FearGodinall:
. Did I hear you saying the reason the naira is falling is as a result of excess Dollar in circulation? If this is coming from the Buharic economy team then, am beginning to believe that Nigeria might just in onechance# if its dollar that's in excess then how could be naira that would be falling? This could be just another postulation in economic because its contrary to the rules of demand and supply. How can making dollar scarce grow your economy?

hinwazaka:
Sorry Sensei but I do know, I did a course in global finance, in my final year and even did a term paper on it. The real cause of the fall in naira is not the excess of dollars in the economy but actually our low production capacity. If you have goods and a market for it, excess dollar circulation won't be a problem because you will have an outlet for it due to the fact that the naira will be more in demand in the forex market and so foreign consumers will sell more dollars to buy more naira while we will sell more naira to buy more dollars and so you would have a circular flow. The new CBN practice, though favorable in the short run will be deadly to our free market structure, in the long run. I understand the CBN is trying to implement a tight monetary policy but this goes hand in hand with a robust industrialisation plan. If the latter is left out, then the result will be one step forward, nine steps backward

arm4u:


PDP is very right.
Only kids and those who wait for monthly handouts will jubilate over the madness of Buhari and his CBN.

They are choking life out of international business.

Let me educate you folks.


We have a service which we procure from overseas,
we have a client in Nigeria who needs the service;

We pay our vendor in Dollars, so our client has to pays us in Dollars.

The business is transacted in dollars, We am not thieves.
We have nothing to do with oil let alone oil money.
We are not laundering any money for any body.

The policy has barred our client from paying using dollars.
Yet, We must pay our vendor in dollars.
Those of you who are haling it should explain to us how we can continue our business.

This archaic and myopic policy will simply snuff life out of our genuine efforts.

It is like banning cars because armed robbers use it to operate.

You can force Naira to improve in value, but you cannot force the economy to grow,


Well, am I surprised?
Didnt Buhari jail Fela for coming into Nigeria with Dollars he earned from handwork.

Do I blame Buhari?
Has he ventured into any business?
What does he know about money?
Did he not despise the business men when he visited the US?
Like somebody said, we have a celebrated illiterate as President.


Al I can say is, shame.

arm4u:


I have a vendor to pay in Denmark.
I cannot pay them in Naira bro.

Take it easy and stop being emotional.
This policy will hurt and haunt the economy.

Atlantian:
Elementary Economics taught me that when the demand is high, the price goes up. The demand for dollars is high, so we have too much naira chasing after a dollar in today's Nigeria.

Why is the demand for dollar's high and how do we address it without resorting to quick fixes that are becoming a shock to the economy.


The demand is high because Nigeria depends on crude oil income, the price of crude oil has gone less than half of what it used to be, while the running cost to drill, bunker and ship crude oil remains same. So, business is bad, far less dollars comes in and so, this creates a macro economic problem. How do we solve it ? Diversify the economic, stop scouting for new oil fields, stop selling more blocs and use the funds we have to explore other avenues.

Stop sharing revenues with the states, it is time to change how governance is done in Nigeria, allow the states to exist independently as economic models and generate their own resources to finance their projects as its done in China and USA. Nigeria as it is will NOT work.

Buhari has put up no Economic Team, and he is not an Economist, he is leading Nigeria to the abyss with these temporal fixes that are destroying the Businesses which are by the way, employers of labour.

My business depends on fx to bring in products, I am running at a loss due to loss of revenue occasioned by marginal fluctuation differences in the fx market. I am laying off workers next week instead of increasing the price of goods. This is called unemployment. And the Buhari is directly manufacturing Unemployment.

This is practical result, I assure you, I am adding at least 10 people into the unemployed statistics after my audit next week.

Firefire:


Is your company domiciled in Nigeria ?

If yes? You are not allowed to transact in any other currency than Naira on Nigeria soil.

We are still studying the response of Olisha Menthu and PDP vis a vis the CBN restrictions.

trillville:


How should Nigeria raise its low production capacity higher?

Will a stronger Naira help businesses and the government afford much needed infrastructure for industrialisation?

Do you realise that oil prices may remain low for the next 5 years. Do you understand the impact of a lower oil price on our Naira and therefore our local businesses.

What solutions can you come up with to deal with the current situation we find ourselves in?

It is always easier to criticise than to come up with solutions.

byteem:
I DONT UNDERSTAND WHAT ALL THE FUSS IS ABOUT .. THE MOST PEOPLE AFFECTED BY THIS POLICY ARE
1 CORRUPT POLITICIANS WITH PLENTY DOLLARS STASHED AWAY.. PDP AND APC ALIKE
2 BUREAU DE CHANGE MALLAMS
3 AND MONEY LAUNDRY CROOKS


AM PERSONALLY NOT A FAN OF BUHARI BUT THIS IS A COMMON SENSE POLICY.. IMAGINE BLACK MARKET HAS DROPPED FROM 247 TO 205 IN LESS THAN 3 DAYS .. SO IL SAY CARRY ON .. BUT AM SURE THE POLITICIANS WILL KICK AGAINST IT COS IT AFFECTS THEM MOST..

IF YOUR BIZNESS IS LEGIT YOU HAVE NOTHING TO FEAR.. JUST TRANSFER FOREX TO YOUR BIZ PARTNERS USING NORMAL EXCHANGE RATES.. ABI.. LOTS OF BANKS AND REMITTANCE COMPANIES OFFER SERVICES IN WHICH YOU CAN TRANSFER MONEY ABROAD FROM UR NAIRA ACCOUNT.SO BIZNESS CAN STILL GO ON FINE..

CASHLESS POLICY SHOULD NOT ONLY BE FOR NAIRA TRANSACTIONS IT SHOULD ALSO BE FOR FOREX ..ALTHOUGH AM KINDA OF WORRIED AT THE RIPPLE EFFECTS OF THIS INSTABILITY OF NAIRA .. .. WHAT AM HOPING SHOULD HAPPEN SOON IS TO ALLOW NAIRA ACCOUNT HOLDERS TRANSFER TO THEIR DOM ACCOUNTS FOR ONWARD TRANSFER TO PARTNERS ..IF I HAVE 100000 IN MY ACCOUNT AND NEED TO SEND 200 DOLLARS TO A BIZ PARTNER I SHOULD BE ABLE TO TRANSFER SAME EIDR DIRECTLY FROM MY AC COUNT OR TO THE PARTNER OR TRANSFER TO MY DORM THEN SEND ...THAT WAY THE BLACK OR PARALLEL MARKET NO LONGER DETERMINES THE EXCHANGE RATE

NICE ONE... HMMMNN AM BEGINNING TO LIKE THIS PAPA BUHARI ..

PvtParts:
1984

Austerity plagues the land

Civil service is effectively poverized

Mass lay offs

Political clampdowns

Artificial price control measures are introduced

Forex becomes illegal to possess


Which year are we again?

hinwazaka:
its funny that you just browse this things online without knowing the terminologies or theories that propound them.
You ask me how the government should improve the production levels of our manufacturers. Didn't you see in my writeup some suggestions I gave out on doing so. If you had been keenly watching the fiscal and monetary policies of the last administration you would not ask me such an ignoble question. A stronger purchasing parity is the dream of every nation but not at the expense of international trade. So you believe that by denying people access to foreign currencies our Naira will all of a sudden take flight. The gains we witnessed this weekend will in the future reverse their numbers if we don't tackle the real problems that plague our failing economy. Are you aware there are international debates on the impact and effects of contractionary monetary policies and austerity measures. The instruments being utilised now are elements of the infamous SAP policy which to some schools of thought crashed our industrial sector. Foreign currencies where denied to manufacturers then as well, even though palliatives were supposedly given. It's a big hurdle to access funds in a free flowing economy, imagine how it would become a year or two down the road. The fact is that the government want to return us to a government prone economy and unfortunately for them such things never work out in our country. I recommend you read up on Monetary Economics by Jinghan and also development economics by the same author. You can also throw in Global finance before you start claiming you know what you are saying

hinwazaka:
if you think that corrupt elements of our society will suffer this policy, you are terribly mistaken. They will simply adjust and then push the bulk to us. There is the silly belief that these will crash the parallel market. Silly is what silly does. Our borders are very porous and these elements will simply come up with ingenious ways of moving currencies in and out of the nation. This is simply another outdated textbook measure which doesn't take into cognisance the most important and fundamental element, which is MAN. In economics there is the notion of CETARIS PARIBUS: all things being equal. In our society the best of policies hardly ever bear fruit because we never consider the challenges that will befall them. And once again we have made that mistake.

trillville:


When countries take the austerity measures path, they devalue their currencies, cut jobs, pay back debt, increase taxes and try to right size their economies. What is going on in Nigeria today is the government is trying to fight corruption in the form of people using the u.s. Dollar as a store of value. Government is forcing people to sell dollars they have in storage and store the money in Naira. This will take the value of the Naira up and spur manufacturing in the long run.

You fail to realise that Nigeria is in dire times and textbooks hardly hold the answers in times like this. Please give me concrete ideas of how you would spur industrial growth in our current crisis. Remember to indicate how you would fund whatever plans you have.

hinwazaka:
its funny that you just browse this things online without knowing the terminologies or theories that propound them.
You ask me how the government should improve the production levels of our manufacturers. Didn't you see in my writeup some suggestions I gave out on doing so. If you had been keenly watching the fiscal and monetary policies of the last administration you would not ask me such an ignoble question. A stronger purchasing parity is the dream of every nation but not at the expense of international trade. So you believe that by denying people access to foreign currencies our Naira will all of a sudden take flight. The gains we witnessed this weekend will in the future reverse their numbers if we don't tackle the real problems that plague our failing economy. Are you aware there are international debates on the impact and effects of contractionary monetary policies and austerity measures. The instruments being utilised now are elements of the infamous SAP policy which to some schools of thought crashed our industrial sector. Foreign currencies where denied to manufacturers then as well, even though palliatives were supposedly given. It's a big hurdle to access funds in a free flowing economy, imagine how it would become a year or two down the road. The fact is that the government want to return us to a government prone economy and unfortunately for them such things never work out in our country. I recommend you read up on Monetary Economics by Jinghan and also development economics by the same author. You can also throw in Global finance before you start claiming you know what you are saying

trillville:


From all indications, Buhari wants them to take their ill gotten wealth through our "porous" borders. This should be clear to any right thinking person. It is like leading a bull to the slaughter house. This is the whole aim. Give them no other option than to commit crimes and then to lock them up.

SIRTee15:


now you ague we should boost our production and industrial capacity. that I agree.
but is it going to happen overnight?
if we start planting cocoa, cotton and palm oil trees that will yield millions of tonnes of products and help in favourable trade balance, dont u think that will take time?
if we embark on massive industrialization of our economy, do you think by next year we will become an export regional power?
so what do u want the govt to do till then?
fold their hands and allow the naira attain junk status?
no serious govt will allow that.
I dont know what u do, but this policy will favour manufacturers on the long run.
factories import raw materials that they process into finished goods.
They will surely benefit from a strong naira.
OR you prefer the devaluation of the naira.
Most factories in the eighties collapsed due to naira depreciation courtesy SAP.

SIRTee15:


now you ague we should boost our production and industrial capacity. that I agree.
but is it going to happen overnight?
if we start planting cocoa, cotton and palm oil trees that will yield millions of tonnes of products and help in favourable trade balance, dont u think that will take time?
if we embark on massive industrialization of our economy, do you think by next year we will become an export regional power?
so what do u want the govt to do till then?
fold their hands and allow the naira attain junk status?
no serious govt will allow that.
I dont know what u do, but this policy will favour manufacturers on the long run.
factories import raw materials that they process into finished goods.
They will surely benefit from a strong naira.
OR you prefer the devaluation of the naira.
Most factories in the eighties collapsed due to naira depreciation courtesy SAP.

keeeem:
Bros every situation requires a pragmatic solution. We spend so much time brooding over what we call "problem" yet we fail to do research for a solution.

That your company must receive dollars in a countey that has Naira as its local currency is illegal so in a way you do not have a justifiable reason for blaming govt policy.


You can use paypal to receive funds and transfer via paypal to your vendor. Please do your research on this. Your naira account gets debited for your remittance so you do not need to keep a domiciliary account.

In trying to criticise government policies, avoid siubding like an aggrieved PDP member. It is better you focus on how your lot can be bettered. All these politicians have nothing to offer you. So please seek ways of bettering your own lot.

This policy you are raising red flag over makes sense to people like me. From 243 to between 220 and 230 to a dollar. Do you know how much has been saved by businesses as a result of these?

The dollar is high in Nigeria because of. speculation. If you have excess dollar in circulation, the naira is strengthened. Those who have stolen our common patrimony cannot launder those funds. Moreso you cannot blame the banks for what they are doing. Please read the CBN governor's response to this. What is unfavourable to one man is the most favourable to others. That has been how life has always been.

All the best

arm4u:


Let me dignify you with a reply.

On the other hand, did you say the Naira fall is due to excess of Dollar in circulation?

No sir.

If you have excess dollar in circulation, dollar will fall an not Naira.

by the way:
You have not addressed the points I raised.
.

Ask Buhari to ban cars because armed robbers make use of cars.
such "intelligence".