Hi,

Do you guys think the price of dollars will crash in the days to come and what does the future hold for Nigeria next judging from the Global recession going on.

Note: We have a non-intelligent government.

I hate to be harsh but it is "non-intelligent" people that create "non-intelligent" government in their own mind.
Naira would have appreciated against the major currency but the government made it to depreciate to prevent capital flight and that is why currencies like pound sterling (from a country with no exports and whose economy is imploding) could be appreciating against the Naira .
Nigeria is not a credit based economy and we rely very little on the rest of the world for much for income except purchase of crude . As long as we can preserve and continue to increase our foreign reserve as Soludo's guys have been so intelligently doing so far , I think we will be OK

he government made it to depreciate to prevent capital flight

No, the government had to allow it to depreciate because the price of oil has gone down and the government doesn't have enough dollars to meet the demand for the dollar at former prices.

Seun:

No, the government had to allow it to depreciate because the price of oil has gone down and the government doesn't have enough dollars to meet the demand for the dollar at former prices.

True sir, there was heavier demand for foreign exchange because it was going cheap , and again Nigerians were buying by the millions in order to purchase cheap houses under the hammer in UK and USA and even in silly places like Dubai ; and also importing jeeps by the hundreds. Were I Soludo I would make the exchange $1 = N1000 .

Thanks, but you're not fully getting it. The government does not directly control the exchange rate; the government manipulates it by selling foreign exchange dollars to banks.  The naira tends to appreciate when the CBN sells more dollars, or depreciate when the CBN sells less.  And those dollars come from the sale of Nigeria's oil.  But the price of oil has fallen very steeply over the last few months, so the CBN has less dollars to sell, and the result is a depreciation of the naira. 

It's not as if the CBN decided one day that he wants to naira to depreciate and then magically that came to pass.  Nobody wants the naira to depreciate, not even the CBN, but with the price of oil falling, it couldn't be helped.  The CBN is not "punishing" anybody. Our free lunch merely came to an end.

@Poster

So you are more intelligent than the government or what?

First

Seun:

Thanks, but you're not fully getting it. The government does not directly control the exchange rate; the government manipulates it by selling foreign exchange dollars to banks.  The naira tends to appreciate when the CBN sells more dollars, or depreciate when the CBN sells less.  And those dollars come from the sale of Nigeria's oil.  But the price of oil has fallen very steeply over the last few months, so the CBN has less dollars to sell, and the result is a depreciation of the naira. 

It's not as if the CBN decided one day that he wants to naira to depreciate and then magically that came to pass.  Nobody wants the naira to depreciate, not even the CBN, but with the price of oil falling, it couldn't be helped.  The CBN is not "punishing" anybody. Our free lunch merely came to an end.

We are saying the same thing from different perspective boss . It is simple demand and supply law in operation (whether crude or dollar) , and someone somewhere (apart from God) does control the supply, right ?
Secondly it is not in the country's interest at this time that the naira should appreciate.
Now don't argue with me , I don't know what I am saying

Secondly it is not in the country's interest at this time that the naira should appreciate.

I think what everybody wants, except forex speculators, is for the exchange rate to remain constant,
so we can ignore it and face our respective businesses. Neither going up or going down.

N137 naira to 1USdollar today , more commentaries please!