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Nairaland Forum / Nairaland / General / Business / Egypt Devaluation To Test CBN Resolve On Naira (25430 Views)
Analysts Predict Naira Devaluation To N400/$ / Analysts Foretells Naira Devaluation To N400/$ / IMF Hints At Fresh Devaluation, Says Naira Is Overvalued (2) (3) (4)
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Egypt Devaluation To Test CBN Resolve On Naira by Adesiji77: 11:14am On Nov 05, 2016 |
After Egypt abandoned its longstanding struggle to hold the value of its currency against the dollar, all eyes will be on the Central Bank of Nigeria (CBN) to see its next move especially since both countries have closely trailed each other in terms of currency reforms. http://www.businessdayonline.com/egypt-devaluation-to-test-cbn-resolve-on-naira/ 4 Likes 1 Share |
Re: Egypt Devaluation To Test CBN Resolve On Naira by Flexherbal(m): 11:17am On Nov 05, 2016 |
Naira never devalue reach? 8 Likes 1 Share |
Re: Egypt Devaluation To Test CBN Resolve On Naira by ZainabOs(f): 1:10pm On Nov 05, 2016 |
Donno what this means. Can someone explain plsss 17 Likes |
Re: Egypt Devaluation To Test CBN Resolve On Naira by Nobody: 7:01am On Nov 06, 2016 |
Re: Egypt Devaluation To Test CBN Resolve On Naira by timilehing(m): 7:02am On Nov 06, 2016 |
Re: Egypt Devaluation To Test CBN Resolve On Naira by sylvar02(m): 7:02am On Nov 06, 2016 |
So this Shiii is allover Africa ok [size=20pt]E kú rècéssìon èní ooo [/size] 7 Likes |
Re: Egypt Devaluation To Test CBN Resolve On Naira by emeijeh(m): 7:03am On Nov 06, 2016 |
Where are the experts in this field? Pls come and explain the writeup for us 35 Likes 1 Share
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Re: Egypt Devaluation To Test CBN Resolve On Naira by yhuti(m): 7:03am On Nov 06, 2016 |
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Re: Egypt Devaluation To Test CBN Resolve On Naira by idu1(m): 7:04am On Nov 06, 2016 |
Re: Egypt Devaluation To Test CBN Resolve On Naira by AntiWailer: 7:04am On Nov 06, 2016 |
Buhari has scattered Egypt too. Signed, Wailers. 31 Likes 1 Share |
Re: Egypt Devaluation To Test CBN Resolve On Naira by akilo1: 7:05am On Nov 06, 2016 |
ok |
Re: Egypt Devaluation To Test CBN Resolve On Naira by emeijeh(m): 7:05am On Nov 06, 2016 |
idu1:Don't ask...... Just explain 5 Likes 1 Share |
Re: Egypt Devaluation To Test CBN Resolve On Naira by KINGwax007(m): 7:06am On Nov 06, 2016 |
...typing I have nothing you say.. |
Re: Egypt Devaluation To Test CBN Resolve On Naira by Zaikon(m): 7:06am On Nov 06, 2016 |
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Re: Egypt Devaluation To Test CBN Resolve On Naira by mrvitalis(m): 7:06am On Nov 06, 2016 |
Yes it is painful but i feel Buhari should allow the naira get her true value and allow market forces to determine price.. Cbn should stop selling dollars cheap... They should sale at the market price When it cost more to import the to produce here then no one will tell the importers and investors to start producing here and this will create employers Ever wondered why foreign firms with far much more wage bill and tax produce cheaper goods?? Because we had an over priced currency 11 Likes |
Re: Egypt Devaluation To Test CBN Resolve On Naira by sekundosekundo: 7:06am On Nov 06, 2016 |
God I can't thank you enough. You hv blessed me without measure. I SAY THANK YOU. As I aged with GRACE. 75 Likes 4 Shares
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Re: Egypt Devaluation To Test CBN Resolve On Naira by olamirewaju6190: 7:07am On Nov 06, 2016 |
how does this helps change price of rice for market?? the pure truth about buhaha and our own economy is dat …a president who could not generate wealth for himself in his private business cannot generate wealth for you through government business. A president who had to take bank loan to buy his nomination form would definitely have to take another bank loan to fulfill his campaign promises! so Nigerians brace yourself, he don talk already say make Nigerians who get any country way He FT go make dem run o 5 Likes |
Re: Egypt Devaluation To Test CBN Resolve On Naira by cheapgoals(m): 7:08am On Nov 06, 2016 |
Devaluing their currency At least not if it is freely traded floating currency However Egypt should just dump reserves into the currency market, they can reduce their central bank base rate, and they can perform *Quantitative Easing*. All of which may probably cause their currency to devalue. By dumping reserves they change the supply and demand, forcing down the 'cost' of their currency, and possibly causing a snowball effect as currency traders sell their holdings to avoid losses. |
Re: Egypt Devaluation To Test CBN Resolve On Naira by xolocious(m): 7:10am On Nov 06, 2016 |
Egypt is gradually feeling the impact... Nigeria on the watch again. 2 Likes |
Re: Egypt Devaluation To Test CBN Resolve On Naira by 19naia(m): 7:10am On Nov 06, 2016 |
I already saw signs of devaluation of Naira on the XE report today. I have not seen Naira go beyond 315 to the $ for quite some time now. Today i saw it at 317 and then i read this post the very same day... Hmm Even western Union exchange rate is up to N375 to $1 today and it was steady around 336 for a long while. If Nigeria was not so overly reliant on exports, it would be quite nice to have N450 to $1. Any time Nigeria sells oil for Dollar, Nigeria can then sell the dollars for plenty Naira to spend locally for a robust economy. But Nigeria has trapped itself in a cycle of giving those dollars right back out of the country for imports that Nigeria could produce at home and with a surplus to export. A Nigeria that is not so deep in an import dependency trench, will be okay with or without low value currency. Japan is a seriously robust economy and they are very comfortable with a ¥103 to $1 exchange rate. It is because their productivity and exports are enough to make a low value currency an advantage. Nigeria will never sustain a giant status until it is actually giant in diversified productivity. If the biggest person in Africa delivered no product to others and just simply sat big and fat waiting to collect all it can from others to feed itself, it would be clear that he is just a long throat glutton trying to live beyond his means and to take more than he gives. This is the story of Nigeria and is a reflection of what the people have idealized. To get rich and have plenty by doing nothing. Thats been the job assignment of Nigeria's politicians as well. Getting rich while doing nothing. And that being the politician cultured mentality, they have influenced it into the way of the nation's economy. Nigeria is paying dearly for it's own doing and lack of productivity. There was never an escape, all the chop chop and corruption in a mentality that work and productivity is simply about going out to collect money without actually giving something back, it was always destined to come to a crash. The tree that is plucked and plucked without watering it, fertilizing it and caring for it to grow healthy, is destined to fail before it's natural time. 62 Likes 6 Shares
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Re: Egypt Devaluation To Test CBN Resolve On Naira by martineverest(m): 7:12am On Nov 06, 2016 |
was really surprised to see them devalue their pounds...the recession is really bitting harder in many countries........nigeria is still better compared to others 10 Likes |
Re: Egypt Devaluation To Test CBN Resolve On Naira by Nobody: 7:12am On Nov 06, 2016 |
emeijeh:Exactly. Im sure he cant explain 3 Likes |
Re: Egypt Devaluation To Test CBN Resolve On Naira by babyfaceafrica: 7:12am On Nov 06, 2016 |
noted |
Re: Egypt Devaluation To Test CBN Resolve On Naira by Justiyke4u: 7:12am On Nov 06, 2016 |
And they are taking the hit now |
Re: Egypt Devaluation To Test CBN Resolve On Naira by exlink10(m): 7:13am On Nov 06, 2016 |
ok |
Re: Egypt Devaluation To Test CBN Resolve On Naira by onatisi(m): 7:16am On Nov 06, 2016 |
ZainabOs:It simply means the naira will be devalued more in the next few months . 1 Like |
Re: Egypt Devaluation To Test CBN Resolve On Naira by espn(m): 7:20am On Nov 06, 2016 |
all I can say..everything about this country gets me confused..From its citizens to those in government..Political structure/confusion, Economic recession.. Moral decadence (cucumber) in the society at large.. The kidnappers,terrorist,criminals,ritualist are not left out..God save Nigeria..God Save Africa..God save the World..God Save humanity..Everything I bleeped.. 1 Like |
Re: Egypt Devaluation To Test CBN Resolve On Naira by emymeeky: 7:22am On Nov 06, 2016 |
Re: Egypt Devaluation To Test CBN Resolve On Naira by grandstar(m): 7:22am On Nov 06, 2016 |
The proper economic tool to use is a float of the currency and it must be as clean as possible. That means that the exchange rate must be determined by market forces with little intervention from the government. The CBN float does not make the cut. It's extremely dirty with the government fixing the rate at below 310. It had earlier dropped to 360 in June but the government intervened and made it less than 310. The huge disparity between the official and black market is the biggest signal that the float has been corrupted. Buhari's mishandling of the forex market is the primary reason why the economy plunged into a recession. I have written off the economy due to his lamentable understanding of economics and his refusal to allow technocrats do their job. 10 Likes 2 Shares |
Re: Egypt Devaluation To Test CBN Resolve On Naira by deenee: 7:28am On Nov 06, 2016 |
Naira is already free floating. The main reason why there is still a wide margin between the official rate is as follows: Corrupt politicians who steal money and covert to FX for storage at any cost. These morons now know that it is almost impossible to keep their stolen loot in Naira or even in any bank (all thanks to BVN) so what they do now is steal naira, get the aboki guys that sell dollar to mop up dollar at any cost for them and then they keep the dollar cash stashed away in various secret locations. Importers that still patronise the black market esp those that import some of the items on the list of banned items that CBN won't allocate dollar for. Top of this list is fish, rice, tomato paste, frozen turkey/chicken furniture just to mention a few. I read a report somewhere (can verify if the data is true though) that Nigerians smuggle raw eggs worth over 8billion monthly through our borders. 30 billion naira worth of fish monthly. I don't even want to start quoting the figure for rice These figure is true are quite alarming. I just can't begin to imagine how much jobs we are creating for the countries where these food items come from. Jobs that should be in Nigeria. Hopefully the govt's efforts at self sufficiency will help reduce this trend. Finally fuel importers and I pray Dangote's refinery will help solve this as over4 40 percent of our FX needs is channelled towards fuel import. God bless Nigeria 26 Likes |
Re: Egypt Devaluation To Test CBN Resolve On Naira by kings09(m): 7:28am On Nov 06, 2016 |
I comment my reserve. Make I enter church first... |
BREAKING: Nigeria Officially Exits Recession, GDP Grew 0.55 In Q2 / Recession: EU Advises Nigeria To Devalue Naira. / Jumia Dispatch Rider Punches & Manhandles Customer For Rejecting An Item
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