₦airaland Forum

Godoverevery:
Both Peter obi and atiku ain't even criticizing this move by cbn but you feel you know more than everyone.

If cbn is actually defending the naira you think Peter obi and Atiku won't have alarm everyone??

All top economist on TV are in full support of this particular move even a former deputy CBN governor came out to give a positive review do you know more than them


Until I see a credible top economist come out to critic this cbn policies you are all what you wrote is invalid.

Godoverevery:
Both Peter obi and atiku ain't even criticizing this move by cbn but you feel you know more than everyone.

If cbn is actually defending the naira you think Peter obi and Atiku won't have alarm everyone??

All top economist on TV are in full support of this particular move even a former deputy CBN governor came out to give a positive review do you know more than them


Until I see a credible top economist come out to critic this cbn policies you are all what you wrote is invalid.

helinues:
Where do BDC get their dollars from? BDC decides not to sell dollar. Jesu

Abeg trading is different from economics

helinues:
Simple basic economics.

What caused the high rate of dollar ? Scarcity

Who caused the scarcity? some BDC operators, Terrorists sponsor, Binance, government too.

Now that those horading the dollar have been arrested, that means there would be more dollar in circulation hence rate reduction.

CodeTemplar:
logic also should tell you if a person sells at a loss for too long, that person will run into bankruptcy. Leave water to find its level(equilibrium) and stop sounding like a speculator who bought dollar at around N1900 with loan money.

helinues:
More like some people have been in depression since Naira started regaining strength, their evil wishes are not coming close to pass hence panicking and teeth gnashing

CodeTemplar:
Selling to BDCs below current rates doesn't automatically mean Naira is being defended.
The govt has to sell low if they feel the Naira is undervalued and higher if otherwise.

The key is getting where(price value) the demand equals supply from govt and private sellers.

About a month ago, the exchange rate of the Naira to the US Dollar, both on the official window and parallel markets, hovered around 1900 Naira per USD. Speculators were anticipating it to reach 2000 NGN/USD, which led to a daily increase in the rate, subsequently inflating prices. However, today, to the satisfaction of some and the dissatisfaction of others, the rate has stabilized around 1400 NGN/USD. What led to this stabilization? Was the Nigerian economy under attack by enemies of the state, and who saved it from impending chaos?

President Bola Ahmed Tinubu and CBN governor Olayemi Cardoso have been praised for their "Jagaban-omics" intervention, which controlled the issue. Indeed, the combined intervention of the Federal Government and CBN achieved this current stability, but through what means? Should Nigerians feel secure or be wary of the current situation? Use the attached links for news references.

Initially, one month after assuming office, President Tinubu's government, through the CBN, carelessly floated the Naira by removing all policies and structures previously used to artificially set rates. This move meant that market forces would determine the Naira's true value.
(CBN Floats Naira)

That is exactly what happened. The market forces were loud and clear that the currency is worth less than the value it was priced at and the Naira free-fall began. Why would the Federal Government float the currency without adequate analysis, planning, or investment to bolster the economy and the country's value? This decision was not surprising for a government that removed fuel subsidy in the inaugural speech.

The Federal Government and CBN who realised that the malnourished dog they brought to the dog fight has been beaten blue-black now decided to fight for their dog. "Malnourished dog" in the sense that, since 2022, accompanied by pre-existing weaknesses, the Nigerian economy had become highly unattractive to foreign investment. Negative FDI rates were recorded for the first time since 1995, several multinationals exited the country, and a substantial trade deficit was reported in Q4 2023. Nigeria was failing to attract sufficient foreign interest or money to withstand negative market pressure on the currency.
(Negative FDI)
(Multinationals dump Nigeria)
(Trade Deficit)


The Federal Government and the CBN made the following interventions in a bid to "fight for their dog":

1. They arrested Bureau De Change Operators using the EFCC and Police, turning businessmen transacting legal business into overnight criminals over alleged unfounded claims of sabotage.
(EFCC arrests BDCs).

2. The government launched a clampdown campaign against Binance, a foreign crypto exchange, resulting in the delisting of P2P markets for Naira on Binance and the controversial kidnap detention of Binance executives without charge.
(FG arrests Binance Execs.)

3. The most significant intervention involved going back to their vomit with the resumption of artificially fixing the FX rate. The CBN resumed selling the Dollar directly to select Bureau De Change operators below the prevailing market rate, which was discontinued in 2021. Understanding the influence of the parallel market, this intervention forced the rate down. The CBN maintains this artificial stability by selling $15m to BDCs weekly.
($15m per week.)


The question arises again. Should Nigerians feel secure with temporary solutions that fail to address the underlying problem? The answer is a resounding NO. Instead of engaging in senseless propaganda of claiming this or that is a genius that conquered the market, Nigerians should demand accountability from their Government. What will happen when the government can no longer afford these artificial and temporary solutions? Dollar will skyrocket even more. Where does the dollar, sold every week at cheap prices, originate, and what is the actual cost to the country to maintain this fake lifestyle fake exchange rate? Has the government failed on its election promise to remove costly subsidies and increase spending on critical sectors like security, infrastructure, and education?

The truth will always outlast propaganda.

Otolomo1:
SOO NIGERIA BE ZOOLAND TO YOU NOW.
BUT LET ELECTION COMES NOW IT WILL BE OUR NIGERIA... AND YOU WANT TO BE PROSPER ON THE LAND?
IF YOU ARE PROSPER WHAT OF YOUR CHILDREN.
IF YOU THINK YOU HAVE MADE IT ALL JUST THINK ABOUT YOUR CHILDREN WHO HAVE SEEN NOTHING.YOU BETTER WISH THIS COUNTRY WELL SO THAT YOU CAN HAVE A TASTE IN IT .
REMEMBER WHATEVER YOU WISH THIS COUNTRY WILL SURELY HIT YOU AND YOUR FAMILY THE MOST .
WISH YOU ALL THE BEST AS NIGERIAN

papiwyte:
Imagine kanu want Biafra and obi want to be president of Nigeria... What do they really want

Godons1:
It is common. With Women from the East. Some of them have more hair on their Chest, bared, moustache than some Men

DevilsEqual:
Hmmm...So last last, na every region hunger dey touch

Thought these guys said only the Northerners and SW people that have been crying of hunger

Also,if hunger dey hammer a whole King, E mean say the villagers dey worse conditions


But then,They are all billionaires and this is just a skit

lilytender:
YES, you are right. That's why you keep supporting fake drugs and drinks manufacturers, drug traffickers, and baby factory merchants. Very funny people