AntiWailer:
Buhari has scattered Egypt too.


Signed,
Wailers.

CuteTj:

I disagree. Nigeria is a peculiar country!!

If the CBN dare allow a true float, then Nigeria will be doomed and everything will grind to a halt in the short run. Is it now that we still don't produce anything and all we do is import or the speculators who have warehoused dollars waiting to further attack our Naira. Are you aware that Nigerians have almost $20b in their domiciliary accounts? With that amount to play around with, then the naira is going to be totally murdered. Or is it the price of fuel that will shoot so high? Or the terrific spike of inflation beyond levels we have never witnessed before?

In as much as your advise is truly the best way out but with how Nigeria is currently, it is going to be the worst way out. We should get out of recession first, start producing something in Nigeria for export, decrease dependence on the dollar then can we now allow the naira to float to heaven or to hell.

XaintJoel20:
Is this story true?

AntiWailer:
Buhari has scattered Egypt too.

Signed, Wailers.

onatisi:
I disagree with you. If the naira is allowed to float freely,definitely it will reach a peak of about 700 ,then importation will be totally discouraged because ppl won't be able to buy imported goods,local production of agricultural produce will increase as that will be the only alternative ,dollars wont be scarce as it is now .without anyone manipulating it ,the demand for dollars will automatically drop since many importers will be forced to stop . There is no 2 ways to beat this problem but to start producing and you can never produce when you can get the same thing at a cheaper cost else where than ur own high cost ones.

linearity:


Your analogies are incorrect and this is why:

1. "Politicians who steal Naira, then connive with black markers to hype dollar and store those money as dollars for storage"

In the above scenario, the politicians would be better off if dollar was low. e.g. If I steal N900, it is illogical for me to push the price of dollar up to say N450/$, so I can convert my loots into dollar and get a small amount of $2 for my troubled. On the flip side, if I pushed dollar lower, say to N300/$, that same loot of N900 will fetch me $3.

2. Those items were not bad from been imported, only that, no Forex will be allocated to it. Plus, these importers did not run to black market to get dollars at higher rates just because they love to do it. It is merely because the demands for these items by Nigerians like myself and you for these items are higher and there is no comparable local alternatives for the suppliers or that, we Nigerians have strictly dictated to these suppliers that, we want the foreign ones. So, if you want to help, stop eating eggs, fish, etc.

3. Fuel importation is merely about 30% or so of our Forex demands. You would have scored a huge point is you indicated that, this situation was given raise to buy corrupt politicians. They killed our refineries, so that they will be room to import fuel, thereby lining up their pockets.

CuteTj:

I disagree. Nigeria is a peculiar country!!

If the CBN dare allow a true float, then Nigeria will be doomed and everything will grind to a halt in the short run. Is it now that we still don't produce anything and all we do is import or the speculators who have warehoused dollars waiting to further attack our Naira. Are you aware that Nigerians have almost $20b in their domiciliary accounts? With that amount to play around with, then the naira is going to be totally murdered. Or is it the price of fuel that will shoot so high? Or the terrific spike of inflation beyond levels we have never witnessed before?

In as much as your advise is truly the best way out but with how Nigeria is currently, it is going to be the worst way out. We should get out of recession first, start producing something in Nigeria for export, decrease dependence on the dollar then can we now allow the naira to float to heaven or to hell.

WinningSun:


if Dollar is out of reach for manufacturer. how will they buy their equipment. CBN should only sell to real investors.

mrvitalis:

U are looking at short term.. the high price of goods will draw in investors and this will creatw employment... And people will sooner than later begin to source raw materials here this will alao create employment

CuteTj:

I understand your point but you think its as easy as just increasing price without putting something in place? Importation isn't bad in it self but reliance on importation is what is bad, which is the position we find ourselves in.

In an ideal situation, your strategy is the way out but Nigeria's situation is not normal. The way you have painted it on paper is sweet but you and I know that putting it in reality is the difficult part.

We have just semi-floated a while ago (then we got into a recession. Although that's not the cause of the recession but you and I know it had an impact on it) we should wait for that to bring the desired and expected results and when that has happened we can then move on to the next stage.

Once again I agree with you but what I don't agree with you on is the timing. In my opinion, a free float should be carried out say in the next 18 - 24 months depending on how this semi float and the market responds (coupled with ending the recession, less dependency on importation as a result of us starting to produce many things).

mrvitalis:

If naira is allowed to get its true value what will be the need to hide dollars or acquire it and store??
Buying from cbn and black market will be the same... we don't have short dollars supply the people who have are not selling

CuteTj:
@ onatisi,

I tire for our governments. From one government to the other, we are continually sinking.

Why there is a wide disparity between FG exchange rate and black market is as a result of government's invisible hold of its own exchange rate. They claim to have floated but that's not totally correct. What we have is a semi float.

onatisi:

That is because of the price disparity between the FG and black market rate and secondly the inconsistent nature of policy making by the FG . believe me if I have 10 million dollars in cash ,I wont sell it all because I know the FG will 90% change its policy ,investors never like putting money in an unstable economy

mrvitalis:

But if the naira is floated u would sale

sekundosekundo:
God I can't thank you enough. You hv blessed me without measure. I SAY THANK YOU. As I aged with GRACE.

Ijaya123:


You were making sense until you mentioned Buhari. Is it Buhari that is handling the forex market? And who are the technocrats that are not allowed to do their jobs?

ZainabOs:
Donno what this means. Can someone explain plsss

grandstar:


Who said, "I don't believe in devaluation"? Buhari's has never hidden his meddling into the affairs of the forex market. The first thing he did upon assuming power was to fix the rate at 197 to the $ without regards to market forces. This was the height of economic hubris

He then followed it up by barring access to CBN forex windows for the importation of 41 products. These are all well known and he was even the one that revealed so.

I am apolitical. I just say things as they are

Flexherbal:
Naira never devalue reach?

sylvar02:
So this Shiii is allover Africa

ok


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Oma307:
Sha, Yoruba and greeting

pulsa:

dude are you serious or joking, did that arawarawa tale really take place.

sekundosekundo:

Very true dear.

dumo1:
What's the use of Nigeria belonging to member countries like ECOWAS and AU if they can't all put their moronic heads together and float a single African currency that would compete with US dollars, British pounds and Yen. They should have done this since.

grandstar:


Who said, "I don't believe in devaluation"? Buhari's has never hidden his meddling into the affairs of the forex market. The first thing he did upon assuming power was to fix the rate at 197 to the $ without regards to market forces. This was the height of economic hubris

He then followed it up by barring access to CBN forex windows for the importation of 41 products. These are all well known and he was even the one that revealed so.

I am apolitical. I just say things as they are

emeijeh:
Where are the experts in this field?
Pls come and explain the writeup for us