ThiagoKid:
If truly Nigeria was subsidizing the naira for some time now, then the best thing is to stop the payment of the $1.2 billion/month.

I will give Tinubu a benefit of doubt for about a year to see whatever he has to offer. Somewhere inside me, I am forced to believe he still has what it takes to put the country on track, a bit.

My guy he can not do anything , No country can move forward with corrupt people around the government . It is impossible . People don't change , it takes a highly passionate sets of people to govern a country or organization well.

masseratti:
Crap, this move will just make naira to hit 5000 to a dollar by February... The only way out is to truly deregulate the FX market ban the I&E window, av said it before, without that we going no where, the naira will keep on diving if the official rate is not abolished and let the naira truly float... If they dint do this all.. I repeat all of us will lose in this economy both rich and poor right from Dangote to me poor man on the street.. May God make me rich one day too. Abolish the official rate and do all government business in the parallel market rate.. Naira will not only stabilize instantly.. It will appreciate by nothing less than 35%under two months, this our ministers and CBN governor are just speaking grammar.

I feel you bro. Amen to the bolded.

I find myself still puzzled by the situation. Initially, I was under the impression that the official exchange rate had been discontinued. However, when I check the Naira exchange rate on Google, it remains significantly lower than that of the black market.

This implies that certain individuals are still benefitting greatly from the disparity between the official and black market rates. We have yet to truly achieve a floating exchange rate, and it seems the CBN governor is employing complex language without substantial progress.

This predicament left me disheartened yesterday. In June, I lent someone in Canada $1,700 CAD, which was equivalent to N977,500 at the exchange rate of N575/CAD Dollar. They now wish to repay it at N890/CAD Dollar, which amounts to N1,513,000. The stark contrast is undeniable. Our Naira savings and investments continue to depreciate.

It appears those profiting from this situation are unwilling to let it subside easily. May God aid Nigeria in overcoming these challenges.

All these big grammars about Forex reforms will still end up failing if the federal government does not stimulate local production and export in order to earn more foreign exchange. Our refineries are still laying fallow and no meaningful investment has been made to improve on our power. We keep dancing around the major issues, and dishing out rhitorics that ll take us no where.
A country grappling with a lot of economic crisis and still borrows billions of dollars for frivolous projects like buying flashy cars for law makers and unrealistic money transfers to domestic house holds. Projects that has nothing to contribute in improving the situation we have found ourselves. This regime has absolutely nothing meaningful to offer, let not come and be applauding their nonsensical talks. They are all make believes or showmanship. All they care about is there pockets. Nigeria is doomed for another 8years of destructive leadership.

micxwell:
I feel you bro. Amen to the bolded.

I find myself still puzzled by the situation. Initially, I was under the impression that the official exchange rate had been discontinued. However, when I check the Naira exchange rate on Google, it remains significantly lower than that of the black market.

This implies that certain individuals are still benefitting greatly from the disparity between the official and black market rates. We have yet to truly achieve a floating exchange rate, and it seems the CBN governor is employing complex language without substantial progress.

This predicament left me disheartened yesterday. In June, I lent someone in Canada $1,700 CAD, which was equivalent to N977,500 at the exchange rate of N575/CAD Dollar. They now wish to repay it at N890/CAD Dollar, which amounts to N1,513,000. The stark contrast is undeniable. Our Naira savings and investments continue to depreciate.

It appears those profiting from this situation are unwilling to let it subside easily. May God aid Nigeria in overcoming these challenges.

am telling u... It's getting much more horrendous... Those guys are just saying gibberish.. Thank God you understand very well what am talking about.. Allow the naira to float freely, thats the only way to keep speculators.

FreeStuffsNG:
Speculators currently behind the unpatriotic and criminal arbitrage are already trapped with the executive orders and will get burnt las las ni

They won't. They've made their billions already. I heard someone even bought an aeroplane. We need to start punishing crime - and we're not ready for that. So even if you block one way, they'll just find another one. Sorry, but I'm wearing my pessimist hat today.

Noise making
All mind games

We are heading for 1500 by next week

Offpointng:
This is a wrong move by the FG. we Igbos want the Naira to continue on a free fall so we can ask our Yoruba people how far?? hope the increasing dollar will continue to favour them and their family?

Dem never see anything yet

Who tell you say $ increment favours Yoruba,it favors those in Abroad when they sent some $ or € @ the point of exchange it's huge & this is bitting hard on the economy even those selling pepper will tell you $ is on high side,we won't get it right till wil rate our own # more than $ another reason why exchange rate margin is this wide is because the former President uses it to favor his people the aboki that changes $ those guys make much gain during PMB regime.the problem we are in today no be today it started so it's a matter of patience things will work out fine by the grace of God

FreeStuffsNG:
Speculators currently behind the unpatriotic and criminal arbitrage are already trapped with the executive orders and will get burnt las las ni

They want to keep on speculating , hype the overvalued street value of USD and call it parallel market price or projection. Smh. Eyin obaiye je lo ma re.

This current FG will not go borrowing money or use hard-earned forex inflow to fight against the overvalued US dollar on the streets. You all will get burnt las las.

Those being deceived to keep hoarding forex will get burnt severely las las. It's laughable ignorance when poorly educated people who have almost 100% of their day to day expenses in naira still go and hoard forex and crowd out those who genuinely need it. If they don't get burnt, no defence of the naira will. Not even EFCC that Mr Emefiele kept sending after them will make them stop.

I am 100% in support of the steps FG through CBN is taking to allow free float to determine our real aggregate demand till those unpatriotic elements are burnt by real market forces.

God bless President Bola Ahmed Tinubu. God bless Mr Cardoso. God bless Nigeria for ever! Check my signature for free stuffs!

Propaganda can never save this government

xandy84:
Falling Naira reflect the present state of Nigeria economy. Take $$ out if the equation and ask how much stuff can you buy for 1000 naira? There is BDG everywhere in the world and their currencies still not on free fall.
Nigeria economy is import dependant and and as long as that remains, the value of naira will be volatile cos people will always need $$ to import basic stuff.
Another example is value of $$ to South Africa rand and Japan yen. 19 rand makes a 1$ while 150 yen makes a dollar. Japan is the 4th largest economy while South Africa is 36th. The value of a currency to a dollar is not the measurement of such currency but what the currency can buy and that takes me back to my first question, how much stuff can you buy with 1000 naira in Lagos?

You are saying what you know absolute nothing about, you can have your hair cut with 1000 in Lagos, while an average hair cut in US range from $10 - $200. You can have a moderate meal with 1000 in Lagos, you can't have the same quality of food with equivalent of $1 in USA. If we are to use your analogy and the current abnormal exchange rate to dollar, an hair cut in Lagos would goes as high as #70,000, while a moderate plate of food would go for 10,000. Besides, the two countries you gave as example imports more than Nigeria, in 2021 alone, Nigeria export goods worth about $2.2 billion to South Africa, while we only import about $570m from same South Africa. No where in the world you will see BDG operating like what we have in Nigeria. It is the work of financial experts and strictly regulated in developed countries. Have you ever ask yourself why Nigeria is strongest economy in Africa but has one of the weakest currencies in the same Africa?

Contrary to our popular beliefs, Nigeria is not really an import dependent country compare to countries that imports basically everything including foods. Nigeria produce about 90% of her basic needs especially foods. Therefore, the abnormal fall of Naira is not the reflection of our economy but artificial causation by irrational demands.

Offpointng:
This is a wrong move by the FG. we Igbos want the Naira to continue on a free fall so we can ask our Yoruba people how far?? hope the increasing dollar will continue to favour them and their family?

Dem never see anything yet

Nigeria is not Biafra. Go and develop your republic to favour you and your family

This people are jesters.
The problem of Naira/Dollar is not just speculation but demand and supply.

If you like take the exchange to the moon, if Supply don't match demand, there will be problems.

Also, they are not even talking about corruption in the oil business, over bloated and unnecessary government spending etc.

Same way they killed Aboki FX.

FreeStuffsNG:


https://businessday.ng/news/article/775395-naira/

Long overdue. I have been wondering why dollar cash or note are in Nigeria streets. Do we spend dollars here? In fact this will kill dollar hawking and scarcity. Go ahead FG.

danilmo:


U started as if u have something reasonable worth saying to have countered him like that. U self worst

You can't even gather English words together comprehensively. . Pele. . We know you already. Have you received your payment today?

Obakoolex:
So many ignorant people with no simple idea of what is been talked about will still come here to say rubbish

Because everything they've been saying has not yielded anything.

Only fools doubt proofs
And only fools believe without proofs

Shikena:
Those mocking Nigeria today are guaranteed to face shame as the steady growth will start manifesting in a matter of months. They will shift goalpost as usual when the time comes.

^^^


I wouldn't trust an economic policy adviser who uses words like 'manifesting'.

Solidex:
All these big grammars about Forex reforms will still end up failing if the federal government does not stimulate local production and export in order to earn more foreign exchange. Our refineries are still laying fallow and no meaningful investment has been made to improve on our power. We keep dancing around the major issues, and dishing out rhitorics that ll take us no where.
A country grappling with a lot of economic crisis and still borrows billions of dollars for frivolous projects like buying flashy cars for law makers and unrealistic money transfers to domestic house holds. Projects that has nothing to contribute in improving the situation we have found ourselves. This regime has absolutely nothing meaningful to offer, let not come and be applauding their nonsensical talks. They are all make believes or showmanship. All they care about is there pockets. Nigeria is doomed for another 8years of destructive leadership.

Thank you.
I have no idea what fiscal policy is, but I keep asking; if we are able to export non-oil products to increase the fx, and sorts out things we export through local production, would there still be problem?

Abi, what is all those grammar and English for exactly.

LikeAking:
Nothing go happen.

many things go happen,na people wey know book dey there now,no be dumb head wey no fit spell his name for 8years with his dummy tribemen,like bulls in china shop bulldozed naija economy.

PARADIZEPRIEST:
many things go happen,na people wey know book dey there now,no be dumb head wey no fit spell his name for 8years with his dummy tribemen,like bulls in china shop bulldozed naija economy.

No be book work mata..

Nothing go happen..

Make we bet?

imbless:

Bro Nigeria don't have enough fx to back up USD ETF, so this won't work at all because a Nigeria can't create dollar out of thin air.

^^^
Tell them!

Fujiyama:


^^^
Tell them!

I will suggest you do a bit of more research into ETFs and how they work.

FreeStuffsNG:
Speculators currently behind the unpatriotic and criminal arbitrage are already trapped with the executive orders and will get burnt las las ni

They want to keep on speculating , hype the overvalued street value of USD and call it parallel market price or projection. Smh. Eyin obaiye je lo ma re.

This current FG will not go borrowing money or use hard-earned forex inflow to fight against the overvalued US dollar on the streets. You all will get burnt las las.

Those being deceived to keep hoarding forex will get burnt severely las las. It's laughable ignorance when poorly educated people who have almost 100% of their day to day expenses in naira still go and hoard forex and crowd out those who genuinely need it. If they don't get burnt, no defence of the naira will. Not even EFCC that Mr Emefiele kept sending after them will make them stop.

I am 100% in support of the steps FG through CBN is taking to allow free float to determine our real aggregate demand till those unpatriotic elements are burnt by real market forces.

God bless President Bola Ahmed Tinubu. God bless Mr Cardoso. God bless Nigeria for ever! Check my signature for free stuffs!

I love this seriously.

Babanah:

I will suggest you do a bit of more research into ETFs and how they work.

^^^
Perhaps you can educate me. I am here to learn.

Will this ETF be guaranteed by bank deposits or not?

In practice, how do you differentiate between speculators and those with 'genuine' need for USD?

NewDea4:


So that CBN can air them when they try to redeem...

You should be able to see why governments need to be trustworthy by now, Nigerian government is a criminal enterprise and you'd be a fool to rely on them

An ETF does not work that way my friend. Take a Gold ETF, you do not go to the Provider to collect your bullion or ask to inspect their vaults. Technically you are able to redeem your ETF at a price close to the value of gold in the metals market.

Fujiyama:


^^^
Perhaps you can educate me. I am here to learn.

Will this ETF be guaranteed by bank deposits or not?

In practice, how do you differentiate between speculators and those with 'genuine' need for USD?

My friend l’m also here to learn. Speculators will buy dollars and keep under their pillow. They are only trying to hedge their risk. They have no interest in utilising the dollars purchased other than selling at a future date.
An ETF will help by saying to them, my friend no need to keep dollars in a safe or under your bed. Simply buy units of the ETF which will mirror the NGN/USD rate. Physical dollars will be left for those who need them. So it’s a win win situation.

The moment I read "Nigeria produce 90 per cent on her basic needs" I realized no point replying. Even US does not produce 90 per cent of her basic needs. Have a wonderful time out there.

yemmit90:


You are saying what you know absolute nothing about, you can have your hair cut with 1000 in Lagos, while an average hair cut in US range from $10 - $200. You can have a moderate meal with 1000 in Lagos, you can't have the same quality of food with equivalent of $1 in USA. If we are to use your analogy and the current abnormal exchange rate to dollar, an hair cut in Lagos would goes as high as #70,000, while a moderate plate of food would go for 10,000. Besides, the two countries you gave as example imports more than Nigeria, in 2021 alone, Nigeria export goods worth about $2.2 billion to South Africa, while we only import about $570m from same South Africa. No where in the world you will see BDG operating like what we have in Nigeria. It is the work of financial experts and strictly regulated in developed countries. Have you ever ask yourself why Nigeria is strongest economy in Africa but has one of the weakest currencies in the same Africa?

Contrary to our popular beliefs, Nigeria is not really an import dependent country compare to countries that imports basically everything including foods. Nigeria produce about 90% of her basic needs especially foods. Therefore, the abnormal fall of Naira is not the reflection of our economy but artificial causation by irrational demands.

Acekidc4:
People should give Tinubu time, he will surely perform and do wonders. You all will thank him later. Things are really bad, we all know but it won't be for long.

Give him time till them die finish?

Dollar specualtors in Nigeria hoard dollar, it's one of the reasons why dollar keep going up. Why can't government deal decisively with those abokis selling dollars on the streets?

Babanah:


My friend l’m also here to learn. Speculators will buy dollars and keep under their pillow. They are only trying to hedge their risk. They have no interest in utilising the dollars purchased other than selling at a future date.
An ETF will help by saying to them, my friend no need to keep dollars in a safe or under your bed. Simply buy units of the ETF which will mirror the NGN/USD rate. Physical dollars will be left for those who need them. So it’s a win win situation.

^^^
Interesting proposition. Seems similar to the dollar certificate idea proposed by the late Ed Boyo? and some members of the Guardian editorial team years ago.

I would like to know how it will work in practice though. Once you have dual rates, arbitrage opportunities will present themselves. There will always be an incentive for those who need physical dollars (as you put it) to eventually go rogue and play in the ETF. More important...the supply gap in the genuine market will still remain. How will you bridge that gap?

Will the currency exchange be privately capitalized, run and funded? And will the underlying dollar deposits be lodged with the CBN or will commercial banks act as the custodians?

Babanah:

An ETF does not work that way my friend. Take a Gold ETF, you do not go to the Provider to collect your bullion or ask to inspect their vaults. Technically you are able to redeem your ETF at a price close to the value of gold in the metals market.

Who guarantees the market? The same thieving CBN

EcoNews:
Same you that is monitoring another Nairalander is asking if the perosn no get job ...😂😂😂. Nothing perosn no go see from foolish obidient on Nairaland.

U dey reply me by 1a.m midnight, get a life and be useful to yourself and family. Stop stalking nairaland for posts

bentenny:

Firstly,his current 5 months are far worse than Buhari's 100 days in office!
Secondly,ensure that your cerebrum is properly connected before replying me!
Lastly,learn to mind your business or indulge in wakadotcom if you have nothing logical to contribute!
I could have asked you to name two things Tinubu has done to impact positively on the economy but that will be a long stretch for your weary cerebrum to decipher....

😄😄😄😄😄😄 Suffer don wire dis one head. You want Tinubu to perform magic in 5 months to undo 4+8 years of maladministration. Pele.

xandy84:
The moment I read "Nigeria produce 90 per cent on her basic needs" I realized no point replying. Even US does not produce 90 per cent of her basic needs. Have a wonderful time out there.

Argue with fact and stop comparing USA with Nigeria. Tell us which basic foods Nigeria don't produce or importing in abundance. Do you even know how much of metric tons of Garri, beans, yams, red and veg oils, nuts, local rice, veg seeds, animal products, etc Nigerans are exporting to Europe and US in a single financial year. Stop downgrading your country or feeling inferior, we have no home other than this country.

That is how some of you are quick to compare dollar with what people earn in Naira in Nigeria as if dollar is our legal tender.

If Japanese and South Africans are that greedy like us here by keeping dollar for arbitration purposes, their currency wouldn't have been strong against dollar despite importing more and exporting less than us.