tundebasic:
E Even if the CBN borrows money to stabilize the naira, it will not work now. The value can drop briefly, but it will still go up due to free floating. Borrowing to stabilize the naira can only work if the naira is pegged/fixed. The official market can be controlled while the unofficial markets will be managed.

Na overwise they worry them,they thought other government before them no get sense or don't have courage like the one they have 'reckless courage ' ,they were listening to voodoo economist ,this is the result, now everything jagajaga, everything scatter scatter

Mccullum:
Call off domiciliary accounts in Nigeria.

The problem will solve with other complement efforts.

How does that fix the problem?

/
Government officials are the ones creating panic in the system. The same way they blamed Abokifx when they ran out of ideas.

/

mrvitalis:

There is no way you can stabilize the naira without borrowing... What you do with the borrowed funds is the issue

Your total national debt is over $100 billion dollars as at 2023.
Makewe start from there and you want to add another $15 billion.
Just get ready to devalue the naira again oo

@dragon2
Basic Economics, Demand, Supply Curve .


@me
If you supply more speculators with illicit naira will buy more. There is so much naira in circulation that came through ways and means by the last regime.

The solution is to cut off their illegal sources of dollars which should have been channeled to productive use.

Let all fx transactions be through banks. Ban BDC.

sycophancy at the highest level. Imagine Chief security adviser meddling in what is totally not his concern. What has Ribadu about the insecurity bedeviling the nation.

michlins:
What business does this one have with the forex situation in a country battling serious insecurity issues?

You have bandits, kidnappers plus crude oil thieves to battle but you leave your job description to fight dollar and naira people

This speculative currency activity by black marketers is a national security issue in any country of the world. It's NOT out of place to have a National Security Adviser get involved in this.

Besides, Nuhu is a former EFCC boss, police officer and a lawyer, so, he understands the negative implications of economic sabotage in any country. It can bring down any democracy and lead to other unintended consequences such as a brutal Civil War.

Useless govt of stupid, senseless, irresponsible, clueless BLAME TRADERS! 💯

baralatie:

Let us assume we have only one currency exchange platform and we do not practised dual currency exchange(no aboki selling currency on the streets,bureau de change canceled,only accredited cbn channel for trade is available)
It becomes important that the govt will be the sole supplier of those dollars to met the demand(this is not possible as govt cannot unilaterally empty it's dollar vault to the public who are literally buying anything imported)
The current system itself is hinged on bdc,banks and importers waiting on the cbn to sell it's dollar reserves(with little organization offloading their own dollar reservess...meaning they want to empty the cbn dollar vault).
It is here that the speculators and racketeers thrive because they know that govt cannot meet the demand and the little dollars in the hands of individuals cannot sustain the cycle.they just push up the prices
Now if in the event the little private domiciliary is locked.Ha they racketeers will shout ope o!
They will just bombard cbn with demand that the cbn itself will be overwhelmed

I salute your analysis, but I'll used your last paragraph to tell you that if racketeers runs to CBN for dollars.

What needed by CBN is to regulate their demands and granting of dollars. This might cause cumbersome services for CBN. I think decentralizing to its branches will make it effective and enhance control.

post=128559040:

One of the solution to what we have on ground,
Then we have more....



The major problems are massive depreciation of naira, rising cost of production and what looks like galloping inflation.
We support most of the measures taken but not the modus operandi.
The provision of palliatives by FG through states was good but the states did not implement the palliatives simultaneously.
Some have not even been implemented till now.
So, the conditions have worsened for many citizens.
There’s a need to check what happens with palliative implementation in troubled states.

More solutions...
Improvement in farming, agriculture and industrial production will solve the problems with financial and fiscal interventions and reduction in security problems.
Then we start working on production with largely domestic inputs.
For exchange rate, there is a need to ban importation of some products relating to food and clothing, go for a moratorium on some debts, and increase oil and gas exports with proceeds to solve debt repayment and servicing with excess as reserves for intervention in the FX market.

Nigeria 🇳🇬 will be great in our lifetime.

We Rise ✔️

Seconded

EKONGKING:
Ban BDC is too difficult to ask.

What we are seeing is run on the currency similar to Argentina in 2000s. When ordinary citizens dont have trust in their currency , they will keep on accumulating dollars .

Happened in Argentina ,USSR, Yugoslavia , Venezuela ,Zimbabwe etc .

People including Politicians ,businesspersons and ordinary people have no faith in Naira .

Unfortunately the worst is yet to come .

If Nigeria does not collapse and disintegrate or become a failed state by 2030 . It will be truly a miracle .

Not 2030, before 2026 all doubts will clear. Vote competent people but some will say no let's vote religion and tribe, here we are

baralatie:

Your total national debt is over $100 billion dollars as at 2023.
Makewe start from there and you want to add another $15 billion.
Just get ready to devalue the naira again oo

Yes u have to devalue to stabilize then float

tundebasic:
E Even if the CBN borrows money to stabilize the naira, it will not work now. The value can drop briefly, but it will still go up due to free floating. Borrowing to stabilize the naira can only work if the naira is pegged/fixed. The official market can be controlled while the unofficial markets will be managed.

You should ask me how the $15 billion would be used

No 1), stop announcing the daily dollar rate. We don't care. We don't trade in dollar. We don't need it. It's putting too much fear and pressure on the people and the reaction is being seen in the economy. Let those who deal with dollars know. Nairaland should as a matter of fact stop telling us the daily rate. We don't care. If $1 is N1, does it make our economy better? Some currencies are far better than the dollar and it doesn't make the economy of the said country better. I am tired of hearing what the dollar is trading. Pls let us be.

Every body is setting up task force to tackle BDC people, e remain fire service to set up their own task force

Mccullum:


I salute your analysis, but I'll used your last paragraph to tell you that if racketeers runs to CBN for dollars.

What needed by CBN is to regulate their demands and granting of dollars. This might cause cumbersome services for CBN. I think decentralizing to its branches will make it effective and enhance control.

I can't speak much on what decentralization of cbn can cause(either good or bad) but regulating the demand for the dollar means there is an active push by government to force/discourage/negate the reason to make an unnecessary demand (this is tricky)
Consumers of the dollar will always have a demand request on all the approved import items most especially when it comes to oil and gas products

mrvitalis:

Yes u have to devalue to stabilize then float

Already we are floating and the r sult is clear

Look
Nigeria has Gold

Let Nigeria use its own God given Gold Reserves to strengthen it's Currency

mrvitalis:

You should ask me how the $15 billion would be used

How you choose to spend the borrowed $15 billion will not change the total value of national debt from over $130 billion to $150 billion at the end of the 2024.you will still need another $15 billion before December sef

Konquest:

This speculative currency activity by black marketers is a national security issue in any country of the world. It's NOT out of place to have a National Security Adviser get involved in this.

Besides, Nuhu is a former EFCC boss, police officer and a lawyer, so, he understands the negative implications of economic sabotage in any country. It can bring down any democracy and lead to other unintended consequences such as a brutal Civil War.

we have more serious issues than forex. You see food insecurity, that's what matters to the 70% of the Nigeria people. Majority of us don't really care about the dollar. We just want to eat and bandits have ensured farmers are not farming.

Naira versus dollar will find their balance when speculators are done speculating. Until then, let's secure our nation first

When it was N780 to $1 that so dem tell us say na one Yoruba boy for UK wey dey run abokifx.com website na him bi the root of the whole problem.

The poor guy quickly deactivated him site, now it is N1800 to $1, dem dey look for another scapegoat when the real problem is themselves.

The FG and SG are the greatest consumers of FX, their purchases vehicles etc na abroad dem dey buy am…..na dem bi the same people who have access to huge free Naira and exchange it for dollar for safe keeping in their houses and warehouses.

Look inward if you want to truly solve the dollar demand problem.

christistruth01:
Look
Nigeria has Gold

Let Nigeria use its own God given Gold Reserves to strengthen it's Currency

The Gold dat the fg and state are looking the other way as if it does not exist

baralatie:

How you choose to spend the borrowed $15 billion will not change the total value of national debt from over $130 billion to $150 billion at the end of the 2024.you will still need another $15 billion before December sef

Firstly u need to understand a few things

Loans like that comes with 10 years period before interest start to count or u start to make repayment

This loans would go to banks at an interest rate of no more than 3% to be given to key sector in areas we identify in import substitution or export products at an intrest rate of no more than 10%

To get the loan you must prove you can produce and imported goods for not more than the landing cost

You can produce exportable goods at a price not more than the average international price

baralatie:

Already we are floating and the r sult is clear

U floated without stabilizing

Now u have to devalue, restabilize then refloat

baralatie:

I can't speak much on what decentralization of cbn can cause(either good or bad) but regulating the demand for the dollar means there is an active push by government to force/discourage/negate the reason to make an unnecessary demand (this is tricky)
Consumers of the dollar will always have a demand request on all the approved import items most especially when it comes to oil and gas products

It's not tricky, it's strategy for measuring and containing speculators or racketeers.

mrvitalis:

Firstly u need to understand a few things

Loans like that comes with 10 years period before interest start to count or u start to make repayment

This loans would go to banks at an interest rate of no more than 3% to be given to key sector in areas we identify in import substitution or export products at an intrest rate of no more than 10%

To get the loan you must prove you can produce and imported goods for not more than the landing cost

You can produce exportable goods at a price not more than the average international price

The bolded is the work of bank of industry and Nigerian export promotion council

They already have their taskfunding handed to them

Now getting $15 billion is only a clear waste for departments that are already funded for such purpose


And yet you will still end up with the same problem of devaluing the naira in addition to increased debts

mrvitalis:

U floated without stabilizing

Now u have to devalue, destabilize then refloat

Destabilize 🙄🤣

Antimandatethie:

Shut the Bleep up chimp

Mynd44 Dominique Justwise.
Rule 2

michlins:
we have more serious issues than forex. You see food insecurity, that's what matters to the 70% of the Nigeria people. Majority of us don't really care about the dollar. We just want to eat and bandits have ensured farmers are not farming.

Naira versus dollar will find their balance when speculators are done speculating. Until then, let's secure our nation first

Indeed, food security is a major aspect of TOTAL security.

This is why CNG-kitted food trucks, trailers, and mass transit buses should have been introduced within the first 5 to 6 months of the emergence of a new administration. Since CNG costs N200/kg, and is way cheaper than LPG, PMS, diesel, etc, the cost of transportation of foodstuffs and people would have been cheaper than even before the removal of subsidy, hence foodstuffs would have been cheaper for Nigerians. But the FG and state governments that were supposed to initiate the CNG project began to drag their feet and ended up complicated issues in the midst of hyperinflation.

Prince Dapo Abiodun had already started the conversion of existing diesel-engined mass transit buses of the state, but suddenly they lost traction and perhaps they were expecting Dangote Refinery to start early production of the various component of crude oil refining.

baralatie:

Destabilize 🙄🤣

Restabilize

baralatie:

The bolded is the work of bank of industry and Nigerian export promotion council

They already have their taskfunding handed to them

Now getting $15 billion is only a clear waste for departments that are already funded for such purpose


And yet you will still end up with the same problem of devaluing the naira in addition to increased debts

Bank of industry is a political bank

Let profit seeking banks handle it that's there job

U don't get the same problem u are solving the fundamental issues

Konquest:

Indeed, food security is a major aspect of TOTAL security.

This is why CNG-kitted food trucks, trailers, and mass transit buses should have been introduced within the first 5 to 6 months of the emergence of a new administration. Since CNG costs N200/kg, and is way cheaper than LPG, PMS, diesel, etc, the cost of transportation of foodstuffs and people would have been cheaper than even before the removal of subsidy, hence foodstuffs would have been cheaper for Nigerians. But the FG and state governments that were supposed to initiate the CNG project began to drag their feet and ended up complicated issues in the midst of hyperinflation.

Prince Dapo Abiodun had already started the conversion of existing diesel-engined mass transit buses of the state, but suddenly they lost traction and perhaps they were expecting Dangote Refinery to start early production of the various component of crude oil refining.

to the average Joe on the street and pa and ma in rural areas, they want results not English explanations of what went wrong or what should have happened.


Unfortunately this government love tales and reeling out policies which they don't back with real actions.

A bigger problem is on the horizon if food insecurity isn't tackled ASAP. Government should as a matter of urgency import basic food and flood the markets.

There are savings from subsidy running into billions