Naira Quoted At 253/$ As Interbank Market Opens - Business (9)

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Naira Quoted At 253/$ As Interbank Market Opens - Business (9) - Nairaland

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Re: Naira Quoted At 253/$ As Interbank Market Opens by bashydemy1: 1:49pm On Jun 20, 2016

What a goodnews to start a week.

Re: Naira Quoted At 253/$ As Interbank Market Opens by TheGoodJoe(m): 1:50pm On Jun 20, 2016

Ogetogeo:

Bro, you are still not stating facts but what you think.
I am tempted to believe her to have a better info than you for now, you can only convince me when u actually steps in a bank and buys at the rates. Then you can tellmus how easy it is and we would beliei. For now, its just claims.

How can you believe her when that is not what the policy is about? The process will mean there will be a price sold in all banks and the price changes due to demand and Supply of dollars.

It is so simple. You can not call the bank and tell them the price you want to buy.

There will be a price dollar is sold at and you determine if you want to buy or not.

Your account officer is very wrong.

1 Like

Re: Naira Quoted At 253/$ As Interbank Market Opens by Ogetogeo(m): 1:52pm On Jun 20, 2016

crazymommy:
Someone is an account officer does not make them an ISLAND OF KNOWLEDGE...no one knows it all...I was once an account officer too at Zenith bank before I decided to become self employed and yes we make mistakes..no person is above mistake...

I never said that nor insinuated that. I only asked questions and need facts as answers not projections or guesses.
I am tempted to believe she has more facts being she is currently in the banking hall, I would listen to a person that has been able to buy at the quoted rates today and which bank.

Re: Naira Quoted At 253/$ As Interbank Market Opens by crazymommy(f): 1:53pm On Jun 20, 2016

iwaeda:

You cant eliminate parallel market because of availability. People will still take from banks to black market. Please dont just read theory. Let me remain opmistic as you are. Olorun asowa so pade. Ireeeee

I used the word "reduction" and not "elimination"... No one said parallel market will be erased totally...if parallel rate market is erased how will Bereau de change now exist..I said it will reduce the gap massively...I did not say it will eliminate it...

Re: Naira Quoted At 253/$ As Interbank Market Opens by grandstar(m): 1:53pm On Jun 20, 2016

PassingShot:
Happy days are ahead of us.

With the news, the worst of our economic woes are behind us.

Kudos to the government for floating the Naira rather than devaluing it. A first in the history of Nigeria.

*Modified*

Some ignorant mourning wailers are saying floating the naira is same as devaluing it. Hell NO!

If you devalue the Naira, you fix an official exchange rate to it. E.g N250 to a dollar. With that approach, the black market rate will jump to beyond N400 to a dollar.

But with floating, many traders with high volume of dollars come in and trade dollars based on demand. In this approach, there is no official dollar rate set by the government. The rate is purely determined by how much dollars are demanded and how much dollars are available. This way, the Naira finds its true value.

Stop politicizing a very serious issue. This is not an IPOD or Wailer issue. Buhari messed up big time by pegging the exchange rate upon assuming power. Despite strong evidence from thye start, he stuck to his guns leading to chronic scarcity of forex and eventually to a recession.

For your indormation, the CBN is an autonomus institution and the presidency has no business dictating the exchange rate. His statements such as I don't believe in devaluation showed where the problem came from.

Soludo, Sanusi and Utomi all condemned his policies.

He was forced to capitulate when it was clearly obvious it was unworkable and especially when the airlines when threatening to pack and go. They had the equivalent of $600m trapped in Nigeria and this was hurting their operations.

The policy also plunged the country into a recession.

Secondly, a float will lead to a depreciation of the currency from 197 where Buhari had uneconomically pegged it. So it is still a devaluation no matter which way you look at it. Only benefit is that the balck market rate will appreciate and there will be a convergence between the official and black market rate. There will also be enough dollars in the market.

This was however the scenario before Buhari pegged the currency at a rate he could not defend.

5 Likes

Re: Naira Quoted At 253/$ As Interbank Market Opens by AkinropoIlori: 1:54pm On Jun 20, 2016

The little knowledge I have on this topic is that devaluation occurs in the fixed exchange regime while depreciation comes under the floating exchange rate.... under the floating exchange rate system like what every other writer has said there is no official exchange rate. The market creates its own supply and demand and adjust to equilibrium automatic by these market forces known as the forces of demand and supply which is known as the invisible hand by the classical economists like Adam Smith... So what the CBN did was to depreciate the currency in other to pave way for the floating system which will close the gap at the parallel market. One of the demerits of this regime is that there can't be stability in the exchange rate market because the demand must look for it supply in other to obtain equilibrium which changes from time to time.. My prediction is that the exchange market will continue to appreciate in an increasing returns in few days/weeks/ or even months but starts to increase in a decreasing return until stability is obtain. However, if the policy is hijack by the very few rich individuals who have access to foreign exchange it will make dollar more costlier at the expense of naira only creating more wealth for these very few rich individual at the expense of the masses..

2 Likes

Re: Naira Quoted At 253/$ As Interbank Market Opens by PentiumPro(f): 1:54pm On Jun 20, 2016

Ogetogeo:

You still did not answer the questions I asked. Please, answer them. I want facts not projections.
Thank you

You want facts of something that is going to happen in the future? Then you need to go and meet God for an answer. We can only project to the future and hoping ceteris paribus, our projections won't be far off target.

2 Likes

Re: Naira Quoted At 253/$ As Interbank Market Opens by Ogetogeo(m): 1:55pm On Jun 20, 2016

TheGoodJoe:

How can you believe her when that is not what the policy is about? The process will mean there will be a price sold in all banks and the price changes due to demand and Supply of dollars.

It is so simple. You can not call the bank and tell them the price you want to buy.

There will be a price dollar is sold at and you determine if you want to buy or not.

Your account officer is very wrong.

Let's assume she is wrong but you are not giving facts either.
I need fact, cus I want where I can buy dollar now at that rates.

Re: Naira Quoted At 253/$ As Interbank Market Opens by aladedotun(m): 1:55pm On Jun 20, 2016

Please do we have any1 in d house, who made a transaction today @USD? & what was the rate used?

2 Likes

Re: Naira Quoted At 253/$ As Interbank Market Opens by PentiumPro(f): 1:56pm On Jun 20, 2016

grandstar:

Stop politicizing a very serious issue. This is not an IPOD or Wailer issue. Buhari messed up big time by pegging the exchange rate upon assuming power. Despite strong evidence from thye start, he stuck to his guns leading to chronic scarcity of forex and eventually to a recession.

For your indormation, the CBN is an autonomus institution and the presidency has no business dictating the exchange rate. His statements such as I don't believe in devaluation showed where the problem came from.

Soludo, Sanusi and Utomi all condemned his policies.

He was forced to capitulate when it was clearly obvious it was unworkable and especially when the airlines when threatening to pack and go. They had the equivalent of $600m trapped in Nigeria and this was hurting their operations.

The policy also plunged the country into a recession.

Secondly, a float will lead to a depreciation of the currency from 197 where Buhari had uneconomically pegged it. So it is still a devaluation no matter which way you look at it. Only benefit is that the balck market rate will appreciate and there will be a convergence between the official and black market rate. There will also be enough dollars in the market.

This was however the scenario before Buhari pegged the currency at a rate he could not defend.

I completely aligned with your position. The President inadvertently caused this recession by preventing the CBN to go this route long time ago.

2 Likes

Re: Naira Quoted At 253/$ As Interbank Market Opens by KingOfAmebo(m): 1:56pm On Jun 20, 2016

PassingShot:
Happy days are ahead of us.

With the news, the worst of our economic woes are behind us.

Kudos to the government for floating the Naira rather than devaluing it. A first in the history of Nigeria.

*Modified*

Some ignorant mourning wailers are saying floating the naira is same as devaluing it. Hell NO!

If you devalue the Naira, you fix an official exchange rate to it. E.g N250 to a dollar. With that approach, the black market rate will jump to beyond N400 to a dollar.

But with floating, many traders with high volume of dollars come in and trade dollars based on demand. In this approach, there is no official dollar rate set by the government. The rate is purely determined by how much dollars are demanded and how much dollars are available. This way, the Naira finds its true value.

Why must you bring politics into a business thread? If dollar fall against naira e go favor both Zombies and Wailers...but if Buhari and his army of advisers get it wrong then we all know who to blame. Meanwhile, for the past few weeks now we nor hear your voice as e be sey your APC people dey mess up.

3 Likes 1 Share

Re: Naira Quoted At 253/$ As Interbank Market Opens by TheGoodJoe(m): 2:01pm On Jun 20, 2016

Ogetogeo:

Let's assume she is wrong but you are not giving facts either.
I need fact, cus I want where I can buy dollar now at that rates.

When you say you need facts, I do not know what you want.

Simple, the naira is floated. You can read on currency floating. It means the dollars will be available in banks. It means that you cards you use for online transactions will work at the interbank rates.

It means you can go to the banks and buy dollars at the Interbank rates. That is what the policy is about, driving demand and Supply. How can the system work if the banks restrict sales?

So her point of calling and telling them the price she wants is wrong because that is not the process of floating the naira.

Re: Naira Quoted At 253/$ As Interbank Market Opens by Iko5000: 2:02pm On Jun 20, 2016

MY BP is fine as I'm in a place where light, water, good hospitals and clean air is available to everyone both rich and poor with out distinction and prejudice. So I don't celebrate stuff which should be standard for my people .

NOETHNICITY:
Be sure to go check ur BP bro!

2 Likes

Re: Naira Quoted At 253/$ As Interbank Market Opens by vRendoh(m): 2:02pm On Jun 20, 2016

make Una go work jare! cheesy

The Value of the naira is a function of the quantity of dollars we have ie the export. Everybody is celebrating one miraculous naira appreciation when the day is still young. everybody, oya, pick your cutlass and ojigbe, oya.... to the farm..
lets go and plant ugu, pepper, tomatoes, yam, beans, rice etc. Let all work! not waiting and praying!

1 Like

Re: Naira Quoted At 253/$ As Interbank Market Opens by TheGoodJoe(m): 2:08pm On Jun 20, 2016

PentiumPro:

I completely aligned with your position. The President inadvertently caused this recession by preventing the CBN to go this route long time ago.

I do not think it is just a case of President Buhari. President Buhari refused to devalue the currency. He never refused floating.

Few economists actually stressed floating. They mostly talked of devaluation which the President opposes. Devaluation does not restrict the Black Market prices from going up.

So this system is acceptable and the President did not oppose it. It was a novel approach and it tackles the black market problem which President Buhari fought.

2 Likes

Re: Naira Quoted At 253/$ As Interbank Market Opens by PentiumPro(f): 2:08pm On Jun 20, 2016

crazymommy:
My sister we are saying the same thing...go and look and read my earlier comment to that guy,read it critically and you will understand we are on the Same point..or maybe because I added sarcasm to my post so you felt I disagree with you..

Ok mommy.

Re: Naira Quoted At 253/$ As Interbank Market Opens by deflover(m): 2:12pm On Jun 20, 2016

TheGoodJoe:

Please explain how this war chest will hit the naira.

we have a free floating naira.....the FX market worth is $5trillion daily FX that will be sourced all over...the naira is one of the numerous currencies in this baskets of currencies....if there is demand a any currency it appreciates....if no demand it begins to drop....

2 Likes

Re: Naira Quoted At 253/$ As Interbank Market Opens by PentiumPro(f): 2:15pm On Jun 20, 2016

TheGoodJoe:

I do not think it is just a case of President Buhari. President Buhari reused to devalue the currency. He never refused floating.

Few economists actually stressed floating. They mostly talked of devaluation which the President opposes. Devaluation does not restrict the Black Market from going up.

So this system is acceptable and the President did not oppose it. It was a novel approach and it tackles the black market problem which President Buhari fought.

Bros, I'm not going to do semantics with you, but technically speaking the Naira has been devalued, whether by forces of demand and supply or by an act of proclamation, it doesn't matter. What matters is that your One Million Naira of last Friday is no longer having the same official value of N1M today in term of forex conversion.
Anytime our major source of Forex (oil) loses value, our currency losses value, and unfortunately we couldn't defend the currency because we simply don't have the means (reserve)

1 Like

Re: Naira Quoted At 253/$ As Interbank Market Opens by Ogetogeo(m): 2:16pm On Jun 20, 2016

PentiumPro:

You want facts of something that is going to happen in the future? Then you need to go and meet God for an answer. We can only project to the future and hoping ceteris paribus, our projections won't be far off target.

The topic said Naira quoted at 253 right?
I want facts of where its sold at the quoted rates, if you have that info that is what I need from u nothing more.

Cheers

Re: Naira Quoted At 253/$ As Interbank Market Opens by TheGoodJoe(m): 2:17pm On Jun 20, 2016

deflover:

we have a free floating naira.....the FX market worth is $5trillion daily FX that will be sourced all over...the naira is one of the numerous currencies in this baskets of currencies....if there is demand a any currency it appreciates....if no demand it begins to drop....

It does not work exactly that way. The Mexican Peso was floated around 1994 and until today, their currency has not crashed the way you are saying.

Even the floating policy reduces inflation due to external shocks.

1 Like

Re: Naira Quoted At 253/$ As Interbank Market Opens by TheGoodJoe(m): 2:21pm On Jun 20, 2016

PentiumPro:

Bros, I'm not going to do semantics with you, but technically speaking the Naira has been devalued, whether by forces of demand and supply or by an act of proclamation, it doesn't matter. What matters is that your One Million Naira of last Friday is no longer having the same official value of N1M today in term of forex conversion.
Anytime our major source of Forex (oil) loses value, our currency losses value, and unfortunately we couldn't defend the currency because we simply don't have the means (reserve)

I am saying, President Buhari opposed devaluation due to the effect on the black market (Black Market price going up). This idea is accepted because it has a reverse effect on the black market (Black Market Price going down).

It is different from devaluation. That is why it is going ahead.

3 Likes

Re: Naira Quoted At 253/$ As Interbank Market Opens by TheGoodJoe(m): 2:23pm On Jun 20, 2016

PentiumPro:

Bros, I'm not going to do semantics with you, but technically speaking the Naira has been devalued, whether by forces of demand and supply or by an act of proclamation, it doesn't matter. What matters is that your One Million Naira of last Friday is no longer having the same official value of N1M today in term of forex conversion.
Anytime our major source of Forex (oil) loses value, our currency losses value, and unfortunately we couldn't defend the currency because we simply don't have the means (reserve)

In other countries where a full float was launched, the value of the currency of the home country did plummet woefully before it found its level. However, the rates between the interbank market and the parallel market did narrow which we expect will also replicate in Nigeria... Nairametrics

This was released on Nairametrics few days ago, so this is what is expected.

We are not the first country hit with a financial crisis due to a pegged/fixed exchange rate. Other countries adopted a floating system and it worked better. The War Chest did not strike them down.

1 Like

Re: Naira Quoted At 253/$ As Interbank Market Opens by PentiumPro(f): 2:24pm On Jun 20, 2016

TheGoodJoe:

I am saying, President Buhari opposed devaluation due to the effect on the black market. This idea is accepted because it has a reverse effect on the black market.

It is different from devaluation. That is why it is going ahead.

I get your point about the reverse effect of this as against devaluation and still pegging the the rate

1 Like 1 Share

Re: Naira Quoted At 253/$ As Interbank Market Opens by Doyin2(m): 2:26pm On Jun 20, 2016

I appreciate those who are already thanking me for giving them sound economic advice on Friday,check it out:

https://www.nairaland.com/3172610/warning-economist-go-sell-dollar#46665600

The black market rate had since crashed to about 330 from 367,with more crashes to come!

1 Like 1 Share

Re: Naira Quoted At 253/$ As Interbank Market Opens by PentiumPro(f): 2:26pm On Jun 20, 2016

Ogetogeo:

The topic said Naira quoted at 253 right?
I want facts of where its sold at the quoted rates, if you have that info that is what I need from u nothing more.

Cheers

My discussion here is solely based on the constantly updated rate posted by Bloomberg.

Re: Naira Quoted At 253/$ As Interbank Market Opens by NOETHNICITY(m): 2:36pm On Jun 20, 2016

Iko5000:
MY BP is fine as I'm in a place where light, water, good hospitals and clean air is available to everyone both rich and poor with out distinction and prejudice. So I don't celebrate stuff which should be standard for my people .

Look here, u re strongly advised to go apply for the Npower scheme b4 its too late! And b4 I forget, don't quote me again!

Re: Naira Quoted At 253/$ As Interbank Market Opens by Nobody: 2:38pm On Jun 20, 2016

crazymommy:
As expected....about 3 days ago a guy on a thread said he wants to sell his 10000$ Which he said he bought at the rate of 302 but that he wants to wait till it gets to 400naira per dollar,I adviced him that he should better sell it at that moment when it was around 350 because anything can happen on Monday which is today because I believe that the market might possibly fall in between the official price and the last parallel market price and that should be around 250-290.guess what??the guy said I am deceiving myself...that he is very intelligent and he believes that the dollar price will even open higher on Monday which is today....I hope the overconfident ignorant fellow his reading this...the annoying thing about some people on nairaland is that they feel they know it ALL and they are not ready to hear the opinion of any other person especially if it is coming from a woman....smh...

Lol. You are counting chickens. Take care that the fellow doesn't have the last laugh. There are no bids and no sellers at this price, it is just to test the market. It will still go up when the banks realise that they are not going to get any dollars to buy at this price.

Re: Naira Quoted At 253/$ As Interbank Market Opens by Mftivi: 2:48pm On Jun 20, 2016

PassingShot:

That was for excess crude account. Not foreign reserves. They're not same thing.

apologies must have assumed you mentioned the former

Re: Naira Quoted At 253/$ As Interbank Market Opens by ExplicitContent: 2:52pm On Jun 20, 2016

Mtchew, rubbish. I was still charged 330N to $ today...

Re: Naira Quoted At 253/$ As Interbank Market Opens by grandstar(m): 2:54pm On Jun 20, 2016

DaBullIT:
All is Buharinomics

Buhari cleaning up 16 years mess with sound principles

Nigeria experienced a recession because Buhari pegged the naira at 197, a rate he could not defend leading to chronic scarcity of forex and the highest inflation rate in 6 years.

Stop praising hubris. The man's integrity is impeccabloe but is economics is lamentable.

He was forced to capitulate when it was obvious even to the dead that his policy was finishing the economy.
#
Soludo, Sanusi and Utomi all condemned his policies. Imagine a president dictating the exchange rate which is the duty of the autonomous CBN. Abomination

1 Like

Re: Naira Quoted At 253/$ As Interbank Market Opens by codeME: 2:55pm On Jun 20, 2016

PentiumPro:
[size=15pt]I can see the sadist Biafran enemies of Nigeria here praying that this should not work[/size] God will disgrace you Biafrans .

Haba Lady PentiumPro why na? Please be soft and gentle, you are too beautiful for this......

Re: Naira Quoted At 253/$ As Interbank Market Opens by Ogetogeo(m): 2:58pm On Jun 20, 2016

PentiumPro:

My discussion here is solely based on the constantly updated rate posted by Bloomberg.

Those are not what we should base on cus as at last week, you check online you see 198 or so but can't access that from the banks.

What matters are not we see online but what is prevalent in the market as we speak, those are the facts am saying.

For today, access is quoted at 319, that is a fact.

2 Likes

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