gbemishile:

Ure crying and wailing too much on a man who isnt regarded as ur president.

SocialJustice:
People who bought dollar above N1k to hoard are about to lose massively.

grandstar:
My worry is whether there'll be forex to service new obligations.

What steps are the CBN and the finance ministry taking that new inflows of dollars come so as to fill up the foreign reserves to at least 3 months cover?

My worry is that the present loose monetary policy by the CBN will create a situation where demand for FX will always be greater supply.

SoNature:
I hope they aren't borrowing it or emptying Nigeria's foreign reserves to clear the backlog. Nigeria is struggling with FX, but the president plans to splash millions of dollars buying a yacht.

SocialJustice:
People who bought dollar above N1k to hoard are about to lose massively.

nedu666:


Oga abeg does it mean Nigeria is not making shishi from crude oil even at above $80 a barrel

LordAdam16:


Well, the reserves stopped shrinking mid October.
That'll obviously reverse after the latest intervention.

Our inflow from crude sales is fuzzy.
How much we're producing.
The discounts.
What percentage is earmarked for pending obligations (like the crude oil swap agreement).
All of those are hard to make out if you're not an insider.

-Lord

optimusprime2:


You have a solid point.

LordAdam16:


They leaked to the press that they'd receive funds this week from foreign lenders and start clearing the backlog.
They made this inaccurate disclosure because they had to stem the drop in the parallel market.

If this week had ended without any action on the backlog, it'd have led to a surge next week.
That's why they're tapping into the reserves.
Preliminary reports state they took out $1B.

I guess they'll stagger it every two weeks or thereabout until they receive the funds which they'll then use to plug the leaking reserve.
Meanwhile the downward pressure on rates will hold.
Ensuring a near-term band of 900-1100.


All of this is contingent on those funds coming in before the end of the year.
If they don't, we'd have a negative net reserve and rates will crash with a vengeance.
It'd have been great if the Dangote Refinery had commenced gasoline refining.
But while it may yet kick off before the end of the year. It'll take a while to ramp up.
Most of our crude is earmarked for export to secure prized $.

The CBN is trying to restore belief and confidence in their capacity to meet institutional obligations.
To that end, this is helpful.

-Lord

lionshare:


You have no business discussing this topic if you do not know how much oil we are producing. There is nothing fuzzy about it our production has been marginally increasing for the past few months. Again you are pushing your opinion with no fact.

lionshare:


You have no business discussing this topic if you do not know how much oil we are producing. There is nothing fuzzy about it our production has been marginally increasing for the past few months. Again you are pushing your opinion with no fact.

VULCAN:
You know nothing about the game.

Nobody who buys and holds dollar can lose.

There are no fundamentals to back a permanently low exchange rate.

Nigeria has destroyed its SMEs so there are no tangible exports.

Crude is not enough as all of that gets siphoned by those in power.

No country can maintain its currency value without exporting more than it's importing.

None.

Under Tinubu dollar will get to N2k because he has no economic blueprint outside taxation and when the people can no longer earn what do you tax?

seborrhic:

I detest Tinubu because see him as another utterly corrupt man hyped up by propaganda of lies about not just his educational history,but his capacity,but anyone residing in Nigeria,that does business and earns income in Nigeria,should not wish that the horrifying depreciation in the value of the ₦ continues and would so wish that Tinubu revives the economy.
The effects,even at this ₦1000/$1 are already devastating all round.What happens if it continues getting worse!

Calitoscassius:
No, i am arguing realistically not hopping or wishing unlike you. How much was it before now? You call 1300 progress?.

Post that forex market informations on here let's all read for ourselves. Don't keep speculating

You and I will remember this conversation hopefully by January 2024 when your naira will hit 3000 to $1

Good luck!

Gajagojo:


It is better you stay silent

Foreign reserves are not savings as many of you ignorantly believe and they are not "spent"

It is simply beyond your brain powers
When you see the word RESERVES
You ignorantly think they are savings that can be spent

That is not the case

Once again just admit you do not understand the issues and be silent

When the CBN settles Forex obligations it is exchanging forex for Naira and NOT SPENDING it

The Naira is simply a debt of the CBN and foreign investors are holding NAira set at a certain exchange rate contract.

That is why it is called BACKLOG. People have a contract with the CBN to take back its Naira
at a fixed rate . The CBN does not have the dollars to take back its Naira and that is why the Naira is crashing.The reserves are CBN ASSETS while the Naira is a CBN LIABILITY
Th fear is foreign reserves cannot cover all the naira that the CBN has been printing the longer it takes to settle the higher the exchange rate

obi58:


Read what you earlier wrote before this diatribe. Don't they contradict themselves?

It is the CBN that owns and keeps foreign reserves and so if the CBN is owing any backlog it will pay from its (The CBN's foreign reserves)

This is what you wrote.... So in trying to sound smart you ending up stupidly lecturing yourself about the foreign reserves. This is what happens when you write from a brain infused and eroded from excessive alcohol intake.

In one hand you claim CBN can PAY from their foreign reserves to cover backlogs then on the other hand claim that these are not savings that can be spent.

Take it easy on the alcohol. Drinkers are liable to die young.

Ikaeniyan0:
it was almost crossing over #1320 before, but now is falling. The government is on track, I hope they keep on the good work

Calitoscassius:
I asked how much it was last year. From how much it was last year to 1320 that is progress? Yea! the government are really on track on track to destruction and oblivion

Ikaeniyan0:
How much it was last year does not matter.

Focus on the thread or create your own thread about how much it was,last year

Hez143:
sell dollar now!!

SoNature:


Every competent government works hard to grow its foreign reserves, not spend from it. If former presidents who came before Tinubu started spending that money, what would have Tinubu met?

Oops! I guess he didn't promise Nigerians anything; he's only enjoying his turn and has hired tons of online scallywags to defend his rascality.

Gajagojo:

What is the contradiction?
Your problem is gratuitous belligerence and illiteracy
The CBN is redeeming its paper/debt(Naira) by exchaging dollars for naira

Kindly educate the forum HOW that is spending?
Entities like Emirates Airlines hold billions of Naira on forward contract that the CBN is contracted to redeem based on a futures contract at a specified rate
I am not here to educate you about futures contract or how reserves work

You don't know and should keep quiet

SocialJustice:
People who bought dollar above N1k to hoard are about to lose massively.

LordAdam16:


I ignored you the first time.
Please avoid me.

If I ask you to tell me how much NNPCL sent to the Federation Account last month as crude oil net income, you'll start stammering.

That's how you asked the stupid question about the leak that put inflow of the borrowed funds to start this week. There it is in black and white. https://www.thisdaylive.com/index.php/2023/10/27/fg-moves-to-securitise-nlng-dividends-for-7bn-cash

If you're ignorant, try to seek out information independently. Not become a public irritant.
I'm not responsible for your education. You're a grown man.

Now if you'll excuse me...

-Lord

LordAdam16:


I ignored you the first time.
Please avoid me.

If I ask you to tell me how much NNPCL sent to the Federation Account last month as crude oil net income, you'll start stammering.

That's how you asked the stupid question about the leak that put inflow of the borrowed funds to start this week. There it is in black and white. https://www.thisdaylive.com/index.php/2023/10/27/fg-moves-to-securitise-nlng-dividends-for-7bn-cash

If you're ignorant, try to seek out information independently. Not become a public irritant.
I'm not responsible for your education. You're a grown man.

Now if you'll excuse me...

-Lord

Calitoscassius:
Oh! It doesn't matter? i am not surprised at your ussual response, it is always the same redundant response, if it is not the topic is not about it, it is it doesn't matter or create your own thread. always hopless response.


Please, don't tell me what to do or what thread i should focus on or how i should comment. I don't take orders from you, last time i checked this site doesn't belong to you. If you cannot answer my question that is fine, but don't disrespect me, i have not disrespected you since this silly arguement between you and I.


How much it was last year may not matter to you but it matters to me and other people.

lionshare:

Here is a link to oil receipts in September 2023

https://businessday.ng/energy/oilandgas/article/nigerias-crude-oil-revenue-soars-by-%E2%82%A6274bn-in-september-on-improved-output/?amp=1

I asked for a source of your acclaimed leak you provided an article which reference a public statement by the president. Perhaps you need to read through the article; how on earth is a statement credited to the president still a leak?

obi58:


If you're positing that the CBN fulfils it's fx backlogs from the same foreign reserves that you say it is not spending.

Will you keep quiet?