TenQ:

The strength of a currency is dependent on its purchasing power.
Let me ask you a question
Which of these currency is weaker
100 naira
10000 kobo!

Note:
1 Yen is the smallest denomination of the Yen. Just like our 1 kobo is the smallest denomination of the Naira
Note:
1 Won is the smallest denomination of the Won. Their coins starts at 5Won

Calculate inflation of the Naira based on the smallest official denomination and let's see who has the strongest currency.

Secondly:
What is the minimum wage in Nigeria, Japan and South Korea?
Nigeria= N30,000 per month
S-Korea = 1,822,480 Won per Month
Japan= 156,173.3 Yen per month
Japan National Minimum Wage - NMW 2020 | countryeconomy.com
Minimum Wage Increases in 2021 for New Zealand, South Korea ...

So, who is poorer?
A country that can afford to pay you or one that cannot afford to pay you?

You didn't answer my question.

The Japanese yen is trading at 109 to the dollar
The korean won is trading at almost 1200 to the dollar.

Why is that?

Answer the question.

Stop shifting goal post .

The libya dinar is trading at 4 to a dollar.

Libya does mot produce anything and it is at war, why is that?

The Russian roubles and indian rupees are trading at 73 to a dollar, Afghani is trading at 79 to a dollar why is that?

JuanDeDios:

I fear that's where we're going - Venezuela. The kind of price increases we're seeing is beyond the exchange rate issue - we're looking at scarcity of basics, as a lot of items have already disappeared from the shelves.

Dont mind those zombies, running fake figures without supporting real facts. Goverment stiffening everywhere, but accusing wrong people. What is the good thing behind shutting Idi-Iroko boders all these while. GMB doesnt know about Economy of scale. The farmers can not produce rice, garri, beans again because of herdsmen.

thebosstrevor1:


So if you were the cbn governor, how will you solve the given situation ?

Let the naira float with a single rate heavens would not fall trust me. Build up your reserves ( war chest) and then move on to a managed floating exchange rate regime. If the country cannot tame its appetite for dollars, then it's either look for more sources of fx or the exchange rate continues to go up.
The reason there is so much speculation on the naira is because if the belief that the currency will continue to slide against the dollar until it gets to the equilibrium rate.

phineas:
Premium times,and you too?

What demand and supply is controlling the naira please? Is it the sum of our imports versus exports? Or an aboki association doing price fixing for its members on What the dollar price should be through a common platform?

Nobody is fixing price.
It is basic economics.
If everybody who goes to Nigerian bank for forex gets any amount of dollar they need, "black market" will disappear overnight.

If premium times can tell us of 1 developed country that allows a website publish the rates indivuals agree to part with their currency separate from its validated National rate then we will agree that it may be an acceptable practice.

Millions of websites actually!
Apart from finance information sites such as https://www.xe.com/currencyconverter/.
Every website which accept international transactions publish their own separate rates.
Paypal for example has a different rates for pounds to dollars than you will get from Google aggregate calculator.

Why did they allow this, you ask?
Because it is stupid for central banks to fight customers who
wants to exchange currency. Whatever the market determine is the rate of exchange.
In fact, official rates has no meaning in market-control forex and central banks in developed
countries don't cry over them because it is pointless.

So how do central banks of developed country influence rate if they wish?
They either supply more currency or withdraw existing ones.
It is that simple.

However if you can't name 1, then ask yourself are they stupid to not let that happen? Or can we do better? Is this not trying to do better,the final question what side are you on PT

You need a basic education in economics, especially demand and supply.
If Emefiele actually believe that Abokifx determines exchange rates, then he is a dumbass
and should resign.

thebosstrevor1:


What approach was used in Venezuela That Nigeria is using?

Have you forgotten that Venezuela was on sactions and an embargo put on sales of oil

And Maduro not selling oil through the back door......
BMC Champion, I got no time for you.....

Omooba77:

And Maduro not selling oil through the back door......
BMC Champion, I got no time for you.....

What backdoor when on sanction?
You have no reasonable answers rather than cooking up stories.

Economic problems in Venezuela started during the chavez administration because of over spending due to the lot of free government social programs for the citizens. The economy was in collapse when maduro came into power, United states oil sanctions worsen the situation.

Babanah:


Let the naira float with a single rate heavens would not fall trust me. Build up your reserves ( war chest) and then move on to a managed floating exchange rate regime. If the country cannot tame its appetite for dollars, then it's either look for more sources of fx or the exchange rate continues to go up.
The reason there is so much speculation on the naira is because if the belief that the currency will continue to slide against the dollar until it gets to the equilibrium rate.

Any difference with what you wrote and what the cbn is doing?

thebosstrevor1:


What backdoor when on sanction?
You have no reasonable answers rather than cooking up stories.

Economic problems in Venezuela started during the chavez administration because of over spending due to the lot of free government social programs for the citizens. The economy was in collapse when maduro came into power, United states oil sanctions worsen the situation.

You can hear yourself loudly....
Economic problems in Venezuela started during the chavez administration because of over spending due to the lot of free government social programs for the citizens. The economy was in collapse when maduro came into power, United states oil sanctions worsen the situation.

What is GMB and co doing with tradermoni, conditional transfer that are not sustainable and not economy multiplier...

thebosstrevor1:


You didn't answer my question.

The Japanese yen is trading at 109 to the dollar
The korean won is trading at almost 1200 to the dollar.

Why is that?

Answer the question.

Stop shifting goal post .

The libya dinar is trading at 4 to a dollar.

Libya does mot produce anything and it is at war, why is that?

The Russian roubles and indian rupees are trading at 73 to a dollar, Afghani is trading at 79 to a dollar why is that?

Haven't I answered you? The Naira is relatively much weaker than the currencies you mentioned. It's not just about the exchange rate BUT the purchasing power of the citizens.

How much is your income in Naira worth in Japan?
How much is your income in Naira worth in South Korea?

Will you be rich or poor?

Omooba77:


You can hear yourself loudly....
Economic problems in Venezuela started during the chavez administration because of over spending due to the lot of free government social programs for the citizens. The economy was in collapse when maduro came into power, United states oil sanctions worsen the situation.

What is GMB and co doing with tradermoni, conditional transfer that are not sustainable and not economy multiplier...

Trader moni isn't free, they are loans given to traders

thebosstrevor1:


Any difference with what you wrote and what the cbn is doing?

You go and find out about the cbn’s fx policy and compare with what I have said.

Oh

Babanah:

You go and find out about the cbn’s fx policy and compare with what I have said.

It is the same thing

TenQ:

Haven't I answered you? The Naira is relatively much weaker than the currencies you mentioned. It's not just about the exchange rate BUT the purchasing power of the citizens.

How much is your income in Naira worth in Japan?
How much is your income in Naira worth in South Korea?

Will you be rich or poor?

I wasn't talking about the naira but the exchange rates of those currencies to the dollar

philip0906:
Let them be deceiving themselves. Today, the dollar sold for 595. The real black market are the guys on the streets not AbokiFx who simply curates.

We shall see if Buharinomics can beat the basic economic principle of demand/supply.

Bros talk true. 595 Guy abeg take am easy make you no give me BP for here

adonainana:


Wow such an intelligent analysis and for the demand for all this Groups to be almost 98 percent of the total means we are in big trouble sha

Imagine terrorists coming to the open market to buy arms all the time so much the price goes up and once they finished using the weapon they bought the last time they are back again to buy new ones

The buyers too you said thier goods are banned from Fx by the CBN from
Getting it through the bank at a cheaper rate. Kilode what did those one do, are there goods terrorists goods too that they have been banned from getting Fx from the CBN

And the first category of people who don’t have the docs hmm what Doc could a bank possibly want from me to help me exchange 100 million naira to dollars at the cheaper official 410 naira rate

If you like keep deluding yourself and don’t listen to correction, that one is your own problem

Even common travel allowance walk into any bank and say pls I need $4000 PTA and I have naira, pls give it to me and let me know what the bank tells you

Pls stop the delusion and grow up

Oga stop arguing with that boy. Im still dey write WAEC. He's typing for typing sake. I no even sure say Im don hustle one Naira for im life before.

I remember when I planned on tendering an official request for FX to CBN using my bank. It's called Form Q application. My account officer was the one who advised me to give up on the process. She showed me such forms with her which the FX requests has not been granted by the apex bank since three months. Brother I enter black market buy my thing. I can't just keep such huge amount of money at a spot for months because I'm looking for cheap FX...which is not even guaranteed.

Abeg no dey follow am argue.

thebosstrevor1:


I wasn't talking about the naira but the exchange rates of those currencies to the dollar

The comparison is never done in isolation. The exchange rate isn't the sole indicator of strength of a currency but
1. The per capital income of a Nation
2. The average citizens income

If the minimum wage in Nigeria is N400,000 and dollar is N1000 to a dollar. On the surface it looks like the Naira is undervalued. But the truth is that the minimum wage in dollars is $400.
BUT
The minimum wage in Nigeria is N30,000 and the exchange rate is N400 to a dollar. The minimum wage of a Nigerian in dollars is $75


So, you will see why the strength of a currency is not just about its numerical values of the exchange rate but its purchasing ability in the hands of the citizens.
Here you see that the Naira is stronger even at an exchange rate if N1000 to a dollar if the minimum wage is N400,000 than when the exchange rate is N400 to a dollar at a minimum wage of N30,000.

..which of these two will you prefer?

thebosstrevor1:


It is the same thing

Does the CBN not have have multiple exchange rates at the moment? Is the CBN not trying to manage the value of the naira through unorthodox, inconsistent and often confusing means?

TenQ:


The comparison is never done in isolation. The exchange rate isn't the sole indicator of strength of a currency but
1. The per capital income of a Nation
2. The average citizens income

If the minimum wage in Nigeria is N400,000 and dollar is N1000 to a dollar. On the surface it looks like the Naira is undervalued. But the truth is that the minimum wage in dollars is $400.
BUT
The minimum wage in Nigeria is N30,000 and the exchange rate is N400 to a dollar. The minimum wage of a Nigerian in dollars is $75


So, you will see why the strength of a currency is not just about its numerical values of the exchange rate but its purchasing ability in the hands of the citizens.
Here you see that the Naira is stronger even at an exchange rate if N1000 to a dollar if the minimum wage is N400,000 than when the exchange rate is N400 to a dollar at a minimum wage of N30,000.

..which of these two will you prefer?

You keep changing goal post

Babanah:


Does the CBN not have have multiple exchange rates at the moment? Is the CBN not trying to manage the value of the naira through unorthodox, inconsistent and often confusing means?

No the cbn does not have multiple exchange rate.

The cbn is not managing the value of naira through unorthodox and confusing means.

thebosstrevor1:


You keep changing goal post

It seems you are beyond learning.

Can you see how AbokFX has caused dollars to rise again even after its ban to N575 to a dollar
https://www.nairaland.com/6763147/naira-plunges-n575-dollar-two

TenQ:

It seems you are beyond learning.

Can you see how AbokFX has caused dollars to rise again even after its ban to N575 to a dollar
https://www.nairaland.com/6763147/naira-plunges-n575-dollar-two

You keep changing goal post without answering the question i asked. I never for once asked about naira but you keep mentioning naira and your slogan demand and supply as if that is the only words written in your economics book.

Abokifx is not the cause of dollar rise, abokifx is just a blog that aggregates data.

Also,Dollar isn't 575, dollar is 563 in the unofficial open market, official cbn rate is 411

575 is gotten from binance p2p trading not recognized by the government, that is another scam in the making. Presently binance p2p is showing almost 600.
Greed will kill Nigerians

thebosstrevor1:


You keep changing goal post without answering the question i asked. I never for once asked about naira but you keep mentioning naira and your slogan demand and supply as if that is the only words written in your economics book.

Abokifx is not the cause of dollar rise, abokifx is just a blog that aggregates data.

Also,Dollar isn't 575, dollar is 563 in the unofficial open market, official cbn rate is 411

575 is gotten from binance p2p trading not recognized by the government, that is another scam in the making. Presently binance p2p is showing almost 600.
Greed will kill Nigerians

You were the one who changed the goal posts. Was I the one that brought in the issue of the Yen or the Won?

TenQ:

You were the one who changed the goal posts. Was I the one that brought in the issue of the Yen or the Won?

That is because you claimed that Every country who produce MORE than the IMPORT will have a strong currency.

Yen and won are exchanged at the rate of 1189 and 109 to a dollar respectively.

Libya is at war and the exchange rate to a dollar is 5 dinar to a dollar.

Roubles and rupee are exchange at 73 to a dollar, afgani is exchange at 79 to a dollar, and Afganistan is in shambles

Why is that?

Till today, you haven't given any reasonable answer other than shifting goal posts

thebosstrevor1:


That is because you claimed that Every country who produce MORE than the IMPORT will have a strong currency.

Yen and won are exchanged at the rate of 1189 and 109 to a dollar respectively.

Libya is at war and the exchange rate to a dollar is 5 dinar to a dollar.

Roubles and rupee are exchange at 73 to a dollar, afgani is exchange at 79 to a dollar, and Afganistan is in shambles

Why is that?

Till today, you haven't given any reasonable answer other than shifting goal posts

I have given up on you because even though I used several examples to show you that its NOT just about the number rate but on the purchasing power you are beyond knowledge.

I have left you to you great wisdom and insight.

TenQ:

I have given up on you because even though I used several examples to show you that its NOT just about the number rate but on the purchasing power you are beyond knowledge.

I have left you to you great wisdom and insight.

From demand and supply to it is purchasing power. Goal shifter.

So explain to us why the libya dinar is more valuable than japan and korea currency. Note: libya is at war and no production going on there.

One libya dinar is 5 USD ( libya)
One yen is 109 dollars ( japan)
One won is 1183 dollars ( south korea)