₦airaland Forum

socialmediaman:
What’s different about the language used in the Reuters report? It stated FX inflow, the same thing I have fact checked.

Yes but see the comparison to FX inflow for 2023 again in the last paragraph. They compare it to 3.9 Billion dollars for the entire 2023.

socialmediaman:
If you’re the CBN then please correct us by correcting your media announcement. They have announced the FX inflows for the month of March and you’re trying to explain what they meant. Haba!

Reports use it interchangeably. For instance a quote from this report by Reuters. Read the last paragraph and see how they compared the 2.3 Billion dollars to 3.9 Billion dollars for the entire 2023. Yet they still refer to it as FX inflow.

“ABUJA, March 8 (Reuters) - Foreign exchange inflows to Nigeria rose to $2.3 billion in February, the central bank said on Friday, fuelled by renewed interest from foreign investors and a rise in overseas remittances.
Africa's largest economy has been experiencing crippling dollar shortages that have pushed its naira currency to record lows in recent weeks and forced the central bank to devalue the naira twice in less than a year.

Central Bank of Nigeria (CBN) spokesperson Hakama Sidi Ali said foreign investors bought at least $1 billion of Nigerian assets last month, bringing total receipts of portfolio inflows to $2.3 billion. That compares with $3.9 billion for the whole of 2023”.

socialmediaman:
Where’s your source for your Foreign exchange data you this Jagabantist? If you don’t have one stop wasting your time here

By the way, neither my post nor the CBN report mentioned FPI so stop bringing it into the conversation like the average Jagabandit

When the CBN speaks of foreign investors subscribing to our bonds and that in February we received 1 Billion dollars FX inflows from them, that’s FPI. That’s not the total FX inflow from February. That does not include FX inflows from oil for instance and other royalties. FX exchange/currency inflow has FX investment (FPI) included in it and it has been clear this is the aspect CBN has been concerned about and they boast that we got 2.3 Billion dollars from FPI in just two months compared to 3.9 Billion dollars the entire 2023.

socialmediaman:
Foreign investment inflow and foreign exchange inflow are different things. Dude stop wasting your time if you don't understand what this post is about

So the 1.5 Billion dollars was it foreign investment inflow or foreign exchange inflow?
I already showed you that the comparison been made so far has been with the 3.9 Billion dollars FPI and remittances made in 2023. In 2024 we received 2.3 Billion dollars FX investment inflow for just January and February alone. Do you dispute all these?

socialmediaman:
Why are you still showing me a google screenshot of FDI data after seeing the official CBN report on foreign exchange inflows? Do you have a problem understanding the reports?

Check my post above from NESG website and review it against your understanding of the CBN data.

socialmediaman:
The data announced by the CBN which I fact checked was foreign exchange inflow, are you not educated enough to know what foreign exchange inflow means? Neither I nor the CBN mentioned FDI, don't bring that in from nowhere.

Here you have it. Also try to keep the conversation civil since I am yet to throw out insults.
https://www.nesgroup.org/blog/Foreign-Investment-Inflows-into-Nigeria-weakens-in-2023

socialmediaman:
I need data from previous years to compare because that's a very suspicious, possibly bogus claim, similar to the one I just fact-checked

I think you are the one confused about the data. The data perhaps is just limited to inflow from FPI’s and remittances only excluding other kind of inflows, while your data refers to the total FX inflows which would also include FDI’s and royalties for Government.

socialmediaman:
This is the official website of the CBN where they publish economic reports: https://www.cbn.gov.ng/documents/quarterlyecoreports.asp

First quarter 2023: $7.2 Billion USD
Second quarter 2023: $8.69 Billion USD
Third quarter 2023: $16 Billion USD

Average monthly foreign exchange for the first 3 quarters = $3.5 Billion USD monthly

Also, take note of this screenshot from the report by Nairametrics.

socialmediaman:
This is the official website of the CBN where they publish economic reports: https://www.cbn.gov.ng/documents/quarterlyecoreports.asp

First quarter 2023: $7.2 Billion USD
Second quarter 2023: $8.69 Billion USD
Third quarter 2023: $16 Billion USD

Average monthly foreign exchange for the first 3 quarters = $3.5 Billion USD monthly

So what then is the screenshot I posted? Was it wrong information?

That 3.9 Billion dollars for the entire 2023 has also been referenced by various analysts and used to compare just January and February 2024 which they say was altogether 2.3 Billion dollars. With this additional 1.5 Billion in March, we already have 3.8 Billion dollars in just the first quarter 2024.

helinues:
I have taken note of your moniker. I won't waste my time next time educating you

Imagine the boring arguments. So those who made use of currency and exchange interchangeably were drunk right?

Lots of you are plenty in the opposition's camp. Arguing blindly on things you have little information about.

I don’t know where he got his figures from. This is what I got for the entire 2023.

Nigeria to restructure her Banks. This is a quote from Tinubu’s book in 2013. One year after becoming President ,he is now bent on implementing it.

“Under capitalism, the financial sector was adjunct to the real sector. The financial sector served as the circulatory system, efficiently allocating funds to the most productive agents within the real or manufacturing sector in order to keep that sector vibrant. Such vibrancy generates employment for the bulk of the people. High levels of employment give birth to stability and a standard of living conducive to democratic aspirations.
This complementary scenario no longer exists. The financial sector no longer is satisfied with being the branch. To a large degree, it has assumed the role of the tree and its trunk. The financial sector no longer complements the real sector. It has grown too large in comparison. Its appetite is ceaseless and grows with the eating. Instead of feeding funds to the real sector, it now chokes the real sector. Leaving many otherwise productive people and companies struggling to draw water from an empty well.
Under capitalism, the financial sector invested in production of tangible goods. Today, the financial sector specializes in financial investment. Having become insatiable, it rather invests in itself than invest in the rest of the economy so that other sectors prosper with it. Financial speculation used to be the province of a small set of risk takers. Today, it is the fad.
Cautious and prudent bankers were once sentinels of the financial sector. Things are different under financialism. Caution has been tossed to the four winds as the economy was tossed to the wolves. The banker who keeps his wits to function in the best traditions of banking is the exception. I salute those men and women who honor their professional tenets while others turned esteemed financial houses into lax casinos. However, their demonstrations of individual propriety proved insufficient to halt the systemic distortion that occurred. Today, we have a big problem”.- Bola Ahmed Tinubu ( 2013)”

700km Lagos to Calabar road in progress.

predictor1:
Of course. I think the removal of fuel subsidy has actually helped the naira. There's less pressure on the naira now.

Fuel subsidy is still there. The only difference could be that perhaps we now import lesser than the 66 million litres NNPC was importing then. But that is not what is making the Naira gain. The sudden drop to 1900 in February in the first place was an anomaly. Probably it’s correcting itself by retracing.

predictor1:
I knew it was not just the Eurobond. Thanks. But Nigeria is coming up too. There's been a sharp appreciation in the value of the naira.

If you read my post again you would see I made clear Eurobond is not sufficient to stabilise a country’s FX but it’s a propeller.
It actually restores confidence that prevents citizens from buying dollars since they know FX just came in.

predictor1:
Someone said this is due to your recent issuance of the eurobond.

Is the ksh overvalued?
You depend on importation just as much as Nigeria or Ghana, and the value of your exports isn't much really, so what's behind the ksh appreciation?

If Nigeria issues a 2 Billion dollars Eurobond today, Naira would be 900 in no distant time as well. This is what we did in 2017 and 2018. Naira that was going over 500 went back to around 365 and stayed there until COVID.
Eurobond alone can’t stabilise FX rate but it is normally a huge propeller.

Beautiful Lagos


https://www.youtube.com/watch?v=Ws1ybf1bwkA?si=JDVXj-RQ_WH0cn6N

Believeintruth:
well they have done well in terms of fiscal management, but make no mistake these are short term measures. Raising interest rates will have a negative effect on the real sector who need loans to grow their business, that is another flip side. Concerning the IOCs, with the low crude oil production and they difficulty in clearing our previous cargo due to competitive pricing in the oil futures market, are they making more revenues in sales like before?
to me it is still short term, but CBN has done well on the Fiscal side.

Well no matter what the IOC’s are making, having them retain 50% in our Banks every 3 months before repatriating would still provide some liquidity in the market or wouldn’t it?
Raising interest rates has its pros and cons like in everything about economics but how many Nigerian Businesses (especially in the Informal sector) borrow? We may hike by 200 basis points.

Believeintruth:
CBN put in a bid with Banks that have customers with FX claims so the banks bid for the USD to use. with CBN giving the banks the dollars after the successful bid. This dollars now is pumped into the market to use. so that is what is causing the slide down in dollars, but can CBN sustain it? they are still importing fuel, and Dangote refinery is fast becoming a mirage, so my thought, this is just a temporary fix, if the dollar supply is exhausted, we are back again.

Hmm CBN would raise interest rate again next week and FPI’s would again start buying naira bonds the following week. That would bring in inflow. CBN has allowed IMTO’s quote competitive rates by making the official rate competitive, this means more inflows from remittances into official channels.

CBN has struck a deal with IOC’s to at least leave 50% of their remits from sales of crude in Nigerian Banks for 3 months before remitting it back (in a bid to ensure stability and liquidity in Banks). Remember NNPC only makes 30% of our oil exports and IOC’s make the rest. CBN also strategically told Banks not to have long positions on the naira which means this liquidity should always be available in the market.
So we wait and see but these are other things the CBN has done as well.

predictor1:
The nairA then was being supported by foreign currency reserve. That 500 wasn't the true value of the naira

Aren’t all currencies in the world supported by their foreign currency reserves? Where did the reserves come from in the first place?

BigBashiru:
Well said. Naira can't strength against other currencies unless Nigeria starts production and export drive and reduce love for foreign products.

So what was Nigeria producing in 2021 when dollar was 500? Did Nigeria suddenly stop producing 3 times over?

Believeintruth:
There was a retail bid by the CBN to settle outstanding FX issues. that was the reason for the slide in FX rates, this has made a lot of USD in circulation which has pumped down the dollar value. This is still a short term measure.

What do you mean by retail bid?

Hollyharjii:
Please, someone should inform me when it becomes #300 to $1

It can never go back to 300 even if Nigeria becomes like China today in production . 500? maybe.

Shaytun:
Buying one of the biggest bank in Kenya

https://www.bloomberg.com/news/articles/2024-03-20/access-bank-to-buy-kenya-s-nbk-boosting-presence-in-key-market

Access Bank even with the death of their former CEO and Cofounder are not slowing down with their expansion agenda in Africa and indeed the World.

leathalbeast:
as for the senior national women's team, Nigerian women are the bosses but when it comes to the younger female teams it's mostly even besides we have home support in cape coast, we will beat u.

Nah it’s not even. The falconets are two time world finalists and won the first edition of this U20 All African Games few years ago.

leathalbeast:
who taught u football? If that is the case then how is Argentina the world cup champions didn't they also draw with France. Poor logic, sour losers

Sour losers because you manage to win just one game? 😂

popizaino:
Abuja is so beautiful. So many things has changed since the last time i was here. You will be very stupid to compare Abuja to any other cities in west africa, not even Abidjan that i frequently visit.

Abuja inner streets and estate interiors give European street vibes.

PDPGuy:
The unbeaten run vs African sides continues 🙌🏽🙌🏽

The falconets in WAFU cup 2 years ago, did they beat Ghana?

89' GOOOOAAL! in Cape Coast 📍

Nigeria 🇳🇬 2-0 Uganda 🇺🇬

Substitute Chiamaka Okwuchukwu doubles the lead for the Falconets

That's 1 dollar. You can't buy this food for 1 dollar anywhere in Yankee. Although their minimum wage is of course higher.

I think we should draft Chioma Oliseh into the Super falcons

predictor1:
You mean to say prices are bound to go higher between now and June?
Right now the economy is growing but the masses can't feel it.
And what do you mean by stronger economic trajectory by year end? Is it that the masses Will feel the pinch less by then?

We either need to sell some NNPC assets or Electricity assets for billions of dollars to private investors which may happen towards the end of the year. With that the naira may go back to 800.

Or

We raise Eurobonds like we did in 2017 when the naira rebounded from 500 to 360 and stayed that way until COVID in 2020.

If the naira is stronger, inflation would reduce.
For now, we do what we can to keep the naira
from instability.

lovewins:
Was very concerning to read that sha. It's actually 4 if you count Aisha Buhari cup which I believe is part of her reference.

Our girls need to win this o.

I included Aisha Buhari's cup.