Dauraking:


I think you're the one talking arrant nonsense.

1. What do you mean by "duo parallel rate at the official market". I know English Language is not your mother tongue. So I forgive you.

2. Of course Naira has been devalued because floating Naira means that the currency worth would be determined by the market. The market has always said that N197/$1 by the government was overvalued. The real value of Naira is what we would see from Monday.

3. There's no diversion. Those appointed by the government would sell dollar at market rate. There's nothing like N199/$1 again.

4. With this policy, you can't round trip or speculation is reduced.

5. Naira is already floated.

In as much as I'm a stern critic of Buhari administration, I applaud this monetary policy. Still I blame the government for waiting for 10 months before it's implement thereby wasting foreign reserves and engendering massive corruption. We should blame the Dullar.d himself. He said that he must be convinced before he would devalue Naira. Who now convinced him to float Naira. Maybe, his London doctors have successfully opened his blocked ears and he heard reasons for the first time.

Guy, most Nigerian critics are not informed. I am very sure a lot of the people writing up here have not read the policy paper. There is no dual market. CBN Intervention in the market will be by 1. The Interbank FX market (which is eventually the only officially recognised market why naira is allow to float against dollar. 2. The Secondary Market Intervention Sales. The Intervention through the Interbank FX Market is a reserve right of CBN as a regulator of the financial market. Then, SMIS is also a way of CBN regulating the market and also ensuring competitiveness of the market. Please do not look for official market of 199 to $ because you wont see it. There will eventually be a convergence of rate in the market as more Authorised operators which include but not limited to Authorised Dealers(banks and other financial institutions),Authorised Buyers (same people and other major user of FX) Oil companies, Oil service companies, Exporters, End users etc will participate in the market. The Op position is close to what will happen ceteris paribus.

Short term boost for a massive long term slump, except of course we start producing more and importing less.


Next is to consider the rights of a people to make choices for themselves which is not happening now that power is placed more centrally. You have much less say when you are under an overlord, which is what our situation basically is.

FriendChoice:



https://www.nigerianbulletin.com/threads/new-naira-policy-8-things-that-will-happen-in-the-next-10-days.214632/

I disagree with you on most point but agree with a few. If you truly understand what floating of the exchange rate means you will realize that the CBN has effectively left the value of the Naira to the forces of demand and supply. Anybody that has dollar is now free to sell at whatever rate he decides that the buyers are willing to pay.
As it is now there is no dollar ( ie no supply) so the Naira will definitely devalue in the banks. On the black market however the naira has always floated so I don't foresee much change. The gap between the bank rate and the black rate will reduce.
Fuel prices will likely increase and not decrease as you claim.

Dauraking:


I think you're the one talking arrant nonsense.

1. What do you mean by "duo parallel rate at the official market". I know English Language is not your mother tongue. So I forgive you.

2. Of course Naira has been devalued because floating Naira means that the currency worth would be determined by the market. The market has always said that N197/$1 by the government was overvalued. The real value of Naira is what we would see from Monday.

3. There's no diversion. Those appointed by the government would sell dollar at market rate. There's nothing like N199/$1 again.

4. With this policy, you can't round trip or speculation is reduced.

5. Naira is already floated.

In as much as I'm a stern critic of Buhari administration, I applaud this monetary policy. Still I blame the government for waiting for 10 months before it's implement thereby wasting foreign reserves and engendering massive corruption. We should blame the Dullar.d himself. He said that he must be convinced before he would devalue Naira. Who now convinced him to float Naira. Maybe, his London doctors have successfully opened his blocked ears and he heard reasons for the first time.

Who has the foreign reserve helped? When we had excess money in the reserve how did it benefit us?

If this is true, why did Buhari govt and CBN waited so long to release this guidelines watching Nigerians being sacked from their job, going to bed hungry,e.t.c

Stories upon stories. All i see is stories.

In the next 10 days? Ok ooo. We are waiting to see the change we voted for.

Will the price of Garri reduce?

Textbook economics. Una never chii chom chin

kaeforum:
This is a theoretical analysis, we shall see if you re right in 10 days:

But I strongly disagree with you on the following points:

1. The Nations oil output has drastically reduced due to vandals from militants and refusal of foreign buyers to patronize us.

2. The country produces little except oil, it imports more than 85 percent of its products for manufacturing, this will cause deficit in balance of payments with other countries.

3. Dollar will continue to appreciate against the naira as firms and companies prefer to hold dollar currency than naira.

4. Current govt is low on funds, already having challenges implementing budget.

5. Scarcity will return as Importers dont have dollars to import fuel at changing exchange rate.

pessimist. See the good.

Even if inflation reduces as u have assumed unfortunately prices of goods have come to stay due to the Nigerian opportunistic way of doing things.

Maisuya1:
what will happen is what is happening with PMS supply after the price review.
As i type now I have stations with filled underground tanks and trucks siding by the station unable to discharge. with supply outweighing demand, the competition would soon shift to pricing hopefully forcing it down

Which state are you referring to because here in Rivers state the thing is scarce since in Tuesday.

kaeforum:
This is a theoretical analysis, we shall see if you re right in 10 days:

But I strongly disagree with you on the following points:

1. The Nations oil output has drastically reduced due to vandals from militants and refusal of foreign buyers to patronize us.

2. The country produces little except oil, it imports more than 85 percent of its products for manufacturing, this will cause deficit in balance of payments with other countries.

3. Dollar will continue to appreciate against the naira as firms and companies prefer to hold dollar currency than naira.

4. Current govt is low on funds, already having challenges implementing budget.

5. Scarcity will return as Importers dont have dollars to import fuel at changing exchange rate.

Yes, just like how they said PMB will lose elections.

Monday is just few days, so also 10days. Just chill and let see what will happen then.

No surprises Nigerians have made all these miracle pastors very wealthy. We want instant "success" without any input

Maisuya1:
what will happen is what is happening with PMS supply after the price review.
As i type now I have stations with filled underground tanks and trucks siding by the station unable to discharge. with supply outweighing demand, the competition would soon shift to pricing hopefully forcing it down

Nobody will sell fuel below their cost price, they will adjust by reducing what they import in the short term and probably work at bring down their cost in the long run by refining locally.

FriendChoice:



https://www.nigerianbulletin.com/threads/new-naira-policy-8-things-that-will-happen-in-the-next-10-days.214632/

The naira will only appreciate against the dollar if CBN also floats the yuan as this will see the demand on dollar drastically reduced as most importers may demand more of yuan hence a swift appreciation against the dollar.

If this is what will happened, why did it take them this long to come up with this policy? Were they really enjoying the hardship Nigerians were going thru under the former policy? So many questions crying for answers!!!

FriendChoice:



https://www.nigerianbulletin.com/threads/new-naira-policy-8-things-that-will-happen-in-the-next-10-days.214632/