oluwaahmed:


If weak currency is not a sign of weak economy, den what is? Is d currency strength not a function of d purchasin power of its citizens? If smetin u bot 70 usd last week @ 150 naira(10,500) now sells 60usd @ 250 ow much wld it be
Just insult d guy and stop tryin 2 act intelligent

Is that what you based your argument on? Try and spin another please!

If your ha based your argument Nigeria not be a manufacturing economy and such I may have take you serious, China, Japan and many other economy have weak currencies are doing fine. So try and spin something new, but to be honest and frank PMB govt. is nothing to write home about.

I'm not pro sia Buhari neither a Wailer, my post history is the open for everyone to go through, my concern making Nigeria great!!!

Firefire:


Thank you for your comment.

Your submission shows your deep understanding of the subject matter and your awareness of the trend of events.

As you rightly posited, which I somewhat agreed with, that "The Govt has to allow the Naira to fall until such a point that we have the reserves to hold the line", if we continually follow this line of argument while other variables remains constant, don't you feel that is also inimical to the

purchasing power of Nigerians? Unless they (Nigerians) will not transacts in USD and got no FX impact in addition to the inflation rate of 9.4 percent.

Hence, we would see a big shift between the Nominal Income vs. the Real Income.

On the aspect of FDI, the unclear economic direction of the current administration is already putting off potential investors not minding the challenges and FX impact of the official/market rate off USD.


South Africa's Tiger Brands cuts off funds to Nigeria's DFM: "Tiger Brands has decided not to provide further financial support with respect to its investment in Tiger Branded Consumer Goods plc of Nigeria," Tiger Brands wrote down the value of DFM twice last year for a total 954 million rand ($66.3 million) as the business suffered from tough competition and a weakening naira currency.
http://www.dailymail.co.uk/wires/reuters/article-3320489/South-Africas-Tiger-Brands-cuts-funds-Nigerias-DFM.html

Nigeria administrators must come together to address the issue NOW!

Shalom!

Allowing the Naira to reflect its market rate will reduce consumer purchasing power for obvious reasons - higher import costs will increase inflation. However, not doing so will achieve the same outcome as a fixed rate requires restiction to forex access with such restrictions increasing import costs. The difference is that a fixed exchange rate not backed up by sufficient reserves has the ironic effect of accelerating currency depreciation because - as earlier stated - it reduces the incentive for bringing in foreign exchange into Nigeria.

Ultimately, the root cause of Naira depreciation is reduced forex coming into the country due to lower oil prices. Anything that further reduces forex coming in, such as restrictions necessitated by a fixed exchange rate, will have the unintended effect of accelarating currency depreciation. Of course, the official rate will stay the same but the greater the divergence between the official and market rates, the more the former becomes irrelevant.

oshyno:
We are in deep shiiet. How can Mr president focus only on fighting corruption. Who even told him d recovered money won't be looted by his goons.

Our economy is in shambles and the government is not saying anytin to give hope to investors. Wahala dey seriously.

AN ECONOMY BUILT ON OIL WILL ALWAYS FALL WITH OIL, THIS HAS LITTLE TO DO WITH BUHARI

What you guy fail to understand about the topic is that CBN needs BDCs operator.

Plus blame Bubu for this because despite the fact that CBN is a independent body. It needs to follow the economic step of the nation to know, execute, direct, etc its move for the nation. And who is to present the economy plan of the nation, the minister of economy and national planning in the case of Nigeria.

As it is nowl don't think any economic blue print is followed or available for execution. When our ministers were appointed not long ago. And who is to be blamed if not Bubu

My humble opinion

What you guy fail to understand about the topic is that CBN needs BDCs operator.

Plus blame Bubu for this because despite the fact that CBN is a independent body. It needs to follow the economic step of the nation to know, execute, direct, etc its move for the nation. And who is to present the economy plan of the nation, the minister of economy and national planning in the case of Nigeria.

As it is nowl don't think any economic blue print is followed or available for execution. When our ministers were appointed not long ago. And who is to be blamed if not Bubu

docseun:
This is the end result of a mono commodity based economy I.e. oil based economy. The lack of economic diversity makes Nigeria susceptible to drastic global economic changes. There is an economic slow down right now in China so the demand for raw materials for manufacturing including oil has declined moderately. This has put further pressure on the oil price which is already at record lows because of OPEC increasing supply to protect its share against shale oil production from the U.S.
So we are getting hit on two fronts:
1) The value of the dollar has increased against all currencies.
2) We are earning less revenue from oil exports because of the crash in the price.
That is why a CBN policy to devalue the naira will be useful to increase the spread of the exchange rate .
But in the long run if we do not expand and diversify our economy away from oil this is a painful continous cycle that we are doomed to repeat .

Did you think Dollar is safe, because right now no top notch economy is safe at the moment.

I fear we may go into another recession.

dustydee:

lMaybe not that low, but I think the government should allow the naira to drop to the appropriate level based on market forces as seen on the parallel market rather than defend the naira at N197 to the dollar. Our low reserves will not support the naira at the current rate for long. Nigeria should start diversifying the economy to earn more foreign exchange in the face of low oil prices.

There is one thing we fail to do in this part of the world.
There is a big problem but the solution is in from of us but we wouldn't go for it. Why?

You see we need to orientate ourselves for our own good.

We have been shouting to the government to diversify but they wouldn't listing now see were we are today crying about the crash of oil price.

May God heal us

Bollinger:


It's going to rain burgers and fries today. You. Agree with me? In fact, i'm not going out today.

Haba! Not that bad. Lol

ikenna123:
The economy is down and we are now in the 7th month of this government yet we don't know they economic blueprint. We need to wake up from all these media bla bla about the missing dollars and let the courts do they jobs but let us focus on the economy that is going down each day. Today naira is almost 360 to a pound and some people are saying it doesn't matter for an economy that is import driven yet we are trying to borrow 1.9tr to finance this year budget will hoping the prize of oil doesn't go below 38 dollar. It's getting scary because small medium scale businesses are crying while the big ones are sacking staffs to cut costs. It's scary ......

Agree with you.

Bubu this not military regime

Lord have mercy.

It's good to see some sensible economic opinions injected in here by 4Play and Mindfulness, in what previously had been a sea of ignorance and wishful thinking. The whole idea of having an "official" vs "black market" rate is an economic abomination, which serves no meaningful purpose other than to provide risk-free arbitrage opportunities for the lucky few who can actually obtain any forex at the artificial "official" rate. Meanwhile it drives away foreign investment and damages any local businesses that require foreign inputs into their products or services, from manufacturers, to Nollywood movie makers who need to buy cameras, to software developers who need to import computers, routers, and so forth.

The fact of the matter is that Nigeria's primary source of foreign income has nosedived in price, and Nigerians' purchasing power must necessarily adjust to that reality. Countries with far larger foreign currency reserves than Nigeria have tried in the past to defend artificial pegs to the dollar (and with the exception of places like Hong Kong with its $1trn reserves) they have all failed. There is simply no magic wand available to any Nigerian government to prop up the value of the Naira in the face of the economic realities the country faces, and cracking down on "black market" forex businesses will be as counter-productive as hunting down "illegal" refiners - in both cases the right answer is to legalize the "offenders" and get the Nigerian government out of the business altogether. Of course, that would provide fewer opportunities for Nigerian politicians to "chop" while using the economic ignorance of most Nigerians to cover what they're really doing.

Papertrail11:
if yu wanna make dollar reduce and help the economy cancel that nonsense called bureau the changi simple......

banks are selln for 199 yu guys are selln for 260 una dey crasee..... every normal person who needs dollar ought to go the bank and easily get it but yu guys create some kind of artificial increase nd help fiance money laundering....and stuff.....if normal pple went to bank an bureau the changi is cancelled pple who do not necessarily need it wont rush to buy it......I dont know if sm1 is feeln me here just d way I see it

Fool !! So BDC customers are stupid and blind, they walked past the bank selling at 199 and went to buy at 260 from BDC, pls show me where I can buy at 199, mW too I need dollars at so-called official rate

omohayek:
It's good to see some sensible economic opinions injected in here by 4Play and Mindfulness, in what previously had been a sea of ignorance and wishful thinking. The whole idea of having an "official" vs "black market" rate is an economic abomination, which serves no meaningful purpose other than to provide risk-free arbitrage opportunities for the lucky few who can actually obtain any forex at the artificial "official" rate. Meanwhile it drives away foreign investment and damages any local businesses that require foreign inputs into their products or services, from manufacturers, to Nollywood movie makers who need to buy cameras, to software developers who need to import computers, routers, and so forth.

The fact of the matter is that Nigeria's primary source of foreign income has nosedived in price, and Nigerians' purchasing power must necessarily adjust to that reality. Countries with far larger foreign currency reserves than Nigeria have tried in the past to defend artificial pegs to the dollar (and with the exception of places like Hong Kong with its $1trn reserves) they have all failed. There is simply no magic wand available to any Nigerian government to prop up the value of the Naira in the face of the economic realities the country faces, and cracking down on "black market" forex businesses will be as counter-productive as hunting down "illegal" refiners - in both cases the right answer is to legalize the "offenders" and get the Nigerian government out of the business altogether. Of course, that would provide fewer opportunities for Nigerian politicians to "chop" while using the economic ignorance of most Nigerians to cover what they're really doing.

Intelligence at last!!!! I was beginning to be worried that nairaland was a sea of ignorance......

Those have ears let them hear!!!

Please take time to read the above post and learn

4Play:


Allowing the Naira to reflect its market rate will reduce consumer purchasing power for obvious reasons - higher import costs will increase inflation. However, not doing so will achieve the same outcome as a fixed rate requires restiction to forex access with such restrictions increasing import costs. The difference is that a fixed exchange rate not backed up by sufficient reserves has the ironic effect of accelerating currency depreciation because - as earlier stated - it reduces the incentive for bringing in foreign exchange into Nigeria.

Ultimately, the root cause of Naira depreciation is reduced forex coming into the country due to lower oil prices. Anything that further reduces forex coming in, such as restrictions necessitated by a fixed exchange rate, will have the unintended effect of accelarating currency depreciation. Of course, the official rate will stay the same but the greater the divergence between the official and market rates, the more the former becomes irrelevant.

Bang on point !!!

ozoro:



Intelligence at last!!!! I was beginning to be worried that nairaland was a sea of ignorance......

Those have ears let them hear!!!

Please take time to read the above post and learn

It is a sea of ignorance, the whole country is and this the reason no. 1 why leaders can do as they like and damage a country that could be affluent by now.

omohayek:
It's good to see some sensible economic opinions injected in here by 4Play and Mindfulness, in what previously had been a sea of ignorance and wishful thinking. The whole idea of having an "official" vs "black market" rate is an economic abomination, which serves no meaningful purpose other than to provide risk-free arbitrage opportunities for the lucky few who can actually obtain any forex at the artificial "official" rate. Meanwhile it drives away foreign investment and damages any local businesses that require foreign inputs into their products or services, from manufacturers, to Nollywood movie makers who need to buy cameras, to software developers who need to import computers, routers, and so forth.

The fact of the matter is that Nigeria's primary source of foreign income has nosedived in price, and Nigerians' purchasing power must necessarily adjust to that reality. Countries with far larger foreign currency reserves than Nigeria have tried in the past to defend artificial pegs to the dollar (and with the exception of places like Hong Kong with its $1trn reserves) they have all failed. There is simply no magic wand available to any Nigerian government to prop up the value of the Naira in the face of the economic realities the country faces, and cracking down on "black market" forex businesses will be as counter-productive as hunting down "illegal" refiners - in both cases the right answer is to legalize the "offenders" and get the Nigerian government out of the business altogether. Of course, that would provide fewer opportunities for Nigerian politicians to "chop" while using the economic ignorance of most Nigerians to cover what they're really doing.

Very well said!

The other problem is that when the oil price was high, the government didn't save enough for times like this. The lack of foresight on the side of the political elite is astonishing.

ifyan:


Did you think Dollar is safe, because right now no top notch economy is safe at the moment.

I fear we may go into another recession.

It is natural that economies go through phases of recession on a regular basis. It is a never-ending cycle. An economy will have to deal with recession in a time span of four to seven years. The only difference between the governments that we have had and those in countries with strong economies is that they know how to react to the different phases in the economic cycle accordingly.

Papertrail11:



dot agree mahn soryy

then u need to read more

Sorry I know this is off topic but does anyone know how I can send money to Nigeria from the United States for the black market exchange rate or close enough? I need to send money to a friend in Lagos for Christmas and Western Union rate is too low

Raiders:
GEJ is responsibility for all our economic problem.

omo! See me see ENGLISH!........

Samirana360:
In d bible i read dat a day is lik 1000 years in God's eye....in buhari's administration, i discovered dat N1000 is lik N1 in bubu's eyes....and dat's y he said he's goin 2 make N1 =$1...what he actually mean is N1000 =$1...very soon he wil achieve dat

He will not achieve dat in JESUS name, bro u wan make pple fnsh 4 ds country?

sabi99:
omo! See me see ENGLISH!........

hehe

nnachukz:
Naira is still digging deep, we shouldn't shout yet. Dangote said $1 may soon go for N500, that is the target. Lets fold our hands and enjoy this change.

lols

if you have paypal acc. with funds in it...
and u can offer pay4me service
kindly reach me with your exchange rate

I need to purchase some fiverr gigs with paypal

reach me on whatapp 08062691462
dplentyt@gmail.com exchange at $260

Samirana360:
In d bible i read dat a day is lik 1000 years in God's eye....in buhari's administration, i discovered dat N1000 is lik N1 in bubu's eyes....and dat's y he said he's goin 2 make N1 =$1...what he actually mean is N1000 =$1...very soon he wil achieve dat

XD. But actually we are going through that road. The worst mistake pmb made was making stupid promises, that's how he said that boko haram will end by December, now he is saying that the deadline is subject to modification... Sha i think buhari can walk on water because his faith is enough to move planets

eaglechild:
And the dullard has absolutely no idea what to do.

What a sad situation.

Those who shouted change have lost their voices.

what baFfles me is that after losing their voices they r still demonstrating dat change stuff wt der body movements

sabi99:
omo! See me see ENGLISH!........

you be professor of English

Y na

Mindfulness:


It is natural that economies go through phases of recession on a regular basis. It is a never-ending cycle. An economy will have to deal with recession in a time span of four to seven years. The only difference between the governments that we have had and those in countries with strong economies is that they know how to react to the different phases in the economic cycle accordingly.

Nice

murtalaa:
if you are a legitimate importer, you can access the dollar at official rate of 197.

please tell me how. I have a mini importer friend that would need this info

InvertedHammer:

/
Ask any landlord. Some tenants facing eviction will trash an apartment to make the place uninhabitable by the next tenant.
For you goons, you are advocating that the landlord pretend that nothing is amiss and rent out the place, carry on like it is an el Eldorado. No! The place must be fixed first. Buhari must step up the house cleaning.

A programme that contains a lot of errors on compiling must be fully debugged to be fully operational. Only a mor.on will continue coding with multiple errors staring him in the face. Buhari must debug Nigeria first before any reasonable progress will be made.

How much more do I need to educate you on the difference between reality and fantasy?

/

concurrency is all we ask for.

Raiders:
you be professor of English

I no be prof for english but maths n furthermaths