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Naira Quoted At 253/$ As Interbank Market Opens - Business (10) - Nairaland

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Naira Appreciates To N435/$, As CBN Injects $180m. / Naira Appreciates To N455/$ As External Reserves Hit $30bn / Naira Finally Improves At The Interbank Rate (2) (3) (4)

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Re: Naira Quoted At 253/$ As Interbank Market Opens by grandstar(m): 2:59pm On Jun 20, 2016
PassingShot:


The good quality of our president is he accepts sound advice/argument provided you're able to convince him.

He said he was not convinced that devaluing the Naira was best for Nigeria and he has been proved right.

Imagine what would have happened to our economy if he had devalued the Naira to say N250 to a dollar. I am sure it will have shot up to N500 at the black market.

But his refusal to do that, plus non-working of the two parallel rates (official and black market), have made Emefiele and his team to put on their thinking cap to find an acceptable solution to the problem.

Salute to PMB once more.

Buhari does not believe in devaluation. Who is he to dictate that? That is the duty of the autonomous Central Bank.

The epic incompetence of Buhari's policy plunged the economy into a recession and biting forex scarcity and you are hear praising hubris.

Don't be like the blind being led by the blind.

4 Likes

Re: Naira Quoted At 253/$ As Interbank Market Opens by murmee: 3:06pm On Jun 20, 2016
eph12:

Be optimistic for your own good. There's nothing patriotic about being pessimistic.
Whao! what an Expression. It seems Nairaland is now attracting well educated, better informed people and that is how it should be. May God wipe out all the barely educated, ignorant people posting annoying comments from Nairaland. Amen.

4 Likes

Re: Naira Quoted At 253/$ As Interbank Market Opens by PentiumPro(f): 3:12pm On Jun 20, 2016
StoneLucifer:





It is obvious your skull is filled with saw dust

Did I hit a raw nerve with the post your quoted? Are you an enemy of my country Nigeria? Why are you pained at the comment ?

1 Like

Re: Naira Quoted At 253/$ As Interbank Market Opens by crazymommy(f): 3:14pm On Jun 20, 2016
Farmerforlife:


Lol. You are counting chickens. Take care that the fellow doesn't have the last laugh. There are no bids and no sellers at this price, it is just to test the market. It will still go up when the banks realise that they are not going to get any dollars to buy at this price.

Re: Naira Quoted At 253/$ As Interbank Market Opens by SirAweezy(m): 3:15pm On Jun 20, 2016
Ogetogeo:


That is not the problem, the problem is if these conditions my account officer is giving is the right way to access the dollar, then its DOA and also the quoted rates today of 253-260, which bank is selling that now and how do we access it?

Please if you see any bank selling 320 please tell me I want to buy... which bank is selling 235-260
Re: Naira Quoted At 253/$ As Interbank Market Opens by codeME: 3:15pm On Jun 20, 2016
PentiumPro:


Which Yeye PHD friend you spoke with? Who knows him? Where are his written papers on the economy? So because you spoke with one Yeye thing that call himself a PhD holder, we shouldn't be optimistic going forward? You and your Yeye friend can keep you pessimism in your house. These biafrans sef!! angry
There you go again, please be soft and gentle you are too beautiful for this.
Our ranting on Nairaland may not add any value to the naira or make N1 = 1$. It is a new policy lets be optimistic and give it some time. please Nigerians.
Re: Naira Quoted At 253/$ As Interbank Market Opens by dejavus: 3:16pm On Jun 20, 2016
murmee:
Whao! what an Expression. It seems Nairaland is now attracting well educated, better informed people and that is how it should be. May God wipe out all the barely educated, ignorant people posting annoying comments from Nairaland. Amen.

I couldn't agree more. I have not used this site for several years based solely on the number of retarded post on here its is mine boggling.

I only blamed the easily accessible internet and a smart device. I have also noticed a lot of well thought out responses to questions and answers not some useless comments like "isokay" or "am watching".

We still have the tribal zealots to get rid off and not forgetting the set of users who's judgement is clouded by the fact that the ability to steal from government's purse is being blocked by the incumbent government.

So I say Aameen to your prayer too.

1 Like

Re: Naira Quoted At 253/$ As Interbank Market Opens by PentiumPro(f): 3:18pm On Jun 20, 2016
codeME:
There you go again, please be soft and gentle you are too beautiful for this.
Our ranting on Nairaland may not add any value to the naira or make N1 = 1$. It is a new policy lets be optimistic and give it some time. please Nigerians.

Sometimes it's good be hard on these people wishing the worst economic crises in our dear nation. They are not propagating any tangible way forward, all they expresses is pessimism about the effort of the govt.

1 Like

Re: Naira Quoted At 253/$ As Interbank Market Opens by iwaeda: 3:34pm On Jun 20, 2016
crazymommy:
I used the word "reduction" and not "elimination"... No one said parallel market will be erased totally...if parallel rate market is erased how will Bereau de change now exist..I said it will reduce the gap massively...I did not say it will eliminate it...

ok o kontinue
Re: Naira Quoted At 253/$ As Interbank Market Opens by crazymommy(f): 3:35pm On Jun 20, 2016
iwaeda:


ok o kontinue

Re: Naira Quoted At 253/$ As Interbank Market Opens by codeME: 3:39pm On Jun 20, 2016
PentiumPro:


Sometimes it's good be hard on these people wishing the worst economic crises in our dear nation. They are not propagating any tangible way forward, all they expresses is pessimism about the effort of the govt.
I can understand your stand, tbaba1234 and some other people on this issue, everybody should know that those that made the policy too did not made it and go to sleep. If they discovered it is not working, they will make amends like they already did to some part of the policy. I just discovered, it seems you are following the matter seriously, and you know Nairaland everyone is 'over - sabi' in every field, so be gentle dear. Let us keep our fingers crossed, what if it brings 1 dollar to N100 at the end of the day and if is the other way round too, we have been surviving and we will still survive.
Nigerians and Nairaland people let's hope for the best out of this......... please.

6 Likes

Re: Naira Quoted At 253/$ As Interbank Market Opens by Nairadays: 3:47pm On Jun 20, 2016
MuhdG:
Does this mean that even black market is at 253 cc passingshot

It's not sir. My Bank just charged me NGN366 to $1 Dollar.

1 Like

Re: Naira Quoted At 253/$ As Interbank Market Opens by gboye1999: 3:51pm On Jun 20, 2016
AkinropoIlori:
The little knowledge I have on this topic is that devaluation occurs in the fixed exchange regime while depreciation comes under the floating exchange rate.... under the floating exchange rate system like what every other writer has said there is no official exchange rate. The market creates its own supply and demand and adjust to equilibrium automatic by these market forces known as the forces of demand and supply which is known as the invisible hand by the classical economists like Adam Smith... So what the CBN did was to depreciate the currency in other to pave way for the floating system which will close the gap at the parallel market. One of the demerits of this regime is that there can't be stability in the exchange rate market because the demand must look for it supply in other to obtain equilibrium which changes from time to time.. My prediction is that the exchange market will continue to appreciate in an increasing returns in few days/weeks/ or even months but starts to increase in a decreasing return until stability is obtain. However, if the policy is hijack by the very few rich individuals who have access to foreign exchange it will make dollar more costlier at the expense of naira only creating more wealth for these very few rich individual at the expense of the masses..

We already had a shortage in the amount of dollars the CBN could offer the market even before Buhari administartion assumed office.
Crude oil prices started its plunge as from 2014 i believe.
Re: Naira Quoted At 253/$ As Interbank Market Opens by Iko5000: 4:02pm On Jun 20, 2016
for Zombies ,not for me .
NOETHNICITY:
Look here, u re strongly advised to go apply for the Npower scheme b4 its too late! And b4 I forget, don't quote me again!

1 Like

Re: Naira Quoted At 253/$ As Interbank Market Opens by Barcholder: 4:02pm On Jun 20, 2016
I've just sold pounds at 440 to a BDC, which equates to approximately 320 usd equivalent conversation rate. That's a pretty good indicator of the expected interbank rate to come.

I assure you, no BDC will be buying at an equivalent of 320 usd if they expected that in just a few days the widely available rate will be 260 or so. This is a far better guide than the incessant speculation and insults on here.

Regards

Uvie
Re: Naira Quoted At 253/$ As Interbank Market Opens by aladedotun(m): 4:09pm On Jun 20, 2016
pls. which of d banks? & was it Via ATM outta 9ja?

ExplicitContent:
Mtchew, rubbish. I was still charged 330N to $ today...
Re: Naira Quoted At 253/$ As Interbank Market Opens by gbodimowo(m): 4:12pm On Jun 20, 2016
TippyTop:
Expect the euphoria to be gone in a few weeks, Adeosun has no real economic blueprint to lure back investors.


Exactly

1 Like 1 Share

Re: Naira Quoted At 253/$ As Interbank Market Opens by dejavus: 4:16pm On Jun 20, 2016
I have just been charged N484.22 to £1 by GTBank about 30 minutes ago.
Re: Naira Quoted At 253/$ As Interbank Market Opens by gbodimowo(m): 4:18pm On Jun 20, 2016
shyling:

The question should have been what were the indices that made it fail? And are they still operational? How do we tackle them?

Good question
Re: Naira Quoted At 253/$ As Interbank Market Opens by tete7000(m): 4:28pm On Jun 20, 2016
PassingShot:
Happy days are ahead of us.

With the news, the worst of our economic woes are behind us.

Kudos to the government for floating the Naira rather than devaluing it. A first in the history of Nigeria.

*Modified*

Some ignorant mourning wailers are saying floating the naira is same as devaluing it. Hell NO!

If you devalue the Naira, you fix an official exchange rate to it. E.g N250 to a dollar. With that approach, the black market rate will jump to beyond N400 to a dollar.

But with floating, many traders with high volume of dollars come in and trade dollars based on demand. In this approach, there is no official dollar rate set by the government. The rate is purely determined by how much dollars are demanded and how much dollars are available. This way, the Naira finds its true value.


If the Naira which was once fixed for N197 to a dollar crashes to N253 to a dollar, has the naira not been devalued? There are many ways to achieve the same thing; if floating the currency will cause its value to wane and govt took that option then govt has devalued naira. Your argument does not change that except you can show me govt. option has made naira appreciate.

2 Likes

Re: Naira Quoted At 253/$ As Interbank Market Opens by Yinkagbo(m): 4:30pm On Jun 20, 2016
I just sold at 320/usd
Re: Naira Quoted At 253/$ As Interbank Market Opens by MurphyG1(m): 5:21pm On Jun 20, 2016
tete7000:



If the Naira which was once fixed for N197 to a dollar crashes to N253 to a dollar, has the naira not been devalued? There are many ways to achieve the same thing; if floating the currency will cause its value to wane and govt took that option then govt has devalued naira. Your argument does not change that except you can show me govt. option has made naira appreciate.

Isnt the N 253 to a $ parrallel market rate? Or am I missing something here?
Re: Naira Quoted At 253/$ As Interbank Market Opens by Ogetogeo(m): 5:48pm On Jun 20, 2016
MurphyG1:


Isnt the N 253 to a $ parrallel market rate? Or am I missing something here?


Not parallel market rate but interbank rates. That is how much banks can buy from bigger banks that CBN has assigned.

Its like this, CBN pegged the dollar at 197 and were the only bank that could sell at that rate but now they have changed the peg to about 250 but have other partners banks that can sell to smaller banks at that rates.

So, no bank can sell to you at that rate technically.

Forget all the economic jargons.
Re: Naira Quoted At 253/$ As Interbank Market Opens by AkinropoIlori: 5:50pm On Jun 20, 2016
gboye1999:


We already had a shortage in the amount of dollars the CBN could offer the market even before Buhari administartion assumed office.
Crude oil prices started its plunge as from 2014 i believe.

Yes, am only saying in the future if proper measures are not taking to block any loophole which the so called cabals may want to further enrich themselves... or is that not what you mean?
Re: Naira Quoted At 253/$ As Interbank Market Opens by Nobody: 5:51pm On Jun 20, 2016
I want to rejoice with all. I wish I could. If 253 is now official rate and we are not sure where the increased supply is going to come from right now, then what will be the black market rate? Is there a time in Nigeria we don't have black market for scarce commodities? I can't ask the question, because I know I'm not missing anything here. Government should clearly tell us how they have or they will increase supply in the market space, so that when the banks are flooded this week or whenever it is pegged, all will get dollar, in such a case there'll be no need for the black market. Except this is done, dollar will trade 355-360 black market.

1 Like

Re: Naira Quoted At 253/$ As Interbank Market Opens by kanor: 5:52pm On Jun 20, 2016
NO TRADE WAS AGREED ON THAT RATE! You guys did not read that? The rate will continue to increase in the next days ahead.
Re: Naira Quoted At 253/$ As Interbank Market Opens by kanor: 5:55pm On Jun 20, 2016
Nobody bought and nobody sold on that rate of N253 or what ever.
Re: Naira Quoted At 253/$ As Interbank Market Opens by OJaySeenson: 6:01pm On Jun 20, 2016
You are wrong sir. All these items have already been quoted in dollars for a long time. I can't remember the last time I bought a plane ticket whose price was quoted in naira. Since they were already holding dollar positions before today, the prices are not significantly going to change. At least not the dollar rates, at least. I could be wrong though. Just an opinion.

iwaeda:


Zombies only see their lines of reasoning,one day reality will teach them sense.
They will know Economics is not for learners.
Prices of foreign goods,visa,tickets will sky rocketed because instead of #197 it will now be #253. Eating Aisha rice is very bad to the medular oblangata
Re: Naira Quoted At 253/$ As Interbank Market Opens by fortune1968: 6:10pm On Jun 20, 2016
AtlanticBreeze:

keep deceiving yourself.. This is not the first time Naira is being floated.. It was floated during babangida's regime and that was what crashed the strength of the naira to dollar then.. Let's see if naira doenst hit 500 to 1 dollar in few weeks time
pessimists see danger in every opportunity.you will be proved wrong.
Re: Naira Quoted At 253/$ As Interbank Market Opens by OJaySeenson: 6:30pm On Jun 20, 2016
Ok, I think it's time for firsthand information. I walked into diamond bank today and asked how I can purchase forex for school and business. I was informed clearly that there is no more form A or any other thing. What the bank will do is ask you for a rate at which you believe the naira should be bought, and using your 'bid rate' they submit an application to buy on the interbank forex market. If your bid is eligible, it can also be submitted to CBN. If you are buying from CBN, then you have to wait till all bids are submitted, and then a benchmark is selected for the day. If your bid is at the benchmark or above, you get your forex. I guess for interbank forex, the only difference will be that your bid is going directly to a seller, who can choose to sell to you or not. Either way, you have to go through the 10 approved banks for forex either from CBN or from the market. So for those asking how to get at this rate, you have to go to the bank and submit an application. If you have all required documents and you are eligible, then chances are you will get your forex. I saw a business man submitting a bid for 17k USD while I was in the bank myself, and I plan on bidding sometime this year. Hopefully things would have stabilized.

3 Likes 1 Share

Re: Naira Quoted At 253/$ As Interbank Market Opens by Nobody: 6:58pm On Jun 20, 2016
kanor:
NO TRADE WAS AGREED ON THAT RATE! You guys did not read that? The rate will continue to increase in the next days ahead.
I like your post. Optimism is good, but lets be objective and do more scrutiny on this policy.

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