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Nairaland Forum / Nairaland / General / Business / CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics (39337 Views)
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Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by Hakagure: 7:56pm On Dec 14, 2015 |
@Mauri I wish I could buy you a round of drinks, succint, well put and accurate . THANK YOU! 1 Like |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by Hakagure: 7:58pm On Dec 14, 2015 |
Honestly this is beyond comprehension, the only good thing is effectively eliminates the BDC's who were arbitraging between the real value (black market) and the official , now they will have limited access and they wont be able to arbitrage (too bad, welcome to Nigeria.. ease of business is very hard). Now if you want dollars, deal with the mallams.. However note one thing, they will crack down on the mallams next. Obviously trying to fight supply of dollars in the market, but thats not whats driving devaluation. Oil price go down, naira goes up. How simple is this for us all to understand, if we keep importing, with less supply this actually makes the devaluation WORSE.... supply and demand, limit supply with same demand, price goes up. Kindergarten economics... what is CBN doing exactly? 2 Likes 1 Share |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by Hakagure: 8:00pm On Dec 14, 2015 |
Simply put, Because the official price is not real, its subsidized. Official rate has a part govt pays for every dollar. Street value is the international value without CBN subsidy. HyDef: 1 Like |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by Nobody: 8:02pm On Dec 14, 2015 |
wellmax:Y and u think Buhari is not in support of the policy? |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by Nobody: 8:02pm On Dec 14, 2015 |
proficienc:are u just knowing that nigerians care the most educated illiterate in the world? Their comment is infleunce by whether this policy makes buhari look good or not. |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by MAURI: 8:03pm On Dec 14, 2015 |
Suyamasta, what makes you think a floating exchange rate would be best for an import dependent country? That will make importation of non-essential goods expensive. At some point the equilibrium will tilt when importation gets too expensive and less profitable. People will seek alternative and that will reduce the pressure on the supply of Naira against USD, GBP, EUR. |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by Ferdinandu(m): 8:05pm On Dec 14, 2015 |
xandy84: You just call it black market. Black market is an illegal market no matter where it is practiced. Illegality has been so ingrained in Nigerian lifestyle that people easily forget the difference between legality and illegality. An Ibo adage says when an abomination is allowed to stay for a year it becomes a culture. 2 Likes |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by iretiland: 8:08pm On Dec 14, 2015 |
This Emefiele is as dull as they come. Until GEJ and NOI invited him to come help them launder Nigeria's money for the PDP operations, he was good at nothing but keeping politicians' atolen at Zenith bank. 1 Like |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by MAURI: 8:09pm On Dec 14, 2015 |
@Hakagure
Thanks bro. I am humbled. You go still buy me drink o. LOL |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by 1freshdude: 8:15pm On Dec 14, 2015 |
Hakagure: You are not wrong, but that is not the entire story. The Demand for Foreign exchange is very high and the CBN can not sustain/meet up with this high demand for long, hence the rationing. The Nigerian economy depends highly on imported goods and services, and this is the reason people need foreign exchange so badly. Things would not have been this bad if Nigeria is still earning as much Forex from the sale of crude oil as it used to before as this accounts for about 90% of the Forex we get as a country . The street price of Forex is usually determined by the supply(availability) and demand(how badly people want the dollar), the Bureau De change guys hurdle Forex in times like this (when it is already scarce) thereby forcing people who must carry out foreign transactions to pay more for it and this puts more downward pressure on the Naira, because you have to part with more unit of Naira for a unit of Forex. |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by 1freshdude: 8:16pm On Dec 14, 2015 |
MAURI: What about essential goods? What alternatives will people seek? what is the alternative to electricity generating sets? what is the alternative to household appliances? what will the country consume? explain please. |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by Lucasbible: 8:17pm On Dec 14, 2015 |
CBN is out of ideas on how to control the falling naira. We dont have a functional CBN and we dont have a functional Economic Minister and most importantly, we dont have a Minister of Petroleum except for a junketing aged old ancestor that knows nothing about crude oil than allocating marginal fields to northerners. I lost hope in Nigeria when I realized that majority of us are illiterates. We vote for illiterates and we dance to illiterate songs and we kill for inexistent virgins without reasoning if spirit have dicks to fucck virgins. 2 Likes 2 Shares |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by mbulela: 8:19pm On Dec 14, 2015 |
eaglechild:While Emefiele sounds ill-equipped for the task, I doubt we want NOI to return. We are yet to completely unravel her role in the turning of our CBN into an ATM for insurance and spiritual matters. |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by Bollinger(m): 8:19pm On Dec 14, 2015 |
adioolayi:It is normal. I really don't understand why they are just thinking of it now. In normal societies you will never find people hawking currencies on the streets. At least legally. |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by Hakagure: 8:20pm On Dec 14, 2015 |
https://www.nairaland.com/2791704/recession-horizon#40854608 Situation may get worse, with this level of currency controls. There will be no FDI coming in, no FDI and no access to credit for most companies. Layoffs , layoffs, layoffs... people will suffer and we are still talking, please lets understand this is severe. Is any one out there thinking this through, stop playing politics and let the naira float, lets be fully liquid. 1 Like |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by MAURI: 8:21pm On Dec 14, 2015 |
What about essential goods? That is why we have regulations / import restrictions on some goods and not all goods. |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by proficienc(m): 8:21pm On Dec 14, 2015 |
shala01:It was funny at first... now it's really old. we should appreciate the good work the government is trying to do. The government is actually put things that should be in place by now into other and people are screaming. Brings to mind the very case of Lagos where people were crying and condemning Fashola. Today, he's their hero. Nigerians and babies have something in common, whining! 2 Likes |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by 1freshdude: 8:23pm On Dec 14, 2015 |
MAURI: Is there enough Forex to sustain essential goods in the economy? |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by chimauga(m): 8:30pm On Dec 14, 2015 |
The much anticipated change, sorry for Nigeria. Fools are in power |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by 1freshdude: 8:30pm On Dec 14, 2015 |
Hakagure: Bro, I assume you are not an Economist, it is not sustainable to let the Naira float, it would make the Naira valueless killing the economy. |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by Hakagure: 8:32pm On Dec 14, 2015 |
I dont think we can afford to fix the dollar. We dont have forex to fight at keeping the naira at any level. Demand and supply will determine the price of essential goods, why should we treat them any difference, the country will consume what it can afford! The issue is quite severe and the more we delay the worse the crash will be and we will lose the confidence of the capital markets (this has already happened!) 1freshdude: 3 Likes 2 Shares |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by Hakagure: 8:35pm On Dec 14, 2015 |
Those be fighting words. Listen to what I said, why are you challenging my "pali" .. Its not sustainable to try and fix the value of the naira, thats why you are seeing us doing all these capital controls. The limited industrial base will be destroyed if we cannot access capital markets, mining, energy, banking, finance, the bond market, consumables... That will kill the economy. Fiat money decreasing in value will not! 1freshdude: 2 Likes 1 Share |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by Harwoyeez(m): 8:36pm On Dec 14, 2015 |
adioolayi:As an Economists, I'll suggest d total cancellation of dollar sales or rather dutch auction. Its only in Nigeria that dey trade dollars in a Naira dominated economy. This further creates pressure on naira and hence dis present situation but if cancelled, anybody in need of dollars will work into banks n BDC to get their forex at d official exchange rate. I hope this will clarify abit for u |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by cirmuell(m): 8:40pm On Dec 14, 2015 |
ishiamu:high class mumu that's what's u are. Oponu |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by kaboninc(m): 8:40pm On Dec 14, 2015 |
[s] lastpage:[/s] |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by MAURI: 8:40pm On Dec 14, 2015 |
What about essential goods? What alternatives will people seek? what is the alternative to electricity generating sets? what is the alternative to household appliances? what will the country consume? explain please. Let's have another thread for this. Look, we have to start thinking in solutions and not in problem. Are you aware of hom much Nigerians spend on the importation of generators and diesel to power them annually? I am sure you must have heard / read about the multi billion oil subsidy fraud? Why are finished oil products being subsidized by the Nigerian government? I have explained this in another thread. I am willing to do it again, so you have a complete picture. Why isn't the government chanelling all these monies into making sure we have operational refineries in Nigeria? It will cost less that all the subsidies put together. For your info. I will demonstrate the link between lack of operational refineries and it's impact on the Naira / forex (current thread) All the crude we take back and forth abroad to refine and bring back finish products, that whole process is paid for in USD, the scarce forex we otherwise could put to better use. (Transportation, refining, insurance etc. All paid for in hard USD!) Look bro, our challenges in Nigeria are not as complex as they are made to look, if only the power brokers and the people holding Nigeria to ransom decides to let go of the choke. 3 Likes 1 Share |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by djjosh(m): 8:41pm On Dec 14, 2015 |
adioolayi:DRZ NO NID KNWIN IF IT HS WRK ON ANODA ECONOMY. CUZ ALL MODELS DT AV WRKD ELSEWER AV NEVA WORKD HERE. SO LETZ TRY IT N C. |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by Harwoyeez(m): 8:42pm On Dec 14, 2015 |
1freshdude:good submission, but I believe d total cancellation of dutch auction will ease d pressure n all transactions will have to go official |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by kaboninc(m): 8:42pm On Dec 14, 2015 |
Harwoyeez: Funny economist. If you "cancel" dollar sales, how will the banks and BDCs get funds to sell to anyone? |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by Hakagure: 8:43pm On Dec 14, 2015 |
You are aware that you cannot just "get dollar at the official rate".. Everything is capped. so if I want to study at a 100K a year university(heck 20 a year sef), CBN wont give me all the money. If I want to buy a component for my combine harvester, it may not be on the approved list .. hence .. down time. Energy companies will try and use futures and puts and arbitrages and they will lose money on the exchange rate. Who wrote approved list? If I need beets is it on the approved list! And fyi.. its not only in Nigeria o, every country in the world that I have been to has a BDC, actually you can trade forex FREELY if you want in the US and in Western Europe. In any currency! Harwoyeez: 1 Like |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by loomer: 8:43pm On Dec 14, 2015 |
More jobs to be lost. |
Re: CBN Halts Branch Operations By Bureaux De Change #Emefieleconomics by Hakagure: 8:44pm On Dec 14, 2015 |
Bros.. do you blog? MAURI: |
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