Iamgrey5:
True value or "Fair value" of naira is at rate CBN is able to add to the foreign reverse and defend the Naira at the same time without borrowing to do so.

Alot of expact have put that at 900 Naira to a dollar.

Emefile was borrowing money to subsidize the Naira and keep it at an artificial rate. Hence, we don't know how bad the economy has gone.


CBN are the one in control of 80% of the foreign reverse inflow into the country so they will have to intervene in the market from time to time.

Epistasis:
The true value of naira to a dollar should be around #700 according to Wale Edun mid last year. Add one to two, it shouldn't be more than #900 to a dollar.

predictor1:
So you can not show us where you saw the authorities say naira would crash further when it was at #1900. Your hatred for Nigeria and the president will kill you sooner than you think.

Iamgrey5:
Emefile was subsidizing the Naira.

Selling it at value that is considered lower than the fair value and he was borrowing heavily to do so.

crestedaguiyi:
English is the problem.

Emefiele was subsidizing while cardoso is intervening .

What have we started producing that we were not producing.

They have about 30 cargos awaiting for buyers yet the naira is rising , non oil export has not risen significantly. I really would like to know what the commercial banker is doing differently from his predecessors

Either there is something going on or something was going on but has stopped

Ofunaofu:
The above title is a result of the current happenings with regard to the naira. 

In February this year, when the Naira crashed to an all-time high in it's history, exchanging at N1900 to a dollar and even approaching N2000 to a dollar at the black market, Nigerians were screaming, shouting, and telling Tinubu that his economic policies were hurting the Naira. The defense put up by Tinubu, the CBN governor, their supporters, Bulaban, Agbadorians, and minions was that the naira was finding its true value. Though the naira has regained strength, they have now turned around to accuse other Nigerians of being happy when the naira crashed. What a confused set of humans, I must say. 

They also said that the rate of N1900 to a dollar wasn't the true value of the naira. That the naira was going to crash more to reach its true value.
In fact, in the words of the CBN governor, Mr. Cardoso, the naira was undervalued at the rate it was exchanging. It was going to crash more.

They accused Emefiele of so many things, one of which was that he was illegally using our foreign exchange reserves to defend the naira to arrive at below N760 to a dollar it was exchanging at the black market during his time as CBN governor.

Today, the naira has regained strength from N1900 it was exchanging in February to between N1070 and N1120 for a dollar. With efforts being made for the naira to regain more strength

So, I ask again, what's the true value of the naira? 

Modified

CilicMarin:
Stark illiterate:

You don't even know what it means by the line: "Naira is undervalued".

I stopped reading at that.

Bloodykiller.,..go back to school.

DMerciful:
Show source of your info else its beer parlour gossips

DMerciful:
Emefiele cannot borrow money to do that. Prove it!

If you wanna defend failure, go ahead without making it seems Emefiele was responsible for Bubu's ineptitude.

APC met dollar below N200 so why has the APC not been able to bring down $ for 9yrs below N200?

SmartyPants:


You are one thoroughly bush man!

Undervalued means it is trading a t a value below its real value. Meaning it is expected to climb not fall.

Where you go school??

Iamgrey5:


https://www.reuters.com/article/idUSL8N39S4VT/

I hope you know how to read and understand business terminologies.?

Ofunaofu:


What is the value?

An unthoroughly bush man

Iamgrey5:


https://www.vanguardngr.com/2015/04/cbn-spends-4-7bn-to-defend-naira/amp/

SmartyPants:


The value lies in the region of #600 - 900.

DMerciful:
Nowhere in the report did it says the borrowed money was used to defend the naira. You're making things up

DMerciful:
Cardoso is doing exactly the same thing!

Iamgrey5:
Cardsoso is not doing exactly the same.

Hence, your currency was allowed to fall to 2000 naira before CBN will start intervention in the market.

The CBN now wants metrics like Market forces i.e (equilibrium of supply and demand), the rate at which CBN can also defend without borrowing to determine the new dollar/Naira rate.


It's no longer artificially set at a given price where they have to defend it recklessly.

Iamgrey5:
Extract from report sir


The central bank also reported borrowing $7.5 billion from U.S. banks JP Morgan and Goldman Sachs by pledging securities, and entered into 30-day forward contracts totalling 3.15 trillion naira in 2022

DMerciful:
You're gaslighting yourself bro. Cardoso is doing exactly the same thing. When Cardoso sells $ at a certain price, thats fixing $ at that price, all other things you're saying is verbiage

DevilsEqual:


He explained to u using basic economics terminology and to counter him, U just went straight to repeating the vague and unrelated stuffs you've been saying since morning

DMerciful:
You're gaslighting yourself bro. Cardoso is doing exactly the same thing. When Cardoso sells $ at a certain price, thats fixing $ at that price, all other things you're saying is verbiage

Iamgrey5:
I really doubt you know anything about economics

Cardsoso sells at 1150 but the real market settles around 1050 naira. That is what is called market forces determination of price( it shows demand is lower than supply)


The moment Cardsoso sells at 750 but the reaction in the market is to sell at 753 Naira to Nigerians, That will simply mean supply and demand of dollars in the Nigerian economy is at almost or at equilibrium.

This is a complete departure from Emefile' policy who fixed the rate at 450 while the real market kept tumbling upon to it got to 750 naira.

The 300 naira that is in the middle is the subsidy CBN was paying on the Naira, So he was borrowing to cover the 300 Naira that only few Nigerians benefit from.

DMerciful:
Anything above $216 APC met it is unacceptable! So far Emefiele performed better because exchange rate was around N500.

Whatever money you think Cardoso is saving is being looted by Tinubu and Gbajabiamila so it doesnt impact the common man

Iamgrey5:
Exchange rate was around 700 to 800 before Emefile's departure without the subsidy.

That is exactly where it's heading again.

Nigeria oil production has fallen from the close to 3 million barrels in year 2015 to 1.5 to 1.7 and price of crude oil is not at 100 dollars per barrel as it was in 2015. So I don't know how you want CBN governor to return the rate to 250 to a dollar.

The Nigerian budget has also grown without substantial growth in TaX income and GDP.

3exe3:
Does this mean the true value is nt a constant

Ofunaofu:

ObiPandora:
As value of any currency been constant since you start learning about foreign currency ? If you know of one name it.

Donaldoni:


Is there a NGN300+ gap between the official market and the black market

Has the rate ever been lesser at the black market than the official market

predictor1:
They talk like stupid illiterates. Even the dollar today has lost 40 cents against the 2010 dollar.

Ofunaofu:
The above title is a result of the current happenings with regard to the naira. 

In February this year, when the Naira crashed to an all-time high in it's history, exchanging at N1900 to a dollar and even approaching N2000 to a dollar at the black market, Nigerians were screaming, shouting, and telling Tinubu that his economic policies were hurting the Naira. The defense put up by Tinubu, the CBN governor, their supporters, Bulaban, Agbadorians, and minions was that the naira was finding its true value. Though the naira has regained strength, they have now turned around to accuse other Nigerians of being happy when the naira crashed. What a confused set of humans, I must say. 

They also said that the rate of N1900 to a dollar wasn't the true value of the naira. That the naira was going to crash more to reach its true value.
In fact, in the words of the CBN governor, Mr. Cardoso, the naira was undervalued at the rate it was exchanging. It was going to crash more.

They accused Emefiele of so many things, one of which was that he was illegally using our foreign exchange reserves to defend the naira to arrive at below N760 to a dollar it was exchanging at the black market during his time as CBN governor.

Today, the naira has regained strength from N1900 it was exchanging in February to between N1070 and N1120 for a dollar. With efforts being made for the naira to regain more strength

So, I ask again, what's the true value of the naira? 

Modified

CodeTemplar:
Your brain is inferior to my kidney. If oblongata is connected to my kidney, it will out debate and outperform your brain.

Kukutenla:

So this is where you've been "busy"?

30k pay per post zombie