Why is Naira still at N306/$?

how is it that in 2014 exchange rate was N180/$ and crude was $110/barrel;
and since 2017 exchange rate has been N305±/$ (when crude was about $50/barrel)
till today when we have Had crude above $60/barrel for over 12 months?

is it that the CBN pegged our currency at such a high exchange rate
to reduce conversion by citizens or is it just another money making scheme?

This question arises because since the fall of crude prices
caused the drop in the value of our currency,

then the rise of crude price by nearly 40% since 2017
when our currency was pegged,

should have led to a rise in the value of our currency and
therefore, better exchange rate of about N230/$, or don't you think so?

so what is the CBN doing with all that excess currency they are grabbing?

is it what they are using to raise our foreign reserves?


EMIEFILE /CBN should please answer this question:
WHY IS NAIRA/DOLLAR EXCHANGE RATE NOT REDUCING?


https://www.macrotrends.net/2480/brent-crude-oil-prices-10-year-daily-chart

https://www.nairaland.com/4133477/naira-dollar-exchange-rate-history

This country is a joke

It's because naira doesn't obey the law of gravity.

Nothing more to say about Buhari’s mediocre government. People voted him back in to try again. Enjoy the next level!

Popmaster2019:
This country is a joke

this is not the only area where there is gross abnormally but let's start with this...


Perhaps we should all join the diaspora migration
Because this hiked prices in Nigeria is clearly a master mind act of the government.

The debts of fgn with contracting economy and the monster called fuel subsidies are to blame.
Remember the average cost of pms in countries where subsidy is)not practised is about N300 to 375
And fuel (PMS) is retail @N145.
Do the calculation
If the exchange rate remains as it is, Nigerians might need to endure hardships till 2024 by which the Naira is projected to trade @ N255. To N280
You also need to take into consideration, we are mono product economy and highly dependent on imports.
We export what we lack and import what we have in abundance.
This is a new economy called the Nigerian syndrome.
Import and export substitutions.
For the expected exchange breakthrough to happen, we need crude @ $110 to 115/barrel

Godlylifeoneart:
The debts of fgn with contracting economy and the monster called fuel subsidies are to blame.
Remember the average cost of pms in countries where subsidy is)not practised is about N300 to 375
And fuel (PMS) is retail @N145.
Do the calculation
If the exchange rate remains as it is, Nigerians might need to endure hardships till 2024 by which the Naira is projected to trade @ N255. To N280
You also need to take into consideration, we are mono product economy and highly dependent on imports.
We export what we lack and import what we have in abundance.
This is a new economy called the Nigerian syndrome.
Import and export substitutions.
For the expected exchange breakthrough to happen, we need crude @ $110 to 115/barrel

so you mean govt is funding fuel subsidy with the extra charge on exchange rate?

Was the govt not subsidizing fuel before 2011 when crude was below $110?

RealityShot:
Why is Naira still at N306/$?

how is it that in 2014 exchange rate was N180/$ and crude was $110/barrel;
and since 2017 exchange rate has been N305±/$ (when crude was about $50/barrel)
till today when we have Had crude above $60/barrel for over 12 months?

is it that the CBN pegged our currency at such a high exchange rate
to reduce conversion by citizens or is it just another money making scheme?

This question arises because since the fall of crude prices
caused the drop in the value of our currency,

then the rise of crude price by nearly 40% since 2017
when our currency was pegged,

should have led to a rise in the value of our currency and
therefore, better exchange rate of about N230/$, or don't you think so?

so what is the CBN doing with all that excess currency they are grabbing?

is it what they are using to raise our foreign reserves?


EMIEFILE /CBN should please answer this question:
WHY IS NAIRA/DOLLAR EXCHANGE RATE NOT REDUCING?


https://www.macrotrends.net/2480/brent-crude-oil-prices-10-year-daily-chart

https://www.nairaland.com/4133477/naira-dollar-exchange-rate-history

Forget a firmer Naira under this government. It ain't happening.

First an foremost, Nigeria now practices a multiple exchange rate policy which screams quacks are managing the economy. How many exchange rates does the dollar have? How many does the South African Rand have, how many does the Brazilian Real have or Turkish Lira? I thought you'll even mention the investment window rate which is 360.

This quackery scares off foreign investment, both portfolio and in direct investments.

Also, a stronger naira is not possible for now because the budget is based on the price of crude. A stronger Naira will simply lead to a loss in government revenue which will simply lead to a bigger budget deficit which will lead to more borrowing (debt servicing already more than 50% of the budget) which will eventually to a fall in the Naira.

What will bring a stronger Naira will be ending the multiple exchange rate policy, slashing company tax to no more than 15%, ending the Naira substitution policy which will help bring lending rates below 10% and end curbs on repatration of forex.

These policies alone should lead to a firming of the naira (that is however the investment window rate which is a realistic exchange rate of the Naira) but to what degree and for how long, I can not say.

For a much stronger firming up, government should dispose of government assets especially NNPC,prune the civil service, privatise the airports, end protectionist policies and massively improve Nigeria's ranking on the Ease of Doing Business index and not only the budget deficit but the percentage spent on debt servicing as a percentage of the budget.

grandstar:


Forget a firmer Naira under this government. It ain't happening.

First an foremost, Nigeria now practices a multiple exchange rate policy which screams quacks are managing the economy. How many exchange rates does the dollar have? How many does the South African Rand have, how many does the Brazilian Real have or Turkish Lira? I thought you'll even mention the investment window rate which is 360.

This quackery scares off foreign investment, both portfolio and in direct investments.

Also, a stronger naira is not possible for now because the budget is based on the price of crude. A stronger Naira will simply lead to a loss in government revenue which will simply lead to a bigger budget deficit which will lead to more borrowing (debt servicing already more than 50% of the budget) which will eventually to a fall in the Naira.

What will bring a stronger Naira will be ending the multiple exchange rate policy, slashing company tax to no more than 15%, ending the Naira substitution policy which will help bring lending rates below 10% and end curbs on repatration of forex.

These policies alone should lead to a firming of the naira (that is however the investment window rate which is a realistic exchange rate of the Naira) but to what degree and for how long, I can not say.

For a much stronger firming up, government should dispose of government assets especially NNPC,prune the civil service, privatise the airports, end protectionist policies and massively improve Nigeria's ranking on the Ease of Doing Business index and not only the budget deficit but the percentage spent on debt servicing as a percentage of the budget.

hmm... So clearly, this exchange rate is forced on us by the government intentionally!

The same APC/BUHARI that promised us N1/$... Smh...

I guess it's time to leave this country.
The leaders do not want to improve the economy at all.

Thank you

And the question remains unasked