₦airaland Forum

naijaking1:
Does Nigeria have an unlimited supply of the dollar?
If the answer is no, then you'll understand that using our small foreign reserve to prop up the naira temporarily is an economic foolishness.
Good export base of products and services is the only way to boost any currency. Injecting dollar directly to prop up the naira is also another form of corruption, because those famed economists that work at the CBN know that's it useless.

I totally agree with you. However, there is the need for an expedite and temporal corrective measure while the true measure is being put in place. We can't just sit down and watch dollar skyrocketing each and every successive day just like the skyrocketing effect on the Nigeria economy can not be neglected. This is a short term measure, I didn't dispute that but a necessary one.

progress69:
Many Nigerians are really not wise. Imagine multinationals stealing from your country and govt is taking actions, yet sew comments up there. A lot of dumb yoots around menh....disgusts me!

Am not surprise anymore, i av learned to realize that common sense is not common. Dont mind them

Former president johnathan seem to be the dumbest president Nigerian av ever elected, under his watch, such a huge amount was stolen. I believe this is just a tip of the iceberg .

Quakertellicus1:
In 2013....ASUU went on strike to get 3 trillion naira to make sure fees stayed low

Government then told them no money....and gave them 1 trillion over 5 years instead.

That is why fees are high.

If you want low fees....we have to find N5 trillion or more every year just to keep the fees low. We do not have that money. Budget this year was N8 trillion.

Will you please be more specific and detail. I dont understand what you are trying to proof

Deen77:
I need the school fees for an accounting students.

THe fee is same for all, irrespective of the course you are doing, only college fee differs depending on your college. But the tuition fee are same

Hmmm.

Laveda:
It's just something I don't accept..
Imagine walking on the road and one guy just stops me like that? what for? I don't like it..if you want directions fine I'll help if I can but asking me out?
No mehn

who knows, maybe he is being secretly admiring u and had just summon d courage to spill it out.

vault:
seriously you better stop that mentality....... the way you hope to meet your soulmate might not even happen...

at least pay attention, then if you're not feeling it, ignore

FACT

08102036924



Pls teach me.

Taiwo20:
She not dead yet...

the statement is not meant to be uttered when people are dead only but when u witnessed or hear anything that is capable of causing sickness to ones soul (depression).

CASTOSVILLA:
aah! aah!! be like say she blow the bomb but her time never reach, or.... o boy this one pass me.

lol

Inna lillahi wa inna ilaihi rajiuna... this obviously is beyond our understanding.

listening to musics and watching music videos

erico2k2:
I wo t derv deep just cos what you started with.from where did you get the notion that Bureau de change is the official spot?they are the black market we talk about you hear everywhere.their rates are not pegged the official spot is CBN and the comeracial Banks.this is why the CBN rates is 195 and bureau de change sells at 230-240.from ur first statement I'm going to say U need to investigate well I to this issue to be well informed

The bureau de change was license in 1989 by the CBN in a bid to increase access by small users like traveller, small scale trader to forex. it is a spot market because the demand and supply of a currency determines how much it will be traded, also participant are market maker and quote prices they feels its competitive.

they are licensed by the CBN and it's the CBN that sell them forex. also they are regulated by the CBN. this can be viewed in the recent recapitalization of the industry.

Note that CBN was never a spot market. they participate in the market to transact business on behalf of the federal gov't and as regulators when demand and supply cannot install stability. Spot market is a group of commercial banks are some forex brokers.

erico2k2:
Did you say outflow of Naira?was that ever the problem?it was outflow of forex or not enough forex coming in that is the problem that was the flaw in your comments

when i say outflow of naira, i mean supply of naira in the official spot (bureau de change) market is more than necessary to what is needed to maintain a stable ER. use of Naira card for foreign transactions automatically gives rise to need of forex by the concern banks to pay for such transactions undertaken by their customers and as such, they will buy (demand) dollar and sell (supply) naira. its an avenue that need to be control. people who need dollars for foreign transactions or indirect importations ( purchase of goods denominated in foreign currencies online) are more than the foreign currency earned. this certainly av depleted our foreign reserve . the only source of forex to Nigeria is through exportation and other supplementary means like sales of Gold,SDR Which are less reliable.

Nigeria economy is being witnessing downward trends. However, with the 2016 budget presentation by the president of republic of Nigeria, we can practically perceive change, in part, in form of economic diversification. A proof of less reliability on oil sector is evidenced in the budget which indicates that less than 15% of the budget will be funded from crude oil export.

A major economic issue, is the increasing weakening of the Nigeria currency against foreign currencies. A problem which has been decisively addressed in part by the CBN, through the new circular issue to all DMBs as regards the usage of the Naira debit card abroad or for foreign transaction domestically. As at 8 dec 2015, naira stood at #280/1$ and currently #197/1$. This is an evidence that our policy maker are actually working towards maintaining a stable economy.

According to me, this policy is a measure aimed at reduction of naira supply which theoretical is an index that influence the value of Naira. Theoretical, supply relative to demand for a currency determines its value. Nigeria is a country where we are more dependent on foreign goods due to a very big gap existing between demand for goods domestically and its supply domestically. This gap practically is fill by importing needed goods abroad. This by implication leads to supply more of naira than foreign currency earned. And i stronly believe that our only source of foreign currency is from crude oil sales in the international market and which price has falling tremendously. Crude oil is our only exported product. As such, if our spending abroad has no limit, we then must expect weakening of Naira against foreign currencies.

Though,our exchange rate is being maintained before now through our foreign reserve. In other words, CBN buys excess supply of naira with foreign reserves but these reserves has depleted tremendously. Note i percieve that Nigeria adopt both fixed and flexible exchange regime. In lieu of the depletion of foreign reserve, the CBN takes additional measure of exchange control through placing ceiling on our foreign spending.

This in the long run will result to a more viable results if the CBN endeavour to take additional measure towards exchange control and if domestic producers provide quality goods to bridge the gap between the demand and supply of consumable goods in the country so as to further reduce our spending abroad.

Mr stranger
Commentary and additions are highly welcome.