The Aboki and/or BDC will be afraid to buy and keep for excessive hoarding speculative gain because you dont know the next announcement for take up will be lower. So you buy only your demand and the real value of Dollar to Naira will be know.
Tinubu really dealing with so many people without major rancour, because if HE outrightly scrapped the BDC arrangements there will be outcry is some quarters.

routed:


It's going to stabilize between $600 and $650

Lol....Why stop at N600 - N650 to a dollar? Why not stabilize it @ $1 = N1?

Until Nigerians start using their god damn sense, the country will never move forward

Kukutenla:


Learn to read and understand

What I am saying is that we need not go 1900 in the first place. Unifying the rates does not automatically mean you devalue the naira.

So many things were done wrong in a bid to appear different from the previous govt which created so much distortion in the system

Who is bearing the brunt now?

How do they recover?

Long story.

Keep storing dollars.

Ebubu2:

They unified it and then started defending it.

After a while the borrowed dollar they use to defend it will finish and then there will be an increase again in price of dollar say to 1,500-1,700

What do you think sir ?

No, its going to 4500

DeLaRue:


Long story.

Keep storing dollars.

Who are those storing dollars?

You clowns just come at any random person and start poking thoughtless jargons

Is it an average Nigerian like me that stores dollars or the politicians you guys support?

You think 1000naira to a dollar is good for the average Nigerian abi?

You need a brain reset

ignis:
This is just fire brigade artificial stability.

no matter what conclusion we reach. Those guys up there understands better than we do. Would you correct yourself later on when you discover it's not a short-term solution? Do you know what they have on their strategy plan?

clarocuzioo:
Dollar going down is a welcomed development. Its just unfortunate the CBN is using our foreign reserve to defend the Naira.

We are depleting our foreign reserves.

Tinubu simply returned to Emefiele's policies they criticized.

Wake up from your slumber, FG is not and can never subside $ again no matter who is the president. The lower the demand for $ in the market, the more our Naira will appreciate.
Don't also forget Dangote refineries is selling his products in Naira. Once he starts selling PMS, our currency will appreciate further as the demand for $ to import PMS from overseas will vanished!

Omo.. see d way subsidy was brought back in FX…. Hopefully, they can continue defending the ₦ till end of the tenure

clarocuzioo:


Do you even understand what foreign reserve depletion means?

Stop talking like a pessimist as I believe you are not one.
The force of demand and supply is what is controlling Naira vs $ now.

For like one or two weeks ago, demand for $ to import diesel has almost vanished since Dangote started selling his diesel and A1 Aviation fuel and in Naira. This brings down demand for $ a little. We are still awaiting PMS as this will further strengthen our Naira.

Imagine we don't import anything into Nigeria from overseas again, our Naira will almost be on par with $ but we must import one thing or the other.

Then, FG borrows $1.5b to subsidize $ monthly. I and my family enjoy the subsidized $ by FG so much up until the last day but we must not burn down our country for crumbs.

rinzaugustine:
They pumped in borrowed billions of dollars into the forex market how long can they sustain borrowing to stabilize the dollar?

How much did they borrow and how many billions of dollar did they pumped into the forex market?

Hope you people know this is not market forces at work, CBN is simply subsidizing the Naira. But my problem is with all these tariffs they are increasing every day, how will prices come down?

Raylight2:
Panic sales would soon start now

The floodgates to be opened anytime from now

routed:


You are the ignorant one here. Who borrowed to defend naira? Are you the one that help CBN borrow?

If you don't understand the basic economy of fiscal and monetary effects on nation currency, kindly stop from making ignorant comments.

Oga you can lecture me if you think you have the knowledge. How can I e rejoice when they borrow billions of dollars and also use up foreign reserve to bed end naira. It seems you are not even privy the economic issues of this country. Reason why you are quick to praise the rob Peter to pay Paul economic policy of una economic Messiah, Cardoso.

routed:


You are the ignorant one here. Who borrowed to defend naira? Are you the one that help CBN borrow?

If you don't understand the basic economy of fiscal and monetary effects on nation currency, kindly stop from making ignorant comments.

Their hates have render them brainless, how can CBN borrow dollars without due process from the Senate? Such adventure can never be hiding. They are pained because they always want to see the Tinubu led govt failing , so any success recorded will always be tagged fake. Lets have our finger crossed and see how they will keep wailing when what they expect does not happen. Meanwhile their principal is a failure personified, someone that all achievements in 8 yrs is to invest state money into family business of alcohol production, 13 months uninterrupted health workers strike , increase unemployment rate ,counting! How people will be blinded by tribalistic orientation to be pushing for such failure to rule a complex nation like this, is mind poking!

This is the only answer I await. It simply translates to one thing. Thesame old process. The only positive side is Binance is out but there are still alternatives. I

Ebeano49:
Meaning the government has backtracked from floating the naira. Begs the question; why inflict all the pain on Nigerians ab initio?
The current naira appreciation is pure market manipulation by the govt. Fingers crossed the govt can sustain it.

Some people will just sit down at the corner of their rooms and be making speculations without evidence. Someone should pls send evidence of pumping borrowed $ into the forex! When we told you Emefiele messed up the economy u said no , now you are saying cardoso has gone back to Emefiele style. Your hypocrisy stinks. People like you when given power will only worsen the situation.
Cardoso and his team will keep shocking and making you wail!

TheKingIsHere:


Lol....Why stop at N600 - N650 to a dollar? Why not stabilize it @ $1 = N1?

Until Nigerians start using their god damn sense, the country will never move forward

That true value of Naira is within that threshold.

If you understand the effect of the CBN loads of policies rolled out weeks ago, you'll understand.

You shouldn't have asked "why not stabilize at $1=N1" if you understand the monetary policies of the current CBN.

You said the country will not move forward, stop the bitterness, it's really affecting you.
Our economy success train has left the shore already.

rotadeco27:
Some people will just sit down at the corner of their rooms and be making speculations without evidence. Someone should pls send evidence of pumping borrowed $ into the forex! When we told you Emefiele messed up the economy u said no , now you are saying cardoso has gone back to Emefiele style. Your hypocrisy stinks. People like you when given power will only worsen the situation.
Cardoso and his team will keep shocking and making you wail!

Infact, just now, another CBN circular is out banning the use of foreign currency deposit as collateral for Naira loan.

xperiencelove:


Wake up from your slumber, FG is not and can never subside $ again no matter who is the president. The lower the demand for $ in the market, the more our Naira will appreciate.
Don't also forget Dangote refineries is selling his products in Naira. Once he starts selling PMS, our currency will appreciate further as the demand for $ to import PMS from overseas will vanished!

That's $20.7billion pressure for petroleum imports gone

Owon:
Wow! So low and cheap, yet these greedy abokì people will sell it to us @1,300 and above.

Government is responsible for all these inflation and FX instability.

Give the Dollars to banks. Monitor and mandate them to sell to people who needs it.

It's ridiculous that one can't use the naira ATM cards to make any online foreign purchase as it used to be before. Government made access and demand for FX very difficult, yet they want the naira to appreciate.

The naira ATM card is extremely useless beyond Nigeria market and this is the main reason why people are desperate for dollars and will buy at any amount.

Why are you sounding as if you've not had dealings with the banks while trying to secure dollars.

Are they not the reasons people seeks for the dollar outside?

Misterone:
You guys like thinking like kids! So you expect the CBN to be pilling up dollars while people are in need of it? Who saves when his family is hungry! Only a fool does that.

You don't need to be rude to express your point.

What do you know about economics? What caused the Mexican crisis of 1994, the Thai collapse and contagion of 1996, that of Indonesia in 1997, Brazil in 1999 etc? Provide answers

Central banks aren't God. If they mess things up, everyone will die of starvation.

Yes, people need to buy things but not to the point of depleting the reserves. One of the purpose of a floating exchange is to create flexibility in demand for forex based on the quantity available.

If demand is strong, your currency depreciates making it costlier and less affordable, eventually leading to reduced demand for forex..

A weaker currency encourages exports and a desire to earn dollars, which will help add to the reserves.

The demand for forex to "buy things" using your phrase is therefore based on the value of your currency.

Charles Soludo said that the $60bn reserves built during his time in office was by keeping the Naira artificially weak.

In 2012, the IMF advised the then CBN governor to devalue the Naira, in order to reduce pressure on the Naira.

Had he done so, the foreign reserves by 2015 would have been at least $60bn.

rinzaugustine:
They pumped in borrowed billions of dollars into the forex market how long can they sustain borrowing to stabilize the dollar?

My point exactly. When I heard it was billions of dollars borrowed that they're pumping into the fx to back the Naira, my first thought was how do you sustain that. How does that make sense, you can't keep borrowing to sustain the naira because once you stop it will go back up and the millions borrowed would be wasted. Instead the root should be tackled. This is just a temporary fix that would backfire horribly if they don't go about it right

The Naira is becoming very strong against the dollar but very very weak against the commodities in the market.

grandstar:


You don't need to be rude to express your point.

What do you know about economics? What caused the Mexican crisis of 1994, the Thai collapse and contagion of 1996, that of Indonesia in 1997, Brazil in 1999 etc? Provide answers

Central banks aren't God. If they mess things up, everyone will die of starvation.

Yes, people need to buy things but not to the point of depleting the reserves. One of the purpose of a floating exchange is to create flexibility in demand for forex based on the quantity available.

If demand is strong, your currency depreciates making it costlier and less affordable, eventually leading to reduced demand for forex..

A weaker currency encourages exports and a desire to earn dollars, which will help add to the reserves.

The demand for forex to "buy things" using your phrase is therefore based on the value of your currency.

Charles Soludo said that the $60bn reserves built during his time in office was by keeping the Naira artificially weak.

In 2012, the IMF advised the then CBN governor to devalue the Naira, in order to reduce pressure on the Naira.

Had he done so, the foreign reserves by 2015 would have been at least $60bn.

This is not Mexico or Brazil or whatever! This is Nigeria. Savings comes when there's a suplus not when there's need. Yes a bigger FX reserve will be better but not at the detriment of the economy.

LegendHero:


They don give up.

Cardoso don show them pepper. Which mouth they wan use say na propaganda when in the next few days dollar go show closer to that price.

Even for WorldRemit now, na N1173 to the $

why would the FR deplete by 900m dollars though if he isn't defending with it?

LordAdam16:


Too late.
Allow him to peg the rate at whatever he sees fit.

He knows he cannot defend any rate he sets.
Whether it is 1200, 900, 500, 200 or N1:$1.
The goal is to drive it as low as possible to set a deep floor for the naira before the inevitable depreciation resumes.
This time I expect there to be a touch of speculative attack.

-Lord

😂😂😂

Justmesagi:
why would the FR deplete by 900m dollars though if he isn't defending with it?

Use your brain abeg. Since 27th Feb that this started, average of the 1588 BDC have received let’s say $40k each.

Thats just like $64milliom. So how does that translate to $900m from the foreign reserves?

Do you know Nigeria has obligations we pay from that same reserve? I just laugh at how you guys come out to claim stuffs without any fact.

Why do we even have BDCs ?

LegendHero:


Use your brain abeg. Since 27th Feb that this started, average of the 1588 BDC have received let’s say $40k each.

Thats just like $64milliom. So how does that translate to $900m from the foreign reserves?

Do you know Nigeria has obligations we pay from that same reserve? I just laugh at how you guys come out to claim stuffs without any fact.

Yes we had Foreign debt we paid from the reserve. I don't want to argue blindly. I will try and tally the figures and timeframe first.

And I only asked to understand. You don't have to be rude.

Misterone:
This is not Mexico or Brazil or whatever! This is Nigeria. Savings comes when there's a suplus not when there's need. Yes a bigger FX reserve will be better but not at the detriment of the economy.

So the Naira has never been devalued like the Mexican Peso or the Brazilian Real? Nigeria has never experienced an economic crisis like these two countries?

How is properly managing the FX reserves a "detriment to the economy?" I bought forex at 1900, so I should even take your side.

You lack experience on this issue.

Justmesagi:
Yes we had Foreign debt we paid from the reserve. I don't want to argue blindly. I will try and tally the figures and timeframe first.

And I only asked to understand. You don't have to be rude.

Okay, I’m sorry for being rude.

Yes, you can check the figures.