someone a nitwit, at least, don't say something completely idiotic yourself.

You hold your reserves in dollars and last I checked the dollar is the supreme trading currency.

This is tantamount to a man putting all his earnings and savings in shares in a cocoa processing firm and when the firm records a loss you still assume he is still rich?

use brain

Mustack:

as demand increase it will mop up with the flow of yuan in the economic system because the value of dollers is too high

Another senseless dribble

What exactly are you saying?

I think the OP made his point (which no doubt may not be the true picture of our present economic reality) nevertheless, the intellectual space is wide enough for a healthy counter na

It baffles me when I come across comments condemning the present FX policy stance without proffering feasible and realistic alternative

Not to mention how pitiable and laughable it sounds when I hear some folks preaching devaluation when it's obvious that Nigeria doesn't have the fundamentals to support such a policy move.

Btw, when I read such comments as the ones up there , they remind me of the biblical Isrealites and Moses and the series of condemnation and complains thrown at Moses on their exodus to the promise land.

Gosh! I really wish some folks can take chill pill

abeg dz dollar of thing should kum down oo.... life tire me fr Cotonou oo....xchange rate badt gan

amaechi1:


People that will never see anything good in themselves is very unfortunate.

Folks like u choose to live in self-deception and fantasy instead of reality. Fantasy Vs Reality!!

AntiMahdi:


You hold your reserves in dollars and last I checked the dollar is the supreme trading currency.

This is tantamount to a man putting all his earnings and savings in shares in a cocoa processing firm and when the firm records a loss you still assume he is still rich?

use brain

Again - you are either an idiot or an illiterate. I sure hope it's not both.

First - You should correct your initial assertion that the Naira is pegged to the dollar. That is plain wrong.

Second- The fact that you hold your reserve in dollars does not preclude your currencies from appreciating against the dollar. Heck, most central banks around the world hold their reserves in dollars.

Third - Your reserve is only one variable in what determines the level of your exchange rates. If the CBN can control inflation and manage steady output, of course the Naira will stack up well against the dollar.

Fourth - Talking about inflation - if you consider that interest rates in Nigeria is well above 15% while in the US is just about 1%, if the CBN can manage a slightly more flexible exchange rate, and if the federal government can maintain market friendly policies, you should see a strengthening of the Naira against the dollar. -- I don't expect to see the fed doing this.

Fifth - The dollar is not a supreme currency - The swiss franc and the yen have all shown better safe haven status than the dollar in 8 of the last 10 market drawdowns

If you are not sure of the stuff you are saying, shut the fck up!

Stycon:
I think the OP made his point (which no doubt may not be the true picture of our present economic reality) nevertheless, the intellectual space is wide enough for a healthy counter na

It baffles me when I come across comments condemning the present FX policy stance without proffering feasible and realistic alternative

Not to mention how pitiable and laughable it sounds when I hear some folks preaching devaluation when it's obvious that Nigeria doesn't have the fundamentals to support such a policy move.

Btw, when I read such comments as the ones up there , they remind me of the biblical Isrealites and Moses and the series of condemnation and complains thrown at Moses on their exodus to the promise land.

Gosh! I really wish some folks can take chill pill

The solutions are simple.
No loans
Cut unnecessary spending(buhari has spent almost 7 billion naira on foreign trips so far)
Encourage more people to go into agriculture by giving good concessions

bookface:


Again - you are either an idiot or an illiterate. I sure hope it's not both.

First - You should correct your initial assertion that the Naira is pegged to the dollar. That is plain wrong.

Your economy is dependent on the petroldollar.

Second- The fact that you hold your reserve in dollars does not preclude your currencies from appreciating against the dollar. Heck, most central banks around the world hold their reserves in dollars.

Nigeria's foreign reserves as at today are exclusively held in dollars only and no other currency.

Third - Your reserve is only one variable in what determines the level of your exchange rates. If the CBN can control inflation and manage steady output, of course the Naira will stack up well against the dollar.

You produce nothing and virtually import everything. The current inflation rate hitting the economy is not due to excess liquidity brought about by growth but by the very fact that investors are willing to pay more than the official forex rate to recoup their investments. In short they are jumping ship and the stock market which has lost over 3 trillion naira in one year of this administration is a pointer on why the naira is being dumped.

[/quote]Fourth - Talking about inflation - if you consider that interest rates in Nigeria is well above 15% while in the US is just about 1%, if the CBN can manage a slightly more flexible exchange rate, and if the federal government can maintain market friendly policies, you should see a strengthening of the Naira against the dollar. -- I don't expect to see the fed doing this.

Implying nonsense. You are giving a suggestion as a point.

Fifth - The dollar is not a supreme currency - The swiss franc and the yen have all shown better safe haven status than the dollar in 8 of the last 10 market drawdowns

How much is the naira trading against the yen and swiss franc COMPARED TO THE DOLLAR?
You are now pulling sh1t out of your ass as fact.

If you are not sure of the stuff you are saying, shut the fck up!

Now the gorrilla is angry and starts hurling its sh1t over the place

onatisi:

The solutions are simple.
No loans
Cut unnecessary spending(buhari has spent almost 7 billion naira on foreign trips so far)
Encourage more people to go into agriculture by giving good concessions

You mean Buhari's travelling is unnecessary?

Wow!

Sometimes ago I read about how Singapore moved from Third world to First World. One of the lessons I leant centres on the importance of international relations and that such travelling as this are (in most case) necessary steps towards securing trade relations, building military partnership, among others.

Loan is not bad in it self when used for capital project or development-driven venture that pays good return on investment and as such making up for the burden of repayment.

Do you means the present government is not engaging in any initiative to revive our agricultural sector? Ipso fac to! It is evident that this is a core area of focus for the present administration.


Maybe, it will help if you are specific about the kind of concession you are advocating for

What a consolation, I remain doubtful until it happens.

bookface:


Again - you are either an idiot or an illiterate. I sure hope it's not both.

First - You should correct your initial assertion that the Naira is pegged to the dollar. That is plain wrong.

Second- The fact that you hold your reserve in dollars does not preclude your currencies from appreciating against the dollar. Heck, most central banks around the world hold their reserves in dollars.

Third - Your reserve is only one variable in what determines the level of your exchange rates. If the CBN can control inflation and manage steady output, of course the Naira will stack up well against the dollar.

Fourth - Talking about inflation - if you consider that interest rates in Nigeria is well above 15% while in the US is just about 1%, if the CBN can manage a slightly more flexible exchange rate, and if the federal government can maintain market friendly policies, you should see a strengthening of the Naira against the dollar. -- I don't expect to see the fed doing this.

Fifth - The dollar is not a supreme currency - The swiss franc and the yen have all shown better safe haven status than the dollar in 8 of the last 10 market drawdowns

If you are not sure of the stuff you are saying, shut the fck up!

Maybe if you had not written your first two lines, all what you wrote would have been brilliant but instead you wrapped everything up and made it zero by your first two lines. As a matter of fact, you made more sense with your insult than your opinion. You should consider as a job.

AntiMahdi:

Another senseless dribble
What exactly are you saying?

yuan will be higher in demand than dollers

Mustack:

yuan will be higher in demand than dollers

The Yuan is a local trading currency in China and the Chinese govt wants it to stay that way .

It is not in the interest of the Chinese to have a strong Yuan as it makes their exports more expensive.

The US has accused the Chinese and also the Japanese in the past of deliberately undervaluing their currency in order to have a trade advantage against the west.

tuniski:


Stories!
The budget is just a paper without spine it won't change anything.

The demand for dollars is increasing not reducing.

Finally, the naira has been devalued given the sustained depreciation. The true value of the naira is what is obtained in the parallel market!

typical rant of a wailer, enemies of progress

AntiMahdi:


The Yuan is a local trading currency in China and the Chinese govt wants it to stay that way .

It is not in the interest of the Chinese to have a strong Yuan as it makes their exports more expensive.

The US has accused the Chinese and also the Japanese in the past of deliberately undervaluing their currency in order to have a trade advantage against the west.

now I see how soiled your brain is Rather than your right... yuan is circulating the economy instead of doller as approved by the FG... man wake doller is not free flowing again.

AntiMahdi:


Your economy is dependent on the petroldollar.


Nigeria's foreign reserves as at today are exclusively held in dollars only and no other currency.

You produce nothing and virtually import everything. The current inflation rate hitting the economy is not due to excess liquidity brought about by growth but by the very fact that investors are willing to pay more than the official forex rate to recoup their investments. In short they are jumping ship and the stock market which has lost over 3 trillion naira in one year of this administration is a pointer on why the naira is being dumped.

Fourth - Talking about inflation - if you consider that interest rates in Nigeria is well above 15% while in the US is just about 1%, if the CBN can manage a slightly more flexible exchange rate, and if the federal government can maintain market friendly policies, you should see a strengthening of the Naira against the dollar. -- I don't expect to see the fed doing this.

Implying nonsense. You are giving a suggestion as a point.

Fifth - The dollar is not a supreme currency - The swiss franc and the yen have all shown better safe haven status than the dollar in 8 of the last 10 market drawdowns

How much is the naira trading against the yen and swiss franc COMPARED TO THE DOLLAR?
You are now pulling sh1t out of your ass as fact.

If you are not sure of the stuff you are saying, shut the fck up!

Now the gorrilla is angry and starts hurling its sh1t over the place

Merely making a few factual statements does not produce any sensible arguments against my points.

First - I mentioned that you were blatantly wrong to argue that the Naira is a peg. and moreso when you chose to deliberately insult another person by this ignorant statement. Your response . erhm "You produce and import...bla bla bla". Dude, did you skip all debates back in your school days?

Second - I have not argued against the current economic reality of the country or the fact that foreign investors are jumping ship. I have merely pointed out the lazy unresearched arguments you provided as facts. This goes along with the rest of the points you have made in response to my post.

For example, i pointed out that it is just pure sensless rubbish to consider any currency as a supreme currency - Because 1 dollar is more than 1 naira does not make it supreme to the naira. For example, 1 dollar equals 106 Japanese Yen. But historically, the Yen has proven to be a better safe haven currency, due to low inflation, decades of current account surplus and large foreign assets held by Japanese investors - Your response - "How much is the naira trading against the yen and swiss franc COMPARED TO THE DOLLAR?"...

Seriously, dude, are you too dumb to even notice that my debate is just to point out the really silly parts of your economic logic? I think you are simply unaware of how ignorant you are, and yet you take to forums to lecture others about economics.

luvinhubby:
Wishful thinking.

Evil thinker.

Nigeria will bounce back

bookface:



Merely making a few factual statements does not produce any sensible arguments against my points.

First - I mentioned that you were blatantly wrong to argue that the Naira is a peg. and moreso when you chose to deliberately insult another person by this ignorant statement. Your response . erhm "You produce and import...bla bla bla". Dude, did you skip all debates back in your school days?

Second - I have not argued against the current economic reality of the country or the fact that foreign investors are jumping ship. I have merely pointed out the lazy unresearched arguments you provided as facts. This goes along with the rest of the points you have made in response to my post.

For example, i pointed out that it is just pure sensless rubbish to consider any currency as a supreme currency - Because 1 dollar is more than 1 naira does not make it supreme to the naira. For example, 1 dollar equals 106 Japanese Yen. But historically, the Yen has proven to be a better safe haven currency, due to low inflation, decades of current account surplus and large foreign assets held by Japanese investors - Your response - "How much is the naira trading against the yen and swiss franc COMPARED TO THE DOLLAR?"...

Seriously, dude, are you too dumb to even notice that my debate is just to point out the really silly parts of your economic logic? I think you are simply unaware of how ignorant you are, and yet you take to forums to lecture others about economics.

foolish rants are ignored olodo forming itk over an issue he knows nothing of

AntiMahdi:


foolish rants are ignored olodo forming itk over an issue he knows nothing of

LOL, cheers mate!

@ booface I have been enjoying your analysis thumbs up for that . u shouldn't stress ur self . some people have comprehension problems here. it will better for u to just ignore their posts .they are to daft to understand

Y some ppl always criticise when hear good news

Charly68:
God bless u tthey are too pesimistic and I wonder their problem : Even when it is apparent things are going to be better they will still have one reason or the other not to believe .

See you, you want things to get better so that some people's wailing license would expire, abi?

5) The Crude Oil Price is going up

amaechi1:


People that will never see anything good in themselves is very unfortunate.

Really unfortunate how hatred can just consume one.