|Join Nairaland / LOGIN! / Trending / Recent / New|
Stats: 2,548,787 members, 5,871,265 topics. Date: Tuesday, 22 September 2020 at 11:28 AM
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by iboboyswag(m): 8:18am On Jan 12, 2016|
I have been looking forward to a sane comment and I have found it..... In yours. The hoard of people screaming for devaluation do not know that inspite of our present economic situation, we are far better off than a whole lot of this great economies..... America increased interest rate the Rand caught severe cold as well as currencies of countries in the BRIC. The present economic challenge is global but we must handle it locally, appreciating the uniqueness of our own challenge and proffering tailor made solutions to it..... And to the best of my understanding, that is what the CBN and the Ministry of Finance is trying to do.
We will only appreciate the effort if we look at all the policies from its inception as a whole and not piece them individually.
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by SangoCrusader: 8:35am On Jan 12, 2016|
"Russia didn't devalue"... Read this article please. My fiance is Russian, I was in Moscow three times last year so I know what I am saying. Not just trying to score cheap points. Russia DID devalue! They devalued three times in fact.
The best economy currently?!??! @Truth234... are you OBanikoro by any chance? We have one of the worst performing economies on the planet. Here is ANOTHER article to prove it:
I didn't mean to insult people in my original post, but 75% of what you are saying here is incorrect, and a simple google search will show that. How your post has got 5 likes is beyond me...
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by SangoCrusader: 8:40am On Jan 12, 2016|
Everybody I know right now is pulling their naira away from Nigerian banks, converting it to GBP or USD. This includes some companies who have removed up to N75 million in the past two weeks...
Investors lost confidence last year and everyone is losing confidence now. We are not doing better than anybody at all. I live and work in other economies and cannot qualify your statement at all. The present economic challenge IS NOT GLOBAL and our situation is not UNIQUE, we are just reacting to it with greater ineptitude.
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by softtouch2(m): 8:41am On Jan 12, 2016|
Either CBN sell to BDC or Banks, it can never help Naira.
In as much we are not earning $£€ for our economy. NO POLICY will make Naira stronger.
The issue of FX demand can be simplified thus using a figurative example:
The country is generating $8, but her people need to consume $500. This is liken to financial famine! the only way out of this mess is to earn more FX from export.
We need to export our goods & services outside crude oil.
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by bigtt76(f): 8:48am On Jan 12, 2016|
Yea but in this case they would need to revalue the naira to the dollar and use the lowest value to match the dollar. That would mean for example pegging the new Naira value at N2.00 to the dollar (old Naira value would be N200.00 to the dollar). Naira and dollar can never be equivalent again. We missed that opportunity back when Soludo wanted to redenominate.
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by KoldKash(m): 9:03am On Jan 12, 2016|
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by onatisi(m): 9:04am On Jan 12, 2016|
It won't work,countries like china keep devaluing their currency in order to attract investors . With what u are saying the value of the naira will be too strong for our economy and discourage investors
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by VISTIN(m): 9:08am On Jan 12, 2016|
This policy is a big trap for importers.
Banks will not sell dollar to you @ the normal rate to come and deposit. And when you source it @ a high rate and deposit, they now decide the fate of the figure.
If you hail these policies may be because you're a civil servant, time will come when you buy a packet shirt for N10,000 because, Nigeria can't stop importing for now.
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Nobody: 9:23am On Jan 12, 2016|
I think people should look at it this way. The CBN has now approved dollar deposits so the scramble for dollars will increase as people now have the hope of getting deposits done.
This means, the forces of demand for the dollar will increase. Unfortunately, because the BDCs are not allowed to sell, there will be short supply of the greenback even in the face of increased demands.
By simple principles of demand and supply, when demand outweighs supply, price goes up!
I will not be surprised if the little amount of greenbacks in the parallel market before this ban begins to trade at 320 in the next few weeks.
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by duby91(m): 9:44am On Jan 12, 2016|
the banks are accusing the BDC for exploiting price arbitrage...and the banks in turn are using the BDCs exchange rate to make more money cos there's really no difference in the exchange rates if you use your card for online transactions considering that they all get the dollars at N197. I still wonder how this policy would go a long way to help because banks will still charge you at the same rate the BDCs are charging whether they have access to more dollars or not.
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Bevista: 10:16am On Jan 12, 2016|
duby91:When I said the bank accuses BDCs for exploiting price arbitrage, I was referring to the CBN and not DMBs.
I don't think the policy will help improve the exchange rate. In fact, it might even get worse. But the CBN objective is not to improve the exchange rate but to conserve FX Reserves by pushing everybody else to source FX from independent sources. The BDCs will also be sourcing dollars from this independent sources, hence, their MasterCard conversion rate will reflect this rate. Expect N280 - N300 to $1 very soon.
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Seun(m): 10:18am On Jan 12, 2016|
They made the right decision. I hope they can continue on this more rational path. It won't help the exchange rate, but that's not a bad thing.
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by saints2(m): 10:24am On Jan 12, 2016|
Just heard this from Channels TV...
If you are still been charged dollar by the black market rate, pls get in touch with the CBN.. That is if GTBank, Stanbic, FirstBank UBA etc still charge you at black market rate.. Report them now to CBN..
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Nobody: 10:29am On Jan 12, 2016|
No. The person wiring the money would only pay FX Transfer fees to a maximum of $100. Your bank may charge you for receiving
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Nuahall2k14(m): 10:33am On Jan 12, 2016|
i am stil being charged o,bt hw do u expect us to get in touch wit cbn,dats wat their monitoring team is for...there is no way d common man can get in touch..
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Nuahall2k14(m): 10:36am On Jan 12, 2016|
i stil dnt see any reason to rejoice wit all dis cbn measures...hw does dis benefit me as i ma a student abroad..
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Nobody: 10:48am On Jan 12, 2016|
Do you want to be using your Nigerian bank account actively abroad? No! This is what CBN is curtailing.
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Truth234(m): 11:09am On Jan 12, 2016|
Sir I just opened the link you gave, what Russia did can't be called devaluation, Rubble was already trading at 71.29 a dollar and the government step in and set it at 70.74 a dollar. This was after August 11th China devaluation that plunged the world global equity, Russia foreign investors and central bank were already saving in Yuan because of sanctions, that was even before IMF approved its current status as reserve currency, so it is important Russia central bank step-in as its investors suddenly discovered their Yuan is now worth less than its initial value so instead of allowing market to continue to dictate Rubble price, what government did was to get on top of the situation before rubble slide any further. Also our situation is different from Russia that is battling numerous sanctions.
Again, we have one of the best performing economy among emerging economies, all the Asia pacific currencies are struggling, Malaysia currency currently at 12 years low, same with Indonesia, Philippine etc. Our FDI is not attractive because foreign investors only want to profit from the economy and the only way for them to do that is devalue.
Please note we don't have the best situation, CBN and government are just making the best use of what we have. Devaluation of Naira beyond what it is will increase inflation, reduce job creation as majority of our manufacturing companies depend on dollar for importation of raw materials, they will rather cut production than take loan with 25 to 30 percent interest to balance the difference.
1 Like 1 Share
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by iboboyswag(m): 11:53am On Jan 12, 2016|
My friend like you said, everybody you know and not all investors in Nigeria.
As to if the economic challenge is global, you are actually contradicting yourself here because in your previous posts you have referred to the devaluation embarked upon by Russia, the closing of trade by China not to talk of the South African challenge etc.
I will still reinstate that the Nigerian Challenge is Unique because of our mono economy(which is the actual reason we are faced with this dilemma) and thus must be tackled as such... We must not conform to popular dictates as we seek out means to sorting the challenge.
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by SangoCrusader: 12:25pm On Jan 12, 2016|
And Angola do not also have a "Mono" economy? Oil makes up 80% of their budget so they are facing the same situation but chose to devalue. what is the contradiction?!
There are global economic challenges but we faring much worse than other countries due to inept policies from Emefiele, that is all I am saying. What is the contradiction?!
Here is another article showing that "not just the people I know" are also pulling out billions from the economy:
I do not mean to be rude, but everything I am saying is backed up by articles... you are just making baseless suppositions. Do you have a single article or precedent to prove that the current course CBN is taking will work?
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by SangoCrusader: 12:44pm On Jan 12, 2016|
Guys, no vex. I realize I am being rude and we should just be exchanging ideas here.
@iboboyswag and @Truth234, I apologise. This is just a frustrating issue to be honest, but always good to hear different opinions on how best to resolve the situation.
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by iboboyswag(m): 12:48pm On Jan 12, 2016|
This is where the challenge is now, you rely on articles written by those who want the Naira devalued, profiteers who see it as a way to make a quick buck. You are even of the same opinion...... The question of whether Emeifele's policy is inept or productive would continue to be a case for debate between the likes of you and me but there is something I will like to make clear, devaluation will bring inflation, inflation that will be counterproductive to the aims and policies of government.
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by iboboyswag(m): 12:53pm On Jan 12, 2016|
No p, we are sharing knowledge
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by onatisi(m): 12:58pm On Jan 12, 2016|
This is just a way of devaluing the naira unofficially
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Truth234(m): 1:05pm On Jan 12, 2016|
Since Angola devalued, her currency has fallen 40%, they just cut their 2016 growth outlook after declining from 5.1% to 3.8% in 2015. It is even about to get worst with crude oil heading towards $20 a barrel.
The Bloomberg link you posted shows a decline of NSE to 3 year low but if you juxtaposed that with other emerging economies you will appreciate our economy the more. China stocks dipped to 9 years low, that was prior to recession level and there are far worst economy. If the world second largest economy is struggling that much, I don't see how we are worst.
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by taiwotosho22(m): 3:52pm On Jan 12, 2016|
CBN is trying to use Western Union (Dollars) to finance importation of legitimate goods.
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by APCsupporter: 5:07pm On Jan 12, 2016|
The guy has a hot temper. He was my classmate in secondary school
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by grandstar(m): 6:42pm On Jan 12, 2016|
Prevent what full blown crisis? They are causing it
When the price of oil collapsed from $148 to $35 from 2008 to 2009, Soludo, the then CBN was afraid to devalue the currency from 120 to 150 despite the pressure. He introduced all forms of restrictions. All of a sudden, at times the parrelel market rate would touch 190 to $1 compared to 120 at the official rate
When Sanusi came in , he immediately devalued the currency and the currency settled at 150 to $1.
There is nothing new under the sun. The answer is a devaluation
|Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Nobody: 8:38am On Feb 21, 2016|
When I insinuated a few weeks ago that we will soon by a dollar for 320, so many zombies thought I must be just another attention-seeker! Today, the dollar has even surpassed my wildest expectations!
Sometimes Nigerian youths need to listen to voices of reason!
|Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health |
religion celebs tv-movies music-radio literature webmasters programming techmarket
Nairaland - Copyright © 2005 - 2020 Oluwaseun Osewa. All rights reserved. See How To Advertise. 211