joseph1013:
After crashing the economy with his stubbornness, Buhari goes back to his vomit and does the same thing he swore not to do, both on local and international media.

May we not be cursed with leaders whose egos are bigger than their love of the common good of the masses.

Meringe:
In all sincerity, this CBN gov is the worst so far. Under his care, naira lost 100% value in the market. How can you justify that? His actions caused most of this wahala, not necessarily the fundamentals. In short, the actions of this govt caused this wahala. Policy somersault is a very dangerous one. You don't go on experience tour with the lives of 200 million Nigerians.
In the height of militancy and economic meltdown, Soludo and Sanuisi managed the situation respectively.


The much i expected the dollar to naira is 220 at low price of crude oil.


Conclusion : They economy management team are serious learners.

Max24:

I cant understand your conclusion from your premise. Are you suggesting we should continue deceiving ourselves about how corrupt we are, like when Jonathan said stealing is not corruption ? Libyas problems and our corruption status are totally unrelated. If we refuse to openly admit we are corrupt we won't start to fight it. Look at the ways China and Ghana has fought corruption- openly not by hiding it. Rawlings had to openly execute many politicians then and China imposed death penalty on the corrupt. Technically, this two countries openly admitted their corruption status hence the need for drastic legislation. Which effective penalty has Nigeria imposed on its corrupt ? It is only in Nigeria that laws against homosexuals are stiffer than laws against looters.

erico2k2:

How about your raw materials and machinery?

awesomeb1783:
After calling Nig shithole and you want to succeed in it? Can I remind you that it's only a shithead that will succeed in shithole

blackpanda:
[s][/s]

Please be quiet. Intelligent people are conversing

blackpanda:
[s][/s]

Please be quiet. Intelligent people are conversing

Max24:

I cant understand your conclusion from your premise. Are you suggesting we should continue deceiving ourselves about how corrupt we are, like when Jonathan said stealing is not corruption ? Libyas problems and our corruption status are totally unrelated. If we refuse to openly admit we are corrupt we won't start to fight it. Look at the ways China and Ghana has fought corruption- openly not by hiding it. Rawlings had to openly execute many politicians then and China imposed death penalty on the corrupt. Technically, this two countries openly admitted their corruption status hence the need for drastic legislation. Which effective penalty has Nigeria imposed on its corrupt ? It is only in Nigeria that laws against homosexuals are stiffer than laws against looters.

GreatEngineer:

OK with the CAP in place, it will be fine and will work well but without it, sorry we are in for another messy trial and error policy cos people salary still remain the same while everything in the market will hit the sky.

Guyman02:


Have you ever heard any Chinese or Ghanaian leader admit to any westerner that corruption is a problem in China or Ghana? They deal with the problem drastically at home and when they are outside they tell you that China is the best investment destination and that the racist Chinese are the most accommodating set of people.
I saw the Chinese Foreign minister angrily telling a western journalist to get educated when he mentioned that China has a human rights violation problem.
See the video here

https://www.youtube.com/watch?v=L99fiuE4-0c

alexistaiwo:
this is getting stale. Have lost faith in this pathetic government. If CBN like let them put naira @ 10000 to dollar. The average Nigerian that will succeed in this shithole called Nigeria will succeed and I am definitely one of them.
enough said

Shym3xx:


Lol. Even the Bank of England intervenes all the time to keep the Pounds Sterling afloat. Now imagine a country as unstable as Nigeria, with a very weak currency and, volatility in everything - yet they think pure float is the best option and some investors would fly out of thin air to invest there. It will dawn on them soon.

Anyway, anyone interested in reading the implications of pure floating on emerging economies can read this research paper from UCLA (it cited Russia, Mexico et al): http://www.anderson.ucla.edu/faculty/sebastian.edwards/emerging.pdf

I don't know how Nigeria will escape hyperinflation (with the crazy inflation already plaguing the country) and most likely a default with this one. I'll be on the look-out, regardless.

As for the lousy economic theorists, who're no different from MBA holders who can't run a simple business, it'll dawn on you lot as well, when poverty hits you in ya faces lool.

Shym3xx:

What they're telling you in layman's term is that: salary will remain the same, but prices would double, thus slowly but surely wiping out the "middle class" who're the backbone of every economy and it will triple the poverty rate lol.

Population means nothing when there's no viable middle class and as an investor, I won't want to invest in a country like that unless I only deal with luxury goods the upper class can afford.

joseph1013:
After crashing the economy with his stubbornness, Buhari goes back to his vomit and does the same thing he swore not to do, both on local and international media.

May we not be cursed with leaders whose egos are bigger than their love of the common good of the masses.

designking:

A step at a time bro. We need the economy to heal gradually and certainly wages will be better soon.

afroditte:
I remember you staunchly defending buharinomics last year.... so this is all you have to say now?

TheGoodJoe:


Thank you very much. Super post. Let me look into the document and get back.

Shym3xx:


Anyway, I just checked the countries using free/pure float in Africa and, it's only Somalia. Well, it seems Nigeria is in good company.

Outside Africa, only Canada and US use free/pure float (Canada is too rich with small population and the US has petrodollar, world currency, and massive gold) - while the UK, Australia, Mexico, EU, Chile, Japan, Norway, Poland, and Sweden do manage their float and their apex banks do intervene from time to time. I know of the UK and EU. And Japan doesn't just manage its currency's float- it manipulates its currency lol.

Nigeria and Somalia - two great countries and pace-setters when it comes to emerging economies.

Shym3xx:
Let me crack some jokes before I disappear.

Where that nyggah sukkot at? Sukkot, since you're moving to naij - better make sure they pay you in US dollars cos you don't want to come back with something that looks like this toilet paper below:



^^^You'll bring a trillion naira back to the UK and you'll get £5 back in return, Mr. Nigerian Trillionare looool.

alexistaiwo:
this is getting stale. Have lost faith in this pathetic government. If CBN like let them put naira @ 10000 to dollar. The average Nigerian that will succeed in this shithole called Nigeria will succeed and I am definitely one of them.
enough said

TheGoodJoe:


I did a very quick study of the report due to time. So my opinion is not concrete.

I think the main concern between a fixed (pegged) exchange rate and a floating one has to do with the direct impact on inflation.

Most modern economic authors agree that a fixed exchange rate is susceptible to shocks from external crisis and external economic reports. While a fixed one receives less shock.

If you study the inflation of goods and services due to the recent drop in Crude Oil Prices, you will agree with the economic theorists that the effect is drastic. We are an emerging economy and the recent high inflation rate supports this theory.

I think the floating/flexible exchange rate is the right move. If we are going to reduce the impact of foreign economic news on the inflation here.

This will create a favorable market for investors.

feature11:
Does this mean that Naira has been devalued?

Seun:
If they are truly floating it, why is the system so complicated? It makes my head hurt. It looks as if the primary dealers are the new CBNs.