GeneralDae:

The problem we have today is that our net reserves are low. For many years, Emiefele was able to hide this fact by not exposing the CBN books fully. So we only knew our Gross reserves at around 37 Billion dollars then but no one knew our net reserves.

With poor net reserves, we had no choice but to devalue as we were only postponing the rainy day. Emiefele probably hoped that the Dangote refinery would come onstream soon to provide the needed FX.

When Asiwaju came on board and he devalued fast, there was only a little hike in interest rate and Tinubu gave the idea that a lower interest rate was more preferable. This may have sent mixed signals to foreign portfolio investors and so from July, they didn't bring in the dollars like they used to. Add to that the revelation of the CBN books as well as the report by JP Morgan that our net reserves were just a mere 3 Billion dollars. This 3 Billion dollars makes sense and shows why we couldn't pay a 7 Billion dollars backlog.

Markets hate uncertainty and so investments continued to reduce. Speculators also now began to suspect the CBN was powerless to defend the naira. Added to that, the CBN was not settled and only had an interim leader. With all of these, the naira was definitely bound to fall further throughout 2023.

All of what Cardoso is doing now, if he had began with them December, maybe the naira would not have gone past 1300. But again, Cardoso is focused on clearing the backlogs and MPC meeting was going to hold so late (in February).

So to answer your question, I would say I agree that it may not have been sustainable.

The FG needs to get all the refineries working at optimal levels however they can, encourage private bodies to invest in modular refineries, face insecurity head-on so farmers can go back to their farms.

At this point, they need to identify the foundational problems and deal with them in a very ruthless manner.

CORRUPTION, which I believe is the major evil here, should be fought like someone who is fighting for survival because, the country is actually at this level right now.

And then, we have the governors who are either not willing or interested in doing anything other than constructing a few km of roads for 8 years.
They don't have investments plans, not ready to take up responsibilities of creating job opportunities.

Until all these run properly, will we have a steady, sustainable and strong currency.

GeneralDae:

Nigeria has just two economic problems:

1) Lack of FX reserves
2) Poor Electricity Supply.

I still think before floating, we should have focussed first on selling the Warri refinery and one or two other assets to get FX. Then with such FX you can get the black market and official rate to unite around 600.
The official rate would just be devalued from 450 to 550 and with enough reserves, we could have brought the black market down from 760 to around 550/600.

Could this have been sustained because it all goes down to sustenance of whatever policy or policies that will be taking to defeat this weak currency 'pandemic'.

HenryWilliams:


You want them to give us the "Libya treatment"?

Anyone that opposes the use of dollars as the global tender will be destroyed by the US

Countries are beginning to wake up to this.

The ASEAN block have muted the idea of de-dollarization but I don't know if they would be successful in this.

BRICS have also muted or ditched the use of the dollar but I don't know if these two groups have completely stopped using the US dollar.

Russia and China are already trading with their local currencies.


For now, the US dollar will remain strong because;
The prices of Gold and Crude Oil etc are still tied to the US dollar.

chaloskyx:
my question is why are other countries and outsiders determining the value of our Naira isnt that madness? can an african or Nigerian determing the value of the USD or Euro are you Nigerians not ashamed of yourselves in 2024 neo colonialists are still dictating your economy, who becomes your leader,yhe worth of your currency the strength of your passport and how you govern yourselves omo you Afticans and Nigerians are worthless fools abeg you should not exist as a people or Nation animals have more purpose and respect than you.

Mr. I Too Know, you're among the "worthless fools who shouldn't exist" for not knowing the history or story about the US dollar and why it's the world's strongest and widely used currency.

So instead of 'yapping' here and abusing your generations, why not take the time and do your studies and then come back to make an informed comment /statement.

There's no point asking for the names of the countries determining the value of the Naira because you're just 'capping'.

senatordave1:


Goldman Sachs an international firm with repute is now questionable?

And to think he has over 40 likes for the nonsense he put out is more embarrassing.

The level of illiteracy here is alarming. I don't even know what to think

What's the need for all the pictures

theysg:
This is not economic hardship.
This is bad human character.

How can you go inside the banking hall, and try to rejoin the queue in the middle if you are not an insane person?

We all know Nigerians lacks protocol orientation!

Thank you for calling it exactly what it is.

But, she could have still joined the queue if she had informed the person behind her.

This is not new to those who I've been in a situation where they will have to leave the queue for one reason or another. Just simply tell the person behind you that you'd be back so the person will stand as a witness.

Generally, most Nigeriand lack patience. I see this every day on the road.

Madam "Economic hardship" has been linked to everything even to people with bad behaviours and manners.

CHAI!!! I pity for Madam "economic hardship'

Who told you all the fried stuffs you put up here are healthy

You don't even know what it means to have a healthy diet.

Saao:
by agreeing to join military, you agreed to die for the country, that is the hard fact. So the day you join military, its assume you're dead. So soldiers died but country learn and progress

Saao, the issue here isn't about the military oath but the constant and consistent crashes in America.

I don't know why we are quick to defend the 'evils' happening outside of Nigeria but curse the country, citizens and her leaders for the same or even 'lesser' 'evils' that happened.

nobilie:
US is obviously doing aggressive war drill. Preparing for proper war situation(s) reason for the numerous casualties in the last 3 months. We don't want war oooo. But if it must come, so be it.

The "aggressive war drills" that are killing both foreign nationals and their citizens but it won't be an 'aggressive training drills' if it happens in Nigeria

What a lame excuse for American

Saao:
see thinking. Those that are successful in life are those that fails not those in their comfort zone

"See thinking"...just as the dead soldiers are successful

meobizy:
Not surprising. Boxers throw better punches while MMA fighters lack boxing-style head movement.

Go and watch what this same guy did to Tyson Fury.

Againstallodds:
That girl is wicked

Abi those girls are wicked

malali:
Tunji-Ojo
Isreal is killing 40,000 Palestinian muslims in a genocidal fashion.
2 - 3 days prior to ramadan, you are doing a Photo Op with Isreali Ambassador.
Thats just being tone deaf to muslims.
I do not know who is advising you.
I thought you have "Omoluabi" sense.

I hope you last on this Job.
Show some diplomacy.
Countries are sending aid to Palestine.
I hope you dont fall on your own sword.

'abokkiii' :-

Elidrisy20:
This one don suffer for hamas hand, na him make am run come naija

Stop your wicked ways, this is 2024

This man is an effeminate

Dear President Tinubu,

Kindly replace the suspended officials with our brothers from the S/W. I'd love to see our other brothers from North continue their wailing

1000angstroms:


How many honest politicians have you seen progress to the top in Nigeria?

If he can't start and progress from bottom then he won't stand a chance at the top.

Besides, I am yet to see any honest Nigerian politician.

Ofodirinwa:
This is great, if Nigeria had to pieces of a human brain in the entire country, we would encourage these guys to begin exporting.

Every day police are busting local refineries, and local gun factories. [b]In a normal country [/b]this type of ingenuity would be the beginning of major industrial sectors

You're very correct.

"In a normal country" even serial killers, when caught, are hired by the government to serve in the military

Judolisco:
why should he start from gubernatorial... He wants to change d country and only way to change dis country is from d top....

He should change the 'bottom' before moving to the top.

There's a reason we all start our 'schooling' years from the bottom.

SoNature:
"Even former President Olusegun Obasanjo, with all his military background, never indulge in such grave undemocratic practice. If, for any reason, during the tenure of former President Buhari, this was the case, why should President Asiwaju, being an Awoist, a democrat and supposedly progressive politician condone and adopt such undemocratic conduct?"

So, Salihu Lukman is saying that it's okay for Buhari to do it but it's not okay for Tinubu to do the same? While politicians fight over appointments, ordinary Nigerians want a country that works for all, irrespective of who drives it. Tinubu is just following in the footsteps of Buhari, and no Northerner should complain. What goes around comes around.

He stylishly crafted the Buhari part and deep down his heart, he knows that Buhari's government was exclusively Northern affair.

It's hurting them so badly to have realised that President Tinubu is not kicking the bucket anytime soon.

'Dem go wail tire'

Galaticos444:
All of a sudden the northern elite has found their voices,did dey call buhari to order when he misruled Nigeria for 8yrs? bloody hypocrites

They are not happy because Mr. President is waxing stronger each day and their expectations for him has been defeated.

They won't let the President rest because he has refused to kick the bucket.


'Una go wail tire'

Local Content is a big scam.

Tellmeastory:


Na small small nau...

I understand 'say na small small' but at this time, they should be doing much better.

They've not really improved from the last time I was at DICON. They should be doing more.

DAICON, a small and quiet community.

Arabaincubus:
They sought Muslim-Muslim, and got Pentecostal-Muslim.

Now, if they are not declaring fatwa on the wife, they are lamenting on the whole.

They thought President Tinubu would have kicked the bucket by now so their son will take over.


'dem go wail tire'.

Menclothing:
Good to hear but ensure Nigeria staff are equal or else all funds will still go back to Europe in salary and aircraft rent

You didn't read the post and it's a short one

America is gone.

This wouldn't have happened in a working country.

In saner climes, the government would have arrested the situation before the plane crashed.

Kennitrust:
An organized country...



You don't see multiple candidates coming out from nowhere to seek for the highest office.


In Nigeria, you will see all kinds rascal coming out to take over the affair our costly nation.

How some of you stay in your rooms, pick up phones and start spreading misinformation just to spite another is really really senseless

She's representing, fanning her man and getting everything she wants with full respect while some Nairaland feminists claimers are living with very bitter hearts and wishing they could just have someone who'll say a 'Hi' to them