omohayek:

Sadly it is all too predictable that this squandering of precious resources is precisely the course Emefiele will embark upon. As he's doing little to rein in the paper-printing that has been keeping the FG afloat, and he's shown little indication of growing a spine and using his statutory independence, the gap between "official" and market-rates of the Naira is guaranteed to widen yet again, providing new opportunities for risk-free arbitrage by those with the right connections.

Knowing all of this, the rational course of action at the present moment is to continue to sell Naira for USD/GBP/EUR/etc, buy traditional stores of value like gold, or try to hedge with inflation-proof assets like property. Those who have the means will continue to minimise their Naira exposure until a new regime comes in and breaks inflation expectations, like Paul Volcker did in the USA at the start of the 1980s.

https://www.stlouisfed.org/publications/regional-economist/january-2005/volckers-handling-of-the-great-inflation-taught-us-much

TCD:
I dont understand what they mean by companies and individuals are buying inflows at 505. Can anyone please explain why its expensive?

My BDC aboki buys my inflows less thn market price, claiming its difficult to sell. So this man is cheating me?

omohayek:

Emefiele is the one who set up the multiple FX rate regime that allows a few people to buy "cheap" US dollars at one rate and turn-around and sell them off for market-rates at no risk.

Did you mean the time he sold dollars to Muslims traveling to Saudi Arabia for pilgrimage at a lower rate? If so, I think it shows how weak the institution is as he was trying to impress his boss at the detriment of the economy. Of course, I will blame him for it, but I won't exonerate the milieu he found himself.

He's the one who instituted a ban list on a variety of imports, further spooking foreign investors, a crucial source of foreign exchange.

Ban on certain imports is a good economic measure aimed at ramping up favorable balance of trades. I don't need to be a professor of economics to know that. However, I would appreciate it if you would itemize those goods so we can analyze the multiplier effect their ban had on the economy.

He's the same person who has been running the printing presses non-stop to give Buhari's government "free" money it can use to pretend to pay salaries and other running costs.

It still boils down to the fact that the institution is not truly independent. We all know how former president Goodluck Jonathan booted out Sanusi through suspension when he perceived the latter as a huge threat.

Worst of all, Emefiele has done all this despite the fact that Buhari has no legal means of sacking him or punishing him in any way. The independence of the CBN is guaranteed by statute, and if Emefiele wanted, he could stop the money-printing and liberalise the FX rate today, and the most Buhari legally could do is complain loudly to the press. That Emefiele chooses not to do so is a mark of either cowardice or incompetence, and given his pathetic track record, likely both.

I cannot defend Emefiele because I don't see anything he has done differently. In fact, Sanusi was sharing money up and down in the name of corporate social responsibility, but I haven't seen this CBN governor do that. However, most Nigerians don't take up public positions to improve the lots of the people. They go there for personal gains and ego trips. Additionally, I don't believe that any Nigerian institution is truly independent. The attachment gives you an insight into what I mean

MartinsD12:

That is very true, let them stop all these nonsense naira gain, naira fall. but how does it affect the living standards is what matters

LaIabobo:
The CBN is struggling to meet forex demands of businesses.

Many large companies are still buying forex inflows at N515/USD and it'll continue to be this bad mainly because of our reduced foreign income and huge foreign loan repayment expenses.

We spend too much on importation and the country doesn't make that much forex anymore so there's pressure on the little dollars in circulation.

Same reason why CBN is luring our abroad brothers to send us dollars and they give us extra 5naira/USD incentive

Thinktwicemybro:
Gain as how? 210 in 2015, 496 in 2021.
Gain indeed, Nigerians now buy fish for #1500.

Thinktwicemybro:
Gain as how? 210 in 2015, 496 in 2021.
Gain indeed, Nigerians now buy fish for #1500.

Osense1:
1 egg 150

deeptechcool:
Aboki(padipadi)Economy

From 200 to 485, it's a massive gain indeed.

TCD:
I dont understand what they mean by companies and individuals are buying inflows at 505. Can anyone please explain why its expensive?

My BDC aboki buys my inflows less thn market price, claiming its difficult to sell. So this man is cheating me?

azeez1271:
Contact me to sell your usd at parallel rate always. If you lives within ibadan physical deal is accepted

LaIabobo:
The CBN is struggling to meet forex demands of businesses.

Many large companies are still buying forex inflows at N515/USD and it'll continue to be this bad mainly because of our reduced foreign income and huge foreign loan repayment expenses.

We spend too much on importation and the country doesn't make that much forex anymore so there's pressure on the little dollars in circulation.

Same reason why CBN is luring our abroad brothers to send us dollars and they give us extra 5naira/USD incentive