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Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by dre11(m): 8:24am On Oct 01, 2018
Posted By: Collins Nweze



The naira has been firming up in the last few days as politicians pumped stockpiled dollars into the economy for campaigns, The Nation has learnt.

The naira, which exchanging at N361 to dollar early last week, firmed at N357 in the parallel market at the weekend, as politicians flooded the market with the greenback. Major political parties have been conducting their governorship primaries.

Speaking on the development, President, Association of Bureaux De Change Operators of Nigeria (ABCON) President Aminu Gwadabe said “several customers were seen at the weekend, flooding the market with dollars possibly for primary elections and screening across party lines”.

He said the Bureau de Change (BDC) operators were taking advantage of the development to earn commissions from naira exchanges for the dollars, adding that the naira has made considerable gains in the last few days.

The primary season and pre-election spending have been building up since the beginning of September and will continue till early next year when elections will take place.

Other analysts said the naira was fast appreciating following renewed confidence and increase in dollar supply in the parallel market.
Also, the Central Bank of Nigeria (CBN) has consistently warned that the economy faces inflation and financial stability risks over the short-to medium-term if expected huge election spending is not checked.

CBN Deputy Governor (Corporate Services) Adamu Edward Lamtek explained in his personal statement at the Monetary Policy Committee (MPC) meeting released by the CBN that confidence in the economy was building as the naira exchange rate continues to be stable and the premium between the bureau de change and interbank market segments narrows.

“The parallel market premium continues to shrink as legitimate foreign exchange transactions migrate to the formal market. It does, therefore, appear that the bold reforms of the Central Bank on forex policy and in the foreign exchange market in 2016 and 2017 are paying off. It is gratifying that the benefits of these reforms have stretched beyond the stability of the naira exchange rate,” he said.

Lamtek said some manufacturing outfits had resorted to using locally available alternatives as raw materials, just as interest in domestic production of certain classes of food, such as rice and tomato products, is growing. Likewise, capital market indicators have trended upward partly in response to positive market sentiments occasioned by the gradual improvement in the macro-economy.

According to him, rising yields in advanced economies, following the drift towards policy normalisation as global inflation picks up, poses a significant risk to in-bound investments. This threat is mitigated by a stable naira exchange rate and competitive yields locally. For this purpose, we will need positive interest rates, as do most emerging markets and developing economies.

“This means that inflation needs to moderate further. “Third, there is still work to be done to fully contain banking system fragilities which increased in the wake of the stagflation in 2015 through 2016. The non-performing loans ratio continues to be in excess of the bank’s desired level.”

“Among other challenges, banks have had difficulty with their foreign currency denominated liabilities (loans) as the exchange rate moved against borrowers as from 2015.

Therefore, from a financial stability standpoint, any threat to the naira exchange rate stability must be viewed seriously and promptly addressed to forestall another exchange rate shock,” Lamtek advised.

He, however, argued that if excess liquidity was allowed to build up, the demand for foreign exchange could shoot up in the second half of 2018 and throw the naira exchange rate out of equilibrium.

Lamtek said: “Such an adverse scenario must be prevented through a proactive monetary policy. This is justified by the reality that exchange rate stability is critical to the current recovery in economic growth and the gradual disinflation.

Added to this is that a stable exchange rate should, in the minimum, prevent further deterioration of foreign currency denominated assets of the banking system and improve the resilience of the industry.”

He said these concerns surely called for a forward-looking and cautious approach to policy. “I see the need for greater coordination of monetary and fiscal policies and continued engagement of critical stakeholders to address misinformation and better anchor expectations,” he said.

“In addition, I reckoned that some of the supportive administrative measures put in place since last year by the bank need more time to work their way fully through the economy. I am equally persuaded by the commitment of the Federal Government to the Economic Recovery and Growth Plan (ERGP), especially in the area of infrastructure development, which continues to be relevant to sustaining and deepening growth and development of the country in the medium to long-term,” he said.

To Lamtek, the outlook for domestic liquidity, based on expected fiscal actions and election spending, is worrisome. With an impending Federal Government budget outlay of over N8 trillion and deficit of about N2 trillion for 2018, the short-term fiscal outlook appears expansive, he said, adding: “The delay in the passage of the budget could result in substantial injections in the second half of fiscal 2018 in an attempt to meet planned commitments.”

http://thenationonlineng.net/naira-gains-as-politicians-pump-election-dollars-into-economy/

1 Like 1 Share

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by JasonScoolari: 8:25am On Oct 01, 2018
We're just blessed with bad leaders.


#spits

52 Likes 2 Shares

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by gaby(m): 8:28am On Oct 01, 2018
That is the "Grow Nigeria" they always canvass...

It only comes up every other four years.

They steal our collective wealth, build humongous houses with no human occupants but the stolen funds with huge AC's mounted all around to chill the "hot" monies.

Every four years they go into these secret vaults to make withdrawals and start spewing gibberishes about growing Nigeria and the homeless ones who get peanuts from the stolen collective wealth will be shouting " I remain loyal sir" and insulting their fathers here on NL for having an opposing view.

Useless people...

150 Likes 14 Shares

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by Nobody: 8:28am On Oct 01, 2018
9ja our kwan3

2 Likes

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by amaniro: 8:31am On Oct 01, 2018
Scammers everywhere

8 Likes

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by hisgrace090: 8:33am On Oct 01, 2018
gaby:
That is the "Grow Nigeria" they always canvass...

It only comes up every other four years.

Useless people...




Very useless country! After we'll wait for another 4yrs.

10 Likes 1 Share

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by Ehiscotch(m): 8:34am On Oct 01, 2018
What were you expecting? Money is going in circulation - money that should long have been pumped into the economy.

It's not something to really rejoice about yet as inflation may ramp up.

Nigerian politicians have long held this country to ransom.

7 Likes

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by thesicilian: 8:37am On Oct 01, 2018
How does Nigeria gain from pumping of money that is supposed to be used for infrastructural development, security and the economy, into private pockets for the sake of election?

5 Likes

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by tstx(m): 8:37am On Oct 01, 2018
Our stolen funds

1 Like

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by gaby(m): 8:38am On Oct 01, 2018
hisgrace090:




Very useless country! After we'll wait for another 4yrs.

No mind the evil people...

5 Likes

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by AccessME(m): 8:38am On Oct 01, 2018
There's no atom ot truth in this APC led Government



Lies everyday, everywhere!

2 Likes

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by EggSauce(m): 11:43am On Oct 01, 2018
The dollars Atiku and saraki will pump into the market this coming days fit revert $1=250 sef grin

28 Likes 3 Shares

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by Josh44s(m): 11:44am On Oct 01, 2018
The situation of this country right now is no different from that old Nigeria blood money movie titled Living in Bondage. Acted by Kenneth Okonkwo. The most painful part is Nigerians are keeping mute while these set of criminals ruling us since 1960 push us gradually towards the cliffs of horrible Ethics/religious/civil war. My worries right now is how to afford visa for my folks and some important in-laws .

15 Likes 3 Shares

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by Sirheny007(m): 11:44am On Oct 01, 2018
grin grin
Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by elias0071: 11:44am On Oct 01, 2018
JasonScoolari:
We're just blessed with bad leaders.


#spits
haaaaaa congratulations bros

1 Like

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by kendrick93(m): 11:45am On Oct 01, 2018
Facebook acct of 10yrs available.
call me on the no below
08126395185

1 Like

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by carammel(f): 11:45am On Oct 01, 2018
Normal level
Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by Nobody: 11:45am On Oct 01, 2018
kendrick93:
Facebook acct of 10yrs available.
call on me on the no below
Issapity. Serious hunger in the land

13 Likes

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by handsomeyinka(m): 11:46am On Oct 01, 2018
Copart and iaai....Here I come.
Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by elias0071: 11:46am On Oct 01, 2018
JasonScoolari:
We're just blessed with bad leaders.


#spits
congratulations bris haaaa
Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by Jaykolo10(m): 11:47am On Oct 01, 2018
The thing that pains me most is that some people Will still com3 here and praise those Shitty Leaders... truly truly... We're brainwashed in this Country





....




...





cry

2 Likes

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by techstack: 11:47am On Oct 01, 2018
Its time to get mine out of it

If you know you know
Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by Glink2018(m): 11:47am On Oct 01, 2018
JasonScoolari:
We're just blessed with bad leaders.


#spits

What a paradox!

1 Like

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by Badonasty(m): 11:50am On Oct 01, 2018
dre11:




http://thenationonlineng.net/naira-gains-as-politicians-pump-election-dollars-into-economy/


Na revolution we need for this country....to kill all these corrupt leaders...we Nigerian youth are just too docile...this will keep going on till we let these corrupt politicians know we are serious....when we start killing them on the streets like dogs...the others go sit tight

10 Likes

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by sommyfred(m): 11:51am On Oct 01, 2018
only kings can relate

13 Likes

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by Kwamecron(m): 11:51am On Oct 01, 2018
grin
This is a serious evident that Buhari is not only the cause of the economy break down in the country, but our greedy politician who steal our money in stock it in their hidden places and the for to spend cos of EFCC, now election is here.
E NO GO BETTER FOR PERSON WEY SAY IF POLITICIAN GIVE ME MONEY MAKE I NO TAKE. Eno go better for the person. Politician and the judiciary are the main cause of the hardship in any Nation. Baba Buhari let see u continue till u die in the seat of Presidency every political party are the same selfish individuals.

1 Like

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by JailBreaker(m): 11:52am On Oct 01, 2018
isorite!
Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by Maket: 11:53am On Oct 01, 2018
Politicians controlling our economy
Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by cool318(m): 11:54am On Oct 01, 2018
Glink2018:


What a paradox!

It is a Naked Truth, I wish Nigerian electorates can be wiser

2 Likes

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by Sunymoore(m): 11:57am On Oct 01, 2018
sommyfred:
only kings can relate
Mhmm.. I want to change my ways

2 Likes

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by Nobody: 11:57am On Oct 01, 2018
grin

3 Likes 2 Shares

Re: Naira Gains As Politicians Pump ‘election Dollars’ Into Economy by Nobody: 11:58am On Oct 01, 2018
cheesy

1 Like 1 Share

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