GenBuhari:
This dude's capacity to f**k up this country if he ever becomes president, exceeds that of every president since independence, with the probable exception of Thief Obasanjo!

SeyeMan:



You miss the point coz he never said CBN should fix Naira value. He's obviously telling the CBN to float the Naira so that it can find its true demand and supply value which would literally disarm the strangle hold of currency speculators. Case in point is Egypt which had acute fx issue as Nigeria when PMB came into power, but they have gotten out of that fix because they allowed their currency to find its real market value.

In case you don't know, it was Osinbajo that directed Emefiele to release dollars into the economy when he took charge while PMB was hospitalized. It was then that Naira first got to N515 before it tanked, if not, Naira for don reach N1500 by now.

Babanah:

The naira equivalent is distributed at monthly faac meetings in Abuja.

You don’t appear to see my point. CBN sells at the market rate. This will have the following consequences.
Increased revenue to the 3 tiers of government.
Increased remittances from the diaspora.
Increased FDI
Increased portfolio investment
Increased tourism inward
Better allocation of fx
Decreased fx arbitrage
Decrease in health tourism.
Net increased fx inflows will lead to a lower more realistic rate for the naira.

Danjikanbauchi:
OSIBANJO is the illiterate here, for him to advice an institution responsible for fixing currency exchange rate to abandoned their responsibility and follow marketers fixed price. You reason am na ?

SarkinYarki:


We are saying the currency can never find its real value in Nigeria even if it's allowed to float .. any price it floats at will automatically be marked up in Aboki black market ....Nigeria has been running this scam parallel market before nay of us on this thread was born

Sibrah:
I support the intervention of CBN in ministry matter because if monies for these interventions are handed over to the appropriate ministries, they will loot it and make CBN look incompetent. Just look at how people are blaming CBN gov and CBN.

Babanah:


I don’t know background but will say this.

How do you determine the value of the naira do think it’s a matter of emotions?

A cheaper currency encourages tourism because tourist realise the money would go far when converted to the local currency. That is why poor people go to countries like Thailand and can afford to stay in 5 star hotels. A hair cut with a Nigerian barber in London cost £10 convert the to naira and see if an average Nigeria man can afford to have a hair cut every two weeks.

baralatie:

You are not getting it at all
A dollar exchange rate getting to #800 to #1000 means
The cost of your fuell imports has increased by 3 to 4 times the current rate

Currently petrol alone is subsidized from #300 to #162 (@ #411...cbn rate)
This subsidy itself is causing problems for bubu and states
@ any further [b] increase of naira to #800 to #1000.automatically means your fuel has increased to #600 it will erase all those nonsense you wrote up there

Unless you
Cancel subsidy

I have not mentioned the wahala on inflation and power

SeyeMan:


We have never fully floated the naira before. Yes; the Naira will crash initially, but it wld later find its real and suitable value. That's exactly why I referenced the Egypt scenario.

But then, assuming we continue managing the value of the Naira as you seem to prefer, invariably, the Naira will only continue to crash because we are largely import dependent so there will always be shortage. But if floated, it won't be majorly abokis selling Dollars to Nigerians, big money currency investors will flood the market with dollars[/s]. Eventually, water will find its level. That's the only and painful way to go. Case in point, even if the currency biz in Naira has been in full gear long before we were born, how come the Naira has never had it as bad it has been under PMB even all the years before 2015. I[s]t's simply because of chronic corruption that's been powered by the CBN under Emefiele since 2015[/s].

You are still alluding to the power of dollar speculators nah!
They will still determine the price and they will not sell for cheap price
Also remember cbn remains the biggest dollar spender and buyer in the market.
Unless you go back to Morgan I. The us(which still encourages dollar speculation)



As long as Nigeria is basically an importer the naira will [b] always fall

Babanah:


First of all that is not the way to address other people young man. I don’t know your background. If you don’t agree with others there is a polite way of saying so and putting your views across in an intelligent way.

Good manners are very important. Never mind the dire situation we all find ourselves.

emorse:

You seem to have forgotten that Bubu bowed to pressure to float the naira sometimes around 2017 or so and it dropped from about 230 to 500+/$. Even some of our prophets of doom predicted at the time that in would fall below N600/$. Inflation rose sky high and we slid into recession. It took the CBN's intervention to stem that tide even though partially.I'm no economist but I can connect the dots.

Nigeria is an extremely import-dependent country so market forces could pull the naira even below the 1k/$ being speculated. Devaluation didn't help Zimbabwe. I doubt if it will help us.

In my opinion, the way to go will be to reduce our import bills by maximising local production and if possible, increase exportation after which, the nails can be allowed to float. Otherwise, our own go worse pass Zimbabwe own.

globemoney01:
Osibanjo is making some sense. Emefiele destroyed this economy

baralatie:


I apologize if my response was offensive!
Please do not be annoyed

SarkinYarki:


We are saying the currency can never find its real value in Nigeria even if it's allowed to float .. any price it floats at will automatically be marked up in Aboki black market ....Nigeria has been running this scam parallel market before nay of us on this thread was born

Babanah:

You are drawing a false analogy. If CBN decide to sell dollars at the market rate, say 600 how would the aboki make a profit? By selling at 700?
Once a currency finds it level, that would eliminate arbitrage. The presence of arbitrage opportunities in a market suggests that the price of the commodity is not at equilibrium.

SeyeMan:


We have never fully floated the naira before. Yes; the Naira will crash initially, but it wld later find its real and suitable value. That's exactly why I referenced the Egypt scenario.

But then, assuming we continue managing the value of the Naira as you seem to prefer, invariably, the Naira will only continue to crash because we are largely import dependent so there will always be shortage. But if floated, it won't be majorly abokis selling Dollars to Nigerians, big money currency investors will flood the market with dollars. Eventually, water will find its level. That's the only and painful way to go. Case in point, even if the currency biz in Naira has been in full gear long before we were born, how come the Naira has never had it as bad it has been under PMB even all the years before 2015. It's simply because of chronic corruption that's been powered by the CBN under Emefiele since 2015.

Babanah:

In my opinion, I do not buy the idea of ‘import dependent nation’.

[b]We have to diversify our sources of foreign exchange. [/b]We rely on oil for our forex, what about countries who don’t export crude oil some even have to import oil.
Before the quadrupling of oil price in 1973 oil was less 3?dollars per barrel. Nigeria had a stronger more diversified economy than now. So to say Nigeria is a mono product economy is because we decided to make it this way. You cannot rely on demand management all the time it time to look at the supply side as well.

palsenator:



Don't mind the idiot.... I am sure he didn't rrad it... BY pegging the dollar against the naira, you are creating artificial scarcity and some people are Making millions daily.... Let the gap be close, law of demand and supply should be allowed and encourage exportation business....

In few months, our exchange rates will improve...The cabal benefiting from these won't let this happen..,.

If you go die make you die, the abokis are the ones benefiting from this scheme...

Nonybb:
I don't understand these people sometimes or in fact the generality of Nigerians. You are talking to a cow rearer. Just like explaining some complex situation to my 4 years old son. How can he comprehend other than suffocate his brain the more? So you people believe sincerely that Buhari understood some economic complexities? Even at only two years to go yet this people believe that Buhari has a normal brain to fix Nigeria. This is a man we complained about by 2014/2015 before he came in, he still came on board and did the damage he was being prevented from doing

BosseJ:
Prof should be careful with this advice because if the naira is left to market forces as he's suggesting, it could go as high as N1000+ to a dollar within weeks. The consequent inflation would be mad. And knowing Nigerians, they won't hear grammar o. To the average person on the streets, dollar to naira exchange rate is meant to be as low as possible, they don't care how it's done. Else they will heap the blame on him and Buhari's heads.

Remag666:
You mean Chief Obasanjo abi

TheOgaBoss:
don't mind these idiots who don't know what they are saying, the VP if does not know jack, even China with their Hugh industrial capacity has not dared to float their currency much less a Nigeria thta cannot produce "shit", we cannot even refine the oil we produce, the co is confused.

GenBuhari:
Correct! thats him Thief Obasanjo

SarkinYarki:
I am beginning to suspect the mental capacity of this man to fix Nigeria because it seems he doesn't understand the problem at all ....If you don't know if CBN fixes the rate at 600 naira tomorrow it will still find its way into the hands of Abokis who would na sell at 750 ...the scarcity of dollars is deliberately just like the scarcity of passport booklets , scarcity of electricity and Apapa hold up ..this is how northerners create false scarcity in other to make money ...They have even started it with train tickets

DubaiLandLord2:
This man dey always talk like say he is not part of the FG.

globemoney01:
Osibanjo is making some sense. Emefiele destroyed this economy

SeyeMan:



You miss the point coz he never said CBN should fix Naira value. He's obviously telling the CBN to float the Naira so that it can find its true demand and supply value which would literally disarm the strangle hold of currency speculators. Case in point is Egypt which had acute fx issue as Nigeria when PMB came into power, but they have gotten out of that fix because they allowed their currency to find its real market value.

In case you don't know, it was Osinbajo that directed Emefiele to release dollars into the economy when he took charge while PMB was hospitalized. It was then that Naira first got to N515 before it tanked, if not, Naira for don reach N1500 by now.

AfroKnight:
He is the one they send when they need good PR and when they desperately want to sound reasonable.

Trust me, he is in league with his people. If he was truly different from them, his godfathers would never have trusted him to be sponsored as the Vice President. They can never recommend someone who is not one of them.