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CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate - Business (6) - Nairaland

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Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by BabaIbo: 2:47pm On Jun 14, 2023
A lot of people are igno r@nt of how this work. Like the one below my comment.

This announcement alone just made the prices of goods start increasing.

With this kind of policy, naira may trade 1000 against the dollar in less than one month time.

Note this!

2 Likes

Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by ThebestPromise: 2:47pm On Jun 14, 2023
The new order will favour the masses unlike what many people are saying. Below is what it means and the benefits therein.

What it means to float a currency:
1. The Fx rate will be determined by the balance of trade. More dollars ( liquidity ) in the economy lesser the demand for the dollar

2. The Fx exchange rates were used to be determined by CBN and in most cases, despite the rates you see being a subsidized rates and in most cases, it ends up in the hand of the few privileged ones.

3. Our budgets are based on CBN cosmetic rates which is not the realistic dictate of the economy. This in return will make the budget to be of little or no effect on the populace.

The benefits of floating the naira are below:

1. With the CBN floating the naira, the players in the industry will increase geometrically

2. The naira ATM cards can be used freely without no capping to buy goods and services in dollars/ Pounds or any other currency

3. The manufacturers will have equal access to the fx thereby making the market an equal platform for all the players

4. With Dangote Refinery, BUA Refinery, and NNPCL Refineries coming up starting from the third quarter of this year, the dollar inflow will force the rates to drop.

Kindly note that the demand forces will push it higher in the next 2weeks but the rate will drop eventually.

9 Likes 2 Shares

Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by Everlastingson: 2:48pm On Jun 14, 2023
Evil APC and their cultic minions already singing praises of a two weeks old unconstitutional administration. Your early window dressing can never fool us. You can't build legitimacy on illegitimacy. Peter Obi Nigerians know as their choice. Pablo Escobar remains who he is. Your media lying propaganda will fail.
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by Guestlander: 2:53pm On Jun 14, 2023
Ogene001:

This olodo didn't follow the campaigns

Just show us where Obi said it.
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by bitbillionaire: 2:53pm On Jun 14, 2023
Nigerians funny sha.

See as people with zero or half baked knowledge of economics being excited about a policy whose implications (both positive and negative) they know absolutely nothing about!

Fixed exchange rate and free floating exchange rate both have their own advantages and disadvantages. We all know that Nigeria is import dependent nation that import virtually every damn thing. Many Nigerians value foreign goods, foreign education, foreign religion, foreign everything more than Nigeria-made ones.

Now, If Naira is allowed to float freely and its value determined by forces of demand and supply, the demand for dollars will always be so high compared demand for Naira i don't think you have to be a genius to know the implication of that for the Naira.

Floating the Naira will have its benefits. But if you truly understand its potential disadvantage you will be sober rather than being excited.

5 Likes 1 Share

Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by vannessa7(f): 2:55pm On Jun 14, 2023
occfx:


LOL, Peter Obi changed the narratives... They have to work hard to please goodness. Darkness is no longer an option in Nigeria. I want the court proceedings to continue it will keep tinubu in check. Nonsense and ingredients

It was Peter Obi that made Tinubu to perform wonders in Lagos state, better think of another storyline.
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by Guestlander: 2:55pm On Jun 14, 2023
Everlastingson:
Evil APC and their cultic minions already singing praises of a two weeks old unconstitutional administration. Your early window dressing can never fool us. You can't build legitimacy on illegitimacy. Peter Obi Nigerians know as their choice. Pablo Escobar remains who he is. Your media lying propaganda will fail.

Peter Obi was a third place loser. Jagaban is the our duly elected president...and he has been making us proud so far.
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by Guestlander: 2:56pm On Jun 14, 2023
vannessa7:


It was Peter Obi that made Tinubu to perform wonders in Lagos state, better think of another storyline.

Don't mind them.

1 Like

Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by blackmantis: 2:57pm On Jun 14, 2023
GBAM
This is how it should be.

Tinubu is giving us more reasons to smile.
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by olisaokere(m): 2:58pm On Jun 14, 2023
Tntsi:
Dont be deceived by all these long grammar and paid media promotion gigs all to promote tinubu.
All these have no effect common man on the street.

All these noise being made are paid media promotions to deceive those that will be deceived.

There is a moral burden on tinubu. He did not win the people. He does not have the people's mandate. And so he and his team are bombing the media space with flashy stuffs that have no content.
Watch out for more and more media propabgandas and thrash in the name of one thing or the other.

Nobody who steals political power uses it for the good of the people.

your head dey there.thumbs up
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by Osashalom: 3:05pm On Jun 14, 2023
Wow.... You saw through the whole drama going on in aso rock and the media spece. I commend your insight.
Tntsi:
Dont be deceived by all these long grammar and paid media promotion gigs all to promote tinubu.
All these have no effect common man on the street.

All these noise being made are paid media promotions to deceive those that will be deceived.

There is a moral burden on tinubu. He did not win the people. He does not have the people's mandate. And so he and his team are bombing the media space with flashy stuffs that have no content.
Watch out for more and more media propabgandas and thrash in the name of one thing or the other.

Nobody who steals political power uses it for the good of the people.
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by VeeVeeMyLuv(m): 3:08pm On Jun 14, 2023
Frezhkid10:

The people getting the dollar at the official rate..are the really using the dollar to import fuel or they are round tripping it??..
Just so you know it’s easier for me to round trip the dollar and make cool cash than to follow the route of stress to import fuel and still the same profit or less than round tripping..
95% are either not using it or are round tripping it
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by CodeTemplar: 3:09pm On Jun 14, 2023
JaskanFactor:
translation they want to devalue the naira, straight on the back of removing petrol subsidy.
This may be bad time to be keeping lots of naira in the bank, better change your money to forex.
yes.
Petrol subsidy is gone, education subsidy at tertiary level is gone, forex subsidy disguised as fixed rates too are gone.
That's what IMF and WB want for us but when you research the western countries and their welfare schemes, you will see they managed theirs well and sustained them when faced with abuse instead of scraping them. UK health insurance scheme is a good example of abused but well managed and sustained schemes.
Can our leaders think. We substituted a better scheme that drives production cost down for one that entails direct consumption. What a direction!

1 Like

Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by VeeVeeMyLuv(m): 3:12pm On Jun 14, 2023
pocom35:


This won't encourage more forex inflow ..
This is the very worst thing to happen..I hope it is fake news..

This means CBN be have not business defending the currency once it takes a free fall
If round tripping is eliminated once and for all, put the whole thing on a level playing field.
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by grandstar(m): 3:14pm On Jun 14, 2023
olalekanba:



Get your facts right

https://apc.com.ng/img/apc_renewed_hope.pdf

Read page 19

This is basically repeating what I just said

"To ensure that exchange rate policy
harmonises with our goals of optimal
growth and job creation driven by
industrial, agricultural and infrastructural
expansion, we will work with the Central
Bank and the financial sector to carefully
review and better optimise the exchange
rate regime."

The word "optimise" summarises the whole thing. Optimize means getting the highest possible value

1 Like

Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by Focusmind: 3:14pm On Jun 14, 2023
The policy may sound good.

We should desist from praising things we do not know how it would impact the economy.

The summary is that businesses would have to spend more to import - what is the implication of this? of course, high cost and things would become more expensive. Government have been subsidizing foreign exchange for importers to make their goods cheaper because Nigeria is a poor country.

Nigerian students studying abroad would have to pay more as the cost of FX becomes even higher. FX is going to be expensive.
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by VeeVeeMyLuv(m): 3:15pm On Jun 14, 2023
ogaontop:

It appreciates in the long run only when you have enough supply directly to those who need it, not the one BDC's and Banks will hoard and give to the highest bidder or whom they like!
Forget this country bro, they will hoard it to the fullest, push up the price entirely and sell!
That means You are saying it cannot be unified
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by VeeVeeMyLuv(m): 3:16pm On Jun 14, 2023
Ventura1:
This is the best period PBAT can test all this policies.
People can still reason and accommodates them.
He hit the ground running indeed
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by MYMINDER(m): 3:19pm On Jun 14, 2023
Globad:
Hope people can now see what is meant by purposeful and deliberate leadership

With this policy, more foreign exchange inflow will come in. Naira may depreciate in the short run but it will appreciate in the long run

Keep deceiving yourself. What comes down in Nigeria?
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by wegevv: 3:20pm On Jun 14, 2023
Basicend:


There is nothing Tinubu is doing is extra special. . it is just that the country had been under a very terrible and clueless Buhari who would have completely crippled the economy if he had not been removed.

Tinubu is doing what Obi or Atiku would also have done. . open the borders, re-adjust the monetary system to allow a proper flow and create breathing opportunities for businesses to emerge again.

Buhari was driven by cabal's selfish BDC companies and their gains. Terrible plague on Nigeria that man.

I hope PBAT and his people continue to expose the sheer incompetency of PMB and his administration. Because so-called Buharists will never stop trying to rewrite history and before you know we could have another PMB in 2031
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by lapintoz: 3:22pm On Jun 14, 2023
Of course we know....we know your type. Has anything good ever come out your region. Just point to one development in the gully erosion area. So why will it not be propaganda to you....

A capitalist is dismantling areas of the economy that rent seekers were feeding fat on for personal gain.....you call it noise or propa-rubbish

Wait till you hear how much your brother in CBN made from FX round triping.....with his cabal members, your eyes will open. Mumu


Tntsi:
Dont be deceived by all these long grammar and paid media promotion gigs all to promote tinubu.
All these have no effect common man on the street.

All these noise being made are paid media promotions to deceive those that will be deceived.

There is a moral burden on tinubu. He did not win the people. He does not have the people's mandate. And so he and his team are bombing the media space with flashy stuffs that have no content.
Watch out for more and more media propabgandas and thrash in the name of one thing or the other.

Nobody who steals political power uses it for the good of the people.
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by Seb4luv1: 3:29pm On Jun 14, 2023
The man is doing a great work appreciate good things for once, now we have a president.
Tntsi:
Dont be deceived by all these long grammar and paid media promotion gigs all to promote tinubu.
All these have no effect common man on the street.

All these noise being made are paid media promotions to deceive those that will be deceived.

There is a moral burden on tinubu. He did not win the people. He does not have the people's mandate. And so he and his team are bombing the media space with flashy stuffs that have no content.
Watch out for more and more media propabgandas and thrash in the name of one thing or the other.

Nobody who steals political power uses it for the good of the people.
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by sogodihno: 3:31pm On Jun 14, 2023
Tntsi:
Dont be deceived by all these long grammar and paid media promotion gigs all to promote tinubu.
All these have no effect common man on the street.

All these noise being made are paid media promotions to deceive those that will be deceived.

There is a moral burden on tinubu. He did not win the people. He does not have the people's mandate. And so he and his team are bombing the media space with flashy stuffs that have no content.
Watch out for more and more media propabgandas and thrash in the name of one thing or the other.

Nobody who steals political power uses it for the good of the people.

Pained soul. Go and die.
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by Livingforall: 3:33pm On Jun 14, 2023
Please someone should explain this in lay man terms what it means. Because me I want to start rejoicing
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by PoliticalChinex(m): 3:33pm On Jun 14, 2023
Jorussia:
This should have been done a long time ago.
Three economic oddities that have bled this
country for the past 3 years are about to end.
Fuel subsidy,multiple corrupt fx,and hopefully
Organised crude oil theft that has made us
Lose billions of dollars are buried in first two months of PBAT administration. PMB really brought the standard of so low,that many people began to think that everybody in APC are idiots like buhari.I pray the Lord help PBAT
to achieve uncommon success in the economy and security of this country in Jesus name Amen.

U be mumu arse-licker. what has all this got to do or change the lives of over 150 million Nigerians living in abject poverties?
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by klawaaa: 3:34pm On Jun 14, 2023
We told the masses that this dude no sense una papa. Congrats to all the Nigerian masses. A country that is heavily dependent on importation. Trust me the price of goods and services skyrocketing in the market. The inflation seen during PMB na small play, una go the see the real inflation in couple of months/years. Why not do the preliminaries before this majors. But his selfish interests would not allow him. Congrats once again the masses of Niaja.
HonNL:
Banks being told that supply and demand will determine rates

Nigeria resets monetary policy after sacking central bank head



SOURCE



SOURCE



SOURCE

1 Like

Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by TheGoodJoe(m): 3:41pm On Jun 14, 2023
Livingforall:
Please someone should explain this in lay man terms what it means. Because me I want to start rejoicing


Nigeria is broke and no money for subsidies.

Nigeria has no money to defend the naira. Meaning, you buy naira at market price.

There are benefits to it, we will not get the money spent on defending the naira siphoned like before but hey, there is no money for those.

Meaning, you buy and sell dollars at market rate.

Finally, what happens to our exchange rate? Expect first an increase in how much you buy dollars but this will force the government to act on market forces than on cosmetics like defend the naira. It will give the true state of our economy. However, it will make government make the right choices to fix the market.

1 Like

Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by TheGoodJoe(m): 3:45pm On Jun 14, 2023
Livingforall:
Please someone should explain this in lay man terms what it means. Because me I want to start rejoicing

Defending the naira is like paying for Subsidy. Meaning, you buy it cheaper. However, CBN did not make it available to banks or banks hoarded it because of a black market to sell and eat the subsidy money.

Now with no money in the system, the government is forced to float the naira, meaning, removing dollar subsidy, meaning, no more money for bankers to buy and sell in the black market.

So little to no black market rate if the government can make dollars available in banks. Meaning we must start producing because the oil sector can't sustain us anymore. Buhari borrowed too much and we are paying with the oil sector.

Finito.
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by Nobody: 3:46pm On Jun 14, 2023
Sometimes the fact that we go to school doesn't mean we shouldn't think o, can we withstand the effects of floating the Naira after removing subsidy ... Please I don't want to be like I am against government policies, but floating currency requires data ,if we don't have data why we dey float currency. It like removing subsidy from Naira without knowing the actual value of the Naira, that is why economic data is so important.
Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by TheGoodJoe(m): 3:51pm On Jun 14, 2023
jackcanfield:
Sometimes the fact that we go to school doesn't mean we shouldn't think o, can we withstand the effects of floating the Naira after removing subsidy ... Please I don't want to be like I am against government policies, but floating currency requires data ,if we don't have data why we dey float currency.

We can't keep up. The last government mortgaged everything. That is why I actually campaigned for Peter Obi (not trying to sound political), but we need someone who can make real hard choices to fix things.

We are using about 95% of our revenue to pay debts. No money to even run the government, let alone carryout schemes to make living easier. So all subsidies has to go, unfortunately, they are not ready to cut cost of governance, which must go.

You can't keep telling the citizens to endure while the government feeds large and loots large.

4 Likes 2 Shares

Re: CBN Floats Naira - Allows Banks To Trade FOREX Freely At Any Rate by obailala(m): 3:51pm On Jun 14, 2023
Globad:


When did Obi say this?

Obi that supported the currency confiscation programme?
tinsel:

Don't mind the idiots
Basic123:

Those people are fools and subhumans


This pethief OBI didn't release his manifestos unyilla month after Tinubu releases his manifestos

How can a whole movement ot Tribe thrives on LIES!

OBI has always advocated for scrapping the multiple exchange rate and floating the Naira. OBI has always also been an advocate of ending fuel subsidy.... Below is an OBI tweet from September last year boldly talking of the exchange rate.

@tinsel, Basic123... If you really want to know who the real idiots, fools and subhumans are, perhaps all you guys need do is look in the mirror.

2 Likes

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