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Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by Relax101(m): 11:21pm On Nov 20, 2011
Sanusi Retraces Devaluation Plan, Says Naira At Desired Stability!


By Omoh Gabriel, with Agency report
LAGOS — THE Central Bank of Nigeria, CBN, Governor, Mallam Sanusi Lamido Sanusi, has said the apex bank has reached the desired degree of stability for the naira and does not have a cause to be concerned over inflation due mostly to recent stability in its core components.

This implies that the CBN may have gone back on its plan to devalue the naira.

Speaking before the bank’s monetary policy committee meeting yesterday, Sanusi told Reuters that the bank might reduce its exposure to the euro and buy renminbi.

He said: “When the naira reached N167 to the US dollar in October, every currency was going through a crisis. Now, we have retraced that. We have created the stability that we needed. We have stopped the panic” in an interview on the sidelines of a conference in the Moroccan city Tangier.

Asked if the CBN has reached the desired degree of stability for the naira, Sanusi said: “I think we have and I think that within the next few days you might hear an announcement on what the sense is.”

Inflation rose to 10.5 per cent in October from 10.3 per cent in September, but Sanusi said a breakdown of month-on-month numbers shows that “inflation has come down on all three components: headline, core and food inflation.”

According to him, “year-on-year, core (inflation) hasn’t increased which has not been the increasing trend seen in the past. Month-to-month (inflation) has been moderating and core (inflation) is also not increasing (which) would suggest that as far as non-structural components are concerned at this moment … we don’t have a cause for concern.”

Sanusi also said the CBN might reduce its exposure to the euro currency, saying: “We have not increased (exposure to the euro) since the crisis started in Europe. We have held more and more U.S. dollars. We have missed the train on the Swiss franc; I wish we had gone in earlier. I think we missed the train.

“But we are trying to move some into renminbi and while we move some dollars we will probably move more euros, more out of the euro.”

Asked if this meant arbitrage deals to the detriment of the euro, Sanusi said: “Most likely.”

Sanusi is not as concerned about the euro currency as he is about the fortunes of European economies. “If they go into a deep recession, it is likely to affect commodity prices and with that the price of oil and then it will come with difficulty for us in terms of the fiscal position of the government, the reserves positions and the exchange rate,” he said.

The bulk of Nigeria’s oil exports go to the United States, Sanusi said. “The United States and Europe together account for about 80 percent or more. What we export to China and African countries is probably about 20 per cent.”

Sanusi reckoned that any crash in oil prices from a potential recession in Europe would not be as acute as it was in 2008.

“The (oil) market is a little bit tight at the moment. Libya will take time to get back on stream , Iraq is back on stream … The market seems to be driven by fundamentals. So the crash in the oil price, in the event of a recession, is not likely to be as steep as it was in 2008 for example.

“There would be a decline in demand but the supply condition is also tight … I think there would be a collapse if there is a recession but it will not be anywhere near what we have seen in 2008.”


http://www.vanguardngr.com/2011/11/sanusi-retraces-devaluation-plan-says-naira-at-desired-stability/
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by PointB: 11:26pm On Nov 20, 2011
Does this mean CBN will continue to deplete foreign reserve to defend the Naira?
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by Kobojunkie: 11:37pm On Nov 20, 2011
Relax101:

He said: “When the naira reached N167 to the US dollar in October, every currency was going through a crisis. Now, we have retraced that. We have created the stability that we needed. We have stopped the panic” in an interview on the sidelines of a conference in the Moroccan city Tangier.

Asked if the CBN has reached the desired degree of stability for the naira, Sanusi said: “I think we have and I think that within the next few days you might hear an announcement on what the sense is.”

Inflation rose to 10.5 per cent in October from 10.3 per cent in September, but Sanusi said a breakdown of month-on-month numbers shows that “inflation has come down on all three components: headline, core and food inflation.”

undecided undecided undecided undecided undecided
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by Relax101(m): 1:42am On Nov 21, 2011
Sanusi is a big fool.
Jarus tell him I said so.
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by Nobody: 9:06am On Nov 21, 2011
And SLS continues with his somersaulting policies bereft of concrete economy changing ideas.
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by Knight1(m): 11:26am On Nov 21, 2011
when does this guy's tenure end please?
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by ektbear: 11:51am On Nov 21, 2011
He is a very confused man
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by Kx: 11:55am On Nov 21, 2011
Experimenting with the economy?
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by Eforce1: 12:03pm On Nov 21, 2011
smiley
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by hercules07: 12:41pm On Nov 21, 2011
Apparently nothing the guy does is good in you people's eyes, the man has stabilized the Naira, yet, you guys are crying.
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by ektbear: 12:44pm On Nov 21, 2011
hercules07:

Apparently nothing the guy does is good in you people's eyes, the man has stabilized the Naira, yet, you guys are crying.

Sounds like bad news to me:
http://www.thisdaylive.com/articles/naira-tops-agenda-as-mpc-meets-monday/103306/
http://www.bloomberg.com/news/2011-11-21/naira-weakens-first-day-in-3-on-bets-central-bank-may-lower-peg.html
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by sheriffman(m): 3:26pm On Nov 21, 2011
If SLS can go this far truly he has tried then let him comtinue now and bring down d dollar value to 100 Naira.This is just a rant I am not into economics pls advise.
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by ak47mann(m): 3:29pm On Nov 21, 2011
Aboki other countries are fighting to keep their local currency strong cos world economy crisis is a serious thing look at European countries voting their leaders out,cos as things stands now western world are all looking for leaders that think fast and accurate.
Things are now going on a new dimension real thinkers are finding solutions to better their economy,and look at you talking trash from you gworo mouth,i can see what you are facing is too much for you to handle,i think you are one of the victims of the youth of fanaticism cool
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by Roland17(m): 3:47pm On Nov 21, 2011
A double digit inflation is nothing to be comfortable about, especially with the rising cost of our economy's main stay.
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by executinal(m): 4:43pm On Nov 21, 2011
This Man should just keep quiet, once his tenure expires, he should find his way to his village. angry angry angry angry
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by odutope(m): 5:12pm On Nov 21, 2011
Is †ђξ naira still at N167 †̥ †ђξ dollars?
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by BCuZiMBlaCk(m): 7:17pm On Nov 21, 2011
If SLS tenure ends, who will take his place?
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by LoveDecay(m): 7:20pm On Nov 21, 2011
I really did not want to speak on this but i guess i must.

An issue like this cropped up a few months ago on this forum about this same " naira devaluation and Sanusi". First, things first , money does not exist its just a bunch of zero's that the central bank create's - every countries central bank does this, by borrowing money that does not exist to pay for debts that dont really exist.

Sanusi, has refused to devalue the naira and i support him.

Why?

1- If the naira is devalued the price of goods in this country will increase.
2- It will be harder for Nigeria to service her debts cos we borrow in dollars and have to use naira to buy dollars to pay back in dollars.
3- The western world never has any good intentions towards any african country, the truth is the west still need slaves and africa has got the biggest supply.

Look, Sanusi is a strong man. Like it or not, he is the only one who has single handedly challenge the senate house and walked away scott-free. What more do you want this man to do , to prove his loyalty to this country and its people.

You are all scared of saying a "hausa man" is right. And, i am sorry that your level of education has not enlightened you as much as it should have.

This country Nigeria belongs to all of us, regardless of ethnicity. Sanusi, is not going anywhere , you cant get rid of a guy like that. He's not a wimp and i repeat the guy is not a "WIMP" he got balls. Steel balls, i tell you. He cleaned up the banks, do you know how many politician's have monies in those banks, do you know how many powerful business men have been forced to pay up their debts.

And you sit there and say - this man is a fool, Let me tell you, there are two most valuable commodities in the world these are gold and oil.

Nigeria has both but has oil in commercial quantity - i read somewhere Nigeria is now nos 3 in the world and we got the best fuel. We can do whatever we want, if we dont want to de-value our currency - nobody western power can do nything bout it - they need oil? Thats why they are indirectly attacking libya,syria etc , its oil.

Lagos had electricity before Paris and the naira was going for 5 usd and your talking about de-valuation.

Your sister okonjo-waka-waka, came with her own, nonsense - deregulation of the oil sector. Imagine, what Nigeria power will be like if sanusi was minister of power or petroluem , there will be ORDER!!
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by manny4life(m): 7:47pm On Nov 21, 2011
I told y'all that this man has no clue on what he's doing, people will think I'm joking. Like someone said, he's just experimenting with the economy.
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by texazzpete(m): 7:57pm On Nov 21, 2011
manny4life:

I told y'all that this man has no clue on what he's doing, people will think I'm joking. Like someone said, he's just experimenting with the economy.

Oya, give us a detailed breakdown of what the man should have done na. You people are just using any excuse to bash this fellow.

Relax101:

Sanusi is a big fool.
Jarus tell him I said so.

Under Soludo's watch, the exchange rate fell from around N115 to a dollar to around N150. Have you walked up to Soludo and called him a fool before, you this ethnic bigot!
You were never known to be one with an appreciable intellect anyway, so I am not surprised.

ekt_bear:

He is a very confused man

Can you point out to me anything in the OP tha indicates that Sanusi is 'confused'?!
If showing flexibility in adapting to changing situations is 'confusion' to you, I wonder where you get off with your repeated calls for the PDP to change their leadership policies?

ekt_bear:

Sounds like bad news to me:
http://www.thisdaylive.com/articles/naira-tops-agenda-as-mpc-meets-monday/103306/
http://www.bloomberg.com/news/2011-11-21/naira-weakens-first-day-in-3-on-bets-central-bank-may-lower-peg.html

And bad news just HAS to be of Sanusi's making abi?


Kx:

Experimenting with the economy?

Can you point out any passage or paragraph in the OP that suggests that the CBN Governor is 'experimenting'?

andromida:

And SLS continues with his somersaulting policies bereft of concrete economy changing ideas.

Now this sounds like you're parroting. Seems you've been re-reading those old 'Renaissance professionals' drivel grin
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by manny4life(m): 8:08pm On Nov 21, 2011
^^^^ LOL

Welcome, I've been expecting you.

The fellow has no clue on what to do in this economy, let him just focus on building poultry farms and hotels, that should improve our currency.
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by texazzpete(m): 8:43pm On Nov 21, 2011
manny4life:

^^^^ LOL

Welcome, I've been expecting you.

The fellow has no clue on what to do in this economy, let him just focus on building poultry farms and hotels, that should improve our currency.

Hehe.

I hate it when you people force me into the mold of 'Sanusi defender' when all I ever try to do is to inject some common sense and rationality in the discussion grin

One day I will understand why you and ekt_bear hate Sanusi so much. Right after I find out why Jakumo hates Buhari with a passion.
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by otokx(m): 8:43pm On Nov 21, 2011
This man is very interesting.
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by manny4life(m): 9:02pm On Nov 21, 2011
texazzpete:

Hehe.

I hate it when you people force me into the mold of 'Sanusi defender' when all I ever try to do is to inject some common sense and rationality in the discussion grin

One day I will understand why you and ekt_bear hate Sanusi so much. Right after I find out why Jakumo hates Buhari with a passion.




Come on man, why should I hate on someone who IMO has no clue, his policies beg the question of whether he knows about his own economy. I do not hate Sanusi, I just don't like his policies, he might have a stern leadership attitude and ability; however, he lacks the foresight and potentials to lead a financial agency such as the CBN.
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by holysmoke(m): 9:28pm On Nov 21, 2011
There was this commercial on T.V many years ago? A Bank or Insurance company Ad. The song went something like this; "Sanusiiiii,wherever you bee, sanusii is the name to remember."

I wonder how long we'll remember Sanusi's name.
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by PointB: 9:29pm On Nov 21, 2011
Sanusi appears to be flying blind with his policy inconsistency!
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by moshoodn(m): 10:00pm On Nov 21, 2011
Lets take a $ to #100 first.
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by jmoore(m): 10:50pm On Nov 21, 2011
we have an advantage that we are too blind to see it, if we are more of an exporting country we are to gain. Look at China they export alot and they gain very well thats why usa is crying out loud that china is devaluing its currency. It's high time we stop senseless imports and start manufacturing. can't believe we import toothpicks.
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by godman01(m): 10:54pm On Nov 21, 2011
Which kind stability is that.
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by Decryptor(m): 12:21am On Nov 22, 2011
SLS= A clear case of an Aboki being a wrong place at the wrong time cry
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by MrWhy1(m): 12:30am On Nov 22, 2011
Classic flip flopping.

You don't need to be a rocket scientist to understand how the Nigerian economy works. A nation that is highly dependent on import with a very weak infrastructure is fundamentally unstable including it's currency.

More gimmicks to come from Sanusi.
Re: Sanusi Halts Naira Devaluation Claims Naira Is At Desired Stability by 2bosun: 12:43am On Nov 22, 2011
The economic mgmt team never seems to amaze- looks like a case of just being too clever for themselves. You invest in the Euro bond market at the wrong time and claim you're not worried about the hundreds of billions tied up there, now you want to shift them at a loss?? Madness!!

You have a monopoly on the dollar market, flood the BDC and banks with dollars, which backfires spectacularly- dollar changing for N167 at some point, so you tighten the policy and increase the yoke of poverty ravaging the land- so you devalue the Naira which further causing inflation- what a joke!

As long as you have that monopoly SLS, and too much Naira chasing the little Dollar you make available- the dollar will inevitably change for N200 soon. It's really school boy stuff.

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