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CBN Adopts Flexible Exchange Rate Policy - Business (4) - Nairaland

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Exchange Rate As Of Today / Forex: CBN Throws Naira Into Open Market, Nullifies N197/$ Exchange Rate / Today's Naira Exchange Rate (2) (3) (4)

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Re: CBN Adopts Flexible Exchange Rate Policy by lashout1: 8:56pm On May 24, 2016
danjumakolo:
This is cool.Fixed rate regime is not healthy as it brings a wide gap between the official rate and black market rate..keeping the official rate for critical transaction is very ok
what are u saying?

u know nothing about exchange rate, y not try reading comments only.

3 Likes 1 Share

Re: CBN Adopts Flexible Exchange Rate Policy by piagetskinner(m): 8:57pm On May 24, 2016
A fantastically confused government

1 Like

Re: CBN Adopts Flexible Exchange Rate Policy by NavierStokes(m): 8:58pm On May 24, 2016
obailala:
If this is true, and if it is what I think it is, then it means the FG/CBN has finally succumbed to the tremendous pressures mounted on the Nigerian economy from external forces. Whether this would truly augur well for Nigeria as the textbooks keep saying, only time would tell. It is well!

It's pretty late, what we warned on here all the while. A timely devaluation and float would have seen us in a much better position compared to where we are today.All hope isn't lost though.

2 Likes

Re: CBN Adopts Flexible Exchange Rate Policy by 400billionman: 9:03pm On May 24, 2016
Buharinomics has failed..

It is a shame to bankers that Emefiele allowed himself to be controlled by an illiterate.

Okonjo Iweala and Charles Soludo cannot do the rubbish Emefiele did in CBN.

Minister of petroleum should have also assumed office as CBN governor and Finance minister combined.

Hahahaha... Olodo is a form of disease.

6 Likes 1 Share

Re: CBN Adopts Flexible Exchange Rate Policy by 989900B: 9:04pm On May 24, 2016
sanusidabo:
The dollar is not a legal tender in Nigeria so why do you allow some unscrupulous elements to jeopardize the economy. Key advice ban BDC so that exchange should be carried out in commercial banks hence unnecessary demand can be avoided. Further trading dollars out side money deposit banks should be seen as an offence or any body involved be treated the same way General Bamaiyi did to drugs addict. So we should also not allow the activities of law breakers to destroy our country. Concern Citizens for Better Nigeria

It might be a good idea after all . . .
Re: CBN Adopts Flexible Exchange Rate Policy by Validated: 9:17pm On May 24, 2016
Adminisher:

****
You are also grossly inexperienced in anything.
What the government is doing is called strategic agility. The oil market has crashed, that is a static reality but there are other constantly changing events like the quantity of oil we are actually selling, the price of the fuel we are importing , the weak exports etc. C. Everything is constantly changing and very fast. Under those conditions you just don't sit tight, besides the MPC and exchange rates are CBN issues that the FG usually does not interfere with.

Face saving and lame defense. When people were telling Buhari to allow a flexible rate, he went to Aljazeera to declare "tough luck" to those advising, then you lot hailed him! Today you are defending a clueless decision with "strategic agility". What strategic agility can you refer to a decision based on sentiments like "nobody has been able to convince me why I should devalue Naira" or "IBB devaluation killed the Naira".

Like they say, "leadership is not a popularity contest". In an attempt to appear popular in the eyes of some of you, Buhari has technically destroyed the Naira. Wait and see the impact of this new policy on everything. Thought you lot were jubilating the Chinese yuan would turn things around! Clueless government with zombie followers

5 Likes 1 Share

Re: CBN Adopts Flexible Exchange Rate Policy by bettercreature(m): 9:20pm On May 24, 2016
Keneking:
But where is lalasticlala sef
Why are you calling lalasticlala,did you understand what they are saying?
This people are just pushing us around i'm lost!
Re: CBN Adopts Flexible Exchange Rate Policy by obailala(m): 9:33pm On May 24, 2016
NavierStokes:


It's pretty late, what we warned on here all the while. A timely devaluation and float would have seen us in a much better position compared to where we are today.All hope isn't lost though.
I hope it works out for good though...
Re: CBN Adopts Flexible Exchange Rate Policy by onatisi(m): 9:42pm On May 24, 2016
GeneralShepherd:
Chai....after all these months

4 Likes

Re: CBN Adopts Flexible Exchange Rate Policy by Sunnynwa: 9:49pm On May 24, 2016
beejaay:
oya won...medicine after death!!!!!!!!!!!!! the current economy woes would av been avoided if the NEC and MPC had been thinking....

this stand wont solve any problem now, rather it will aggravate it

All because of the archaic command and control approach of Buhari.

1 Like

Re: CBN Adopts Flexible Exchange Rate Policy by Dee60: 9:54pm On May 24, 2016
Some NL people are simply pathetic. When you go rigid they say No, please be flexible. When you listen and go flexible, they say you should have been rigid. Confused elements abound in this society!
Re: CBN Adopts Flexible Exchange Rate Policy by NavierStokes(m): 9:58pm On May 24, 2016
obailala:
I hope it works out for good though...
To be honest even the government is hoping, but hope is not and has never been a strategy.

1 Like

Re: CBN Adopts Flexible Exchange Rate Policy by onatisi(m): 10:07pm On May 24, 2016
NavierStokes:

To be honest even the government is hoping, but hope is not and has never been a strategy.

Re: CBN Adopts Flexible Exchange Rate Policy by myhotbrain: 10:07pm On May 24, 2016
Some of these Nairalanders are clowns, it's obvious they don't even know what "flexible exchange rate" is, but yet, they are all over themselves making stoopeed comments. Since when has it become a requirement that the candidate for the office of the president of Nigeria requires an economics degree to run the affairs of this nation?

Even if the president has a PHD in economics from Havard University in USA, he would still have to defer to the CBN Governor and his group of decision makers for MONETARY policy decisions. The best the president can control with much levity is control the FISCAL policies.

I think it's time we gather these unproductive youths for tutorials in economics, government/political science and of course, english language studies for many of them cannot read; read and comprehend; and write a full paragraph without error.

I want to believe that most of these youths are those who didn't vote for PMB during the last election because of their own peculiar reasons.

TRUTH: Your hero GEJ, who has a PHD in zoology only succeeded in turning Nigeria into an ANIMAL KINGDOM, albeit a Zoo. Every strata of society became enmeshed in one form of corruption or another including secondary school student who cheats in examinations by carrying INDOMIE into exam halls while the examiners and invigilators collect bribes and wandered about the school.

WAEC just announced today that they are cancelling some students results due to exams malpractices, a good percentage of our female tertiary students turned OLOSHO and their male counterparts turned YAHOO YAHOO BOYS all this under the government of your hero GEJ.

Many graduates could not find jobs and those who are fortunate got a pittance for wages, I even pity some teachers in private schools some make as low as N6,000 per month.

FACTS:
Nigeria foreign revenue is much lower now because the price of crude oil is also lower and Nigeria cannot keep giving dollars that it doesn't have through the CBN.

Or do you half-educated fellows think that government just print money including dollars as it likes?
You can't give what you don't have, period! Shikena!

The CBN governor said the bank cannot support the fixed exchange rate basis any longer because there is not enough dollars revenue to sustain it. Therefore, the dollars has to go on flexible exchange rate basis, in other words, the rule of demand and supply of dollars will ultimately determine its fair price. Comprehendo?

Now, after understanding the above, how is PMB a dullard? Is it PMB who determines the price of crude oil in the international market?

Is it PMB who is blowing up oil fields thereby disrupting oil production?

Is it PMB who asked GEJ not to save for the rainy days when price of oil was around $100 per barrel?
Even the erstwhile minister of finance attested to the fact that her boss GEJ lacked the POLITICAL WILL TO SAVE MONEY DURING THE OIL BOOM YEARS!

GEJ should henceforth be labelled MR NO POLITICAL WILL because he absolutely lacked POLITICAL WILL TO FIGHT BOKO HARAM; TO FIGHT CORRUPTION; TO SACK ERRANT MINISTERS LIKE ABBA MORO; TO SETTLE ASUU DEMANDS FOR ALMOST ONE YEAR; TO FIND CHIBOK GIRLS and many many more.

The ONLY POLITICAL WILL GEJ had during his tenure was to ENCOURAGED, AIDED AND ABETTED corrupt practices.

There is no single doubt in my mind that Nigeria, sadly, indeed, is a FANTASTICALLY CORRUPT NATION under the last administration.

#IstandWithBuhariForChange
#IloveNaija
#EducateOurYouths
#YouthsSeekknowledge

Peace!

FYI: I am not an APC member, nor do I belong to any political party. I was a strong promoter of Yar Adua/Jonathan ticket and supported GEJ and wished him success, but he seriously disappointed me when he allowed corruption to manifest itself uncontrollably during his tenure.

PRAYER: MAY OUR NATION NEVER BE GOVERNED AGAIN BY A WEAK LEADER. AMEN!

4 Likes

Re: CBN Adopts Flexible Exchange Rate Policy by dadakpoye: 10:13pm On May 24, 2016
This govt is clueless. End of quote.

1 Like 1 Share

Re: CBN Adopts Flexible Exchange Rate Policy by Realnoyx(f): 10:14pm On May 24, 2016
Are you just knowing?

1 Like

Re: CBN Adopts Flexible Exchange Rate Policy by NavierStokes(m): 10:17pm On May 24, 2016
[quote author=onatisi post=45938532][/quote]

Onatisi my man!!! How is the evening coming?
Re: CBN Adopts Flexible Exchange Rate Policy by ibedun: 10:23pm On May 24, 2016
The same bastard Biafrans who cornered Jonathan's government and promptly ruined it are all over the thread spitting nonsense. Nigeria's taste for all things foreign with pitiful local production capacity has caught up with the country. You all want to enjoy South Korean standard of living while you can hardly produce a match stick.

1 Like

Re: CBN Adopts Flexible Exchange Rate Policy by onatisi(m): 10:25pm On May 24, 2016
NavierStokes:


Onatisi my man!!! How is the evening coming?
Bros mi,I just dey ooo. Buhari has created a mess that will take another 12 to 8 years to rectify
Re: CBN Adopts Flexible Exchange Rate Policy by onatisi(m): 10:25pm On May 24, 2016
NavierStokes:


Onatisi my man!!! How is the evening coming?
Bros mi,I just dey ooo. Buhari has created a mess that will take another 12 to 8 years to rectify
Re: CBN Adopts Flexible Exchange Rate Policy by NavierStokes(m): 10:28pm On May 24, 2016
onatisi:

Bros mi,I just dey ooo. Buhari has created a mess that will take another 12 to 8 years to rectify

Sad reality when we said this man will just pull this country many steps back. In as much as I want him to succeed the guy is just like a pharoah who has been set up to fail and coincidentally he is working very hard to make that happen.

3 Likes

Re: CBN Adopts Flexible Exchange Rate Policy by Nobody: 10:33pm On May 24, 2016
This CBN guy is so incompetent and deserves to be sacked, he's toying with 170 million lives plus my unborn child, how would screw a bottle called policy and decides to open the bottle again little by little in reverse to the policy to better the economy.

1 Like

Re: CBN Adopts Flexible Exchange Rate Policy by onatisi(m): 10:39pm On May 24, 2016
aaronson:
This CBN guy is so incompetent and deserves to be sacked, he's toying with 170 million lives plus my unborn child, how would screw a bottle called policy and decides to open the bottle again little by little in reverse to the policy to better the economy.

Re: CBN Adopts Flexible Exchange Rate Policy by Lordxeer(m): 12:21am On May 25, 2016
heybeemoney:
on my way to OTUEKE,,, GEJ must hear dis.
pls I need sound financial analyst to explain to us d pros n Con's of dis latest development, pls don't b bias.
A country undertake devaluation to boost exportation or make its goods cheaper, thereby earning more foreign exchange, shrink trade deficit and reduce its sovereign dept burden. However, it does hurt too by raising the price of export and spurring inflation. I for one will move against any policy shift in this direction as I foresees disastrous outcome with the fact that our economic fundamentals are very weak at this point in time. Hope this help?

1 Like

Re: CBN Adopts Flexible Exchange Rate Policy by Nobody: 1:09am On May 25, 2016
Validated:


Face saving and lame defense. When people were telling Buhari to allow a flexible rate, he went to Aljazeera to declare "tough luck" to those advising, then you lot hailed him! Today you are defending a clueless decision with "strategic agility". What strategic agility can you refer to a decision based on sentiments like "nobody has been able to convince me why I should devalue Naira" or "IBB devaluation killed the Naira".

Like they say, "leadership is not a popularity contest". In an attempt to appear popular in the eyes of some of you, Buhari has technically destroyed the Naira. Wait and see the impact of this new policy on everything. Thought you lot were jubilating the Chinese yuan would turn things around! Clueless government with zombie followers


Agility Na my Bus stop o! As I dey read Agility, I come shout Agility Na him everybody for bus turn start to dey look me like JJC angry angry sad
Yet I still never understand which one be strategic Agility. undecided
Re: CBN Adopts Flexible Exchange Rate Policy by Oduduwaboy(m): 1:21am On May 25, 2016
nigeriafilm:
If this is true, then I will key into the school of thought that says "APC/PMB don't seems to know exactly what they are doing"
...let professionals do their work. Godwin Emefiele is a banker & head of the MPC. What concerns APC in this matter? You just enjoy wailing.
Re: CBN Adopts Flexible Exchange Rate Policy by adconline(m): 1:58am On May 25, 2016
franciskaine:
devaluation has neva helped Nigeria economically, not even now. We are gonna be worse off.
What did GMB think would happen when he increased PMS from N87 to N145? Consumer prices are affected greatly by rise in petroleum prices more than forex.

1 Like

Re: CBN Adopts Flexible Exchange Rate Policy by adconline(m): 2:02am On May 25, 2016
ibedun:
The same bastard Biafrans who cornered Jonathan's government and promptly ruined it are all over the thread spitting nonsense. Nigeria's taste for all things foreign with pitiful local production capacity has caught up with the country. You all want to enjoy South Korean standard of living while you can hardly produce a match stick.
Can you and ur folks with Einstein IQ fix the _fucking economy please

2 Likes

Re: CBN Adopts Flexible Exchange Rate Policy by nigeriafilm(m): 3:59am On May 25, 2016
Oduduwaboy:

...let professionals do their work. Godwin Emefiele is a banker & head of the MPC. What concerns APC in this matter? You just enjoy wailing.
When has it become the work of professionals? Is it not PMB that always insist and boost that HE is not going to devalue the naira. eh zombie, may God dash u sense

1 Like

Re: CBN Adopts Flexible Exchange Rate Policy by efficiencie(m): 4:30am On May 25, 2016
Many of the people commenting are literal illiterates as far as economic issues are concerned and they are here only to cast aspersions on the president (I suspect they do the same to their parents at home)

Buhari inherited an economy with severe structural problems like: high level of involuntary and underemployment unemployment, infrastructural decay, high dependence on oil revenue, high primary export concentration, deleterious bureaucratic corruption, high import dependence (for both strategic inputs and consumables), high crime rate and high cost of doing business...If to these problems we add the crash in oil prices then a huge problem emanates!

Some thinkers argued for a flexible exchange rate regime but failed to acknowledge the structural deficits present in the country. The structural problems highlighted above will make a free floating exchange rate regime will make imports costlier and deplete welfare by raising the cost of living, while the resulting exchange rate depreciation is expected to engender a inflow of net foreign assets as stipulated by the uncovered interest rate parity rule but this may not be realized as the erroded investor confidence will deter investors from reaping what appears to be interest rate differentials. Hence the needed foreign exchange will not flow in. More so, a recent paper discovered from simulations that a floating exchange rate regime will harm the agricultural sector and render the service sector unstable in the face of an exchange rate depreciation...I suspect the Buhari economists saw this coming and adviced counter measures. Considering that such adverse effects following a floating exchange rate regime will be bad for their image. But all Buhari did was to postpone the evil day because the fixed exchange rate stance was not sustainable given the structural issues stated earlier.

Had the economy been diversified from oil, import substituting industries aggressively encouraged and infrastructural deficits addressed during the GEJ regime when oil prices were highest since 1971, Buhari wouldnt have been faced with the sorry options he is faced with now.

Now that we must float the exchange rate we must expect the following:
i. soaring commodity prices
ii. volatile service output
iii. accelerated depreciation (partly driven by speculators)
iv. depleting welfare
v. agricultural output decline (due to costlier imports of strategic inputs)
v. foreign exchange shortage and its attendant effects on overseas education and medical trips
vi. increased tendency for dollarization (due to the declining naira and changing portfolio mix in favor of foreign currency denominated assets)
vii. increased prospects of remittances
viii. inflationary tendencies
ix. rising nominal interest rates
x. slowing private investment
xi. slowing credit to the private sector
xii. intensified commercial bank allocation of funds away from real sector investment to financial sector investment
xiii. increased incidence of poverty and crime
xiv. sustained lopsided regional development across the country
xv. increased uncertainty and risk

How long it would take for the economy to heal itself by floating exchange rate is the subject of another research work but I certainly hope that by the time the economy heals fully we all won't be dead as once noted by Keynes...controls are needed to accelerate the healing process and whatever Buhari must do to stem this ugly crises must be done and done fast...Most Nigerians have studied and learnt impatience from the malevolent university, PDP for 16 years (enough period of time for most Nigerians to have bagged a BSc, MSc and PhD in impatience) and can't wait one more second to see change!

So President Buhari, work now that it is day for the night comes when you cannot work!

1 Like

Re: CBN Adopts Flexible Exchange Rate Policy by SolomonAdeola: 5:15am On May 25, 2016
heybeemoney:
on my way to OTUEKE,,, GEJ must hear dis.
pls I need sound financial analyst to explain to us d pros n Con's of dis latest development, pls don't b bias.





So what are you going to tell GeJ when you don't even know the meaning of the news. You sha want to talk...we have heard ooh
Re: CBN Adopts Flexible Exchange Rate Policy by beejaay: 6:29am On May 25, 2016
blackpanda:


You have not said anything. How were they not thinking?? Una can just like to nag sha

bros its not about nagging, its about realities on ground and am sure you are well aware of this....its not about PDP or APC, its not even about PMB, its about the future and well being of the country.....its about the poor that are worst hit with this stupidity....everything is not politics bros

1 Like

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