Naira appreciation to the dollar in recent times has been seen as a welcome development in the country. And has been seen as a sign of hope from the government led by PMB to Nigeria even when the price of oil have not yet recovered from it crises and when major currencies around the world are experiencing economic downturn.

Recently CBN introduce new rules to the Forex market to fight against Naira depreciation to the Dollar at a rate of N245 last month. Within a short while it began to yield results in which we are at celebrating as a new dawn in the country (beside who no like beta tin).

But before you jubilate the good news flowing in the country of Naira uppercut to the Dollar, you should ask yourself what are the new rules CBN of Nigeria introduced in our FOREX market.

1. Rejection of Dollar deposits in Domiciliary Account by commercial bank, directive from CBN
2. Limiting the amount a BDC operator should sell, directive from CBN
3. Banning some item from trading in the Forex market etc.

From the above rule 1 CBN introduced rule (directive to commercial banks) , how will this be sustained in the long run now that the Dollar is much in the market because of no place to keep it or how will CBN bring in dollar in the market to replace already exhausted one that can’t be saved in the bank. Where can CBN input Dollar into the country. Is it from...............

1. Oil

Remember that the price of oil is too low and Dollar is it trading currency. And it 70% of FGN earning

2. Non-Oil

Too low for a country like Nigeria

3. Foreign Exchange Reserve

Please don’t go there

So what will happen next if noting fast is not done for input of Dollar into to the country as Nigeria is not a producing nation or doesn’t want to diversify it earning base other than oil plus our neighbours with weaker currencies exchange rate to the Dollar around us which is not helping matters in such situation then we have no other option than to bear the consequences of

1. Naira depreciation(BACK TO $=N250 to N270)
2. Inflation,
3. Less money at hand, etc.

But FGN can prevent further Naira depreciation against the Dollar in the future is not far fetched

1. Increase Non-oil earning from 30% to 80%.
2. Oil price should exceed $100 per barrel (according to OPEC) for some of it member nation to recover from the oil crisis and Nigeria is among.
3. From consuming to manufacturing Nation
4. Increase Foreign exchange reserve in time of needs
5. ETC

If FGN and CBN can meetup to the above mention, then that is when we can really jubilate over Naira appreciation to the Dollar.

NIGERIANS BE WISE


Written By IfyAn

Source:http://www.nairausd.com/2015/08/why-we-shouldnt-jubilate-yet-over-naira.html

Twitter@https://twitter.com/

All solutions proffered will take a 'long' while to manifest and Yes, your points are so on point. However, It's a one step at a time thing. For the time being, let's continue to jubilate n congratulate. It Shouldn't be worries all the time. OP be wise.
Cc front-page material pls!

Sabrwahaqqo:
All solutions proffered will take a 'long' while to manifest and Yes, your points are so on point. However, It's a one step at a time thing. For the time being, let's continue to jubilate n congratulate. It Shouldn't be worries all the time. OP be wise.
Cc front-page material pls!

Yes sir

Cool analysis

Hmmmm

Hmmm