masterpiece86:
They Saw this coming afar that's why they will never confirm Magu. Over the years these legislaThieves have been stealing away our collective will with impunity and the time to do away with this wanton stealing and corruption is now.

Corruption has no coloration, tribe, religion, ethnicity, region or language. It is so unfortunate that these set of politicians (#APC & #PDP) will be talking along ethnic and religious line just to buy sympathy from gullible and uninformed poor Nigerians.

The earlier we wise up the better for all of us.

JustinSlayer69:


Your link to that comment contained facts. Congrats. But i also predicted that range without any textbook.

You didnt predict you guessed. There is a BIG difference.

You actually didn't answer any of the 2 questions. At all.

I did but I guess you dont understand the basics of economic equilibrium, its simple demand and supply

A free float as developed world is proposing would be calamitous. It would work perfectly if we had the infrastructure, regular electricity supply, minimal corruption etc.

Actually the things you mention have no factoring for a free float. The one major impact is the need for FX. If you reduce that you will be fine. Our problem is the huge demand for foreign products, that includes schooling, medical treatment etc. What the government needs is not the main problem.

Sorry, Oga Lecturer, what you were taught in the textbooks designed for Western world would simply fail here. An example- Buhari came and was trying to force a currency peg. The West kept clamouring for a free float (knowing fully well the consequences), Buhari capitulated and what subsequently happened to the Naira? IT FELL EVEN FURTHER.

For the record I lecture PT at a Business School in Europe. I earn my wage by structuring business transaction mainly in developed countrties but have done so in Morocco and Ghana, so the developing world argument doesn't hold.

A free float has never ever happened in Nigeria. It can't happen...As someone said, you definitely won't be here on Nairaland when it does.

I actually answered this by simply stating that the CBN governor actually said so in June 2016, but I guess others know better.


"subliminal shots", "looking silly" is your personal choice to feel like that - But if you poke at me with an argument, you have to know your onions otherwise, i might poke back. That's what i did and you really couldn't answer point for point.

Simple observation I have made, no feelings hurt believe me. You will go living your life and I will mine.

And finally.... Comparing Swiss Francs vs Euro to Naira vs Dollar is frankly just silly. Do we have same economies and infrastructure?

You just contradicted yourself, yes we can compare these currencies, arent people exchanging them for Naira, so they are comparing. When people exchange indirectly that is what they are doing but, forget that, if demand and supply hasnt sunk in, this argument wont either. And yes our economy is as large as many of these so called developed countries. Food for thought, South Korea was at the same economic level of Nigeria in the late 80s, they have progressed. I was there a couple of years ago and its astonishing that we could have been the same.

If you had chosen Egyptian Pound, then i would have said you had a tangible argument. Leave those textbooks, Sir. Real world is different.

Egypt, really. Ask anyone who has been to Cairo. Why do we always reduce our potential? This is not a case of textbooks, its theory meeting practical. Ive been hearing that dumb argument for years, while the Dangotes of this world use the knowledge either those trained or hiring to build. Well they say, one gets what they deserve. If this is the main thought process of Nigerians, then yes I guess we have the government and as such the economy we deserve.

NAIRA has never been floated.

jpphilips:


CBN said they will float the naira last year, at implementation they did a dirty float if you understand what that means, I repeat, naira has never floated freely in history, the day that happens, so many people will no longer have access to nairaland.

JustinSlayer69:


Economics isn't magic or witchcraft.

PLEASE i have just one question for you....

Was Naira actually worth 150 Naira to 1 Dollar during the 2008 global recession

Sorry, couldn't resist the temptation to ask another... Why did the Naira to Dollar value remain fairly constant between 2009 - 2014?

It was because we were exporting goods or because the global oil prices were high and we were propping up the Naira with our reserves.

You are very funny

JustinSlayer69:


Economics isn't magic or witchcraft.

PLEASE i have just one question for you....

Was Naira actually worth 150 Naira to 1 Dollar during the 2008 global recession

Sorry, couldn't resist the temptation to ask another... Why did the Naira to Dollar value remain fairly constant between 2009 - 2014?

It was because we were exporting goods or because the global oil prices were high and we were propping up the Naira with our reserves.

You are very funny

jpphilips:


naira has never floated freely in history, the day that happens, you will not be here on nairaland

JustinSlayer69:


...you guys said this 3 months ago...

This tactic is poor for propping up the currency in a DEVELOPED COUNTRY with infrastructure in place for industrial revolution.

But in a DEVELOPING COUNTRY like ours, temporary measures must be taken while we set down the skeleton for long-term development.

Otherwise, 1$ would be equal to N2,000 if the Naira is freely floated as some have suggested. We are not simply exporting enough

By the way... during the global economic recession, CBN was doing exactly this in 2009 - 2014. It wasn't just so evident

postemail:


Thanks for the reply. I think in all of these we must put in the "naija factor" in every economic policy. From my laymen point of view, Nigeria tend to defy textbook economics. A typical example is this: gov't decides to let the naira fall to it's natural value. ..say 800/$. The southern traders spin it to mean Buhari is secretly trying to enrich his northern brothers by robbing the southern traders. Those at the creeks dynamite a few pipelines. Oil sales volume drops.. Fewer earnings for our reserve. Then it really gets messy. Opposition party sees an opening, steps in to support those agitating by calling the whole mess - tribalism by the northern cabal.

Honestly I really can't think through the mess. It's a Naija thing...call it Naija factor. Simple issues tend to be spun into a complex web of half-lies and half-truth. I see it everyday in the newspapers. Another example is the T. B. Joshua church building collapse a couple of years back... Something as simple as faulty structure that caused the collapse was spun in a way you'd think UFO (Aliens) nuked the building
Pardon me for trying so hard to explain this naija factor.

Also I think many SMEs determine the price of their goods based on the forex rate on the street -aboki rate.

Truth234:




Again I didn't know what to say. Sir, thanks for the discussion.

Truth234:


The oil income won't be enough to finance the 2017 budget but would be more than enough to finance 2.2 trillion of the 2017 budget (7.3 trillion) stipulated to come from oil revenue. Also, mopping up naira will not elevate naira purchases but reduce investors/capitalists buying power, therefore, end-users would be able to access it.

Here is a link http://www.vanguardngr.com/2017/03/scarcity-funds-worsens-cbn-mops-n373-billion/

Again, the Nigerian Inter bank Offered Rate I quoted was for last week. To be honest you strike me like an investment banker, and to even come on here and throw it in the conversation as if it matters than the discussion itself is 'surprising'. I am a foreign exchange research analyst and trader myself with over 15 years experience. An investment banker should know NIBOR changes based on fund availability. Goodbye.

Truth234:


The oil income won't be enough to finance the 2017 budget but would be more than enough to finance 2.2 trillion of the 2017 budget (7.3 trillion) stipulated to come from oil revenue. Also, mopping up naira will not elevate naira purchases but reduce investors/capitalists buying power, therefore, end-users would be able to access it.

Here is a link http://www.vanguardngr.com/2017/03/scarcity-funds-worsens-cbn-mops-n373-billion/

Again, the Nigerian Inter bank Offered Rate I quoted was for last week. To be honest you strike me like an investment banker, and to even come on here and throw it in the conversation as if it matters than the discussion itself is 'surprising'. I am a foreign exchange research analyst and trader myself with over 15 years experience. An investment banker should know NIBOR changes based on fund availability. Goodbye.

Truth234:


I don't even know how to respond to you, given your submission. When gov issue TBills its usually to raise fund to finance capital projects. Now what the CBN is doing is raising fund via Tbills and also using it as a tool to reduce naira availability in order to curb investors excesses in terms of dollar liquidity. Also, most of the investors are locals as foreign investors are bend on having a free floated currency before jumping in, at least that was obvious from the 87 percent subscription. Likewise, if there is no scarcity of fund overnight lending rate won't jump to 15%.

Again, going by our oil output and surge in global oil prices, the CBN is generating about $3 billion per month. I am still yet to see how they can't meet this IOU.

For the record, the intervention is part of the CBN plan to clear backlogs, it does not mean the apex bank is not generating enough forex.

Truth234:


CBN is following a plan/strategy. Last week, the CBN mopped up N373 billion through sales of treasury bills in order to prevent too much Naira pursuing the available foreign exchange resources and putting pressure on exchange rates. It was a success as the cash in the market dropped to N2 billion from N74 billion, prompting increase in overnight lending rate to 15 percent.

The idea is to reduce cash availability in the market so greedy capitalists/investors won't mop up dollars when those forward contracts matured. Hence, end-users can access them at moderate rate.

I also think the CBN would be able to meet those agreement going by our forex generation and current oil output.

postemail:


Morning bro. I have a question about this topic, and your concerns for CBN's weekly intervention.

(1)If CBN don't intervene and allow a free float, won't the naira exchange rate get unhinged and just shoot for 1000 or less per dollar?

That would mean "massive" inflation because we are an import dependent nation.

(2) without CBN's dollar supply, can the BDCs and banks source enough dollars to meet traders, travelers and politicians demand?

-I'm not sure they can because our banks are just piggybacking on gov't.

CC Truth234

Jokerman:
Maryam Abacha After all the evils dey did in this country??

This country can never be good until serious truthful people take up positions of power, and slaughter all these bastards one way or the other...

Naming something after an Abacha??

No wonder some people see T.A orji as a hero

joshysmartie:



let the politician come and point gun na.. una self... theyre both bad but those on the streets all we ask of them is... go to school and become politician pls..
if you must steal *wink

TANKDESTROYER:
Who trains this officers?....

OkoYiboz:
This is very unfortunate. This was exactly how they killed the US based doctor who came to provide free medicare to his people in the East.

My advice is very simple. If you value your life and you're entering Igboland, organise armed escorts for yourself before you take a step into Igboland. Don't say that you didn't offend anyone, people sell out others for as little as a bottle of Smirnoff.

The rate of killing Igbo people of substance is too much. If the Fulani nomads are killing Igbos, should Ndigbo also kill their stars?

mondob2k:
I pity the innocent souls that will lost, People that will be impoverished with this war and all sufferings that will go with it.
Wars never determine who is right; it only determine who is left.

FortuneTeller:
It's best to go home and build. Trust brother? No, he will use it for bride price. Trust sister? No, she will form on Instagram. Not even mummy? Ni, She will say it's her portion for bringing you up to live abroad. Make the sacrifice and go home to prevent breaking the family over money matters.

bezimo:


There is no justifiable reason to dupe or defraud someone who sent money home to build a house.

ManOfThePeople:


This is not necessarily true. Go through fb profiles of most Nigerians in Nigeria. You will see that most pose for pictures at Shoprite, beside fine buildings and cars, in fine sitting rooms they do not own & other beautiful places. Only for them to say when chatting "bros, I dey roast o, wetin dey for me na?
Taking pics in fine places abroad does not equate to showing off. Everyone, Africans or whites take pics in beautiful places.

Even if the relatives abroad are actually doing well (I know many doing very well), it still gives nobody the right to dupe them.