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Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years - Business (10) - Nairaland

Nairaland Forum / Nairaland / General / Business / Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years (54762 Views)

Naira Finally Improves At The Interbank Rate / Naira Crashes To 288/dollar At New Official Market / Naira Finally Devalued To N290/$ By Buhari (2) (3) (4)

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Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Nobody: 8:21am On Dec 12, 2015
Cutehector:
A round of applause cheesy
I like your signature
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by 190: 8:21am On Dec 12, 2015
Always knew that buhari is a useless man
I said it, what do u expect from a Muslim notherner who isn't educated
Smh Na una sabi enjoy your new president

1 Like

Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by NaLaugh: 8:22am On Dec 12, 2015
mployer:


Lol, I am no prof bro smiley

The problem is that the cbn cannot sustain the 199 rate due to the decline in our forex earning. If they sell to everybody at that rate, our foreign reserve will burn out. So they have to hoard the dollar and come up with different policies that will limit peoples access to dollar. The more they do that, the more the black market price increase. On the economics of supply and demand, the black market price represents the real price.

The cbn has no choice than devalue the naira to the black market price, so that whomever that wants and can afford the dollar will have an easy access to it. This will bring stability and confidence to the economy.

But they won't do it because they are afraid most Nigerians including the government itself won't understand why they have to do it.

Addressing the bold sections:

1. How is it the "real price" to someone like myself? When I process a Western Union to Nigeria, my transaction is based off the official rate. So I guess "real price" then depends on who you ask.

2. That proposed solution isn't feasible without first decommissioning any parallel market operations. i.e as long as the "black market" exists, the CBN can not "devalue" the naira to mirror the "black market" rate.

Black market rates have a working formula of: official rate + arbitration driven profit markups.

Therefore, it is mathematically impossible for that to be a feasible solution. Except I have misconstrued your tutelage, oh dear professor. smiley

2 Likes

Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Dikechigozie: 8:30am On Dec 12, 2015
God will purnishment all the almajiri and the president of northern nigeria buhari.
Naira is dead waiting for its burial.
$1=#1 indeed
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by loomer: 8:33am On Dec 12, 2015
Raiders:
GEJ is responsibility for all our economic problem.

Na jonathan also dey responsible for ur english?

2 Likes

Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by HAH: 8:34am On Dec 12, 2015
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

I feel you bro, tell them anyone who has legitimate business can put the naira equivalent in his account go to his bank to fill form M with relevant document, whatever amount will be sourced from CBN at official rate

All nigerians are entitled to $5000 BTA per quarter that is $20000 per annum and $4000 PTA per quarter and $16000 per annum

1 Like

Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Nobody: 8:38am On Dec 12, 2015
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
ACUALLY A 1000YRS IN OUR EYES IS LIKE A DAY WHEN ITS PASSED IN GOD'S EYE. U GOT THAT. RIGHT?
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by danbrowndmf(m): 8:44am On Dec 12, 2015
zikmarty:


it is an open secret that the pdp led govt was really clouded with the best of corruption not excluding the Gej administration which had a little dose of conscience but I'll disagree with your point of view saying that we shouldn't crucify the Gmb led government for its failures in recent months just because the previous administrations were failures too.

Apc has recorded too much of failures in such a short time which could almost equal what pdp did in 16yrs.
if we were speaking in terms of successes, we would've been on a different page.
I'm trying to imagine how much would be left of our beloved Nigeria if Apc continued in this pace of failure for an equal of pdp's 16yrs.



Gmb had better start learning some magic tricks
i gree with you sir...

2 Likes 1 Share

Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by TimeManager(m): 8:46am On Dec 12, 2015
@HzRF, Dont You Understand The Meaning Of "A Partial Ban"? The Link You Posted Supports My Point. Rice Importation Is Lifted On 'Land Borders' Only But That Of The 'Ports' Still Remains.
The Truth Has Spoken!
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by HzRF(m): 9:03am On Dec 12, 2015
TimeManager:
@HzRF, Dont You Understand The Meaning Of "A Partial Ban"? The Link You Posted Supports My Point. Rice Importation Is Lifted On 'Land Borders' Only But That Of The 'Ports' Still Remains.
The Truth Has Spoken!
. Hw does it help d economy
Look at the groups of those hailing the move
Those that will benefit
Why not tigthen the border and find a way to stop the falling of naira been a sad news. China,N.korea devalue their currency at will since they produce what they use
When we produce what we use den naira can heighten
All these yeye policy is just waste of time
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Adamma22(f): 9:03am On Dec 12, 2015
Buhari's house is on fire and he's busy chasing rats...I weep for this country cry

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Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Mentcee(m): 9:06am On Dec 12, 2015
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
Great allusion.
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Billygee2u: 9:07am On Dec 12, 2015
Kenai:


http://www.thecable.ng/naira-trades-at-260-highest-in-42-years

With this disastrous news, get ready for tomorrow's story by Buhari and his goons on Goodluck Jonathan's $980bn loot, all in a desperate attempt to deflect attention from our current economic woes and keep their gullible supporters distracted on frivolities and nonsensical white lies.

If we didn't have a voting public so intellectually vapid, the focus would have been on asking our dear mallam to adequately elucidate on how he so miraculously "Cut down Nigeria's Inflation from 20 percent to 0 percent" as his campaign team so falsely bellowed.
Did he do it with a cutlass?
A few minutes of investigation and fact-checking would have made it clear to anyone that the story was nothing but a blatant lie.
When you claim to be an honest man, but your campaign promises are filled to the brim with unintelligent lies and slogans, it's time for some soul searching.

What's even worse is the fact that this man fought tooth and nail for the presidency for 12 years. 12 SOLID YEARS!
He finally gets there and is as visionless and lost as ever, promising to hit the ground running but taking 6 months to build a cabinet; with his mouth in hyperdrive and his brain in suspended animation.

Shame on this Twitter generation.
I will never be a slave to ignorance.


cc: Lalasticlala, Dominique, Ishilove, Firefire, AgabaI23, Atlwireles, WhiteTechnology, Whynotthetruth, Beremx, sunnyb0b0, Anonimi, MizMyColi, Ola6, Chukwudi44, NgeneUkwenu, Midolian, Modath, OrlandoOwoh, Jarus, Owobokiri, Owobikiri, AnambraDota, Rozayx5, Mogidi, TonyeBarcanista, Ecoterrors, Rawtruth, Onenaira3, Dabullit
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by ikenna123: 9:10am On Dec 12, 2015
Funny when people say that the fall in naira is nothing when we all know the bad impact of such to the economy. The economy is weak,inflation is high,high unemployment and I just read that all the economic indicators used to measure any economy is down. The government is about to borrow about 1.9tr naira to finance they budget increasing the debt ratio of the economy while hoping that the prize of crude doesn't fall below 38 dollars because if it does then they will need to borrow money to finance consumption. To borrow from Bloomberg,Nigeria economy needs a serious help before it becomes a disaster. I rest my case.
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Nobody: 9:11am On Dec 12, 2015
DickDastardly:
This calls for fasting and prayers!
Kenekiiiiiiiiiiiing oooooooooooooooooooh!


Buhari sef grin

lmao.. funny you
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by FabioPeter: 9:15am On Dec 12, 2015
Bollinger:
And some m.orons will wake up and blame buhari forgetting that it takes years for an economy to collapse. It didn't just start today. All we are seeing is the effects of decades of failed policies.
Yes, it takes years to collapse but it also takes the right fiscal policy to halt its free fall. Some economies wittingly devalue their currency and rip its economic benefit but in this case it's a loss any way you look at it.

1 Like

Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by donJ2(m): 9:17am On Dec 12, 2015
Mindfulness:
Nigeria's biggest problem is that the country's leaders are a reflection of the average intellectual capacity. Almost every comment on this thread is the result of ignorance. Nobody has taken their time to gather enough information, knowledge and understanding to provide a proper analysis of the current fiscal and monetary policies, which should form the basis of any such discussion.

There are several reasons why central banks, not governments, devalue currencies:

1. to encourage exports

2. to discourage imports

3. to improve the trade deficit (Nigeria's trade imbalance is positive with a higher export rate).

Additionally, external shocks (e.g. food and fuel price upsurge, global economic recession) also lead to currency fluctuations.






I bet u r post is also delusional, a sincere govt will put structures to encourage local production on ground (which will drastically improve an economy) b4 thinking of policies to discourage the importation of that product.

Like the 40 banned agro products, how much has d current admin invested in agric and wat is the success rate of that investment??..they jst woke up one day and denied access to forex for importation...

Theres no job, wat of youths doing mini importation to survive??

Before u ban importation of fone, u must have built 3 phone factories or train youths to learn how to manufacture fones.

I bet u all these cbn governors still eat imported rice and other food.

Nonsense!

2 Likes

Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by juman(m): 9:19am On Dec 12, 2015
After unprecedented noises (lies and propaganda) apc got the presidency: the chance to rule the country.

But apc lack the ability to put the country on the right track.

1 Like

Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by donJ2(m): 9:19am On Dec 12, 2015
Mindfulness:
Nigeria's biggest problem is that the country's leaders are a reflection of the average intellectual capacity. Almost every comment on this thread is the result of ignorance. Nobody has taken their time to gather enough information, knowledge and understanding to provide a proper analysis of the current fiscal and monetary policies, which should form the basis of any such discussion.

There are several reasons why central banks, not governments, devalue currencies:

1. to encourage exports

2. to discourage imports

3. to improve the trade deficit (Nigeria's trade imbalance is positive with a higher export rate).

Additionally, external shocks (e.g. food and fuel price upsurge, global economic recession) also lead to currency fluctuations.






bet u r post is also delusional, a sincere govt will put structures to encourage local production on ground (which will drastically improve an economy) b4 thinking of policies to discourage the importation of that product.

Like the 40 banned agro products, how much has d current admin invested in agric and wat is the success rate of that investment??..they jst woke up one day and denied access to forex for importation...

Theres no job, wat of youths doing mini importation to survive??

Before u ban importation of fone, u must have built 3 phone factories or train youths to learn how to manufacture fones.

I bet u all these cbn governors still eat imported rice and other food.

Nonsense!
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by ikenna123: 9:23am On Dec 12, 2015
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 ......

1 Like

Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by TimeManager(m): 9:27am On Dec 12, 2015
@HzRF, Which Yeye Policy Are You Talking About? The Essence Of A Ban On Those Lists Of Products Is To Encourage Local Production. Dont You Get It?
No Lie Only Truth!

1 Like

Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by 5thcolm(m): 9:29am On Dec 12, 2015
Most comment on this thread further emphasize the decay in our education system, its unfortunate dat so cald literate does not no the cause and effect of a weak currency..

With the price of oil at the current rate, nobody can stop the naira from goin down

A weak naira is not neccessarily a bad omen, the cbn could av just devalued buh we just wont understand cause we a lazy thinkers

1 Like

Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by ikenna123: 9:33am On Dec 12, 2015
TimeManager:
@HzRF, Which Yeye Policy Are You Talking About? The Essence Of A Ban On Those Lists Of Products Is To Encourage Local Production. Dont You Get It?
No Lie Only Truth!
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by 5thcolm(m): 9:34am On Dec 12, 2015
What is an economic blueprint?

From the comments above i understand this administration does not have economic blueprint.

So please what was the last administration's economic blueprint
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Bollinger(m): 9:34am On Dec 12, 2015
FabioPeter:

Yes, it takes years to collapse but it also takes the right fiscal policy to halt its free fall. Some economies wittingly devalue their currency and rip its economic benefit but in this case it's a loss any way you look at it.

The last recession in America took one and half years to stop before there was a turn around. At one time in their history, it took four years to stop one. It took quality leadership to make that happen. Nigeria has been in a recession since independence, so, blaming buhari is nonsensical. If you say that is not accurate, then point to a period in Nigeria's history when we were not in a recession. Oil was discovered in Nigeria in 1956 and we have been dependent on it ever since. When a whole country's source of income is solely based on one source of revenue and lately, the recovery of looted funds, then that country does not deserve to exist. Nigerian's have no grasp of it's history which is why we blame whoever is in charge at that point in time. Also, amnesia reigns supreme. They forget too quickly. Obasanjo did more damage to this country than any other President in our history, but for some reason people can't see it. Nigerians, i hail una.

2 Likes

Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Rekeb: 9:37am On Dec 12, 2015
InvertedHammer:

/
A person can be HIV+ for months/years without any visible symptoms. But once it develops into a full blown AIDS, death is inevitable.

Take Jonathan's administration as the incubation period of the virus called corruption. Even though undetected, it was eating away the fabrics of the Nigerian society.

Now Nigeria is suffering the full repercussions of the corruption incubated during Jonathan's administration. You cannot separate today's hardship from the carelessness, wickedness and incompetence of Jonathan just as you cannot separate AIDS from HIV. These things take time to mature. Corruption planted during GEJ's tenure has germinated and you better be ready to taste the bitter fruits when it matures.

$1== N260? Inflation will bite hard by next year. Better tighten your belts. The last cent of my fund in Nigeria has been wired out till things change. I don't trust Nigerian banks one bit in this pending harsh economic climate. Preemptive action is the way to go. Sadly Moneygram is still exchanging at N196.

There you have it.
/

Very well said, @invertedhammer

1 Like

Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by dandollaz: 9:47am On Dec 12, 2015
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
u r an importer?do u have any transaction with fx?if not you are a learner.approach bank with huge sum na olamide song you will be hearing.it might take you another administration to get the money complete.you never go bank and they tell you that naira waiting for dollar is in billioms talkless of change you came with.on the other hand black market is run by which tribe?SMH

1 Like

Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by chrysolite1: 9:47am On Dec 12, 2015
At least, APC has turned the naira to "change".. wink

2 Likes

Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by FabioPeter: 9:52am On Dec 12, 2015
mployer:


Weak currency is not a sign of weak economy. Pounds is stronger that dollar but US has a better economy than UK.


It is misconceptions like this that is stopping the cbn from devaluing the naira and hence causing more damage.

It would have been so if we had Nigerian made product to fall back to. As it stands we will spend the hard earn cash to buy essential products which are imports.
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Tmonex: 9:53am On Dec 12, 2015
if you have paypal acc. with funds in it...

kindly reach me here: dplentyt(at)gmail.com

with your exchange rate

I need to purchase some fiverr gigs with paypal
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by ikenna123: 10:01am On Dec 12, 2015
[quote author=NaLaugh post=40920290]Each time I see these "Naira Crashes" topics on Nairaland, I rush to check the official rate, to see if it's a sweet time to send cash to Naija.
But it is ALWAYS hovering at the same $1 = 199.05.

Other than the very few people in Nigeria who have to make payments in USD for visas and such, I don't see how the "black market" rates are relevant to average Nigerians.

These fluctuations at the "black market" are only driven by arbitration done by people running that market.
It has zero reflection on the strengths or weaknesses of the Naira. ONLY an official change in the exchange rate signals that.

At this moment, the official exchange rate remains $1 = 199.05.


note: I have no interest in the underlying politics of any of this. This post has nothing to do with whether or not Nigeria's current administration is failing or working. I honestly don't care. At the end of the day,


it's the same sh!t different toilet.[/quote



Are you serious? Nigeria is an import driven economy meaning we do more of import than export. We even import our refine fuel. Since we are import driven economy we use more of dollars, euros or pounds so the rise in such currency affect the prizes of such goods in the market. My brother nobody will sell both dollar or pounds at the official rate. They always sell using the black market prizes. Go to your bank and try to buy such with official prizes then you stay in the bank until Thu Kingdom come. Today one pound is almost 360 to naira. You see how it affect the common man.

1 Like

Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by yinkeys(m): 10:05am On Dec 12, 2015
This is ridiculous.

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