einsteine:

Another person who doesn't get the point.
If the CBN likes, let them sell at 180 Naira when people are willing to buy for 470. You can decide for yourself what the consequences are of such an action.

It is you that fails to clarify the question asked. I asked again at what price point should the CBN sell dollars is it 380, 400,470,1000?

When you pick a price point, also do well to back it up with the reason why naira should sell at that price. If you don't have a straight answer then leave the CBN alone to do its thing.

TransAtlanticEx:
Trucks,pick up trucks,vans,cooling rooms,etc...

Go and buy all these from Innosson and other locally assembled manufacturers.

Now Tbs will receive a boost and will remain over subscribe as most funds in savings accounts will look for save haven. The CBN is playing a game with investors

TransAtlanticEx:
Actually yes.
I'll only intervene when things are going out of hands,like say beyond 600.

How did you arrive at the magic number of 600?. Why not at 450, 470, 500, 550?.

Akin3891:
Now Tbs will receive a boost and will remain over subscribe as most funds in savings accounts will look for save haven. The CBN is playing a game with investors

How?

I even think treasury bills rates would further go down.

ahiboilandgas:
Nigeria has stop subsiding forex for pilgrims hence hajj money jump from 700 to 1.5m per seat .....2 why will Nigerians and foreigner choose smugglings and selling of contrabands and other illegal act as a way of live? What was the 2 labanese doing with 900k cash of dollars ?How many more have smuggled such sum.out .....if they are genuine bussiness why didnt they transfers the sum ,why[b] will demands from criminals,smugglers,corrupt incomes be used to determine the exchange rates[/b] ?

Why should exchange rates be DETERMINED in the first place?

This desire to control every form of price in the economy is one of the reasons Nigeria's economy is stagnating.

Let's accept price controls as a good thing for instance, how do you stop people from exploiting these policies? Using the dollar issue as an example, what stops those who the CBN sell for at a preferential rate from selling to those willing to pay higher prices?

There is a fairly inelastic demand for the dollar. The CBN is losing money by selling those dollars at rates far below what the market is willing to pay. It is sad that you guys are dancing around this issue, afflicted by misguided patriotism and economic nationalism.

TransAtlanticEx:
Actually yes.
I'll only intervene when things are going out of hands,like say beyond 600.

Considering the objective of price stability, that would make you a bad governor.

Grupo:


How?

I even think treasury bills rates would further go down.

I agree.
The CBN, in its unwisdom, thinks that the problem with Nigeria's economy is that the so-called real economy outside the major coys is starved of investment funds.
Nothing could be farther from the truth - the banks ain't loaning nothing to anyone because they know the potential borrowers can't do anything with the monies and will most likely default.

einsteine:



Why should exchange rates be DETERMINED in the first place?

This desire to control every form of price in the economy is one of the reasons Nigeria's economy is stagnating.

Let's accept price controls as a good thing for instance, how do you stop people from exploiting these policies? Using the dollar issue as an example, what stops those who the CBN sell for at a preferential rate from selling to those willing to pay higher prices?

There is a fairly inelastic demand for the dollar. The CBN is losing money by selling those dollars at rates far below what the market is willing to pay. It is sad that you guys are dancing around this issue, afflicted by misguided patriotism and economic nationalism.

turky , russia and china are 100 light year ahead of Nigeria still control forex ...why will the west be worry about a weak rmb and the same time luv to promote a weak Naira via imf and co.....

Cyberknight:


I agree.
The CBN, in its unwisdom, thinks that the problem with Nigeria's economy is that the so-called real economy outside the major coys is starved of investment funds.
Nothing could be farther from the truth - the banks ain't loaning nothing to anyone because they know the potential borrowers can't do anything with the monies and will most likely default.

I agree.

The business environment is hostile. Even if there is no interest on savings, many people will still prefer to leave their money in their savings accounts rather than risk losing it in business.

Grupo:


How?

I even think treasury bills rates would further go down.

I mean more funds will be finding ways back to tbs and rate will further decline, because some investors have been keeping funds in savings accounts because of similarities in savings interest n tbs

Akin3891:


I mean more funds will be finding ways back to tbs and rate will further decline, because some investors have been keeping funds in savings accounts because of similarities in savings interest n tbs

Are you still talking about Treasury Bill, when some people are getting 10% and above rental yield from some properties

Cyberknight:


I agree.
The CBN, in its unwisdom, thinks that the problem with Nigeria's economy is that the so-called real economy outside the major coys is starved of investment funds.
Nothing could be farther from the truth - the banks ain't loaning nothing to anyone because they know the potential borrowers can't do anything with the monies and will most likely default.

I have to agree with this

The risk premium for lending to SMEs is TOO HIGH


And the last thing a bank needs is a deteriorating loan book
So on that one
I agree with you

ahiboilandgas:
turky , russia and china are 100 light year ahead of Nigeria still control forex ...why will the west be worry about a weak rmb and the same time luv to promote a weak Naira via imf and co.....

On this one

I have to say
That I disagree with you
Russia is under heavy sanctions

Prior to that
The currency was on a float


China is a fake economy
So I dont even talk about those ones

Turkey also got slapped by the US
Tho I dont have much info on them


Who cares what the west thinks?
Africa is inconsequential to their progress

What we should be thinking about is what is best FOR US!

And the best thing for us
Whether we like it or not
Is some deregulation

We hate to hear it
But it's the truth

Grupo:


I agree.

The business environment is hostile. Even if there is no interest on savings, many people will still prefer to leave their money in their savings accounts rather than risk losing it in business.

You get the point

NL1960:


The guy is too much. Iam impressed with the analysis of awesomeJ.

Btw, i support that your theory of DOM accounts by individuals to be closed down. Of recent, somebody told me that a guy in his office is opening DOM accounts for himself, wife and kids. Meanwhile, this guy is a salary earner in Naira, spends Naira and does not travel out and his kids are all schooling in Nigeria. So what is he doing with $$$ in DOM accounts?. He collects his salary in Naira and go and buy $$$ to deposit into the DOM accounts. Just imagine.

Why would anyone suggest closing down dormiciliary accounts?

What is the sense or rationale behind that?

emmanuelewumi:



Are you still talking about Treasury Bill, when some people are getting 10% and above rental yield from some properties

What properties is that? I hope I'm not in the dark.. I'm only waiting for good bonds to emerge so that I can launch my net, having missed the last sukuk.

Kindly enlighten me , as I wouldn't want to pile up funds in mutual funds, gracia.

TransAtlanticEx:
If they were good at what they do,we wont be having this conversations in the first place.
Canada is also a mono economic country like the shithole,go to their country and check shelf prices since covid and liken it to Nigeria's case,then you will know the whole of CBN are retarded fucktards.
Ph.D is a worthless piece of paper to clean my bushy anus if it can't be put to use to achieve results.
Who cares about their PhD?nigga wtf!!!

Point of correction

Canada is NOT a mono economy country

Point of correction 2
Those guys at the CBN
Not all, but a good number of them are very sound.

That said
The problem is that they are presiding over the affairs of an unusual country with bizarre and unusual human beings


So you only see unusual and shocking policies
When the economy and the participants in that economy are peculiar

That's what the issue is.

DexterousOne:



Why would anyone suggest closing down dormiciliary accounts?

What is the sense or rationale behind that?

Lol.
Where is the sense and rationale from an overall economy standpoint of making domiciliary accounts freely available to and operable by the generality of the public?

Cyberknight:


I think they may know what to do but are they not doing it for political reasons.
For instance, why should Nigeria subside forex sold to "pilgrims"?
Why should Nigeria continue to retain a multiple exchange rate (which has its benefits and clear disadvantages) for long periods of time even in the face of clear evidence that the policy wasn't working?

etc, etc.

Yea yea

The multiple exchange regime is the problem

Its unusual
And it's a failed policy

Akin3891:


What properties is that? I hope I'm not in the dark.. I'm only waiting for good bonds to emerge so that I can launch my net, having missed the last sukuk.

Kindly enlighten me , as I wouldn't want to pile up funds in mutual funds, gracia.

Me too.
I hear good things about REITs though, but am still largely in the dark.

Cyberknight:


Lol.
Where is the sense and rationale from an overall economy standpoint of making domiciliary accounts freely available to and operable by the generality of the public?

There is nothing wrong with having dormiciliary accounts

And besides
You have to understand WHY there is an increase in demand for dormiciliary accounts in the first place

You cannot continue to work hard
And the government in its foolishness continue to enact policies that keep devaluing and destroying your net worth

Even Dangote has had enough
He is moving assets abroad
Something he swore he will never do.

We have a goat in Aso rock who does not know what he is doing
We have the country moving like a rudderless ship

So what do you expect?

Okay
Let's say you succeed and ban dormiciliary accounts


People will be buying strong safes (not the one we call Kolo) and be saving the dollars in their house


That's what I will do for sure
And I know others will

Until the underlying issue that motivates people to go open a dormiciliary account in the first place is tackled

This will keep going on

If the country was more productive
And things were done right

Who cares who is buying USD to keep or not?

Every economic participant will just be playing his game in the economy

But Nigeria matter?
Its tiring

DexterousOne:


There is nothing wrong with having dormiciliary accounts

And besides
You have to understand WHY there is an increase in demand for dormiciliary accounts in the first place

You cannot continue to work hard
And the government in its foolishness continue to enact policies that keep devaluing and destroying your net worth

Even Dangote has had enough
He is moving assets abroad
Something he swore he will never do.

We have a goat in Aso rock who does not know what he is doing
We have the country moving like a rudderless ship

So what do you expect?

Okay
Let's say you succeed and ban dormiciliary accounts


People will be buying strong safes (not the one we call Kolo) and be saving the dollars in their house


That's what I will do for sure
And I know others will

Until the underlying issue that motivates people to go open a dormiciliary account in the first place is tackled

This will keep going on

Lol at the bolded.
I agree that the underlying issue should be tackled and I advocate free convertibility of the naira.
But the domiciliary accounts for all and their associated layer of currency dealers to fund them should go.

Akin3891:


What properties is that? I hope I'm not in the dark.. I'm only waiting for good bonds to emerge so that I can launch my net, having missed the last sukuk.

Kindly enlighten me , as I wouldn't want to pile up funds in mutual funds, gracia.

Got a rental yield of 11% from Skye Shelter Fund, expecting about 14.5% from UPDC REIT


This is promoted by Chapel Hill Denham. Their Infrastructural Debt Fund on FMDQ pays coupon of about 14%.

DexterousOne:



Why would anyone suggest closing down dormiciliary accounts?

What is the sense or rationale behind that?

You are late to the discussion party.

emmanuelewumi:



Got a rental yield of 11% from Skye Shelter Fund, expecting about 14.5% from UPDC REIT


This is promoted by Chapel Hill Denham. There Infrastructural Debt Fund on FMDQ pays coupon of about 14%.

How do I go about these? N are they regulated. Thanks

Akin3891:


I mean more funds will be finding ways back to tbs and rate will further decline, because some investors have been keeping funds in savings accounts because of similarities in savings interest n tbs

Your port I quoted implied otherwise. Maybe you can it was typo.

I get it! You are right.

Akin3891:


How do I go about these? N are they regulated. Thanks

REITs are regulated by SEC.



Retail Investors can't get N10 billion to buy a mall or Office complex, that generates rental income in dollars. But 1000 Investors can buy such and get yield of over 10% and above which can increase due to inflation and currency devaluation. You also enjoy the service of professional property managers and fund managers.


Google the annual financial report of UPDC REIT or SFS REIT and the properties in their portfolio

Suddenly Dollar has dropped to 430/440 at the Black market just on expectation of FX sales by CBN. This confirms CBN position that there is no real demand backing recent increases. Its all artificial and speculative plays. Its well with this country.

NL1960:


You are late to the discussion party.

Unfortunately so.


For a problem to be solved


First things have to be done first

No quick fixes
No cosmetic messures

emmanuelewumi:


REITs are regulated by SEC.



Retail Investors can't get N10 billion to buy a mall or Office complex, that generates rental income in dollars. But 1000 Investors can buy such and get yield of over 10% and above which can increase due to inflation and currency devaluation. You also enjoy the service of professional property managers and fund managers.


Google the annual financial report of UPDC REIT or SFS REIT and the properties in their portfolio

How does one invest in this?