CBN has continued to sabotage the naira for some top officials personal gains. Recently the CBN said a country's currency value is not determined by fx black market rate but it's worthy to note it's the dollar black market that is accessible to about 90% of businesses in Nigeria. CBN is not selling dollars now because international flights are not running but businesses are still being transacted internationally via online thereby making businesses to resort to dollar black market buying for payment of their purchases. Why has CBN not started selling dollars to bureau de change? And people are importing and government is collecting customs duty. The government of Nigeria should ask itself where Nigerians are buying the dollars they are using to import and at what rate? I counter CBN position that says fx black market doesn't determine a country's currency value because in Nigeria fx black market is what determines naira value considering the percentage of businesses that depend on it to run their businesses. It's very unfortunate that CBN is always talking about technicalities instead of realities.

So strange

omenka:
Sometimes, deliberately suppressing the rise of one's currency against the dollar is a strategy deployed by governments to attract FDIs. Nowhere else is this more entrenched than in China, which is one of the reasons behind their endless squabbles with Uncle Sam.

I am not really sure if similar strategy would augur well for Nigeria anyway, since the other factors necessary to attract such FDIs, such as dependable critical infrastructure, are lacking.

Come what may, I wish my dear country well. We'll come out of the current economic quagmire stronger I believe.

Your well wish is with leaders and politicians who deliberately greed this country down.

I do feel pity when people wish their country well in this manner.

Truetalk3139:
Nigeria's corruption is intensional, to eradicate it firstly we need to vote youths into power.

Say no to the government of the old!

Those Useless youths I'm seeing?

It has beeo since 1997 when Michael Ani as finance minister under Abacha regularised diaspora remittances to be earned in Nigeria's Banking& Finance law...

oruma19:
the youths are worse than HIV, cancer and corvid19 put together. i have evidence.. Check out from the time of Salish Buhari, dimeji bankole, yahaya bello, and all the young governors and commissioners + ministers , local gvt chairmen etc, I have not seen any young man that stands out and says no, I won't compromise. The young people are far worse than the older ones. The young ones are satanic + develish out together. My brother, there's no hope for tge country, let us break it into many parts

You successfully mentioned the youths in same category with hushpuppy. There are millions of youth out there that if given the opportunity will turn this country around in just a week.

Go to Ile-Ife and see with your eyes what a youthful Monarch (OONI OF IFE) is doing compared to the yesterday Monarch.

Yes there are a few bad eggs but please don't tell me youths are not the way

Nigsrdumb:

Those Useless youths I'm seeing?

say no to stereotypes, there are only a few terrible youths

soberdrunk:



You are actually the olodo in this case, next time if you don't understand something just ask. What the individual is saying is simply the tactics some countries use to attract investment, any smart businessman will jump at the opportunity to invest in a country where his country's currency has more value. A practical example is you having 1k in your pocket and you are very hungry, would you go to a Porsche restaurant and have only salad for 1k or go to mamaput and enjoy pounded yam and Egusi with plenty meat for that same 1k? Unfortunately the CBN isn't devaluing the currency for the good of Nigerians, instead they have turned the devaluation to person business to enrich themselves.

The trick is not whether you are saving in dollars or in the naira. The real molla is in having assets in both currencies, then averaging appropriately.

Truetalk3139:
Nigeria's corruption is intensional, to eradicate it firstly we need to vote youths into power.

Say no to the government of the old!

Nigeria's problem has no solution

Stop fooling yourself

Lumig:

I disagree totally. The present generation of youth in Nigeria will sell Nigeria within a month of grabbing power. Oju tí fẹ, Ẹnu ti fẹ́. Infact everything is so wrong with us

why won't this generation be this bad?
do you think the youth you refer to as bad will have time to be bad if all was well?

These old men have destroyed everything such that all this youth see now is to go extra mile to be a man although a few are lucky to come across opportunities that got them legit business today.

SmartPolician:


Nigeria's problem has no solution

Stop fooling yourself

There's nothing in this life that doesn't have a solution, even your life problems have solution if you look in the right place, the problem there would just be how to know the right place

Karlifate:
Little by little, alot of Naija politicians involved in fraudulent deals are being exposed.
2020 is a very interesting year!

That is why they never have positive, inspirational ideas to move their tasks forward for the benefit of the citizenry. They are bogged down by corruptible thoughts. They spend their waking hours looking for loopholes to milk. So tbey have no ideas to tackle security problems, poverty challenges, the pandemic, education, health, every facet of life and living, no solutions.

Simply because corruption is the antonym of inspiration. You cannot have both.

IMO01:
Sharp

I didn't really understand the write up but if it's in the interest of Nigerians then they should go ahead.

I watched a video of audu ogbeh explaining how Nigeria began to fall from the 80's. He said some American professor from havard came to Nigeria to convince Nigerian government to devalue our currency that it was in our best interest to do that. Since then every year they force Nigeria to devalue our currency and increase interest rate. These nation's want Nigeria to fail for their own selfish gain yet nobody talk about the scam America scam on African nations

Please stop blaming someone else for your failure

I am sure it is the same American professors that asked Buhari not to fix our refineries or not to meet Aisha in the other room when she needs it

NONSENSE

Islie:
How Central Bank Of Nigeria Deliberately Prevents Naira From Appreciating Against United States Dollar



https://saharareporters.com/2020/07/02/exposed-how-central-bank-nigeria-deliberately-prevents-naira-appreciating-against-united

the person wey curse Nigeria no dey forgive?

Truetalk3139:



say no to stereotypes, there are only a few terrible youths

I see d good ones, we will continue to shame d bad ones.

omenka:
Sometimes, deliberately suppressing the rise of one's currency against the dollar is a strategy deployed by governments to attract FDIs. Nowhere else is this more entrenched than in China, which is one of the reasons behind their endless squabbles with Uncle Sam.

I am not really sure if similar strategy would augur well for Nigeria anyway, since the other factors necessary to attract such FDIs, such as dependable critical infrastructure, are lacking.

Come what may, I wish my dear country well. We'll come out of the current economic quagmire stronger I believe.

oga u are confusing a delibrate devaluation of the currency through artificial. fixing of it's value, with an ongoing foreign exchange racketeering as reported in the article. the article is not talking of a govt policy aimed at determining the value of the naira, rather it is about a clandestine foreign exchange racketeering being perpetuated using diaspora remittance by the top echelon of cbn.

Truetalk3139:



There's nothing in this life that doesn't have a solution, even your life problems have solution if you look in the right place, the problem there would just be how to know the right place

Save my statement

Come back and read it in 20 years time

If you knew how wasted this country is, you would not be having high hopes

Talk is cheap

Keep waiting for a useless country's problem to be solved instead of working hard to improve your life

softset:
No wonder lots of companies setting up remittance business especially in the USA. Rebtel whose primary business was strictly international phone card business is aggressively marketing its remittance business in USA.

This is an opportunity for entrepreneurs to look into the business.

But how can remittance revenue be more than oil? Am I missing something

Nigerian many outside of, u can imagine if many o them just send 100$ monthly to their families back home, how much that will amount to, also many of them send money back home for various projects.

omenka:
Sometimes, deliberately suppressing the rise of one's currency against the dollar is a strategy deployed by governments to attract FDIs. Nowhere else is this more entrenched than in China, which is one of the reasons behind their endless squabbles with Uncle Sam.

I am not really sure if similar strategy would augur well for Nigeria anyway, since the other factors necessary to attract such FDIs, such as dependable critical infrastructure, are lacking.

Come what may, I wish my dear country well. We'll come out of the current economic quagmire stronger I believe.

No nation stunt the growth of her currency in order to attract foreign direct investment(FDI),It kills the economy of such country as it spiral serious inflation,and at that,if investors comes in,it's a winner takes all portfolio.Investors are attracted into a country that has working infrastructures.

Wuuworld:
There is nothing Joe Igbokwe wouldn't see in Lagos gutter.

Great Guy

really

coputa:
No nation stunt the growth of her currency in order to attract foreign direct investment(FDI),It kills the economy of such country as it spiral serious inflation,and at that,if investors comes in,it's a winner takes all portfolio.Investors are attracted into a country that has working infrastructures.

China manipulates it's RMB to allow its goods compete favorably. Japan's currency as you may know also has a wide gap to the dollar.

SmartPolician:


Bookmark my statement

Come back and read it in 20 years time

Talk is cheap

Keep waiting for a useless country's problem to be solved instead of working hard to improve your life

you are a perfect example of the bad egg you were trying to explain. if we all back out from restructuring the orientation of the youths, then we will keep saying the same things you have just said for the next 20yrs. go and see what a determined youthful Monarch (OONI OF IFE) is doing in Ile Ife compared to the yesterday Monarch then come back and tell me again why a reasonable youth like that cannot turn Nigeria around

SmartPolician:


Please stop blaming someone else for your failure

I am sure it is the same American professors that asked Buhari not to fix our refineries or not to meet Aisha in the other room when she needs it

NONSENSE

That's where black people get it wrong how can you solve a problem without knowing where d problem started. The beginning of devaluation started d whole problem of Nigeria. It stopped production and encourage importation. The unemployment began

You can't just throw away history. You can't just come and build a new Nigeria when you don't know where the problem started from

Whoever wrote this did not do his research properly....cause I have been receiving dollars since January through the lock down even till now....and I've been collecting the dollar and trading it off on the black market....what I know is that they stopped any dollar within the country from leaving....but any dollar from outside will be allowed passage....for example if someone transfers dollar to me from the US and I transfer it to another Nigerian bank account whoever I transfer it to cannot transfer the money out of the country.....but if from my account I transfer it out of the country it will be allowed to pass....I believe this is done to help shore up our foreign exchange reserves and keep a running on the dollar from happening because it's after effect would be a complete fall of the naira....I know they have ignored helping the naira on the black market because that's not a fight they can afford now so they have stuck to the windows that are important while they work on merging all trade windows.

OgbanjeProphet:
Ewoooooh!!!!!!!

Well, CBN died the day Soludo left office as CBN governor

Just the same way NAFDAC died the day Dora Akunyili left office as NAFDAC director general.

Ask those in CBN if Soludo was a saint? For a start his wife's company took over cleaning and security services of the bank till he left. Let's not mention money he took to Turai Yaradua every Friday for weekend. Just calm down

DuBLINGreenb:
This writeup is not well researched and as such it is unclear and difficult to understand.

There may be some truth to the piece but it needs to be clearer

The Central Bank keep dollars and issue promisory notes or tell banks to give such and such person the naira equivalent of whatever dollar money was sent to him or if he wants dollar they'll tell the bank to give him or her the dollars the banks have while the CBN holds the dollar the sender sent in the USA this is to regulate the amount of dollars in Nigeria and prevent over dependence on dollar as well as too much dollars from entering Nigeria or too many Nigerians seeking dollars this helps give the naira the little value it has

D question is y is d cbn not honest about d exact amount of remittances that come into d country from diaspora?

Naija matter weak me.

Is there any hope at all?

Someone born in Rwanda in the 90s has a higher chance of living a fulfilled life than a Nigerian born during d same period despite the later (Rwanda) experienced a devastating war.

I want to stay and believe things will get better but everyday stories like this leaves one hopeless than the previous day.

PeachtreeReside:



Thanks for this economics class.

The Chinese/Japanese people devalue the currencies because it favours their business model and it also a way of fighting against the powerful and dominant western economies.But Nigeria is a totally different country from the above mentioned countries. The devaluation of the Naira has a volcanic adverse effect on our economy.

Put it this way:The devaluation of the naira doesn't favor the Nigerian economy and will never favour us.

A consuming country like Nigeria most have a very stable currency at all cost, else we are doomed in hell.Let's learn from the Arab league they are also an important based nation like Nigeria, but they have a stable currencies because they understand economics better than us.

The whole FDI thin is a big hoax.Nigeria is a very big country with a big economy, the investors will always come because their is so much gold coins here.

We shouldn't allow the rest of the worfld device us with FDI.

A valueless currency will chase away potential investors.

Devaluation of currencies will only wok for top manufacturing countries like China,Korea,Japan for now.

The Naira has to have a stable value for the nation to progress.

leokid866:
Whoever wrote this did not do his research properly....cause I have been receiving dollars since January through the lock down even till now....and I've been collecting the dollar and trading it off on the black market....what I know is that they stopped any dollar within the country from leaving....but any dollar from outside will be allowed passage....for example if someone transfers dollar to me from the US and I transfer it to another Nigerian bank account whoever I transfer it to cannot transfer the money out of the country.....but if from my account I transfer it out of the country it will be allowed to pass....I believe this is done to help shore up our foreign exchange reserves and keep a running on the dollar from happening because it's after effect would be a complete fall of the naira....I know they have ignored helping the naira on the black market because that's not a fight they can afford now so they have stuck to the windows that are important while they work on merging all trade windows.

This measure will only destroy the economy more and more,because investors will exit the country when that are unable to make remittances to their mother land.

samsard:
Africans and victimhood. China and Japan use the principles the guy stated, and they're still humans.

guy

The nations you mentioned are export based countries,but Nigeria is an import based country. What will work for them will not work for us.

This is the only way this nations can survive, but Nigeria can't survive with a devaluating currency.

The value of the currency of every import based nation must be very solid and stable,else mass poverty will be cloned every micro second.

The Arabs are masters of this type of economics, let's learn from them.We have similar economic constraints, but they have created a smater solution to this problem.

We should stop this copy cat economics thing.