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Egypt Devaluation To Test CBN Resolve On Naira - Business (5) - Nairaland

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Analysts Predict Naira Devaluation To N400/$ / Analysts Foretells Naira Devaluation To N400/$ / IMF Hints At Fresh Devaluation, Says Naira Is Overvalued (2) (3) (4)

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Re: Egypt Devaluation To Test CBN Resolve On Naira by TheGoodJoe(m): 11:58am On Nov 07, 2016
WinningSun:


you need to study the attitude of investors around the world. the US federal reserve put the interest of his bond at 0% . most foreign investors will prefer you devaluate your currency so that they can buy up our stock market shares for junk. and our bond in higher interest rate since its price can't be less than interest rate. you don't free float your currency when the indices are poor. learn from China.

Without the foreign investment, the stock market shares are still junks. The FG is only delaying the inevitable. Economics magic will not turn around the plight of the economy. Investment in small and medium scale Enterprises will. They can continue defending the naira. We have seen how well it worked.
Re: Egypt Devaluation To Test CBN Resolve On Naira by grandstar(m): 12:20pm On Nov 07, 2016
rusher14:


Debt servicing at 0% interest.

Can you proffer a better solution?

I doubt very much this are 0% loans. Perhaps 2%.

Even if they are 0% loans, they will always be serviced. An amount, a sinking fund has to be put aside yearly to service the loans.

The loans must not be taken as the present forex policy is a bad foundation to run an economy
Re: Egypt Devaluation To Test CBN Resolve On Naira by onatisi(m): 2:52pm On Nov 07, 2016
grandstar:


I doubt very much this are 0% loans. Perhaps 2%.

Even if they are 0% loans, they will always be serviced. An amount, a sinking fund has to be put aside yearly to service the loans.

The loans must not be taken as the present forex policy is a bad foundation to run an economy
Bros dont bother yourself . They will take that loan ,squander it ,seek another loan. Then blame pdp for their failures in utilising the loans effectively,Nigeria is currently being ruled by irresponsible leaders who will never take or accept responsibility for their failures rather they will blame everything and everyone for their shortcomings . The truth is that a government that used to passing blames and blames others for their failures can never be trusted to produce anything positive ..

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Re: Egypt Devaluation To Test CBN Resolve On Naira by deenee: 12:48pm On Nov 08, 2016
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.


No point arguing with you as I see that a lot of your assumptions are largely theoretical.

Look at it this way. The same politicians that will spend billions to build houses in abuja and lagos with no one to rent. Do you really think that they have the power to manipulate the black market. They are not price givers but rather price takers in this whole dollar fiasco and what they are really after is a safe haven for their stolen loot even if that means that there is some reduction in value.

The importers that bring in this essential commodities that I mentioned have simply passed the cost on to the final consumer. Hence the reason why the price of rice has doubled. They also know that these items are essential commodities and thus people will only shout and complain but still end up buying.

Bro trust me when I say about 40percent of our fx channeled towards fuel. Fuel is the main stay of our economy. Everything we do in Nigeria rides on availability of fuel. Go and have a look at DPR and NNPC stats.

God bless Nigeria.
Re: Egypt Devaluation To Test CBN Resolve On Naira by davidif: 8:03pm On Jun 13, 2017
ZainabOs:
Donno what this means. Can someone explain plsss

It means letting the free market determine the actual value of your currency.

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