Intrepid01:
TonyeBarcanista, Navierstokes, AzeD1, jmichlins can you guys enumerates with specifics the pros and cons of devaluation.

Please tell us whether we will be worse-off or better-off for it. This is the best way to analyse this issue without emotions.

you devalue to increase export right now we have nothing to export. We still need to import basic infrastructure like power so no gain in it

NDPVF:
In zombies voice, Bloomberg is a wailer!.

IPod Blomberg

Abagworo:


Do you think Ghana is better than Nigeria? I doubt that assertion. Is there history of any economic success of an African country linked to IMF policy? Libya during Ghaddafi, Egypt during Mubarak or South Africa during apartheid.

Ghana is a country I have listed, they made tremendous progress from where they were in the 80's to where they were in the 90's and 2000's before the current spate of corruption etc is threatening to cripple them. Nigeria on the other hand...

if in doubt google Ghana and Nigeria economic indices, and compare the stats on a per capita basis.

Please what do we stand to gain if we devalue our Naira?

NavierStokes:


Nope at 350, only he who needs foreign stuff will go for it, a good deal of the demand will drop, and the government can to a much larger extent satisfy the then demand

The government doesn't have enough dollars that's why it is rationing. Devaluing the Naira would not increase the price of Oil so the government would still not have enough.

AZeD1:

By the time the official value is N350 the mallam would sell to you at N450 so you would still lose.

You are only speculating

AZeD1:

The government doesn't have enough dollars that's why it is rationing. Devaluing the Naira would not increase the price of Oil so the government would still not have enough.

with devaluation more dollars comes in, from foreign investors, speculators as well (remember $20 billion is sitting idle in banks), plus if we also get our diversification well, increased exports etc. moreover you are still fixated on Oil, as a suggestion how about the government grows our production at least to the benchmark production of 2.2 million bbls per day from current 1.6 million bbls per day, that's also increased dollar revenues.

Bloomberg spends most of their time calling for devaluation of the Naira, this the umpteenth article from the western media as part of the pressure on the President who has suddenly denied agreeing to a currency swap with China following the visit of an American delegation led by Samantha Powers

NavierStokes:


Ghana is a country I have listed, they made tremendous progress from where they were in the 80's to where they were in the 90's and 2000's before the current spate of corruption etc is threatening to cripple them. Nigeria on the other hand...

Ghana may have made progress but Nigeria now (or at least as it was in 2014) is significantly better than it was in the 90s.

IMF guidelines do not always work - their allegiance is always to the lenders over the borrowers hence why nations like Brazil, South Korea, Thailand and Russia were all made worse off after dealing with the IMF.

Whether we devalue or not we will remain the same. It will only benefit others. So why people are fighting for this is alien to me. Please i advice people go through some simple economics before supporting economic policies. Devaluing now does nothing to us. The dollar will only rise if Nigeria devalues. If Buhari devalues now we are ultimately poorer. We have d China deal already so the question of devaluation is off the table. That id double indebtedness.

TonyeBarcanista:

The benefit are enormous though not immediate, it outweighs the suffering we are subjected to at present

/
There are no benefits.

\

mmsen:


Ghana may have made progress but Nigeria now (or at least as it was in 2014) is significantly better than it was in the 90s.

IMG guidelines do not always work - their allegiance is always to the lenders over the borrowers hence why nations like Brazil, South Korea, Thailand and Russia were all made worse off after dealing with the IMF.

I just pray that these people supporting devaluation are paid crowd. Because if there are illiterates that do ot understand why we cannot devalue our currency living in Nigeria. Then our problem is worst than we thought.

These western people should just shut up.

Same old, same old from DullardPoo.
How did the zombies buy the FAKE packaging of a man who could not increase his 150 cows for decades?
We don buy market till 2019.



www.nairaland.com/attachments/3515036_image_jpeg9f360c5ab7736510df54c882e9dbf188




www.nairaland.com/attachments/2095210_worst_jpeg588f192a23aa02a7b350a8bbe5d18306

NavierStokes:


with devaluation more dollars comes in, from foreign investors, speculators as well (remember $20 billion is sitting idle in banks), plus if we also get our diversification well, increased exports etc.

This is all speculation.
How did IBB's sap work out for the country?

NavierStokes:



Zimbabwe was a progressing society, The original plan of the West was to live side by side with the locals, but that old comedian single handedly based on pride and to the detriment of his country changed all of that. We as followers can cheer them on that we have a man giving it to the west, but at the end of the day who suffers inflation on the streets, Mugabe? or the common zimb, who has to carry trillions to buy bread.lol

Everyday gym routine

Devaluation is off the table. We have swapped with China. Any devaluation reduces the value of what we get from China for what we borrowed.

AZeD1:

1) The scarcity of the dollar is not caused by the rate so devaluing doesn't solve the scarcity, rather it would push the black market rate up further.
2) We really don't export anything so the idea of our goods being cheaper is economic theory.
3) You need to understand that foreigners that are calling for devaluation are doing it in there own interest not because they like us?

God bless you!!!

[color=#006600][/color] hmm

NavierStokes:

Having observed the issue of SAP and the IMF coming up repeatedly here on nairaland, I will be doing a thread with the true history of events that discusses the SAP so some Nigerians can let go off the paranoia assoiciated with the IMF or western governments. of course they look out for their best interests and yours too. Because every time you run into problems you still come to bother them with your issues like Aid moneys and hangouts, immigration issues etc.

At bolded, go to Libya and tell them that the West cares about their interest with hundreds of thousands of their citizens dead to western bombs, their economy in shamble, their country a failed state, their money frozen and stolen by the west and see if they wont stone you.

TonyeBarcanista:

SAP flopped because IBB mismanaged the whole thing for his selfish interest.

Already, businesses are operating on a value of the naira that is over 100% more than the official value. in fact, the naira is technically devaluated due to scarcity of the dollar. What we are saying is for the government to allow the naira to be officially devalued so that businesses can freely operated. This will even boost our export as our goods would be cheaper in the international market, and that would help local economy.


however, it will make import more expensive but we can't depend on import forever

And pray tell me,what goods are being exported by Nigeria apart from oil.Devaluation will result in cheaper oil for the westerners.We have nothing to export

AZeD1:

This is all speculation.
How did IBB's sap work out for the country?

You still don't get the point about IBB's SAP we have stated it on this thread, for IBB it was more about the corruption to "chop" the money than to truly make any reforms. IBB was the problem if you think otherwise tell me what the IMF recommended at the time that seemed stupid.

NavierStokes:


You still don't get the point about IBB's SAP we have stated it on this thread, for IBB it was more about the corruption to "chop" the money than to truly make any reforms. IBB was the problem if you think otherwise tell me what the IMF recommended at the time that seemed stupid.

Can you with a straight face right now tell me there are people who won't feast on whatever extra money the country gets?

Am not a buhari zombie , but am solidly behind you on this one baba, American $ will cry soon with this China- Nigeria currency deal, baba dullard is playing chess , imf is playing checkers, well done baba.

/
That moment Africans believe that the western economic prescriptions is because they care about Africans

Borrowing from China is a smart move. Nigeria bypassed the middlemen. US and the rest borrow from China too to lend to third world countries.

Over all, Nigerians are like alcoholics. Give an alcoholic N100 or N1000, his next stop will be in a bar living it up.
\

I'm part of the so called " wailing wailers" but I don't get it, why devalue when there are restrictions on importation of some commodities. Doesn't make sense to me to devalue.

Why are the western countries so much interested in this naira devaluation? Because they want to flood the country, grab and run away.

NDPVF:
You prefer this useless government pegging one dollar to 197-199 na,which is against all known economic practice,and has seen investors leaving the country in droves?.

Has there ever been a time that investors rushed to Nigeria because the Naira was devalued?
Dont be deceived by Oyibo economics and articles sponsored by Portfolio speculators which people like you call 'Investors', our case is peculiar. Arabs fell for the Arab Spring and helped the west to murder their leaders in Iraq and Libya and deposed others in Egypt while engaging in western backed war of regime change in Syria, has it made them richer, has it not turned them into refugees in Europe who are abused, left in the open border between Greece and Macedonia with thousands drowning?

Tonyebarcanista I don't know the economics you did, maybe u borrowed it in 100 and 200 level or u relying on your secondary skul plus the one you learnt online.

If we devalue our naira officially what are we going to be exporting. Crude oil not even refined product.

Truth be told, we need to fashion out our own model of economics development, the one laid out by foreign economist will most likely not work for us. Let's learn from the Asian miracle country like China, Singapore etc who looked inward and come up with a developmental model that suit them.

IMF and other western country are not interested in helping us to develop. They will only advise us to do what may be good in the short run, while they will be better in the long run while we will be worse in the long run.

Am sure when SAP started it appear like a good policy, but now we know better.

Plus how has the previous devaluation helped us. Is it not madness for us to do same thing and expect different result.

AZeD1:

This is all speculation.
How did IBB's sap work out for the country?

No, not speculation, CBN said $20 billion idle in private accounts, remember our foreign reserves is just $27 billion now. With additional $5 billion of idle $20 billion in circulation, goodbye to forex scarcity but private businesses are not ready to risk such amount yet.

http://www.dailytrust.com.ng/news/general/-20bn-idle-in-private-accounts-cbn-says/136532.html

TonyeBarcanista:

The benefit are enormous though not immediate, it outweighs the suffering we are subjected to at present

Since the enormous benefits are not immediate i believe u are insinuating petience for the long term benefits. How is it that u want to be patient for d benefits of what we have applied severally without results but u wont be patient to wait for economic benefits of improved domestic productions and economic diversification which is one of the cadinal programs of the PMB led administration. Pls to put us on a better stand, mention those economic values that would come with devaluation. Pls its important.

NavierStokes:

He is is loath to be seen by voters as capitulating to foreign investors and the International Monetary Fund, both vocal critics of his stance, according to New York-based Teneo Intelligence.

In summary:
- the voters, i.e. Nigerians, don't want devaluation; we don't want IMF; we don't want foreign speculators (masquerading as investors)
- we are grumbling, but mostly hopeful of the future
- we are begrudgingly proud of our President for standing up for us, against the interests of the West
- the President is carrying out the wishes of Nigerians
- the West is wailing ...

Thankfully they can't stage or support any coups this time since he was democratically elected, so all they can do is attack his policies in the media. They say he's playing politics, what about politicians in the West? Don't they say and do things solely to get re-elected? Abeg, take your yeye analysis and face your country.