abbey621:


The main goal is to force consumers and businesses to transact in Naira! Where most of us are confused is the fact that we somehow think the drastic decline of the Naira is more about the currency policy rather than being truthful and realizing that it was brought on by continuous decline in oil prices and the wastage brought on by the previous administration. Once we are able to recover stolen loot, stop wastage and improve infrastructures, we will see a stronger Naira; devaluation of the Naira is not the way to go!

Once we are able to recover stolen loot, stop wastage and improve infrastructures, we will see a stronger Naira; devaluation of the Naira is not the way to go!

Sanusi who resisted devaluation during his own tenure as CBN governor said he did so because he “had reserves of over $40bn and an oil price at over $110,” admitting that there are no easy ways out of the current situation and “devaluation is a bitter pill”.

The country’s economic woes were now being exacerbated, with the currency peg and restrictions in the foreign exchange market creating “a lot of speculative and precautionary demand,” Sanusi argued.

Exporters and investors “are holding on to foreign currency, as no one would sell at the rate the government is setting”, while “the government does not have the reserves to keep the exchange rate at its official level in the market”.

“These policies have been tried in different parts of the world and in this country before and they have just never worked. No matter what the stated intention behind them, they are wrong,” he said.

The gap between the black market rate and the “artificial” official exchange rate would keep widening until the bank adopted a more realistic policy or the price of oil climbed and dramatically increased reserves, he further said.

tuniski:
Buhari wont listen until the naira reaches 500 to the dollar. He doesn't get it and doesn't accept he doesn't! He is like Mugabe very dogmatic and strong headed.

luvmijeje:


From my own layman point of view, mallam reasons for devaluation are not compelling enough.

He didn't do it during his era because the we have enough reserves, maybe the President is also building enough to cushion the naira.

We need more debate on it. Where are the nairaland'economic in house team?

crixtex:
IPOD sanusi... Wailing Emir...

vigasimple:


The change zombies don't know that Buhari is at minimum, an economic illiterate. But I think , he is also lack the capacity to lead in the 21st century. When it comes to cow business, trust a Fulani man. Unfortunately, we are in a country where born to rule Fulani man is the order of the day.

GEJ is not a bad leader but he was afraid to die because the North want their power back otherwise the country can go into flames , they don't care.

If the country was to be in flames, few thousand almajiris will die and few hundreds in the south but would they care?

noblezone:


You got it bro.

Child of hate like Sanusi.

Hshahahahaha
This is just the beginning.
We warned Nigerians, but they were enchanted by the change mantra.

I have no tears for Nigeria.

ikennaf1:


So if an investorwants to do business in Nigeria, he will have to do it in Naira, knowing fully well, that in the state of the naira, that will be suicidal for him? Let me ask you, if you have a choice of either doing business in Nigeria, or in Ghana[b]. You look at the options, Ghana has a "comfy" currency and the Naira doesn't, but for some reason, you still came with the dollar to nigeria[/b] and then you find out that you have to change to naira, which will make it more expensive for you, will you not run to Ghana?

To summarize, the policy drives away investors.





APC in november said Buhari has recovered N1.4 trillion. We havn't seen any signs that he has. We are still begging for a loan which is actually less than the said amount from the international community.

989900:


In this instance, he is just a self-serving hypocrite (my opinion), looking out for number one; looking out for 'Blackstone enterprises'.

Buhari is doing the right thing, the hard way; he needs genuine help though -- he needs to listen to more people with both like-mind, and contrary. Personally, I am one of the worst hit by Buhari's stance (on the Naira), but I believe if he does not waver, if he does not relent, the future will surely be better and more solid -- for repetition, he needs help though -- fast!.

Devaluation so far for us, has proven to be nothing but a cosmetic solution to an endemic situation (treating symptoms in-lieu of causes).

The below have been my articles/take so far on devaluation:

https://www.nairaland.com/2630715/how-naira-devaluation-impoverish-nigeria

https://www.nairaland.com/2573929/poison-further-devaluation-naira

https://www.nairaland.com/2914056/naira-10-questions-gov-emefiele