when will dollar fall
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tiar:
Quick, simple and to the point.

1. The CBN is NOT meeting ALL legitimate requests for forex as it states it would into perpetuity.

2. This is forcing legitimate and illegitimate requests to meet their needs elsewhere, which has increased demand from BDCs in excess of their CBN allocation. The black market last resort meets the leftover rising demand at ever increasing prices to suppress demand and /or increase supply of dollars from those who may be hoarding it but hopefully can no longer resist the exchange rate.

3. The banks are also applying the black market rate for their customer dealings (sabotages the CBN's efforts) through foreign atm withdrawals and foreign currency online purchases. This increases the pressure to devalue , increases inflation and makes banks reluctant to meet legitimate requests from its retail customers. The desire to roundtrip and make 25% - 30% PROFIT by supplying their limited supply of dollars to the BDCs and black market instead of meeting direct customer demand is too alluring to resist. This is why only about 3 banks still meet request for PERSONAL Travel Allowance. Banks are not interested in supplying dollars at the official rate locally when they already pay out dollars to foreign banks at the black market rate.

Crisis is looming fast and the CBN governor may not survive it. He is playing Russian Roulette with the Naira and the economy indirectly. He is serving two Masters, the banks where he came from surreptitiously and trying to save his job by hopefully pleasing someone who did not appoint him .

People can still not make foreign currency cash deposits into their bank accounts. It has not helped the currency while destabilising people and their businesses.

I will leave it at that for now.

guy, wish I could dash you ten thousand dollars for this on point analysis. You have said it all.

MKO4ever:
A caution deposit of N35billion at near zero interest rate is too punitive for the operators. But I believe the objective of the FG here is to reduce the number of the BDC operators in the market.

What I would really like to know is what CBN has done so far to banks that indulge in round tripping.

Its one thing to talk about BDC. But what about the banks that would interchange between the bank rates and parallel when its suits them

The Cbn Is confused

My guy, keep propping it up na.

Not only will you inevitably have no choice eventually, but the extended damage from holding off the inevitable can lead to much steeper levels of recession and loss of access to capital markets.

Talking about inflation will wreck the country, biko what levels of inflation and what level of wreckage, look around you. What does it look like is happening now? A million jobs lost this year is not wreckage to you? N220 - N260 is not inflation to you? If its not too hard for you to follow let me help you do the math.. 16 % inflation in a year. Thats extreme in case you were not aware. Here is some psychoanalyzing for your pain.

http://www.crawlingroad.com/blog/2010/11/15/five-stages-of-inflation/ Go ahead, click it... read. see what stage you are in. Then give your self brain.


Does it look like they can hold the line, the market is saying if you let it float it will be N 260 . Or do you not realize that the black market price is the real price or is your elementary (or is it high school) economics that is disturbing your thinking. Na you get mouth wey you dey talk, you know wetin dey cross my mind? If you wan debate my point debate my point, if you want flame me lets take it there. Mtchew..

mbulela:


People just talk because they have keyboards.
Float go where?
Do you realize the inflation that will wreck the country if the currency is allowed to float? Or you just say things because they crossed your mind?
Even the elementary economics i did in high school reveals the silliness of your suggestion.

Togo's economy will be better than ours by 2019. We have a du.lla.rd in power and a dunce driving economic policies.

kaboninc:


Are you current at all?

Pls read and see the justification about cancellation of weekly auction I said which u laughed at. CBN is cancelling it anytime from now www.vanguardngr.com/2015/12/panicky-policy-measures-intensify-on-foreign-exchange-market/

1freshdude:


Do you understand the aim of the Dutch auction system? and why do you think it is the problem?

CBN canceling dutch auction anytime from now which I said but u laughed at, pls read n lemme know ur what u have to say www.vanguardngr.com/2015/12/panicky-policy-measures-intensify-on-foreign-exchange-market/

Harwoyeez:
CBN canceling dutch auction anytime from now which I said but u laughed at, pls read n lemme know ur what u have to say www.vanguardngr.com/2015/12/panicky-policy-measures-intensify-on-foreign-exchange-market/

Good morning bros, I still do not see your point. Why dont the CBN cancel the auction system immediately having realized that it is the problem?
These are the salient issues from that article.


Meanwhile, the Managing Director/Chief Executive Officer has this to say
“First it is a supply issue, and second, it is a function of the productive capacity of the country''

Since the introduction of Whole Sale Dutch Auction System (WDAS) on February 20, 2006, the liberalized Foreign Exchange Market witnessed unprecedented stability most of which include the following:

Unification of exchange rates between the Official and Inter-bank Markets and resolution of the multiple currency problems.
Facilitation of greater market determination of exchange rates for the Naira vis-�-vis other currencies
http://www.cenbank.org/IntOps

1freshdude:


Good morning bros, I still do not see your point. Why dont the CBN cancel the auction system immediately having realized that it is the problem?
These are the salient issues from that article.


Meanwhile, the Managing Director/Chief Executive Officer has this to say
“First it is a supply issue, and second, it is a function of the productive capacity of the country''

Since the introduction of Whole Sale Dutch Auction System (WDAS) on February 20, 2006, the liberalized Foreign Exchange Market witnessed unprecedented stability most of which include the following:

Unification of exchange rates between the Official and Inter-bank Markets and resolution of the multiple currency problems.
Facilitation of greater market determination of exchange rates for the Naira vis-�-vis other currencies
http://www.cenbank.org/IntOps

U know how tinz works in Naija that remedies r not made until things get worse or out of hand so its better late than never after wic market forces shd be allowed to regulate d official forex rate and also wit govt spending, things wil tend to regularize a bit