Jimoh7555:
Yesterday one dollar rose to N495! I think this writer did a good job that we should all critically look into.

US Dollar vs NIG Naira: The Real Issues.

- Dr Oni Gbolabo

1. Appreciation and depreciation of currency is not related to race or color or who is the president be it Hausa Igbo or Yoruba. It is basically about production of goods and services and the demand of your products in the world market. A confused country that produces almost nothing will never meet up, policies only control your currency not the value of another countries currency against yours.

2. A country where over 500 industries died within 30 years must be stupid to complain of depreciation of her currency. We keep killing local industries and expect policies to make it up, it's a joke sir. Don't use China as an example if depreciating currencies and strong economy, China produces and may attract more export with that strategy unlike Nigeria that produces nothing.

3. A country where someone carried $2+billion simply to be shared is already a doomed one in terms of monetary policy and value. A country that produces Dizeani and Bafarawa who spent billion to appease demons. Those money without economic value is an economic poison injected into the system.

4. A country that favours importation over local production is doomed because it creates employment for another country while sacking her own citizens. Some people are working in Michelin and Dunlop somewhere, yet we use the tyre here. Don't tell me principle of comparative advantage here, it's not applicable.

5. A country that exports all raw materials without adding value is shameless to talk of depreciation of currency, to later re-import finished products of that materials is the peak of daftness. A bag of cocoa will go for like N1 million naira but when it is processed it will worth around N7million. Even farmers who produced raw cocoa can't buy chocolate.

6. A country that deliberately operate banking system that gives loans to importers at the expense of local industries is doomed and should say nothing about depreciation. Most of the loans are given to senators and representatives not industrialists.

7. A country that give loans in billions to agric sector without monitoring & evaluation of such loan on how it gets to the real farmers is a sham. A guy collected over N2 billion agric loan, he bought a jeep, built a nice house and use the rest to import processed pork. Meanwhile, local pork farmers are dying here. Is that not a double tragedy, stressing forex at the same time killing local industries.

8. A country that spend more on few privileged politicians at the cost of the populace who are unemployed should not talk about money depreciation. A country that keeps paying NNPC staff N10 billion as salaries every month when a single drop of petrol was not processed shout shut up about depreciation of currency. Crime is rising as value added to the initial failure.

9. A country where it is difficult for investors to register businesses because of the governent officials demanding for bribe. Right from airport, to hotel, to minister to governors investors will bribe, all these are part of cost of investment. A friend brought investor on estate development just for the state commissioner in charge to demand 30% of the investment. To see the governor in a state will cost you N2 million as bribe before you can be scheduled. This is a state as poor as anything.

10. A country where the cost of travelling for treatment abroad by officials will build world class hospitals should not talk about naira against dollar parity. Money taken to that trip is part of stress on forex. Same as forex spend on pilgrimage, let religion fanatics keep off me here. Without going to Mecca or Jerusalem you can still make heaven. You waste forex on pilgrimage to later be talking rubbish about forex.

11. A country where few people have access to federal reserve and those few can get loans are not because of what they can produce but the connection they have, is that country not gone already?

12. A country where we import what we produce because it's cheaper over there is gone.

13. A country that has arable land, teaming idle youths and still complain of hunger should not talk about currency depreciation. It's annoying.

14. A country where free money flows can never control inflow and outflow of forex. Imagine someone who wants to hide his loot went to Aboki to buy dollars worth $50 million just to hide it in the basement of his house. That money has no economic value yet it deprived those companies that need it to import raw materials, those companies go to Aboki to buy at exorbitant price.

15. A country where a strong bank owners can influence shares from within Stock Exchange room to inflate their shares worth from N20 to N150, crash the same share to N30 and ready to buy it back at N28 all within a year. Forget it, currency will never appreciate in such economy.

16. A country where banks are involved in round tripping and inflated cost to siphon money is doomed. A company wants to import caterpillar worths $50,000. A bank made the forex $550,000 meanwhile no caterpillar was imported at last yet the money faded into private accounts. Who strain forex in that case?

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affable4:
Not true. The 393 is it I &E rate or NAFEX?

DryMouth:

Mugu!
Who told you banks dnt sell dollars.
They sell at 495.. go to a bank and tell them you want to buy usd, they will you they dnt have. They prefer to sell in the black market. So shut up! That is nt the solution to the problem.

Think of something else and be creative abt it.

freshvine:


Aturu!!!

Because the middlemen exist banks take advantage of that to do shady deals. Disband BDC acting as fronts for Banks and everything return to status quo.

I usually don't reply stupid people bereft of modicum of intelligence but let me condescend for the interest of educating the ignoramus.

Agbegbaorogboye:
This is the main reason our naira has been tanking while they blame it on oil price. The BDC and other highly placed people in the admin have been getting free dollars from the CBN and selling at whatever rate they like. This leads to much pressure on the Naira as BDCs make mad profits.
Plus, the fact BDCs are not into any productive activity in the economy. Sometimes I wonder what we need them for anyway.
I'm sure if BDC was mainly run by southerners, Buhari would have banned them just as they did with rice and other imports and closed the borders. He know southerners are the majority in those areas, even fuel importation.
Fact is, nepotism is the worst form of corruption!!

PlayMaker14:
I remember how Buhari Media Cow's (BMC) in this forum went all out to call former president Goodluck Jonathan unprintable names when the Naira fell to 180 per dollar at the official market in 2014.

Now, the lifeless Baba they enthroned, thinking he was the next best thing after Nelson Mandela promised to make the Naira equal to the Dollar....

We can now see how "Equal" the two currencies are in the market..

shegzhkn:


Hi.

obembet:


Hi

shegzhkn:


Lol, never anticipated you will reply.

Just saying Hello

DryMouth:

Mugu!
You lack basic financial economic knowledge hence you are dull.
Why do other sane countries uses BDCs. mumu!
You can't even think beyond banning BDCs.
You want banks to have monopoly of power.

Why don't bank sell dollar inflows at normal price too? Abi is BDC the cause inflow hike too?
Nigerians lack financial intelligence.

You are a cow with no brain

GreaterFuture:
It has always been this way.

and I am searching for some really good, reliable FX Seller too oh. Inflow or Cash, many buyers dey ground. But we don't want MOU, Blockfunds, PND instruments etc. Just meet confirm and Swap

GreaterFuture:
It has always been this way.

and I am searching for some really good, reliable FX Seller too oh. Inflow or Cash, many buyers dey ground. But we don't want MOU, Blockfunds, PND instruments etc. Just meet confirm and Swap

freshvine:


Your fraudulent government approves BDC even though they're inconsequential.

I am an economist and a banker. CBN has authorized list of items they give dollars to and those are processed through the bank at the legitimate market rate leaving other Nigerians who need this dollars at the mercy of the "fraudulent " parallel market. That's disequilibrium and inequality in the market force of demand and supply.

The banks simply obeys the CBN directives to
pamper BDCs and says since the BDC can pay a little above normal average they hoard and sell to the BDCs too.

Now let me explain...CBN approves and mandates bank to sell to BDCs for says 395 naira and then set the exchange rate for 480 for ordinary Nigerians. The banks see the profit margins, hoards it and prefer to give the BDCs at the price of say 450 to maximize profit. Someone in need of dollar goes to the bank and the bank rather than release to him at the banking rate with little or no profit will simply tell him there's no dollar just to leave him at the mercy of the BDCs.

If CBN can give a uniform exchange rate to all forex exchange markets all the BDCs will go home.

GreaterFuture:
It has always been this way.

and I am searching for some really good, reliable FX Seller too oh. Inflow or Cash, many buyers dey ground. But we don't want MOU, Blockfunds, PND instruments etc. Just meet confirm and Swap

InaNla:


The media cows are now in severe pains. The 30k stipends for defending stupidity now like 30 kobo.

Blackdisciple:


They are also feelin the heat too

DryMouth:

You are not a banker....
Banks don't sell dollars to BDCs. CBN does through a third parties called CFS and Travelex.
CFS distributes to SW and North, while Travelex distributes from SS and SE.
When Buhari came into administration, he suspended BDCs and gave right to banks to handle forex activities but the banks failed hoefully, hence a call for the reintroduction of BDCs.

Suspending BDCs won't the problem of Naira it would only increase the unemployment index in the country(you shuld knw this as an economist).

If dollars is pumped in the forex market, that rate would go down. If u are following you shuld knw that before the COVID lockdown, CBN was funding to BDC 4 times a with at;
Mon - Tue = $20,000
Wed - NIL
Thur- $15,000
Fri- $20,000.

If u are aware when they were pumping USD like that in the market, BDCs were making jst N1/$ max and everything was going fine. Now the corrupt Emefiele used that COVID as an excuse that CBN doesn't have enough dollars to issue out again so he started making dollars scares in the country by giving BDCs jst $10,000 on tuesdays and thursdays making dollars extremely scares and expensive.

You shuld be calling for the sack of Emefiele not suspension of BDCs.

Dnt call for banning instead call for CBN intervention.
Hope you understand me.
Maybe because i started reply by calling you mugu, you thought I was the normal NL small boy.
Dnt lett me introduce myself

freshvine:


Emefiele is a lackey and being controlled by the present government. Give him free hand like Sanusi had or Soludo had he'll steer the economy proficiently.

In the absence of Buhari, Emefiele under Osinbajo was making that artificial intervention. Like I said if you create disparity in the function of forex values, all other variables free falls. Don't take this government excuse for anything, they don't have any economic blueprint to cushion the effect of disequilibrium arising from balance of trade and comparative advantage in oil.

He used this old archaic method of forex economics in the 80s it failed and he still reintroduced it in this age and guess what inflation!

Don't blame Emefiele, blame Buhari. If the government could close productive borders why can't they do away with BCDs?

DryMouth:

BDCs are productive sis.

If u are a banker as claimed answer the the question on why BDCs was reinstated when Bank failed. BDCs were suspended for 8 months and we saw hell in getting dollars from banks. Inflation rented the country. Then they had no other option to reintroduce BDCs.
Suspending BDCs won't solve anything as that option has been explored before but it was a massive failure and you are here still saying ban BDC.
You are not a good economist. Write down the list of possible solution and analyse the positive and negative effects in the economy, then choose the best options. Stop shouting ban bdc up and down.
I wish i had time to explain better to you but i have to go a pub and watch champions league final.

freshvine:


http://businessnews.com.ng/2012/10/15/forex-sales-to-bureau-de-change-to-stop-sanusi/

loswhite:
shut up your mouth. This has been happening for a long time. Ask yourself why would a country deliberately have multiple exchange for one currency?

Ekitibiased:


Send me pm

Coolsphinx:
What rate are you looking for?