We’ll Push Dollar To N305—CBN Boasts - Business - Nairaland
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| We’ll Push Dollar To N305—CBN Boasts by dipoolowoo: 10:54am On Mar 29, 2017 |
By Modupe Gbadeyanka The Central Bank of Nigeria (CBN) has disclosed that it was determined to bring down the exchange rate of the Naira per Dollar to the official rate of about N305. This information was revealed on Wednesday, March 29, 2017, by the Acting Director of Corporate Communications Department of the CBN, Mr Isaac Okorafor. Mr Okorafor, while speaking on a radio programme on RayPower FM, Fact File, assured Nigerians that the present success of the Naira at the foreign exchange market would be sustained. On the programme, which was monitored by Business Post, the apex bank’s spokesman noted that the current development was mainly aimed to make the exchange rate on the major segments of the market stay at par. ‘We are bringing the rate down to the official CBN rate; N305 per Dollar, that is our aim as stressed by the Governor (Mr Godwin Emefiele),’ the CBN spokesman said on the show when asked if the apex bank would further bring down the exchange rate from the present N360 it directed banks to sell. Since the CBN introduced a new forex policy, the Dollar has been on a free fall against the Naira at the market. When the apex bank came up with the new policy in February, it ordered banks not to sell above N375 per Dollar, but because the Naira was selling at the parallel market at about N390, the CBN, few days ago, further brought down the rate to N360. As at the time of filing this report on Wednesday morning, the Dollar at the black market was N375. http://www.businesspost.ng/2017/03/29/well-push-dollar-to-n305-cbn-boasts/ 4 Likes 1 Share
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| Re: We’ll Push Dollar To N305—CBN Boasts by Femolacaster(m): 10:56am On Mar 29, 2017 |
I pray it happens ooo. 7 Likes 1 Share |
| Re: We’ll Push Dollar To N305—CBN Boasts by Nobody: 10:56am On Mar 29, 2017 |
Weldone my President. Only God knows how much dollar would have been by now if it was the corrupt Government that remain in power, maybe 900 Naira to a dollar.... Our economy was sitting on a time bomb all these wasteful past years, but the children of hate will never know that, they just keep blaming and hating blindly. God bless my president as he takes us back to the Promised Land. 83 Likes 3 Shares |
| Re: We’ll Push Dollar To N305—CBN Boasts by Firstcitizen: 11:27am On Mar 29, 2017 |
Speculators, unqualified arm chair economists and hoarders who were bleating that it will not work have all gone quiet  52 Likes 1 Share |
| Re: We’ll Push Dollar To N305—CBN Boasts by mentro: 11:46am On Mar 29, 2017 |
Good news ooo. But I won't celebrate until it gets to 250.. 18 Likes 4 Shares |
| Re: We’ll Push Dollar To N305—CBN Boasts by 989900: 12:11pm On Mar 29, 2017 |
With rates harmonizing, with over $40b dollars expected from diaspora remittances, and over $10b expected from FDIs this year, plus improvement in power and refining capabilities expected towards end year, I'd say sub N300 to $1 is already on the horizon. Throw in campaign for local agricultural products and other manufactured products and non oil exports. Then there is that little nut: cashless policy. 56 Likes 2 Shares |
| Re: We’ll Push Dollar To N305—CBN Boasts by legendgalas(f): 12:11pm On Mar 29, 2017 |
Una hear so? God bless Nigeria 8 Likes |
| Re: We’ll Push Dollar To N305—CBN Boasts by budosky(m): 12:14pm On Mar 29, 2017 |
Push it back to where it was before the current administration came on board.. Then, you can be boastful.. Shikena 77 Likes 1 Share |
| Re: We’ll Push Dollar To N305—CBN Boasts by Vicboi1(m): 12:18pm On Mar 29, 2017 |
wow if achieved it would be awesome 2 Likes |
| Re: We’ll Push Dollar To N305—CBN Boasts by nairaman66(m): 12:18pm On Mar 29, 2017 |
Was that how the CBN met the Naira?? Just 305?? Take it lower than it was before and then you can be boastful Mr Emeifele!! Thanks 38 Likes 5 Shares |
| Re: We’ll Push Dollar To N305—CBN Boasts by ABEngine(m): 12:30pm On Mar 29, 2017 |
What was the exchange when you took office. Campaigns are almost here and your miracle worker has asked the flood gates be opened. Who una wan fool. 33 Likes 1 Share |
| Re: We’ll Push Dollar To N305—CBN Boasts by modath(f): 12:33pm On Mar 29, 2017 |
989900:  There is a difference between being hopeful (we want the best)& being an outright dreamer..... Which refinery? power? The only sustainable means is for oil to stay above $70.. The $30b war chest CBN is fronting on came about from OPEC limiting member nations output, no magic can make Dangote refinery come onstream before 2019, Our 30bn reserve can't solve the nation's power problmes, All of Nigeria's present day problems will be solved... Oil is the country's mainstay...Every other thing is wishful thinking.. I wish my country well & at the same time won't indulge in baseless optimism... Better to prepare for worst case scenario & be surprised than have faith that has no pointer... Faith in God is the only CONSTANT.. Nigeria? Not total. 12 Likes 1 Share |
| Re: We’ll Push Dollar To N305—CBN Boasts by fadjnr(m): 12:46pm On Mar 29, 2017 |
Lol 1 Like
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| Re: We’ll Push Dollar To N305—CBN Boasts by egopersonified(f): 1:33pm On Mar 29, 2017 |
305 or 205, anything above 200 is still too high 44 Likes 2 Shares |
| Re: We’ll Push Dollar To N305—CBN Boasts by 989900: 1:46pm On Mar 29, 2017 |
modath: Read my post again, Mo. It was about optimism about 'improvement' in power and refining capabilities of our present government refineries; not solution, nor nirvana. Pessimism is allowed too. I have my reasons for posting what I did (just same way I called N350 to the dollar about a month ago even though you vehemently disagreed), I just don't sit and think or hope them . . . bookmark and let's revisit in 6-9 months. P.S. Diaspora remittances at say $40b in a year when rates harmonize plus selling oil at $30 per Barrel brings in as much Forex as selling just crude at over $75 per Barrel 'if' rates harmonize. There are actually a few government programs designed to bring in more of those remittances through housing schemes for guys overseas and some other means. Well, let's revisit in 6-9 months. 15 Likes |
| Re: We’ll Push Dollar To N305—CBN Boasts by LordAdam16: 1:52pm On Mar 29, 2017 |
CBN bring it on! Since the lunatics in the CBN want to empty Nigeria's reserve by selling cheap dollars, let them continue. If naira in the parallel market touches 305. I'll use my entire LGA and the oil wells in the LGA as collateral to take loan to buy dollars from the CBN. Speculators are eating up cheap dollars right now, waiting patiently for the return leg. -Lord 10 Likes 1 Share |
| Re: We’ll Push Dollar To N305—CBN Boasts by modath(f): 2:12pm On Mar 29, 2017 |
989900: I agree with "optimism" about improvement cos that's all all have going for us right now... All the permutations leave me weary cos none has ever worked!! NEVER! Not once... Just builds ones hopes & walks off into the sunset. BTW, parallel market rebounded by N5 today, doesn't make much difference but it sends the wrong message... we both know what it means...  P.S... That Abokifx thingy isn't correct, it's one guy (was a NLer for a while) that saw an opportunity & riding the wave... checked nairametrics as well, same thing!! Doubt Feyi Fawehinmi is in cahoots with saboteurs.. 2 Likes
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| Re: We’ll Push Dollar To N305—CBN Boasts by tspun(m): 2:17pm On Mar 29, 2017 |
LordAdam16:there will be no return leg if oil pricing continue to increase, its going to be leg over for u and other speculators that want the dollar to increase more. You talk about cbn emptying Nigeria's reserve by selling cheap dollars, no be who eat belle full they keep for reserve, people are committing suicide every day due to the present hardship and your only worry is about our reserve. 21 Likes 2 Shares |
| Re: We’ll Push Dollar To N305—CBN Boasts by LordAdam16: 2:34pm On Mar 29, 2017 |
tspun: Oga, oil price has been falling since beginning of the month. And I don't trade banter with someone with this kind of myopic mentality (at the bolded). Keep cheer leading the CBN. Your neck go soon stretch like streetlight. The reserve has started falling. It had its largest fall on Friday since last year. And the fall will continue. The CBN has not sold more than $100m at one fell swoop since last week. Ask yourself, why all the dollars the CBN has been selling this week were bought completely unlike in the past four weeks when the CBN usually had extra? Okarofor is not boasting, he is scared that their little party has ended. What he is proposing is an after party. And that party too will end. To have a wedding is not the issue, staying married is the issue. Falling the rate is not the issue, maintaining the new rate is the issue. Look at abokifx and see what two days of no propaganda can do in the parallel market rate (rate have already started increasing). CBN has one option to end this back and forth menace, float the naira. And the window to take that option is closing. For your sake and the sake of 180m Nigerians, I hope they take that option. But if the EGRP is any indication that they intend to float in 2020, then I'll tell you and everyone who cares to listen: Brace yourself, for Winter is Coming. -Lord 19 Likes 3 Shares |
| Re: We’ll Push Dollar To N305—CBN Boasts by Babacele: 2:48pm On Mar 29, 2017 |
That chest beating Mr CBN depends on global oil prices sir. Then if we throw in politicians especially governors in connivance with the senate hoarding workers' salaries against 2018 , the well planned war against anti corruption being executed by our lawbreakers who are planning more sabotages against the state to stay afloat the anti corruption waters, the uninspiring rhetorics about agro production and exports .....hmmm I just pray PMB realises he is supposed to be the dejure and the facto( not saraki) president . I sound crazy but I have this feeling that the naira health has a lot to do with the economics of politics rather than the politics of economics. 5 Likes 1 Share |
| Re: We’ll Push Dollar To N305—CBN Boasts by LordAdam16: 2:50pm On Mar 29, 2017 |
989900: Ask yourself why remittance stayed at $21b for over 5 years(2010 to 2015), and why it increased in one year to $35b in 2016? Is it that more Nigerians went abroad? Or all the Nigerians abroad had increase in salary? Now ask yourself why Saudi Arabia and Norway with over $500b in reserves each are not stabilizing exchange rate solely with their reserves? There is a very thin line between patriotism and stupidity. Personally, I can't wait for CBN to start flooding the market with cheap dollars. There is no real-time analysis of the USD to NGN rate by anyone on this planet that says the value of the naira is N300/$1. NO ONE, not even the CBN. Ask yourself why with the parallel rate crashing from 520 to 370, not even $1b from new direct institutional investors has entered Nigeria? This is economics not black magic. -Lord 11 Likes 1 Share |
| Re: We’ll Push Dollar To N305—CBN Boasts by 989900: 2:58pm On Mar 29, 2017 |
LordAdam16: All false, sorry I had to strike out all the above . . . I just couldn't help it. Research and revert. We've had year on year increase from remittances, actually you could alternatively on the one hand argue lesser should have been sent considering lesser could do more. 6 Likes |
| Re: We’ll Push Dollar To N305—CBN Boasts by LordAdam16: 3:11pm On Mar 29, 2017 |
modath: Madam, the CBN knows the party is ending. They don't want a replay of 28/02/17 to 08/03/17 to occur. So, they're giving early indications that they are still on the offensive. I wouldn't pass it off completely as hogwash. Who the gods want to destroy they first make mad. But what I sense is panic on the part of Okarofor, the CBN, and the FG. Unlike in the early days of this month when they started their second round of intervention, the oil price was rising, currency reserve was rising, and speculators still had lots of dollars in hand. Now, the oil price have fallen, currency reserve is falling, and speculators have reduced their exposure in a big way. Seriously, speculators wouldn't make big losses now. They'd solely be eating up every cheap dollars they can lay their hands on. If the CBN wants to, they can inject $1.5b to reduce the parallel rate to N305/$1. We all know they can't go lower, and as they've said, that's their target. This is the first time they've actually made that known in public. However, if they wanted to reduce it further, IMTO's will cease sending money to Nigeria. Investors will scream blue murder. Foreign remittance will stop increasing. The pressure on the foreign reserve will increase multiple fold. And FDI will halt completely (not that anything was coming in anyway). When parallel rate appreciates to N305/$1 and there's no where else to go. There'd be only one direction for the rate to go. The fall will be the biggest fall in recent history. I can't wait. It's clear that the CBN and FG are masochists. And Nigerians wouldn't get pity, because it appears they too want to listen to blues. -Lord 8 Likes |
| Re: We’ll Push Dollar To N305—CBN Boasts by LordAdam16: 3:19pm On Mar 29, 2017 |
989900: You should have your facts close before taking a shot. Look at the attached file. 2010 to 2015, average of $20b, then in one year it increases to $35b. I shouldn't have to explain why remittance will increase when rates increase. Read up on that. This is economics not black magic. Anyway, time will decide if voodoo is permissible in economics. Winter is coming. -Lord 5 Likes 2 Shares
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| Re: We’ll Push Dollar To N305—CBN Boasts by 989900: 3:41pm On Mar 29, 2017 |
LordAdam16: LOL Lord, even your graph does not support your position: stayed at $20b per annum from 2010-2015. Like you said, "time will tell" . . . We'll be here, hopefully. 1 Like |
| Re: We’ll Push Dollar To N305—CBN Boasts by LordAdam16: 3:53pm On Mar 29, 2017 |
989900: What does the graph tell you? Or am I to assume that you cannot read a graph too? The average remittance per annum between 2010 and 2015 is around $20.*b per annum (the lowest is $19.*b and the highest is $21.*b). Simple mathematics. And here I was thinking I was chatting with someone who knows his onions. What a waste of time. -Lord 6 Likes 1 Share |
| Re: We’ll Push Dollar To N305—CBN Boasts by 989900: 4:35pm On Mar 29, 2017 |
LordAdam16: You seem to thrive on half/lopsided info. Remittance was around $15b in 2011. Ask CBN. I'm here laughing at you. I m not allowed to post any link on Nairaland; I would have helped you. Worst case scenario, ask Google -- these are public info. 3 Likes |
| Re: We’ll Push Dollar To N305—CBN Boasts by menama(m): 4:47pm On Mar 29, 2017 |
My perspective is that the CBN will deliberately keep the value of the naira btw (300 - 320) per dollar so as to balance btw the two extremes. Should the value approach 200 per dollar it will discourage exportation and encourage importation and local manufacturers will experience lesser patronage. It will also crash the price of agric commodities which will by extension make agriculture in general and farming in specific unattractive. China, Japan, Indonesia, etc are all deliberately keeping dia currency low for the same reason. The FG and SGs should increase dia minimum wage so as to increase the purchasing power of the people 4 Likes |
| Re: We’ll Push Dollar To N305—CBN Boasts by Immacula8(m): 4:47pm On Mar 29, 2017 |
In as much as I do not support burning our reserves, floating will definitely hit us very hard. Hyper inflation etc. Honestly we are at a crossroad now... 4 Likes |
| Re: We’ll Push Dollar To N305—CBN Boasts by LordAdam16: 4:50pm On Mar 29, 2017 |
989900: Chief I'm using World Bank Data. It's the data referenced by all A-list media. I'm not sure why there'll be a more than $4b difference between World Bank data and CBN data. But I sure as hell aren't ready to explore that. World Bank gives accurate data for over 190 countries in the world. And I just did a quick research and it appears you are holding on to straws. Read this PDF on the official CBN site -- https://www.cbn.gov.ng/out/2016/mpd/understanding%20monetary%20policy%20series%20no%2038.pdf Go to page 2. In fact I did a screenshot for you. Read the part underlined well. So let me ask you, which CBN are you talking about? Is it Central Bank of Nigeria or Christian Broadcasting Network? Dude, this is not politics. This is not black magic. This is economics. -Lord 5 Likes
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| Re: We’ll Push Dollar To N305—CBN Boasts by 989900: 5:02pm On Mar 29, 2017 |
@LordAdam16: The point is that most people including media houses, some finance experts, and government officials confuse total capital inflow with diaspora remittance and FDIs. According to your last image and the parts underlined in red actually proves my point (FDIs, remittances, aids and e.t.c inclusive). Read it again. Actually in 2011, it was less than $15b more like $11b. World bank data was referring to total capital inflow there. The CBN breakdown is in the attached images . . . The best I can do . . . I wish am allowed to post links. I screen shot those from CBN's 2011 financial report(PDF). $22b was total inflow. 1 Like
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| Re: We’ll Push Dollar To N305—CBN Boasts by LordAdam16: 5:12pm On Mar 29, 2017 |
Immacula8: It wouldn't hit us VERY hard. It'd be hard, but it wouldn't be sth we can't manage. The Egyptian float led to a devaluation of 50%. Nigeria has better fundamentals than Egypt, but even if we are to use 50%, that means the rate would fall from N306/$1 (today's rate) to N459/$1. The major problem would be the impact on fuel prices, but the FG can combat that with increase of wages (which would be feasible since the earnings into the FG, State Government, and LG have been increasing and will increase). Nigeria's minimum wage is over due for review. As for price of imports, well dollar fell to 520 and Nigerians didn't die. The longer we delay, the longer we postpone the inevitable. If we had done a full float when dollar was N250 in the official market, it'd have at most devalued to N375. Which is a rate the CBN is fighting to hold now. There is no better time to act than now. Not tomorrow, not next year, not in the next decade. Now! Sanusi, Riwane, Utomi, Soludo can't all be wrong. No one can be more patriotic than these people, and they've been calling for a float since the N199/$1 days. The FG and CBN were stubborn, yet they kept devaluing the rate first to N250, then to N306, early chatter is pointing to N350 next, and along the way they've been imposing unnecessary hardship on Nigerians, because investors who'd invest in the real sector have held back their funds, international organizations that'd give us the $30b loans needed to reboot the economy have held back (IMF, World Bank, even China). Float the damn currency, yet APC is playing politics with the currency rate. Even to increase minimum wage, they've been playing politics discussing about it since late 2015. It's 2017, and it's clear they might want to announce an increase in 2018 to garner votes. Speculators and hoarders are not the enemies, the CBN and FG are the enemies. They create avenue for the leeches to stay. Float the naira, and speculators and hoarders would pack their load. Foreign investors would come in with their billions of dollars and the pressure on the currency reserves will lighten. Saudi Arabia may have a show down with shale producers again, and we'll need a huge reserve to ride that wave, Russia, Canada, Norway, UAE, Qatar, Kuwait, are ready, Nigeria is busy fighting with speculators. Imagine our priorities. Egypt received $9b in direct investment inonly 3 months after the float. That's aside the $12b with super low interest rates (as against our costly EU bonds). And that's aside $3.1b in portfolio investments. To put that in perspective, the entire amount of dollars sold to all licensed BDCs in Nigeria in a whole year at $8,000 per week is $1.2b. Nigerians will not learn. As Onatisi usually says, na until their neck stretch like streetlight before them go get sense. -Lord 12 Likes 5 Shares |
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