CallMeNJay:


Did an online transaction last night and i was charged #370 per dollar $
#NigeriaIsFinished

CallMeNJay:


Did an online transaction last night and i was charged #370 per dollar $
#NigeriaIsFinished

krendo:
Government of U-turns!!!!!

eph12:

One thing you should understand is that the CBN still have to run everything by the government and can only initiate policies when given the go ahead by the president.

LordAdam:


Please Mr. Economist, suggest a better monetary policy.

Since the start of the FX crisis, CBN has taken hard but valid steps to assuage the situation. It is not their fault that they are not performing any miracles. Emefiele is not a sorcerer.

989900E:


No doubt, but anyone of Emefiele's caliber with some substance of self-worth should be able to resign if he/she thinks the president is hampering his efforts and tarnishing his image (that way he can shame the president) -- I dare he CAN NOT! The presidency has too much dirt on him to send him to Kuje in the blink of an eye, else he is a perpetual 'bingo' to Buhari.

eph12:

@ bolded, is this something to be happy and brag about?

tempest01:
This is a good policy....but the three money transfer agencies allowed in the market should offer competitive rates that will cause an inflow.

World remit offered rates that were enticing. I'm as much as this move will help curb the problems we are facing, the process should be monitored so that the charges are not too much, and more players should be allowed in after due compliance with the laws, to avoid monopolistic tendencies.

justmenoni:
So someone abroad will send their money in foreign currency through imto and then funds would be dispersed in naira at official bank rates, let's say the bank buys this dollar from imto at 320, they would surely sell it to the bdcs for more than 340 so they the Banks would gain 20 naira per dollar,if that is multiplied by the projected 20b dollars then the banks in naija will make huge amount of money..

LordAdam:


Please Mr. Economist, suggest a better monetary policy.

Since the start of the FX crisis, CBN has taken hard but valid steps to assuage the situation. It is not their fault that they are not performing any miracles. Emefiele is not a sorcerer.

The major department of the FG that can prop up the economy is the Ministry of Finance. We have an amateur there. And no body is saying anything because she is from the sophisticated tribe.

Nigeria is in a recession and the best Adeosun can tell us is that she's getting rid of ghost workers and not giving states new bail out? If NOI hadn't thought up and instituted the IPPS and Sanusi hadn't enforced BVN, would Adeosun be able to get rid of ghost workers?

Even a 2-year old kid can rid the civil service of ghost workers because these motions have already been set in play by the former administration. NOI removed tens of thousands of ghost workers, so it is a gradual process.

I'm not saying those are not important, but what Adeosun should be concerned most about is following the fiscal plan to spend our way out of this slump. They planned to spend N1.2 trillion in capital projects in 2016. It is August already, and only N200b has been disbursed.

How do you want the economy to grow and become enticing to investors if you're being a miser and not fast-tracking the process of disbursing that money? They are playing politics with the lives of 180m Nigerians. If there is no money, go and borrow. We all know the anti-corruption war is a farce and all those recovered loot sh*t only exists in the papers.

Emefiele managed a 197-199 exchange rate for up to 16 months, all this while the President was gallivanting and waiting for God knows what before assembling an economic team. When he did assemble a team, they put together a budget full of errors and drama. All these while, Emefiele was holding the fort.

After the budget was passed and the ball was in the court of Adeosun to give the economy a boost, she couldn't perform her duty. She was speaking Queen's English before and after the float happened instead of positioning the economy.

Even after the float and her inaction rendered the new policy useless, Emefiele is still buying her time with regular monetary interventions, and you still have the guts to blame Emefiele and the guys at CBN?

What da f'ck do you want from Emefiele?

Emefiele is responding to the times. If FDI had started flowing in after the float (as expected), would the CBN resume selling to the BDC's or revamping the remittance market?

This is how you guys jumped into conclusions that GEJ was doing nothing at the top. He left it for a fuckt'ard and everything went south.

Now you guys have shifted it to Emefiele, that he is doing nothing there, and so should be sacked.

Ask yourself, what exactly do you think Soludo or Sanusi would do in Emefiele's shoes?

Would Soludo or Sanusi have been able to convince Buhari to allow floating of the naira back in 2015 when he should have allowed it? Were these two not speaking with megaphones about floating/devaluation and Buhari was forming Alhaji?

Soludo and Sanusi managed Nigeria in times of plenty. Under Obasanjo, when the economy was still in shambles, USD/NGN increased from N21 to N133 (an over 600% increase) between 2000 and 2004. When Soludo entered and oil price maintained a high average, he was only able to reduce it from N133 in 2004 to 127 in 2009. Sanusi reduced from 127 in 2009 to 117 in 2014 when he left.

Soludo/Sanusi spent $20b to prop the naira during the aftermath of the financial crisis, which ended quickly after oil prices started rising. Emefiele has spent only less than $10b with prices falling and staying low for almost 2 years, and you expect the USD/NGN rate to be at 200?

Emefiele has done his best. If his best is not good enough for you, simply relocate from the country and go pay your taxes in another country.

Everyone knows the CBN is more involved in assuaging our current crisis than the FG and its moribund Ministry of Finance.

So, better sit tight and buckle your seat belt. We are in for a rough ride thanks to a dormant FG and reta.rded ministers (with Adeosun being a special case).

Pray oil price rises soon, because there is nothing Emefiele can do without corresponding input from FG to change the current trend.

We are in a recession. There is no dollars. The naira is worthless. Deal with it!

-Lord

danjumakolo:
Selling dollars to bdc and excluding banks to sell to the public fuels scarcity the more. 90% of BDC guys will get dollars at official interbank rate and sell to individuals at stupendous higher rate far from interbank rate which breeds scarcity.

To stabilize naira,sell to bdc and banks the true value of the naira and let market forces come into play. That's wen we shall see the true floating currency coming to play

989900E:


You are right.

Well, the remittances from diaspora goes to the BDCs now, which should bring their rates closer to the 'interbank' . . . harmonize rates sort of.

And, in addition, the CBN still needs to keep funding the FMDQ market properly until investors come in, it is BS listening to some quarters blaming the CBN for intervening (I wonder why Emefiele bothers about their noise). These are early stages, bar Canada, Switzerland, and a few countries, no country operates a 'clean float', there are always interventions, and we are beginners here . . .

And the CBN needs to choke the banks with both hands if need be to cooperate, or else the banks are very good at sabotage (and that goes for the BDCs now), as already being experienced.

naijafresh:


So may I ask where the CBN is expected to get the funds to keep funding the FMDQ market?

We simply don't have the inflow of dollars to satisfy demand. It's not a simple matter of opening the nations coffers and depleting our reserves. The lack of income has to reflect in our economy until our fortunes are reversed.

See what floating the price of fuel did to demand, fuel importation and consumption was halved or reduced as people altered their behaviour. We can't keep spending like there is no recession like a lot of Nigerians want us to do. Left to some we should sell all our reserves at 167 to the dollar till we have nothing left. Then what next?

The nations you mentioned may intervene but they have the resources to do so and they back intervention up with other strategies.
Strategies don't have to revolve round artficially supporting the naira we also have to stimulate the domestic economy and reduce the craving for forex for luxury items etc. Which raises a question, what is a luxury item? Just because we don't produce an item in Nigeria should we ban the importation of the item because it adds strain to the dollar dependent economy?

Onegai:
But seriously,

What DOES Kemi Adeosun do with her time? Because as Minister of Finance, she's underperforming to an alarming level. What are her plans to help stimulate the country's economy? It's like she doesn't exist or have meetings with Emefiele and others.

989900E:


I very well understand your angle, and I am not insinuating the parts in bold, that said:

what is the total monthly Forex demand of the country as a whole?

what is the total Forex inflow (overseas remittances, investors, crude oil sales and other exports)?

And what are our Forex reserves?