DeepThroater:

Let me break it down for you upper Iweaka economists.

If you trade Nigerian oil in Nigerian trading houses in naira, countries and brokers who require our oil will have to open an account in a Nigerian bank.

Given that oil trade is highly voluminous, trading of oil stocks are usually in a 30 day delivery stock . Meaning , brokers will have to open an account in naira thereby remitting said FX to CBN which will be converted to naira in their merchant bank of choice.

The trading house can then issue regulation that all intended brokers must have a set limit of cash in naira to meet their daily dealings.

So a broker seeking an order of 100,000 bpd for 30 days delivery must have the equivalent value or more (incase of price shocks) in their Nigerian domiciled accounts.

Thus, the broker will have to have in reserve the equivalent of 100k barrels of crude at the given date of registering before allowed to participate in any bidding.

Naturally , this will see brokers flood Nigerian banks with FX .

So they will exchange their fx for
Naira to use and trade, and that fx will still go to CBN? It’s still the same as what we have now, only that you have added an extra step that is completely useless and will probably inflate the Naira more.

You’re really an APC guy. You know how to sound smart but with bad ideas.

Listen to me. If you want the Naira to have value, you literally need to get rid of the United States of America and force other country to accept Naira for trade.

Only then will the dollar be completely useless.

SenecaTheYonger:


So they will exchange their fx for Naira to use and trade, and that fx will still go to CBN? .

Stop being stupid.

They will exchange their FX for Nigerian oil but must first keep it in reserve in Nigerian naira in Nigerian banks !

Nigerian oil is traded in London , New York and Geneva and all brokers keep their FX in these countries banks!

By doing so, the trading house countries have money injected into their financial system.

In the case we pull this off as proposed by Jonathan , 30 day delivery of crude oil sales will be held in Nigerian banks in naira while the FX component is held by the CBN.

How is this above your comprehension that you can't see this as a win for Nigeria and her people ?

Resurgent2016:
No more binance to blame.

Government still trying to pick a new scapegoat

Shebi you guys are happy now that naira has lost value abi?

SenecaTheYonger:


So they will exchange their fx for
Naira to use and trade, and that fx will still go to CBN? It’s still the same as what we have now, only that you have added an extra step that is completely useless and will probably inflate the Naira more.

You’re really an APC guy. You know how to sound smart but with bad ideas.

Listen to me. If you want the Naira to have value, you literally need to get rid of the United States of America and force other country to accept Naira for trade.

Only then will the dollar be completely useless.

And another thing you must note is that there will be demand for naira from global brokers.

The CBN will simply tell those brokers to approach merchant banks to procure naira .

Do you think our ever thieving banksters will sell their naira so low in such a scenario ?

Nigerian banks will maximise their naira reserves to milk the brokers .
So instead of the current #1,200 to a dollar, Nigerian banks will form a cartel to milk as much dollars from brokers and this will see the naira sharply increase in value.

If we can pull this off without the US bombing us in the guise of freedom and democracy , naira will fastly appreciate to less than #100.

The only thing is this won't happen soon because the US and UK will sabotage our oil production and find a way to impose sanctions. This is the reason they hate Iran because Iranian oil is traded in Tehran and their central bank still remains one of the few remaining public banks.

Basicend:


Shebi you guys are happy now that naira has lost value abi?

You think it is happiness or sadness that moves the naira ?

When Nigerians learn to hold their leaders accountable, only then will they see result.

DeepThroater:


Stop being stupid.

They will exchange their FX for Nigerian oil but must first keep it in reserve in Nigerian naira in Nigerian banks !

Nigerian oil is traded in London , New York and Geneva and all brokers keep their FX in these countries banks!

By doing so, the trading house countries have money injected into their financial system.

In the case we pull this off as proposed by Jonathan , 30 day delivery of crude oil sales will be held in Nigerian banks in naira while the FX component is held by the CBN.

How is this above your comprehension that you can't see this as a win for Nigeria and her people ?

This is just bureaucratic nonsense; lots of procedure at the expense of efficiency or common sense.

To save the Naira, we must produce locally to reduce the pressure on the dollar for import. We must also increase export (not only oil but any and everything that will bring in dollar)

While reducing pressure on the dollar through production, we must also saturate the country with dollar from export.

While the demand for dollar decrease, the supply is many, automatically reducing its value.

This is the final solution.

NOETHNICITY:
Hater of Nigeria are working tirelessly to bring this country to its knees

I listened to omokiri and sell of my dollars but now am regretting

DeepThroater:


And another thing you must note is that there will be demand for naira from global brokers.

The CBN will simply tell those brokers to approach merchant banks to procure naira .

Do you think our ever thieving banksters will sell their naira so low in such a scenario ?

Nigerian banks will maximise their naira reserves to milk the brokers .
So instead of the current #1,200 to a dollar, Nigerian banks will form a cartel to milk as much dollars from brokers and this will see the naira sharply increase in value.

If we can pull this off without the US bombing us in the guise of freedom and democracy , naira will fastly appreciate to less than #100.

The only thing is this won't happen soon because the US and UK will sabotage our oil production and find a way to impose sanctions. This is the reason they hate Iran because Iranian oil is traded in Tehran and their central bank still remains one of the few remaining public banks.

How do you solve Nigeria’s reliance on importation/ imported good? How do we get other country to accept Naira instead of dollars from us. And I’m not talking about for oil, we don’t eat oil.

BodyCount:

How much is it today?
Is it advisable I change my 5k now?

Save your dollars and keep only money you need for day to day runs in naira.
I said something about the naira appreciating two weeks ago as CBN abracadabra, some people came for my head.
No country's currency increases in value without production, investment and export.
Naira will go to 2k and beyond.
It's not even a prayer cos everyone is affected one another. But keeping your money in USD gives you an upper hand.

SenecaTheYonger:


This is just bureaucratic nonsense; lots of procedure at the expense of efficiency or common sense.

To save the Naira, we must produce locally to reduce the pressure on the dollar for import. We must also increase export (not only oil but any and everything that will bring in dollar)

While reducing pressure on the dollar through production, we must also saturate the country with dollar from export.

While the demand for dollar decrease, the supply is many, automatically reducing its value.

This is the final solution.

Oil is the only commodity that has injected money into this economy.

What else can you export ? Slaves?

Nigeria has not been able to maximize her oil wealth not from production and sales but by using it to boost her economy through how it is sold.

If you produce a product and a seller insist he will only pay by fish 🐟 and insists that you keep the fish in his cold room and you agree to it, how will that fish stock help you when you need money to expand ?

Think!

PotatoSalad:

Save your dollars and keep only money you need for day to day runs in naira.
I said something about the naira appreciating two weeks ago as CBN abracadabra, some people came for my head.
No country's currency increases in value without production, investment and export.
Naira will go to 2k and beyond.
It's not even a prayer cos everyone is affected one another. But keeping your money in USD gives you an upper hand.

Oil is a major global commodity that drives the global economy and production .

Are you this dense ?

DeepThroater:


Oil is a major global commodity that drives the global economy and production .

Are you this dense ?

Maybe.
Find another excuse with your room temperature IQ

I wrote something about this but I stopped halfway when I realized something

Like hydra...cut off one head(dollar) and two more will grow in its place(the countries with natural sweet oil)

I was hoping you could give me more insight concerning the last paragraph in this linked post here:

https://www.nairaland.com/8075867/naira-still-pegged-dollar-freedom

DeepThroater:
How can you value your entire economy and currency on that of another sovereign nation's?


Here lies the problem.

The sooner we ditch the dollar and diversify our FX like how GEJ attempted the better we be.

Also GEJ proposed opening up a trading house in Lagos for our oil to be priced in naira.

When that proposal was floated , a Swiss Govt sponsored report came up with the fabulous lie of missing $50bn oil revenue to which Sanusi (a BlackRock appointee as VP Africa ) quickly vetted the unsubstantiated fake dossier.

The enemies of Nigeria are more from within than outside.

SenecaTheYonger:


How do you solve Nigeria’s reliance on importation/ imported good? How do we get other country to accept Naira instead of dollars from us. And I’m not talking about for oil, we don’t eat oil.

Once you follow what I proposed, you will see foriegn investors rush into Nigeria to build factories so as to get hold of that now strengthened naira.

It's all about leverage.

Why did western brands rush to Nigeria during the oil boom? Was it not because we had a strong naira back then backed by huge oil revenue sales.

Was this the case prior to the civil war? No. Because Nigeria's economy was not being buoyed by oil sales.

Besuccesful:
Is there no way they can stop this aboki selling naira on the street? Do we actually need them? Why can't only banks be selling dollar to people that need it?

the abokis are not the problem, the elites are the problem of Nigeria . ... all those times Naira was appreciate what some of the elite class were looking for is another loophole to counter CBN

According to the news som people mop up the dollar from the parallel market and deposit it into there domiciliary account to resell to banks at higher rates.

Govt have the domiciliary accounts fully, as long as a parallel currency is allowed to operate the saboteurs will always find a way around CBN policies to strengthen the naira

BodyCount:

How much is it today?
Is it advisable I change my 5k now?

My Gee, no change am. Provided say we don retest 1,820 per dollar

From now till 2027 2k per dollar and above na sure plugs, if possible all your savings nowadays should be centered on the USD or EUR.

SenecaTheYonger:


Una too dull for APC camp. YOU ARE AN IMPORT BASED COUNTRY. You import everything down to toothpicks. YOU NEED DOLLARS TO KEEP IMPORTING AND CONSUMING BECAUSE YOURE NOT PRODUCING THOSE THING. YOU CANNOT IMPORT IN NAIRA. YOU CANNOT IMPORT THOSE GOODS WITH NAIRA BECAUSE THOSE COUNTRIES DONT ACCEPT YOUR CURRENCY AND YOU CANNOT FORCE THEM TO ACCEPT NAIRA FOR THEIR GOODS


IF EVERYONE STARTS PAYING FOR OIL IN NAIRA, HOW ARE YOU GOING TO GET DOLLAR TO IMPORT YOUR DAY TO DAY ITEM THAT YOU REFUSE TO PRODUCE?

Shut up. Talking rubbish

NOETHNICITY:
Hater of Nigeria are working tirelessly to bring this country to its knees

yes by electiing a criminal to rule over them . this is just a year don't lament yet wait till 3 more years

IAmHim1:
I wrote something about this but I stopped halfway when I realized something

Like hydra...cut off one head(dollar) and two more will grow in its place(the countries with natural sweet oil)

I was hoping you could give me more insight concerning the last paragraph in this linked post here:

https://www.nairaland.com/8075867/naira-still-pegged-dollar-freedom

To add to your thread , I will have you know that it's in the interest of the US economy to have high oil prices as high oil prices sees to more demand for the dollar. Weak oil prices sees to lower demand for USD to purchase oil from the global market.

So in this vain, the US military is mandated to create shock in the global oil supply through endless conflict and wars in countries that produce oil.


The US fiat petrodollar is the reason of all global conflicts since the end of World war 2 after the Breton-Woods treaty.

Nigeria.isnt the only country with oil

Lots of countries will adopt Nigeria method too

So what happens next

What do you think

CountinBlessins:


GBAM!!!

Unfortunately Tinubu can never do this, why? Because he has too much baggage the west will use against him. If Tinubu was to sign an executive order ,demanding all crude sales in Naira I can guarantee you that Naira would exchange to the dollar less than N100 to $1

Because every one wanting to buy our oil takes their dollar to buy our Naira before coming to buy oil there by making our Naira fly in value but like I said Tinubu isn't the leader to do this because just one call from the CIA reminding him they have files from his past which they never released he will immediately reverse the order.

This is why we wanted a leader like Obi who. Doesn't have such baggage the west can use to leverage against him.

Alas Nigeria go dey already las las

IAmHim1:
Nigeria.isnt the only country with oil

Lots of countries will adopt Nigeria method too

So what happens next

What do you think

Is it your business what others do or is your business to strengthen your own currency?

Seriously?

Resurgent2016:


You think it is happiness or sadness that moves the naira ?

When Nigerians learn to hold their leaders accountable, only then will they see result.

I have no response for you.

Only dummies don't understand naira value

What if Nigeria starts selling it's crude oil in Naira

Our Naira is weak and our oil is sweet so lots of countries are gonna rush it

But what happens when a country with weaker currency and sweet oil comes foward

What's gonna happen to Nigeria


So yes. It better be your business too

https://www.nairaland.com/8075867/naira-still-pegged-dollar-freedom

CountinBlessins:


Is it your business what others do or is your business to strengthen your own currency?

Seriously?

This people will not learn ..yes CBN and govt..ban the official rates totally..let everyone buy at one rate thats the trues meaning of floating the naira .
No 2..make it illegal to do any transaction in the country in dollars and place a total ban on road side FX traders black marketers ..make it's a serious crime like someone dealing in cocaine,that's the best way to root out this economic saboteurs.

Until we do this there is no magic wand we obly wasting ourselves time .

CBN needs to ban BDC completely.You can never stop exploitation when you have multiple exchange channels. imagine banks taken advantage of the forest sale to the BDC.

Nigerian economy has been dollarised. For how long will CBN continue to run after the bureau the charge to stabilize Naira ? Is this the way it is being done in advanced countries? Since we are consuming nation, we will keep on requesting for dollars in order to buy imported goods. The permanent solution is to become a producing nation.

DeepThroater:
How can you value your entire economy and currency on that of another sovereign nation's?


Here lies the problem.

The sooner we ditch the dollar and diversify our FX like how GEJ attempted the better we be.

Also GEJ proposed opening up a trading house in Lagos for our oil to be priced in naira.

When that proposal was floated , a Swiss Govt sponsored report came up with the fabulous lie of missing $50bn oil revenue to which Sanusi (a BlackRock appointee as VP Africa ) quickly vetted the unsubstantiated fake dossier.

The enemies of Nigeria are more from within than outside.

If oga at the top tries that, just a phone call from the state department will strengthen him out. Have you not wondered why we are not on the fore front of joining BRICS? Does it make sense considering most of our trading are from brics countries, China, Russia, India? Why can we not trade with our local currency with those countries and have a trade balance wherein China, India, Russia, turkey, Qatar etc buy our oil and other commodities in naira while we buy theirs in their currency. Ie cbn holding eg half of our currency reserve in yuan, rouble, Indian, rand and other currencies, while the partner country holds naira.
Eg, why do I have to change money to dollars which will the be changed to yuan when I want to make a purchase from aliexpress, consider all the aluminum we import from Russia, or the refrigerant, chemicals from India, medicines, meanwhile Indian buys our oil. Can we not trade in our currencies and leave the dollar aside? We are only propping up the US currency detriment to the naira!
Meanwhile, the US can wakeup tomorrow and sanction us, freeze our reserves etc.
To show you how bad it is, if you use gt bank, go on your app and view your account details for foreign remittance. You will be shocked to see it is citi bank new york, for further credit to gt bank account in NY with your account number as final beneficiary. Why!
I am no economist, but as a layman, maybe someone can explain better as it does not make sense to me.

Sometimes I feel financial terms like the ones in this post were intentionally cooked to be deceptive.

nedekid:

If oga at the top tries that, just a phone call from the state department will strengthen him out. Have you not wondered why we are not on the fore front of joining BRICS? Does it make sense considering most of our trading are from brics countries, China, Russia, India? Why can we not trade with our local currency with those countries and have a trade balance wherein China, India, Russia, turkey, Qatar etc buy our oil and other commodities in naira while we buy theirs in their currency. Ie cbn holding eg half of our currency reserve in yuan, rouble, Indian, rand and other currencies, while the partner country holds naira.
Eg, why do I have to change money to dollars which will the be changed to yuan when I want to make a purchase from aliexpress, consider all the aluminum we import from Russia, or the refrigerant, chemicals from India, medicines, meanwhile Indian buys our oil. Can we not trade in our currencies and leave the dollar aside? We are only propping up the US currency detriment to the naira!
Meanwhile, the US can wakeup tomorrow and sanction us, freeze our reserves etc.
To show you how bad it is, if you use gt bank, go on your app and view your account details for foreign remittance. You will be shocked to see it is citi bank new york, for further credit to gt bank account in NY with your account number as final beneficiary. Why!
I am no economist, but as a layman, maybe someone can explain better as it does not make sense to me.

The US is pure evil.

You have said it all.

Besuccesful:
Is there no way they can stop this aboki selling naira on the street? Do we actually need them? Why can't only banks be selling dollar to people that need it?

I always wonder. Why can't nt the request for usd via BDCs be chanelled thru the banks.
In the past, folks could spend usd with their naira cards at a bank-determined exchange rate. That more of a transparent market than cas-in-habd BDCs which are difficult to oversee.

CountinBlessins:


GBAM!!!

Unfortunately Tinubu can never do this, why? Because he has too much baggage the west will use against him. If Tinubu was to sign an executive order ,demanding all crude sales in Naira I can guarantee you that Naira would exchange to the dollar less than N100 to $1

Because every one wanting to buy our oil takes their dollar to buy our Naira before coming to buy oil there by making our Naira fly in value but like I said Tinubu isn't the leader to do this because just one call from the CIA reminding him they have files from his past which they never released he will immediately reverse the order.

This is why we wanted a leader like Obi who. Doesn't have such baggage the west can use to leverage against him.

Alas Nigeria go dey already las las

Though it's funny, but it's the ultimate truth.