Firstly, the value of both currencies was a result of wild speculations because there really isn't any major shift in economic activities to cause such a major shift. (Although the value of the naira was never really 450 like Emefiele wanted us to believe.)

Secondly, the demand for dollars dropped significantly because people are not buying imported products like they used to. Their purchasing power for foreign goods dropped. Imagine trying to buy a Chinese phone that used to cost 30k, now going for 80k when your salary still remains 50k.

Thirdly, exports increased in that period, including oil (our major source of forex income).

Fourthly, importation of petroleum products reduced by close to 15-30% because there was no subsidy anymore. We aren't subsidizing the entire West Africa like we used to.


Fifthly, CBN reforms (which is the major driver that brought dollars to its knees).
- First, they went after the number 1, the speculators; the BDCs and Binance people.
- Then forced forex to pass through the system (the Nigerian banks) instead of Flutterwave and Binance, who just store dollars in offshore accounts while they put more pressure on the naira when diasporans send money.
-
-then forced forex to pass through the system, (the Nigerian banks) when diasporans send money home, you are not to collect the dollars so you can hoard it and wait for it to increase so you can sell the same money for profit without any ecomomic activities from your end.

-He then payed the backlogs of dollars to investors to restore their confidence.

-Lastly, they started the speculations of their own through the media by selling dollars at a certain amount to some selected BDC operators to make it look like that's the value of dollars.
This then sent panic into the market (especially those hoarding the dollars or betting against the naira to quickly dump their dollars before they make a huge loss).

That's why you have a situation whereby the black market rate is lower than the official rate now. (Something that rarely ever happens.)




CC: koyeni

The main reason is media manipulation. people cannot still buy dollars at their advertised rates on government media.

There is now internet price and market price.

The only reason is the last one. The floating of naira policy failed miserably. We have reverted back to defending the naira. That's all. And nothing more.

Hummmmmmm no enough explanation?

Don't sweat it.
Naira had no reason to rise to N1900 in the first place.A careless policy and cluelessness caused it.
Tinubu is eating his vomit with policy summersaults.Don't be deceived by the junior Lai Mohammed laundering their clueless behaviours.

If Tinubu was the people's choice and not seen as a pretender, by now the dollar against naira exchange would have been lower than 300naira.

Imagine what the increase in diasporan remittances would have been.
Imagine what would have happened if people are safe to return to their farms and travel at night.
Imagine how many Nigerians would have returned to invest.
Imagine what NNPCL would have been if Tinubu has zero tolerance for corruption.

This is why I laugh when naive people compare PO with Tinubu.

The Naira regain in on paper only

onez:
The only reason is the last one. The floating of naira policy failed miserably. We have reverted back to defending the naira. That's all. And nothing more.

Not exactly defending. you cannot successfully defend something that you are not in control of.
Like 2nd goal keeper trying to defend goal post from
the bench in a match.

They are not defending because that would mean emefiele situation all over again. Where they fix certain amount they sell dollars and defend that position with billions of dollars even when it gave rise to round tripping because they cannot meet demand.

Cbn is not telling what dollars is worth anymore like they use to, the market does. Cbn had to force itself to sell lower to its bdc operators just last week for them to make profit.

When you will know that Cbn is defending is when Black market is selling dollars at 1500 naira tomorrow but Cbn is still selling at 1100.
That means the demand for dollars has increased but Cbn couldn't meet up but defending the value of naira so it won't fall.


There is currently dollar glut in the market due to reforms by Cbn. So there is no reason to defend naira like that.

Naira20:
Don't sweat it.
Naira had no reason to rise to N1900 in the first place.A careless policy and cluelessness caused it.
Tinubu is eating his vomit with policy summersaults.Don't be deceived by the junior Lai Mohammed laundering their clueless behaviours.

If Tinubu was the people's choice and not seen as a pretender, by now the dollar against naira exchange would have been lower than 300naira.

Imagine what the increase in diasporan remittances would have been.
Imagine what would have happened if people are safe to return to their farms and travel at night.
Imagine how many Nigerians would have returned to invest.
Imagine what NNPCL would have been if Tinubu has zero tolerance for corruption.

This is why I laugh when naive people compare PO with Tinubu.

What policy made it rise?

What changes in economic activities made the demand for dollars so high that the value of local currency dipped by 100% in just 2 months?

Did we start importing uranium from Pluto or something?

We are not talking textbook economics bro.

In a layman's language
It all started on May 29,2023 with the statement "subsidy is gone".
Do you know the effect of that pronouncement on the economy? Try to think of any sector that isn't affected.
I can't type much but add naira floatation without mitigating the effect.Did that not affect the exchange rate too?
To think that they rescinded almost all what was said in secret.Who will take such a government seriously?

Tinubu is acting as if Nigerians are asking for too much.
What Tinubu is doing is akin to a child taking a clean school uniform and soaking it in water for hours, then washing it.
Apart from time wasting and wasting soap(money), the material is further weakened.
No intelligent person will be clapping for such a person.

The first thing to do is earn Trust(unfortunately this will be difficult because of his antecedent)
Be transparent with what you are doing or intend to do.

TermsAC:
What policy made it rise?

What changes in economic activities made the demand for dollars so high that the value of local currency dipped by 100% in just 2 months?

Did we start importing uranium from Pluto or something?

Naira20:
We are not talking textbook economics bro.

In a layman's language
It all started on May 29,2023 with the statement "subsidy is gone".
Do you know the effect of that pronouncement on the economy? Try to think of any sector that isn't affected.
I can't type much but add naira floatation without mitigating the effect.Did that not affect the exchange rate too?
To think that they rescinded almost all what was said in secret.
Tinubu is acting as if Nigerians are asking for too much.
What Tinubu is doing is akin to a child taking a clean school uniform and soaking it in water for hours, then washing it.
Apart from time wasting and wasting soap(money), the material is further weakened.
No intelligent person will be clapping for such a person.

The first thing to do is earn Trust(unfortunately this will be difficult because of his antecedent)
Be transparent with what you are doing or intend to do.

you still didn't answer the question.

What economic activities occured that made demand for dollars so high that local currency dipped by close to 100% in just 2 months?

How did saying subsidy is gone suddenly start making everyone demand for dollars so much so that naira lost its value by close to 100% 8 months after the statement was made?



I think you will be able to see what I'm saying is not textbook but what actually happened if you can for a minute resist the urge to blame Tinubu for everything you can think off. 😂

I'm sure next thing is to call me apc now.

Naira20:
We are not talking textbook economics bro.

In a layman's language
It all started on May 29,2023 with the statement "subsidy is gone".
Do you know the effect of that pronouncement on the economy? Try to think of any sector that isn't affected.
I can't type much but add naira floatation without mitigating the effect.Did that not affect the exchange rate too?
To think that they rescinded almost all what was said in secret.Who will take such a government seriously?

Tinubu is acting as if Nigerians are asking for too much.
What Tinubu is doing is akin to a child taking a clean school uniform and soaking it in water for hours, then washing it.
Apart from time wasting and wasting soap(money), the material is further weakened.
No intelligent person will be clapping for such a person.

The first thing to do is earn Trust(unfortunately this will be difficult because of his antecedent)
Be transparent with what you are doing or intend to do.

Earn which trust? Can you trust a former drug dealer with your life savings?

TermsAC:
you still didn't answer the question.

What economic activities occured that made demand for dollars so high that local currency dipped by close to 100% in just 2 months?

How did saying subsidy is gone suddenly start making everyone demand for dollars so much so that naira lost its value by close to 100% 8 months after the statement was made?



I think you will be able to see what I'm saying is not textbook but what actually happened if you can for a minute resist the urge to blame Tinubu for everything you can think off. 😂

I'm sure next thing is to call me apc now.

Are you a child? The economic activity is that everyone withdrew their monies and converted to dollars, (including your governors) because the naira has been killed by an incompetent Buffon doing try-your-luck with people's lives.

Guy think, don't expect some else do it for you.If you can't see how "subsidy is gone" fiat affected the economy and you're oblivious that we import fuel with dollars, and that the hike affected every sector, I'm afraid I can't help you.

You are expecting me to school you on how multinational coys also left and why ?
or the dangote refinery skits... If the CBN refuse to sell dollars to banks or BDCs, I'm sure the naira will appreciate and not dip abi ?

People have projects that require payments in dollars.
So If you have to pay your school fees abroad, or you need to pay for a subscription or japa and most of these happen to fall between 2months,it'd be impossible to have 100% rise?

imagine what'd happen if you have fewer dollars available for plenty naira(inflation)?


If you are really interested in knowing what happened instead of swallowing the lies from the government, meet those in search of dollars.

TermsAC:
you still didn't answer the question.

What economic activities occured that made demand for dollars so high that local currency dipped by close to 100% in just 2 months?

How did saying subsidy is gone suddenly start making everyone demand for dollars so much so that naira lost its value by close to 100% 8 months after the statement was made?



I think you will be able to see what I'm saying is not textbook but what actually happened if you can for a minute resist the urge to blame Tinubu for everything you can think off. 😂

I'm sure next thing is to call me apc now.

successmatters:


Are you a child? The economic activity is that everyone withdrew their monies and converted to dollars, (including your governors) because the naira has been killed by an incompetent Buffon doing try-your-luck with people's lives.

sorry, I won't respond to uncouth people.

I don't want the thread derailed by childish shenanigans.

By the way, governors and politicians have always stolen and laundered their money to offshore accounts in dollars not naira. Most of them don't save their stolen money in naira.

They have always saved it safe currencies like dollars, pounds and euro.

So it didn't start 2 months ago.

Naira20:
Guy think, don't expect some else do it for you.If you can't see how "subsidy is gone" fiat affected the economy and you're oblivious that we import fuel with dollars, and that the hike affected every sector, I'm afraid I can't help you.

You are expecting me to school you on how multinational coys also left and why ?
or the dangote refinery skits... If the CBN refuse to sell dollars to banks or BDCs, I'm sure the naira will appreciate and not dip abi ?

People have projects that require payments in dollars.
So If you have to pay your school fees abroad, or you need to pay for a subscription or japa and most of these happen to fall between 2months, imagine what'd happen if you have fewer dollars available for plenty naira(inflation)?


If you are really interested in knowing what happened instead of swallowing the lies from the government, meet those in search of dollars.

ok dude, lemme know when you are ready to answer the question let me know when you are ready to lecture me like a baby.

If you read my last reply, you'd see I'm not willing to do that because it's unnecessary and too basic.
The first line was "Guy think, don't expect some else do it for you..."

TermsAC:
ok dude, lemme know when you are ready to answer the question let me know when you are ready to lecture me like a baby.

successmatters:
The main reason is media manipulation. people cannot still buy dollars at their advertised rates on government media.

There is now internet price and market price.

Who are the people? So any person can just enter the bank in UK or Bureau de change that he or she wants to buy currency? Una be werey for this naija oo. If you are travelling, buy at the airport when traveling. Or you just want to store dollars at home for decoration?

They took it from N700 to N1,900 then brought it back down halfway to N1,000

And they want to use it to brag of an achievement?

Naira20:
If you read my last reply, you'd see I'm not willing to do that because it's unnecessary and too basic.
The first line was "Guy think, don't expect some else do it for you..."

Everything you saw on this thread including the original post are 100% my personal opinion and thoughts.

Written by me. It's not plagiarized or copied from anywhere or tabloid or from someone else..
You won't see it anywhere else on the Internet unless someone copy it and paste it somewhere else after.

And I was responding to someone on nairaland who asked this question on another thread but I thought the response deserves a thread.

You can see that I tagged the person at the end of the original post.

So yes, I do a lot of thinking, but can't say the same about you that just let the hate for Tinubu erode your objectivity.

Lol...so writing an opinion requires rigorous thinking?
Okay

TermsAC:
Everything you saw on this thread including the original post are 100% my personal opinion and thoughts.

Written by me. It's not plagiarized or copied from anywhere or tabloid or from someone else..
You won't see it anywhere else on the Internet unless someone copy it and paste it somewhere else after.

And I was responding to someone on nairaland who asked this question on another thread but I thought the response deserves a thread.

You can see that I tagged the person at the end of the original post.

So yes, I do a lot of thinking, but can't say the same about you that just let the hate for Tinubu erode your objectivity.

Naira20:
Lol...so writing an opinion requires rigorous thinking?
Okay

nope.

Mostly observation. But you need to be able to think deeply before you understand your observations.

TermsAC:
Firstly, the value of both currencies was a result of wild speculations because there really isn't any major shift in economic activities to cause such a major shift. (Although the value of the naira was never really 450 like Emefiele wanted us to believe.)

Secondly, the demand for dollars dropped significantly because people are not buying imported products like they used to. Their purchasing power for foreign goods dropped. Imagine trying to buy a Chinese phone that used to cost 30k, now going for 80k when your salary still remains 50k.

Thirdly, exports increased in that period, including oil (our major source of forex income).

Fourthly, importation of petroleum products reduced by close to 15-30% because there was no subsidy anymore. We aren't subsidizing the entire West Africa like we used to.


Fifthly, CBN reforms (which is the major driver that brought dollars to its knees).
- First, they went after the number 1, the speculators; the BDCs and Binance people.
- Then forced forex to pass through the system (the Nigerian banks) instead of Flutterwave and Binance, who just store dollars in offshore accounts while they put more pressure on the naira when diasporans send money.
-
-then forced forex to pass through the system, (the Nigerian banks) when diasporans send money home, you are not to collect the dollars so you can hoard it and wait for it to increase so you can sell the same money for profit without any ecomomic activities from your end.

-He then payed the backlogs of dollars to investors to restore their confidence.

-Lastly, they started the speculations of their own through the media by selling dollars at a certain amount to some selected BDC operators to make it look like that's the value of dollars.
This then sent panic into the market (especially those hoarding the dollars or betting against the naira to quickly dump their dollars before they make a huge loss).

That's why you have a situation whereby the black market rate is lower than the official rate now. (Something that rarely ever happens.)




CC: koyeni

Thanks for your perspective boss

So what are they going to do about inflation? It's still high up.

koyeni:


Thanks for your perspective boss

you are welcome bro.

SeeWahala:
They took it from N700 to N1,900 then brought it back down halfway to N1,000
And they want to use it to brag of an achievement?

And did they say that it won't go down further??

onez:
The only reason is the last one. The floating of naira policy failed miserably. We have reverted back to defending the naira. That's all. And nothing more.

That's just what your developer mind wants to believe. It's called cope.

By the way, that developer mod that keeps banning me, I thank you o. You made me realise that I'm hitting target when I hit you braindead developers. Something I enjoy doing.

Hoelujohn:

Who are the people? So any person can just enter the bank in UK or Bureau de change that he or she wants to buy currency? Una be werey for this naija oo. If you are travelling, buy at the airport when traveling. Or you just want to store dollars at home for decoration?

Your attempts to regulate peoples lives is your grand failure. You will continue to flop like your predecessor.

TermsAC:
What policy made it rise?

What changes in economic activities made the demand for dollars so high that the value of local currency dipped by 100% in just 2 months?

Did we start importing uranium from Pluto or something?

You really have this impression that these people you're trying to explain things to are intelligent. Anything beyond petty trading in a 2 by 2 shop is too complex for them to grasp. Whatever things you see them typing here is what they heard in their beer palour last night.

excanny:
So what are they going to do about inflation? It's still high up.

They are benefitting from it. Prices can soar, they are taking free fuel from government house.

Being a Nigerian is a whole lot of stress.

The CBN clipped the wings of dollar speculators and the crypto platforms playing ping pong with naira.

The same thing will happen to business owners who refuse to bring down prices of commodities.. all FG needs to do is release a telephone number to the public for citizens to report stores, supermarkets, pharmacies and whatnot still selling at high prices nationwide and bo0m they'll launch missiles from Abuja to go and destroy the place. Once they take out like 10-20 businesses, others will fall in line and obey.

Being a Nigerian comes with a lot of argument and counter-argument...


I sell herbs Jaree