Ibime:


CBN is obliged to give them at N460 as that was the rate when they forwarded to CBN. The foreign exchange risk is on CBN

If true, nobody will bring their investment to Nigeria and expose themselves to such risk

Itsrm:


Exactly. There was no dollar to give them because the CBN was using every available dollar to defend the currency. That's why the CBN cannot afford to force the naira down. They will run into the same problems as the previous administration.

izzou:


But it was the CBN that begged for their FX, and promised to provide it at a further date.

This won't speak well for us in the eyes of foreign investors.

Itsrm:
https://www.nairaland.com/8037068/naira-eyes-n1300-parallel-market

Now, it looks like someone in the govt. is sponsoring these headlines.

TrebleChamp:
Polaris bank is buying at 👇

Itsrm:


These ones are jokers

TrebleChamp:
Polaris bank is buying at 👇

LordAdam16:


It's not necessarily sensationalist.

Since the demise of Binance P2P/NGN Spot, the parallel market rates (both P2P and Aboki rates) now track the CBN rate.
https://www.cbn.gov.ng/rates/ExchRateByCurrency.asp
Thus, the CBN can now manipulate both the NAFEM and Black Market rates.
All it has to do is sell a tiny amount in NAFEM at a super low rate, and it'll drag down its rate as well as the NAFEM and Black Market rates.
In fact, yesterday it sold at 1350 and that's what dragged the NAFEM rate to 1492.
Today's CBN rate would be less than 1450 and P2P/Aboki will buy at less than 1400.

Why is all of this happening?

Let's circle back to February.
The CBN made a backroom deal with foreign investors.
It'll dramatically increase the fixed-income rate.
The investors will bring their FPI dollar to buy the naira-denominated TBills.
And thanks to the $ inflow, the CBN+FG will use a combination of unorthodox and orthodox measures to drive down the exchange rate.

It's a no-brainer.
The early birds brought in $500m+ (closer to $1B) at 1600+ rate.
And that's why the CBN sold an unprecedented N2.5T in TBills in two weeks.
https://nairametrics.com/2024/02/23/cbn-sells-another-n1-58-trillion-in-treasury-bills-interest-rate-at-19-for-364-day-bill/
A cross-section of analysts from the bulge bracket expect end-of-year rates to be lower than 1200.
Which means their expected ROI is to be 19%+ from TBills + 25%+ from naira appreciation.
At least 44%. Risk-free.
It's the play of the year.

Now, the CBN is keeping its side of the bargain.
We're in Spring. Dollar demand is habitually low this season.
In addition, the aforementioned high-rate fixed income pivot drove $ demand lower.
So it's remarkably easy for Cardi B to manipulate the rates.
Whatever his target rate is, he can get it with a few million dollars.

The first big test will be this Summer.
Demand will surge.
All the people who balked at vacationing at 1900, will splurge at 1200-1400.
Import numbers will rise.
In fact, in the short term (over the next few months), the humongous bill of this sly plan will become apparent.

All of that said, we should be looking at a couple of months of FX stability.
This is an unambiguous positive for the administration.
I still think Cardi B is in over his head.
But he has got his hard-fought W... for now.
At least, businesses should begin to notice an uptick in economic activity and those who had suspended japa plans should get back on the horse.

-Lord

OasisX:




......again, you and off point. Your colleague in Obidient Camp shared a Screenshot to discredit CBN and FG.

I shared other part that throws more light to the story, but this you toeing path of your friend as expected - mob move. LOL!

Itsrm:


From what I understand about Fx backlogs, they wanted to repatriate USD, CBN gave them the naira equivalent at say 460 to a dollar with a promise to provide the dollar at a future date.

Now, CBN is asking them to convert that naira they were given back to USD at the NAFEM window. This means they will get far less value for the naira they hold.

It's unfair on them but I understand the position of the CBN.

Ellexy:
Your problem most times is comprehension. Prosper shared a headline that said "Foreign Airlines Dispute CBN's claim of settled Fx backlogs."

With your agenda tainted glasses and biro, you rushed to crop and post one side of the disputing parties to run agenda while ignoring the other.

Seeing as you don't know what dispute means I had to intervene . That's why I told you the Headline was correct.

Itsrm:


That's the way I see it too. If the Naira had strengthened to 360, they would have rushed to cash it out of NAFEM.

It's one of the risks of doing business in an unstable environment as ours.

BlueRayDick:


Why didn't they repatriate the amount in dollars under Buahri when naira was a little bit stable against the dollar ?

I'm guessing it's because naija CBN didn't have enough dollars in the system to let go that period right ?

Ellexy:
Your problem most times is comprehension. Prosper shared a headline that said "Foreign Airlines Dispute CBN's claim of settled Fx backlogs."

With your agenda tainted glasses and biro, you rushed to crop and post one side of the disputing parties to run agenda while ignoring the other.

Seeing as you don't know what dispute means I had to intervene . That's why I told you the Headline was correct.

OasisX:




......your mumuness is legendary. Read what your colleague posted again, but slowly this time around. LOL!

liveLongNprospa:


I wonder what "disputing" means to these people at this point😮‍💨

Ellexy:
I wonder too

larride:


Yes, that what happened. That's what made their money stuck.

If they have a fx forward contract with the CBN, it will already specify the rate at which they will get their $$ but if they dont, they will get it at the current NAFEM rate.

patrickmuf:
https://www.lindaikejisblog.com/2024/3/two-youths-die-in-cross-river-mining-site-2.html

Blueraydick, remember that discussion we had here.

Ibime:


CBN is obliged to give them at N460 as that was the rate when they forwarded to CBN. The foreign exchange risk is on CBN

If true, nobody will bring their investment to Nigeria and expose themselves to such risk

Ellexy:
If you're half as smart as you think you are, you'll be twice as smart as you are right now to understand what dispute means. But no you're not.

TrebleChamp:
Polaris bank is buying at 👇

BlueRayDick:


Well, I'm guessing CBN didn't just use word of mouth to tell them they will get their funds repatriated at so so rate in the future .

There must be an official communication to that effect. Whether such official document is now enforceable legally is mother thing entirely .

But one thing is obvious ; things like this don't boost investors confidence one bit .

larride:
Been a while we've seen Amoto here. I hope he's okay?

OasisX:




.....your colleague has shared another Epistle with no name, help him push it bro. Bird of a feather.

He accused FG of "propaganda" but na "dispute" be the koko. Since yeye agenda didn't fly, una want use style fold ba?! LOL!

Ellexy:
He accused FG of propaganda lmao. This government is synonymous with propaganda na eg....

Dubai is back x2...

Subsidy gone...

Student loan will start in September....

Minimum wage...

Palliatives...

Now FX backlogs cleared...

Meanwhile Cardi B manipulating the market and steadily cashing out. Breeze go soon blow and fowl nyash go show.

OasisX:




......Oooin! You don finally let the cat out of the bag. If wishes were horses though. LOL!