Dangote will come with a story that equipments and raw materials still need to be imported he need forex....

ahiboilandgas:
after we stop rice the naira was supposed to move back to 250...

Smuggling might be to blame for this. Local production cannot currently meet local demand. Does the refinery lack this capacity? Will there be smuggling of finished petroleum products?

The CBN have said they will start fx interventions on monday.
So speculators,make una take note and be on alert.
They also said they will be starting with 100million dollars as lockdown eases.
Let's see how they will cope with this one,I guess this is what the IMF loan they asked for was meant for
So that if oil rebounds before they deplete the $3.4b loan,they'll cut their losses,go to the reserve to refill whatever they might have spent on interventions and repay them or...
If oil doesn't rebound,they'll still deplete it for interventions as usual(political reasons),then upon exhaustion of the fx,they'll use reserves to repay the loan and finally float the naira
It's still going to be bloody then,all their gymnastics will just delay inflation and not deny it,that is if oil stays low till last quarter of 2021 as analysts project
So a smart speculator might still know what to do sha.

ahiboilandgas:
Dangote will come with a story that equipments and raw materials still need to be imported he need forex....

Dangote will earn dollars for his refined oil exports. Is he mandated to bring back his revenue in to Nigeria and convert to Naira?
It won’t pay him to be the defender of the Naira. Using his own money to protect a national currency.

Olaide1295:

Dangote will earn dollars for his refined oil exports. Is he mandated to bring back his revenue in to Nigeria and convert to Naira?
It won’t pay him to be the defender of the Naira. Using his own money to protect a national currency.

This has nothing to do with dangote.
If he likes,let him burn the dollars from petrochemical sales,no one cares.
The effect will be from the NNPC no longer having to source for dollars to import fuel.
When the demand isn't there no more,price will crash automatically.
Besides,dangote refinery will be mostly naira oriented since locals will patronize more
Only African countries whose currencies have no direct exchange rate with naira will come with dollars.
The rest that have will exchange their local currencies for naira,this excess demand for naira can also strengthen the naira.
I can hardly see a scenario where dangote refinery will make money in dollars because I don't see him exporting fertilizers to the west where there is a lot of local need here and too much competition in the west in my opinion.
Just that its presence will ease pressure on the dollar,that's all.

CsRockefeller:


As in eh. Me I go enter here see figures, read and go.

My hand never too reach.

Make your mind reach first, then your hand go follow

olujaidi:


Smuggling might be to blame for this. Local production cannot currently meet local demand. Does the refinery lack this capacity? Will there be smuggling of finished petroleum products?

How is smuggling to be blamed for it?
I'll really love you to teach me if you can.

ahiboilandgas:
if u can drive truck i will give a job ....Apapa - join aviation facilty ( ikejia )

what is Aviation facility sir?

Theconglomerate:
How is smuggling to be blamed for it?
I'll really love you to teach me if you can.

My thinking is that the FX used is still sourced from Nigeria isn't it? Official records have it that importation of rice has fallen so except if something else took its place, demand for FX should have reduced, yet, we're still the second highest buyer of rice globally. Can you reconcile both?

olujaidi:


My thinking is that the FX used is still sourced from Nigeria isn't it? Official records have it that importation of rice has fallen so except if something else took its place, demand for FX should have reduced, yet, we're still the second highest buyer of rice globally. Can you reconcile both?

Now this is why I asked you that question in the first place because I know too well that the fx used to purchase this rice does not come from Nigeria.
Rather countries like Benin rep,Cameroon,Togo,etc....So this is why I had doubts as to why smuggling of rice from those countries to Nigeria should affect fx pricing in Nigeria.
Nigerians don't go to these countries and import rice through them by themselves,no!There is a chain of command as there is in any other business.
They go there and buy from indegenes of that country who are dealers and bulk buyers of rice in those countries who source their fx for rice from their local economies.
The only effect amugglingof the product have is to beef up demand for their local currencies thereby strengthening it to the naira by little degrees,which is even a good thing as it discourages round-tripping(which even is proof for naira strength) and currency smuggling and beefs up Nigeria's informal export sector which is huge by the way.

Theconglomerate:
Now this is why I asked you that question in the first place because I know too well that the fx used to purchase this rice does not come from Nigeria.
Rather countries like Benin rep,Cameroon,Togo,etc....So this is why I had doubts as to why smuggling of rice from those countries to Nigeria should affect fx pricing in Nigeria.
Nigerians don't go to these countries and import rice through them by themselves,no!There is a chain of command as there is in any other business.
They go there and buy from indegenes of that country who are dealers and bulk buyers of rice in those countries who source their fx for rice from their local economies.
The only effect amugglingof the product have is to beef up demand for their local currencies thereby strengthening it to the naira by little degrees,which is even a good thing as it discourages round-tripping(which even is proof for naira strength) and currency smuggling and beefs up Nigeria's informal export sector which is huge by the way.

First off, I said "might". Rice isn't the only thing smuggled anyway. Secondly, if that's the case, then why didn't this affect the exchange rate?

Olaide1295:

Dangote will earn dollars for his refined oil exports. Is he mandated to bring back his revenue in to Nigeria and convert to Naira?
It won’t pay him to be the defender of the Naira. Using his own money to protect a national currency.

There is a law that keeps that in check.. To be paid a certain percentage of your revenue in Naira(I think 40 percent)..But the organisation always have their way around it because our system is so porous

olujaidi:


First off, I said "might". Rice isn't the only thing smuggled anyway. Secondly, if that's the case, then why didn't this affect the exchange rate?

Maybe the rice trade has always been insignificant.
Have you thought about that?
300-400 million dollar a year?come on..
It just don't matter
Every other thing smuggled don't also have it's fx coming from Nigeria too na.
Another proof that agriculture that Nigerians have been screaming about is rubbish.
Coconut pyramid my foot.

wura2u:
Nobody seem to talk about Gold as store of value. I have been thinking about purchase of gold to hedge against inflation or currency devaluation. Anybody thinking along this line? Who is into this line of business? How do you keep the gold against robbery?

Buy a safe in any bank and keep your valuables there just like you bank your money.

Sholapey:
Buy a safe in any bank and keep your valuables there just like you bank your money.

No Nigerian bank currently offer this service. They stopped years ago.

Theconglomerate:
Maybe the rice trade has always been insignificant.
Have you thought about that?
300-400 million dollar a year?come on..
It just don't matter
Every other thing smuggled don't also have it's fx coming from Nigeria too na.
Another proof that agriculture that Nigerians have been screaming about is rubbish.
Coconut pyramid my foot.

What about baskets of tomatoes?

ositadima1:


What about baskets of tomatoes?

that's my area of specialty,I get am.
You want buy?basket 3500 naira and then mudu is 700 naira.

Theconglomerate:
that's my area of specialty,I get am.
You want buy?basket 3500 naira and then mudu is 700 naira.

You are right sha.

The value of Bitcoin keeps increasing and I advice we all to key into cryptocurrency investing.

odimbannamdi:


I just read the post in below link about the LCB issue

https://www.google.com/amp/s/mobile.reuters.com/article/amp/idUSKCN2252NX

The situation is very sad. If our foreign reserves gets too low, our government may do same.

We are heading towards that direction.

emmanuelewumi:



You should have shared this at the appropriate threads

We have "potential" clients every where but offline and online.

ahiboilandgas:
chai make tb move back to 18.5 then we can use the o.5 play around ....now we heading for a recessions..na exclusively family for now

it will and we are anticipating your return to the battle field.

wura2u:
Nobody seem to talk about Gold as store of value. I have been thinking about purchase of gold to hedge against inflation or currency devaluation. Anybody thinking along this line? Who is into this line of business? How do you keep the gold against robbery?

This is an avenue I think one should explore

afroxyz:


This is an avenue I think one should explore

Where can one buy or investment?
Bank
Stock broker
Where?

Goodmorning fellow Nairalanders. I am new to this thread, can someone explain to me what treasury bill is, and if I want to invest in it how do I go about it. Is it worth investing in?

Good day house.

Please does anyone know the stop rate of the auction yesterday. Thanks

Theconglomerate:
that's my area of specialty,I get am.
You want buy?basket 3500 naira and then mudu is 700 naira.

Your use of "mudu" shows u are currently living or have lived all ur live in northern Nigeria.....
Which state to be exact?
And thought I read somewhere u said u were a merchant in Onitsha main market

ManOfSteel2:

Your use of "mudu" shows u are currently living or have lived all ur live in northern Nigeria.....
Which state to be exact?
And thought I read somewhere u said u were a merchant in Onitsha main market

Not exactly.

salenco1:
Goodmorning fellow Nairalanders. I am new to this thread, can someone explain to me what treasury bill is, and if I want to invest in it how do I go about it. Is it worth investing in?

Hi! Nnoo. We usually say read the first 20 pages of this thread. Then come back and ask any questions. Do you think you can do that? it makes for an interesting read. See you soon

Any body with yesterday auction results

Benefits of Investing in Mutual Funds

Date: 1st May, 2020
Time: 1pm

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https://zoom.us/j/7389911083?pwd=c09RUDIwNytoVmZjWDJaM2taTG1tZz09
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Rising Demand for Treasury Bills Crashes Rates to 1.85%
https://businesspost.ng/economy/rising-demand-for-treasury-bills-crashes-rates-to-1-85/