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Nairaland Forum / Nairaland / General / Business / Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits (22879 Views)
Speculators Lose N100m As CBN Pumps Dollars Into Interbank / Speculators Get Burnt As Naira Gains Value / Speculators Get Their Fingers Burnt, Naira Strengthens To N310/$ (2) (3) (4)
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Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by Emekamex(m): 1:10am On Feb 22, 2016 |
FOREIGN exchange (forex) speculators from Benin Republic, Niger, Chad, Sudan, Ghana and other African countries are cashing in on the wide margin between the official and parallel market rates to make huge profits ,The Nationhas learnt. The speculators are moving in huge dollar deposits to meet the rising demand by Nigerian importers and other buyers requiring dollar to pay their children’s school and medical fees. Although the exchange rates are high, the urgency and necessity left the buyers with no option than to buy from the parallel market. The official exchange rate has remained at N197 to a dollar in the last six months, creating a huge gap between the official or interbank rates and parallel market rates. Confirming the development, President of the Association of Bureau De change Operators of Nigeria (ABCON) Aminu Gwadabe said over $100 million inflow was recorded last Friday. He said this led to a temporary appreciation of the naira against the dollar. The naira, on Friday, traded at N365 to a dollar – from N391 the previous day – because of the liquidity the dollar inflow brought to the market. Gwadabe said by Saturday, the naira again depreciated against the dollar as it exchanged at N375 to a dollar, adding that the volatility is expected to continue this week. “Foreigners are taking advantage of the naira situation. We have 18 countries within the continent where the naira is accepted. The speculators are coming in because of the huge gap between official and parallel market rates,” he said. Gwadabe said exporters, mainly from Dubai, have agents in Nigeria, who accept naira from importers at agreed dollar rates. The importers travel with certified invoice to bring in the goods, a practice, he said, reduced pressure on the naira. “In my view, the CBN should address the supply side of the market by allowing oil companies and banks to sell dollar to bureau de change operators as a measure to reduce pressure on the naira,” he said. Tumbling global oil prices have battered Nigeria’s crude exports, with foreign exchange reserves down to an 11-year low at $27.85 billion. The Federal Government is concerned that further naira depreciation would hurt Nigerians, but the CBN’s refusal to revise the pegged exchange rate widened a gap between official rates and the parallel market. Managing Director of Cowry Assets Management Limited Johnson Chukwu said economic agents “are rational, and will go to where their values will be maximised or their risk minimised”. He said Nigeria did not have the financial resources to solely develop its economy in the short to medium term and that current global social architecture made absolutely closed economic borders impossible. “The crisis in the economy seem to be worsening since the crash in oil prices from about $115.09 (Brent crude spot price) on June 19, 2014, to $34.83 (Brent crude) today. “This is despite a barrage of monetary and administrative policies introduced by the CBN to stabilise the exchange rate and restart economic growth. “While the CBN has been active in trying different options, business managers and investors are still waiting for the managers of the fiscal policies to present their response to the crises, which should be harmonised with those of the monetary authorities,” he said. Chukwu insisted that while the CBN effectively maintained the official exchange rate at N197 to a dollar, it has been impossible for it to meet the legitimate demand at the official window at the stipulated official rate. “It is the backlog of unmet demand, which has spilled over to the shallow parallel market and driven down the naira,” he said. http://thenationonlineng.net/forex-speculators-from-benin-republic-ghana-others-invade-nigeria/ 1 Like |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by mrvitalis(m): 1:23am On Feb 22, 2016 |
I won't devalue the naira if I was the president too Let's endure... This is just a phase 37 Likes 3 Shares |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by Nobody: 1:45am On Feb 22, 2016 |
buhari will lead us to the promise land. God bless him 15 Likes 1 Share |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by Elosky20: 1:53am On Feb 22, 2016 |
The CBN has only two options now: 1. Devalue the naira and support the naira from the foreign reserve, but the foreign reserve is low and can only last for 3 months. 2. Restrict importation of certain products, to save the foreign reserve for inevitable imports, which cannot be sourced in nigeria. . The second option is clearly the best in the long run, while the first can only work for a short period because the oil price is not rising anytime soon and might go down to even $20. We have to stop this our importation madness and start using what we can produce in nigeria. For how long will Nigeria continue to dodge this bullet, when we can disarm the assasin with a little effort and sacrifice. "Naira must fall, so nigeria can rise again" i stand with buhari 31 Likes 4 Shares |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by kennyman2000(m): 6:24am On Feb 22, 2016 |
Hmmmmm.... |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by otitokoroleti: 7:00am On Feb 22, 2016 |
lets see where it will lead us |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by HungerBAD: 9:01am On Feb 22, 2016 |
Following. 1 Like 1 Share |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by rozayx5(m): 9:02am On Feb 22, 2016 |
belle face govt |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by Benjom(m): 9:02am On Feb 22, 2016 |
They just want to have their bites too... Funny. #NigeriaWillBeGreatSoon |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by kennyman2000(m): 9:03am On Feb 22, 2016 |
Not their fault naaaww... Show me a man who'll see an opportunity and not grab it, i'll show u my grandma who's a virgin. Check my signature for ur customised wristband 1 Like |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by repogirl(f): 9:04am On Feb 22, 2016 |
CBN didn't refuse, Boooooohari refused! 4 Likes |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by Bevista: 9:06am On Feb 22, 2016 |
“While the CBN has been active in trying different options, business managers and investors are still waiting for the managers of the fiscal policies to present their response to the crises, which should be harmonised with those of the monetary authorities,” he said.This has been my grouse with this administration. The inability of the FG to properly articulate and communicate its fiscal policies is quite disturbing. --- OK, we should be self sufficient in agriculture, but what is government policy and Strategy for achieving it? Are there any low interest loans for farmers? Are there any government concessions or support for those willing to go into agro-processing? Any government policy to increase cheap access to farmlands? etc. --- We should be self sufficient in manufacturing. What is government target for power generation? Any access to finance for those willing to setup factories? Any Tax considerations? Are there any clear plans and strategies for encouraging OEMs to setup local production facilities in-country? --- What is the government industrialization plans & policies? What specifically are government plans for diversification of the economy? What exactly is government plans to reduce unemployment? --- The administration needs to communicate more. In my elementary knowledge of Finance and Investments, capital only goes to where there are less uncertainties. This government has practically relied on CBN monetary policies with very little input on the fiscal side. 16 Likes |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by Ekeeyhandsome(m): 9:06am On Feb 22, 2016 |
Hmmm,watching in 4D |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by Ekeeyhandsome(m): 9:07am On Feb 22, 2016 |
oyinkinola:day dreamers 15 Likes |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by Pavore9: 9:08am On Feb 22, 2016 |
lt is all about demand and supply. 1 Like |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by Morkavictor: 9:08am On Feb 22, 2016 |
joborskill: Elosky20:zombies 11 Likes 1 Share |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by jeeqaa7(m): 9:09am On Feb 22, 2016 |
True |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by kay29000(m): 9:10am On Feb 22, 2016 |
Hmm! So if these other countries flood Nigeria with Dollar, in the long run, the price will drop back to where it was before, yes? 4 Likes |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by Nobody: 9:10am On Feb 22, 2016 |
y |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by uduokirika1(m): 9:10am On Feb 22, 2016 |
. oyinkinola: |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by Nobody: 9:12am On Feb 22, 2016 |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by keypad1: 9:13am On Feb 22, 2016 |
Daura dullllllard oooooo |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by kay29000(m): 9:15am On Feb 22, 2016 |
repogirl: repogirl, you are a Buhari hater? My likeness for you just dropped like a hot pot in a toddlers hand. 5 Likes |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by dexterinc2003: 9:17am On Feb 22, 2016 |
GEJ would have cluelessly devalued the naira,I stand with GMB 6 Likes 1 Share |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by Femich18(m): 9:17am On Feb 22, 2016 |
Opportunity comes but once...But I know this situation is just a phase that we are passing through |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by seenter84: 9:23am On Feb 22, 2016 |
WU and MG should start giving dollars out. No time |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by Nobody: 9:24am On Feb 22, 2016 |
repogirl:my friend, can you please do a research and come up with a good reason why he should not refuse. may be we can learn. |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by Nobody: 9:25am On Feb 22, 2016 |
I want start dis forex of a tin.. .. Who knows how I go take start |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by LastSurvivor: 9:26am On Feb 22, 2016 |
Can't we remove this forex restrictions and make import duty so exorbitant that it will discourage importers.. Meanwhile, to improve local production we need to provide certain things like steady power supply and security which is not at its best currently.. My opinion thou, I studied computer not economics.. 4 Likes 1 Share |
Re: Forex Speculators From Benin Republic, Ghana, Others Invade Nigeria For Profits by Nobody: 9:28am On Feb 22, 2016 |
buhari come back home ooo and make dis decision quick ooo..all his decisions are just somehow ...have lost hope in him |
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