Welcome, Guest: Join Nairaland / LOGIN! / Trending / Recent / New
Stats: 2,888,891 members, 6,945,626 topics. Date: Monday, 04 July 2022 at 03:22 AM

One Month After AbokiFX Shutdown, Naira Fails To Rise - Business - Nairaland

Nairaland Forum / Nairaland / General / Business / One Month After AbokiFX Shutdown, Naira Fails To Rise (29881 Views)

AbokiFX: Emefiele To Oniwinde Adedotun “Come Let's Fight” (Video) / CBN Confirms Investigation Of Oniwinde Adedotun, Abokifx Founder / CBN Shuts Down AbokiFX Bank Accounts (2) (3) (4)

(1) (2) (3) (4) (5) (6) (7) (8) (Reply) (Go Down)

One Month After AbokiFX Shutdown, Naira Fails To Rise by AnonPoet: 5:33am On Oct 17, 2021
Almost a month after the Central Bank of Nigeria forced foreign exchange update platform, Aboki FX, to suspend its operations, the naira has failed to rise on the parallel market although it has stabilised, Saturday PUNCH has observed.

Worse still, the naira dropped by 2.6 per cent to N422 per dollar, hitting an all-time low on the official market on Thursday.

The CBN Governor, Godwin Emefiele, had on September 20, 2021 accused Aboki FX of exchange rate manipulation, describing the platform as illegal and criminal.

Emefiele had said, “I have given instructions to our experts to go after his website and let it be clear that we will go after him, because we can’t allow this to continue.”

The platform had denied the allegations but suspended its updates, saying, “We sincerely hope this suspension will lead to the naira appreciation from next week.”

Nearly a month later, however, the exchange rate has continued to fluctuate between N570/$1 and N575/$1.

Our correspondent was informed that in Abuja on Thursday, the exchange rate stood at N572/$1 and N780/£1

The greenback crossed the N500 mark in July 2021 and continued to rise, hitting N570 in September.

Speaking with Saturday PUNCH on Thursday, a former Director-General of the Lagos Chamber of Commerce and Industry, Mr Muda Yusuf, said the development was evidence that Aboki FX was not the problem but more fundamental issues.

Yusuf, who is the Chief Executive Officer, Centre for the Promotion of Private Enterprise, said, “The CBN needs to give the market a chance. Its current approach would continue to deepen distortions in the economy, perpetuate round tripping, fuel speculation, suppress Forex supply and boost underground economy. The problem is not with Aboki FX. It is essentially a policy matter.”

Yusuf attributed current happenings in the foreign exchange market to consequence of the CBN policy choice of a fixed exchange rate regime and administrative allocation of Forex.

“It is a policy regime that has created a huge enterprise around foreign exchange – round tripping, speculation, over-invoicing, capital flight etc. The action of the apex bank amounts to tackling the symptoms rather than dealing with the causative factors, which is not a sustainable solution.

“It is regrettable that the CBN does not believe in the market mechanism. Yet market systems are time-tested as instruments of efficient resource allocation in leading economies around the world. Of course, market failures are recognised in economics, and these are exceptions that can be identified and dealt with,” the former LCCI boss said.

The economist argued that suppressing the market is like swimming against the tide which is a difficult battle to win.

Yusuf added that moving retail Forex transactions from bureau de change operators to the banks is like kicking the can down the road.

“The same issues would manifest even with the banks,” he said.
https://punchng.com/one-month-after-aboki-fx-shutdown-naira-fails-to-rise/
https://punchng.com/one-month-after-aboki-fx-shutdown-naira-fails-to-rise/

9 Likes 2 Shares

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by Nobody: 5:37am On Oct 17, 2021
And we still aren't earning enough forex.

Lipstick on a pig is still lipstick on a pig

93 Likes 2 Shares

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by AntiWailer: 5:56am On Oct 17, 2021
Nobody expected Naira to rise just by shutting AbokiFX down. If you believed that, you are either ignorant, mischievous or just a victim of picking common thoughts on the street.

For Naira to rise, we need to manufacture and export. Reduce imports drastically and reduce our reliance on dollars then the basic Economics of Demand and Supply will kick in on the price.

The problem AbokiFX bring is speculation issues. it is one of the problems and others would be tackled accordingly. There are about 7 other reasons to be tackled.
1. Inflation rate.
2. Interest rate.
3. trade balance.
4. Government debt
5. Terms of trade
6. Political and stability of performance.
7. Recession
8. Speculations.

If you observe the list closely you will discover that the Govt's failure is responsible for majority of them and that is why there is no hope anytime soon. The decision which is a right decision no doubt, at best took care of only item 8. the 7 other monsters must be dealt with.

Many people asked several questions around where AbokiFX get their data from. There was no sensible answer.

Also a lot of people rely on AbokiFX to make decisions on how much they will buy or sell their dollars so let us take an example.

If AbokiFX continues operations and all of a sudden post #750 to 1 dollar (recall we don't have any logic behind the price they post), thousands of people who use AbokiFX to av an idea of how much they will sell will definitely not sell at 450 right ?

Even if people say they are mad, they will not sell cos they believed if AbokiFX says 750, it is likely close. The refusal to sell automatically impacts supply while the demand for dollars keep going up, price will definitely rise at a rate not steady.


Please note that this is highly intellectual. I will try and reply every mention.

If u don't understand, I can forgive you but if your response is only insult because it is too much for your capacity to think, i can also forgive you but will likely ignore you.

I agree it is not every time posts would be interesting like Squid Game or Tonto Dike vs Kpopo.

383 Likes 38 Shares

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by Sonnobax15(m): 5:56am On Oct 17, 2021
lipsrsealed
Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by Esseite: 5:56am On Oct 17, 2021
AbokiFX was a major problem... when they were churning out rates, the Fx rate was increasing every 6hrs despite the CBN pumping scarce FX into the system.

Now the CBN has stopped supplying dollar to the BDC, the BTA Fx is gotten with so much scrutiny, yet the Naira has refused to fall further, while little gains are trickling in..

The bargaining power returned to the people..

But we can still fix it better...

47 Likes 2 Shares

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by easynetsms(m): 5:57am On Oct 17, 2021
So does it mean that is aboxifx that has been adjusting the rate of naira in Nigeria ?

5 Likes

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by emmabest2000(m): 5:57am On Oct 17, 2021
FG blaming other for their stupid failure

10 Likes 2 Shares

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by elmessiahs(m): 5:58am On Oct 17, 2021
Deliberate flouting of policy by those at helms of affairs

2 Likes

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by Matheusmartin: 5:58am On Oct 17, 2021
...
Tull tomorrow, I still do not understand what Emiefele was trying to do here..
embarassed

56 Likes 4 Shares

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by Chicky34: 5:59am On Oct 17, 2021
Aboki FX and G boys are 5&6 since way way back...

2 Likes

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by ybalogs(m): 5:59am On Oct 17, 2021
How can a nation thrive when the right of the weak isn't taken from the so called powerful ones?
Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by socialmediaman: 5:59am On Oct 17, 2021
It’s because the despot in Aso Rock pretends to be fighting corruption when massive corruption is right there within his cabal

31 Likes 1 Share

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by xpressionx(m): 6:01am On Oct 17, 2021
grin
Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by ybalogs(m): 6:01am On Oct 17, 2021
Not knowing where the problem lies is a bigger problem and that's what we're experiencing right now. Why is Naira falling? Just get to know the reason and sincerely work towards fixing that but are we even sincere in this sphere?

3 Likes

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by MadamVanessa(f): 6:01am On Oct 17, 2021
Useless country ruled by Idiotic thing from North.

8 Likes 2 Shares

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by Tobichuks08: 6:01am On Oct 17, 2021
With thier useless govt policies they still can't take responsibility for thier actions.
The ban on crypto was never going to help the naira but the stupid intellectual posing as aids, ministers and financial governors knows nothing yet claiming to know and the naira suffers for it.

5 Likes

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by EdiskyHarry: 6:01am On Oct 17, 2021
One funny thing about Nigeria is that we know the true cause of a problem but we will choose to tackle less important ones that doesn't even follow.
Abokifx can never be the reason Naira is going down every seconds.

12 Likes 2 Shares

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by UselessBuharist: 6:02am On Oct 17, 2021
Who and what will they blame next

1 Like

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by bamasite2: 6:02am On Oct 17, 2021
Were you expecting it to rise?
Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by PresidentAtiku(m): 6:03am On Oct 17, 2021
AntiWailer:
Nobody expected Naira to rise just by shutting AbokiFX down.

The problem AbokiFX bring is speculation issues. it is one of the problems and others would be tackled accordingly.
6 years and counting..

Agree that APC is gross failure

19 Likes

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by sinkhole: 6:03am On Oct 17, 2021
Clueless people at the helms of affairs.
Solve the problem by cutting the root, you are busy pruning the leaves claiming you're solving problems, SMH for Nigeria embarassed

2 Likes

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by Mandesz(m): 6:03am On Oct 17, 2021
I've always said naira is being devaluated intentionally and systematically by the cbn. 4get abokifx

8 Likes

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by pacino26(m): 6:03am On Oct 17, 2021
First the ban on AbokiFx was ill conceived just like many policies of the current administration. AbokiFx or not simple knowledge in Economics shows we are having a deficit Balance of Trade.

A topic about how illegal extortion at the airports prevents Agro expo graced the front page of NL weeks ago. The VP has called out the artificial official exchange rate of the naira.

The only way the government has successfully made FX is through borrowing. I think that is our dollar earner for now.

Let's blame Live Score because Nigeria didn't win the last World Cup.

26 Likes 1 Share

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by Baawaa(m): 6:04am On Oct 17, 2021
Aboki had finished Nigeria

3 Likes 1 Share

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by MA23: 6:05am On Oct 17, 2021
The government really knows what to do, to make the economy grow, but there wickedness and greed can’t make them do it

6 Likes

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by UselessBuharist: 6:05am On Oct 17, 2021
Matheusmartin:
...
Tull tomorrow, I still do not understand what Emiefele was trying to do here..
embarassed

He is trying to imitate the dullard, just to please him

9 Likes

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by arantess(m): 6:05am On Oct 17, 2021
ybalogs:
Not knowing where the problem lies is a bigger problem and that's what we're experiencing right now. Why is Naira falling? Just get to know the reason and sincerely work towards fixing that but are we even sincere in this sphere?
Inorder words they aren't asking the right questions...
Unfortunately it will be continual movement in circles until the right questions are asked

1 Like

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by TeeGentle(m): 6:06am On Oct 17, 2021
why will ABOKI FX not affect when it is ABOKI dat is leading dat forex

3 Likes

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by armyofone(m): 6:06am On Oct 17, 2021
So not Aboki's fault - they should "unshut" Aboki.

1 Like

Re: One Month After AbokiFX Shutdown, Naira Fails To Rise by Kajaard: 6:08am On Oct 17, 2021
anorexicmuster:
And we still aren't earning enough forex.

Lipstick on a pig is still lipstick on a pig

In other words a PIG will always be a PIG

5 Likes

(1) (2) (3) (4) (5) (6) (7) (8) (Reply)

16 moments those depositing money in the bank can Relate To. (pics) / Ayodeji Bejide Assaults Edward Freeman, GTBank Staff In Liberia (Video) / Are You An Employer? New Scam Discovery

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2022 Oluwaseun Osewa. All rights reserved. See How To Advertise. 98
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.