SatanKeepOff:
Be scamming ur gullible. Oga there is nothing like Subsidy

Tell dem oo....den no dey hear

WantsandMore:
I'll remind you of this in 6 months oh

I'll remind you of this in less than 6 months.

BoldBrainz:


I'll remind you of this in less than 6 months.

interesting...deal

BoldBrainz:


Brotherly, you just lied.

That balance only lasted for about 10 days after the pronouncement. The black market rate started to race away by about 6 naira on the 11th day, and it's been a consistent widening since then.

I'm not one of these random nairaland users who yap on issues out of sentiments. Even with the injection of dollars into the system from our reserves, the impact has remained subliminal because the currency demand is stupendously higher than the supply and availability.

A black market rate of not more than 30 naira difference with the official can still be called converged. It doesn't have to be 5 naira difference before we call it converged.

BreconHills:


They are not trying to hold up the value of the naira. The naira is not a new currency. It has obligations attached to it - which if met will reduce reserves in the short term but allow the domestic currency find its true value and create USD stability.

They are meeting pent up demand that is making it hard for naira to find its right value. About 10 days ago they paid out 500m to holders of Eurobonds. Also you cant be owing international airlines $600m and owing foreign investors unremitted dividends and expect quick and accurate price discovery.

Reserves are nothing in themselves if they dont drive economic activity that leads to growth. This was the mistake that PMB made - worshipping at the altar of national reserves. The monthly drain by way of subsidy has gone and one of the ways of efficiently spending some of that money is to pay down debt that fuels inflation and disincentivizes investment. e.g airline debt.


Your education was a waste, simply that unlike many Nigerians you allow political coloration to skew that knowledge.

Bookmark this conversation. The economy will be in a far better state in 6 months than it has been in the last 10 years.

I'll disregard your condescending tone and only pay heed to your last paragraph. We'll all have life so we get to see the outcome of all these economic experiments in 6 months time.

GeneralDae:

A black market rate of not more than 30 naira difference with the official can still be called converged. It doesn't have to be 5 naira difference before we call it converged.

The black market rate as at an hour ago is 858 naira.
The official rate as at an hour ago is 793 naira.

Is that a difference of less than 30 naira?

BoldBrainz:


The black market rate as at an hour ago is 858 naira.
The official rate as at an hour ago is 793 naira.

Is that a difference of less than 30 naira?

I said until two weeks ago we could still call it converged. Sometimes the black market rate is based on speculation.
CBN can simply ignore it once there is enough dollars available for everyone at the official rate like it is elsewhere.

GeneralDae:

I said until two weeks ago we could still call it converged. Sometimes the black market rate is based on speculation.
CBN can simply ignore it once there is enough dollars available for everyone at the official rate like it is elsewhere.

Exactly.

There right there, is the crux of the matter. There simply isn't enough dollars available. And that is not going to change anytime soon. If anything, it's going to get worse.

IconicR:
I don't know how else to pacify Nigerians, I have been assuring them that things will normalize soon but these third position mandate claim people will not even listen. Same subsidy that obi swore to remove immediately he gets in(dreams) . let's be patient and I pray minimum wage be increased soon as planned and private sector sanctioned as well.

Normalize when? How does expect the unemployed and underemployed to cope in this situation? A scenario is a neighbor of mine who has to resign because he was running on deficit as a result of price hike in transportation fare

extol1:

Normalize when? How does expect the unemployed and underemployed to cope in this situation? A scenario is a neighbor of mine who has to resign because he was running on deficit as a result of price hike in transportation fare

Sorry about your neighbor, it's 😭😭😭

IconicR:
I don't know how else to pacify Nigerians, I have been assuring them that things will normalize soon but these third position mandate claim people will not even listen. Same subsidy that obi swore to remove immediately he gets in(dreams) . let's be patient and I pray minimum wage be increased soon as planned and private sector sanctioned as well.

Don't waste your time pacify Nigeria they are the most ingrate human under te heaven especially my religion Christainity and people from SE in.particular no apology saying these.

From Shagari era till date only these two sect of human in Nigeria have never be pleased with any govt, if even Jesus come down to try and pleases Nigeria of these two category they will still not be please so bro whoever not ready to face the reality can quit Nigeria.

We can't remove subsidy and expect a rosy ride. No pain no Gain but not in Nigeria. That is why a 13 year old boy doing money ritual came home with Honda car and his useless mother went to church for thanksgiving a 13 year old came home with Honda and called it testimony.

BoldBrainz:


Exactly.

There right there, is the crux of the matter. There simply isn't enough dollars available. And that is not going to change anytime soon. If anything, it's going to get worse.

So if you agree there isn't enough dollars available why do you want CBN to keep holding the rate at 460 naira? They defended that 460 naira with 17 Billion dollars of scarce reserves last year and there was lots of round tripping. Foreign investors also were not sure at what rate they could get their profits back.

Chucks13:


Don't waste your time pacify Nigeria they are the most ingrate human under te heaven especially my religion Christainity and people from SE in.particular no apology saying these.

From Shagari era till date only these two sect of human in Nigeria have never be pleased with any govt, if even if Jesus come down to try and pleases Nigeria of these two category they will still not please so bro whoever not ready to face the reality can quit Nigeria.

We can't remove subsidy and expect a rosy ride. No pain no Gain but not in Nigeria. That is why a 13 year old boy doing money ritual came home with Honda car and his useless mother went to church or thanksgiving a 13 year old came home with Honda and called it testimony.

It's so hard to please Nigerians

BoldBrainz:


I'll disregard your condescending tone and only pay heed to your last paragraph. We'll all have life so we get to see the outcome of all these economic experiments in 6 months time.

There is no condescension - It's trite economics to know that you must reduce pent-up pressure on an asset to have true price discovery - and that pressure can only be reduced by meeting the supply or the demand side of the asset. The PMB government tried to reduce the demand side by increasing the list of banned items, raising taxes on selected items, and slowing down remittance approval times and it hasn't worked. Now they are dealing with the reality bt drawing down on reserves to ease demand pressure in the belief that the removal of subsidy will build the reserves albeit slowly.

Supply-side measures will take time and Nigerians or anyone else will not have patience with that.

From your use of language, I figured out that you are not a shallow NL contributor. But your sweeping statement backed by the very opposite of needed actions made me surmise that it must be your emotion at work and not your reasoning.

Apologies for coming across as condescending. This was not my attention. Sincerely.

IconicR:
It's so hard to please Nigerians

You can't please them bro if even you kill yourself for them they will still not pleased.

Whether Una print new notes or you don't, e no go still better for all of Una together...

Ogun kill Una there!

BoldBrainz:


I'll disregard your condescending tone and only pay heed to your last paragraph. We'll all have life so we get to see the outcome of all these economic experiments in 6 months time.

Hi! Please see attached especially the bolded - which I had not seen as of the time I was responding to you. This was my thinking and I believe it will work if it can be sustained. Based on my poor estimation of pent-up demand, I forsee an injection of $1.5-2bn, and that price discovery for the USD will be in the mid to higher $ 600 range. The caveat is that we are in the summer season when foreign school fees and overseas medical procedure demand in USD are high.

BreconHills:


Hi! Please see attached especially the bolded - which I had not seen as of the time I was responding to you. This was my thinking and I believe it will work if it can be sustained. Based on my poor estimation of pent-up demand, I forsee an injection of $1.5-2bn, and that price discovery for the USD will be in the mid to higher $ 600 range. The caveat is that we are in the summer season when foreign school fees and overseas medical procedure demand in USD are high.

Apart from that, there are backlogs to be paid. Airlines are still owed 800 million dollars. Also, Government just paid 500 million dollars Eurobond debt from 2013.

BoldBrainz:
Shonubi has just removed the rug from under the feet of his employer.

The week Tinubu made the pronouncement of currency liberalisation, he specifically spoke on the unification of exchange rates between the open market and the official FX window. He sounded so cock-screw certain of the terminologies he was reeling out that his minions were applauding with gusto.

Couple of weeks down the line, the disparity in rates between the open market and the FX window is spiralling out of control to the point these clueless people are already dipping hands into the external reserve just to keep up with the FX demands of the market. So, not only are prices of basic necessities blowing through the roof, our reserves have lost over a billion dollars in the space of 2 months.

You cannot seek to put control over the spread or usage of a currency you do not produce, especially in an economy that depends on that very currency. I am not an economist from Chicago University, neither am I in an acting capacity at the CBN, but I have the intelligence to read and study situations and the common sense to acknowledge the truth of a situation.

If the Nigerian economy doesn't crumble in six months, going along this particular trajectory, then I'll know my education was a waste.

We shall see. I'm deliberately quoting this to remind you by the end of the year... Things will normalize. I'm damn sure of that. But let's not drag for now

GanagiBitrus:
Anyone with basic knowledge of Economics knows printing more money will lead to hyperinflation &is never an option.

Na true!!!
But removal of subsidy and floating of the Naira have led to hyper-deflation. Or even price stability.
No be so?

helinues:


Wrong perception. Even though Peter Obi might not have performed well when he was Anambra state governor but he did wonderful well when he relocated to Pluto and develop the planet.

One can't make inter solar journey and governed well without becoming a saint. Those are the qualities his supporters saw in him. He was sent to come and finish what he started in Anambra state in Nigeria.

I don’t know what you people emilakan supporters are still dragging? Okay now that your drug baron is president what has gotten better? Even the electricity you claim has improved theres been no light for weeks now in almost all part of island.you are just a cheap supporter. Nonsense.

https://www.youtube.com/watch?v=Zq1rgG1il_o

BreconHills:


Hi! Please see attached especially the bolded - which I had not seen as of the time I was responding to you. This was my thinking and I believe it will work if it can be sustained. Based on my poor estimation of pent-up demand, I forsee an injection of $1.5-2bn, and that price discovery for the USD will be in the mid to higher $ 600 range. The caveat is that we are in the summer season when foreign school fees and overseas medical procedure demand in USD are high.

You speak of the concept of "pent-up demand" as regards foreign currencies as if it's an off and on season kind of occurrence in this country..

Every other month, forex is in demand, either by students in diaspora or importers in all sectors of our economic existence. When demand abates here, it picks up elsewhere. Far be it from me to play the unpalatable role of a pessimist here, but my deductions are only stemming from what our forex market atmosphere has been over the years.

Like you, I equally pray the sustained efforts of our apex bank towards the recovery of the naira, result in positive outcomes so the inflationary figures can ease off. Being a Nigerian today isn't exactly a waltz in a park of endless greenery.

I will be here in 6 month to assure you that your education is indeed a waste

BoldBrainz:
Shonubi has just removed the rug from under the feet of his employer.

The week Tinubu made the pronouncement of currency liberalisation, he specifically spoke on the unification of exchange rates between the open market and the official FX window. He sounded so cock-screw certain of the terminologies he was reeling out that his minions were applauding with gusto.

Couple of weeks down the line, the disparity in rates between the open market and the FX window is spiralling out of control to the point these clueless people are already dipping hands into the external reserve just to keep up with the FX demands of the market. So, not only are prices of basic necessities blowing through the roof, our reserves have lost over a billion dollars in the space of 2 months.

You cannot seek to put control over the spread or usage of a currency you do not produce, especially in an economy that depends on that very currency. I am not an economist from Chicago University, neither am I in an acting capacity at the CBN, but I have the intelligence to read and study situations and the common sense to acknowledge the truth of a situation.

If the Nigerian economy doesn't crumble in six months, going along this particular trajectory, then I'll know my education was a waste.

BoldBrainz:
Shonubi has just removed the rug from under the feet of his employer.

The week Tinubu made the pronouncement of currency liberalisation, he specifically spoke on the unification of exchange rates between the open market and the official FX window. He sounded so cock-screw certain of the terminologies he was reeling out that his minions were applauding with gusto.

Couple of weeks down the line, the disparity in rates between the open market and the FX window is spiralling out of control to the point these clueless people are already dipping hands into the external reserve just to keep up with the FX demands of the market. So, not only are prices of basic necessities blowing through the roof, our reserves have lost over a billion dollars in the space of 2 months.

You cannot seek to put control over the spread or usage of a currency you do not produce, especially in an economy that depends on that very currency. I am not an economist from Chicago University, neither am I in an acting capacity at the CBN, but I have the intelligence to read and study situations and the common sense to acknowledge the truth of a situation.

If the Nigerian economy doesn't crumble in six months, going along this particular trajectory, then I'll know my education was a waste.

I will quote you in six months time about the bolded.

My question to you is that "Was Buhati not aware of all these sources of money your gov't is pursuing ?"
Just yesterday today, see where we are in the hand of Tinubu

BoldBrainz:


You speak of the concept of "pent-up demand" as regards foreign currencies as if it's an off and on season kind of occurrence in this country..

Every other month, forex is in demand, either by students in diaspora or importers in all sectors of our economic existence. When demand abates here, it picks up elsewhere. Far be it from me to play the unpalatable role of a pessimist here, but my deductions are only stemming from what our forex market atmosphere has been over the years.

Like you, I equally pray the sustained efforts of our apex bank towards the recovery of the naira, result in positive outcomes so the inflationary figures can ease off. Being a Nigerian today isn't exactly a waltz in a park of endless greenery.

Pent up demand is at a historic fuelled by an anachronistic, opaque and emperor like allocation system. This is not the cyclical demand but the result of the foregoing. There is a case known by those who know when banks that did not attend the cbn governors birthday party in Jersey were banned from fx allocation.

BoldBrainz:
Shonubi has just removed the rug from under the feet of his employer.

The week Tinubu made the pronouncement of currency liberalisation, he specifically spoke on the unification of exchange rates between the open market and the official FX window. He sounded so cock-screw certain of the terminologies he was reeling out that his minions were applauding with gusto.

Couple of weeks down the line, the disparity in rates between the open market and the FX window is spiralling out of control to the point these clueless people are already dipping hands into the external reserve just to keep up with the FX demands of the market. So, not only are prices of basic necessities blowing through the roof, our reserves have lost over a billion dollars in the space of 2 months.

You cannot seek to put control over the spread or usage of a currency you do not produce, especially in an economy that depends on that very currency. I am not an economist from Chicago University, neither am I in an acting capacity at the CBN, but I have the intelligence to read and study situations and the common sense to acknowledge the truth of a situation.

If the Nigerian economy doesn't crumble in six months, going along this particular trajectory, then I'll know my education was a waste.

Firstly, Nigeria economy can’t crumble in 6 months, it’s too big for that to happen, that’s just emotion talking. Secondly, we have a funny belief, we think there’s a quick fix for Nigeria, it’s shocking we have people as educated as yourself thinking that way. Thirdly, all you have said doesn’t show your education is a waste, it only shows you are not a fan of tinubu and no matter what he does, you’ll never acknowledge him.

But printing money also cost money

IconicR:
I don't know how else to pacify Nigerians, I have been assuring them that things will normalize soon but these third position mandate claim people will not even listen. Same subsidy that obi swore to remove immediately he gets in(dreams) . let's be patient and I pray minimum wage be increased soon as planned and private sector sanctioned as well.

I thought Tinubu has "hit the ground running"? If he has, why did you now give yourself work to pacify?

lexy2014:


I thought Tinubu has "hit the ground running"? If he has, why did you now give yourself work to pacify?

why are you not sleeping

RHMSTECH:
Firstly, Nigeria economy can’t crumble in 6 months, it’s too big for that to happen, that’s just emotion talking. Secondly, we have a funny belief, we think there’s a quick fix for Nigeria, it’s shocking we have people as educated as yourself thinking that way. Thirdly, all you have said doesn’t show your education is a waste, it only shows you are not a fan of tinubu and no matter what he does, you’ll never acknowledge him.

How does being a fan of Tinubu got to do the state of the nigerian economy?