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Nairaland Forum / Nairaland / General / Business / Naira Vs Dollar: The Crash Of A Pampered Currency? (12999 Views)
|Naira Vs Dollar: The Crash Of A Pampered Currency? by Thadude(m): 5:13pm On Dec 03, 2008|
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?,
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by damola1: 11:11pm On Dec 03, 2008|
oh boy this thing no funny at all oh.!!!
wetin make importers do, even if you send money from abroad the value will still be nothing, prices of things must go up!!!
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by Thadude(m): 11:48pm On Dec 03, 2008|
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.
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by KnowAll(m): 12:17pm On Dec 04, 2008|
I[b] dont think the Naira has fallen, it has actually gained against the pounds, from about N250 to N1, 4 months ago, to N185 to N1 now[/b]
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by Thadude(m): 2:17pm On Dec 04, 2008|
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.
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by damola1: 2:40pm On Dec 04, 2008|
what does GBP have to do with the USD?,
How many businesses are transacted in GBP, ?,
Lets name the world power houses for export to NG.
CHINA, they don't transact in chinese yuan (RMB), it's in USD
USA, they transact in the word's strongest currency; USD.
And the rest, who know GBP?
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by Thadude(m): 5:41pm On Dec 04, 2008|
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.
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by damola1: 7:20pm On Dec 04, 2008|
oh boy I hear say the thin don hit 142 oh, this one no funny again oh, i don already pity nigerians
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by Thadude(m): 11:58pm On Dec 04, 2008|
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.
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by hbrednic: 8:39pm On Dec 06, 2008|
the govt should allow the naira to naturally find its level.
from history the more you try to defend any falling currency,
the merrier the speculators.
sulodo shouldnt use our little reserve to defend the naira,it will be wasted effort.
russia has spent over $100million to defend the robble,but the currency keeps going down.
argentina 2001 comes to mind aswell.
too much pressure on the naira because foreighn investors are calling back their funds.
lets wait and see what our economics wizards will come up with.
right now my dollars is under my pillow i no wan hear tori.
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by Thadude(m): 7:39pm On Dec 07, 2008|
I see ur 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.
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by damola1: 10:45pm On Dec 07, 2008|
@ 117; was the naira really that strong?,
Anyway, Prices will go up, so things are basically the same.
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by felifeli: 12:26am On Dec 08, 2008|
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 ?
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by cduke: 6:29pm On Dec 08, 2008|
Folks , The Naira is not pampered, There is no bubble in Nigeria like there was in the USA,
Nigeria is not running a trade deficit , its debt ratio is ok, it has foreign reserves, that are
a healthy propotion of its GDP, The price of Oil has gone down so this is affecting its earnings
but this is temporary, hence the dip in the Naira
In other words this time around unlike in 1982-83 when the price of oil crashed. and there was
no buffer the country, has planned well on the Macro-Economic level.(strange to say that about Naija).
The more likely explanation is that the dollar is artificially high and this has more to do with all the
investors (Chinese and Indians included) who do not want to admit the the US has clay feet
(it does not produce anything anymore) why because they (like Nigeria) have invested heavily in the
dollar (huge foreign reserves), so want to continue to prop it up even artificially so. To support my point, the Naira is not
the only currency that has lost value against the dollar and why ? is it because the American economy
has suddenly improved.
My prediction is this, The dollar is heading south, all those who live in the west (US and Uk most especially)
get ready it is going to be a roller coaster. Things are going to get much worse. The effect on Nigeria ,while there
will be minimal in comparison. (in relation to where they are)
Nigeria has other problems, we all know what they are.
P.S. Gold is a good bet (for those interested)
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by BAC: 2:53pm On Dec 09, 2008|
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.
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by felifeli: 4:46pm On Dec 09, 2008|
BAC:No fear of that ; after Christmas holidays things will adjust again
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by MT: 4:21pm On Dec 10, 2008|
Pls, who knows the exchange rate for pounds and dollars today at the black market?
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by BAC: 5:22pm On Dec 10, 2008|
Same question from me. I need to know the exchange rates today, Black market please. And was there any news on the forex activity today. We need to make money from this fall of Naira. Price target N175 to the Dollar,
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by BAC: 12:31pm On Dec 13, 2008|
any one out there , Exchange rates , pleaseeeeeeeeeee
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by tolu10: 8:39pm On Jan 03, 2009|
As of today the exchange rate for US Dollars to Naira in black Market is $1 to #153.
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by liquid7: 9:06pm On Jan 03, 2009|
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.
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by Thadude(m): 4:35pm On Jan 04, 2009|
Wooow 153 naira to $1?, if true thats sweet!
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by CrowneVic: 7:50pm On Jan 04, 2009|
I beg i get dollars for sale for $125 for plenty. Make I know if anyone wan buy
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by damola1: 8:25pm On Jan 04, 2009|
I want to buy. email: firstname.lastname@example.org with your contact details and figures.
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by liquid7: 8:43pm On Jan 04, 2009|
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.
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by CrowneVic: 1:13am On Jan 05, 2009|
Is there anything wrong if I am a woman? I not a guy if you must know. I beb email me directly of you want buy plenty dollar for 125 naira. I get 300 large (thous, )
Email me directly at email@example.com
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by isolo: 4:45pm On Jan 05, 2009|
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,
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by Thadude(m): 11:01pm On Jan 05, 2009|
Dont mind soludo, all his talk has no meat!, He is only trying to stop speculators from speculating on the exchange rate, there is certainly nothing he can do, the only time he can probably do something is when oil rises up to about $70buck.
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by isolo: 1:57am On Jan 06, 2009|
Tha-dude, thanks for the info. Oil is over 45$ 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
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by triistar86: 3:16am On Jan 06, 2009|
Seems like your email address does not even exist, tried sending u a mail but I got a mailer daemon failure delivery notice. Wassup are you for real or is it just another of those regular scams cos I could be interested in getting dollars from you if you are for real. Thanx I hope I would get a response from you on this thread soon.
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by liquid7: 9:17am On Jan 07, 2009|
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
|Re: Naira Vs Dollar: The Crash Of A Pampered Currency? by Thadude(m): 1:08am On Jan 09, 2009|
The interbank rate just climbed up today, there isnt any sight to the sliding naira, i ;Dts gonna be a free fall!, those who have dollars should be ready to cash on the naira!
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