Bonesbreaker:
teach me

Sorry was talking about Nigerian income overall from exports and suchlike.

Not forex trading

Esseite:
AbokiFX was a major problem... when they were churning out rates, the Fx rate was increasing every 6hrs despite the CBN pumping scarce FX into the system.

Now the CBN has stopped supplying dollar to the BDC, the BTA Fx is gotten with so much scrutiny, yet the Naira has refused to fall further, while little gains are trickling in..

The bargaining power returned to the people..

But we can still fix it better...

Seems you are on drugs!

It was the right move as abokifx had become a tool for certain parties to make money within the chaos of Nigeria.

Why will it rise? When they are not doing what they are supposed to do

Thanks sir,
U mentioned interest rate and inflation rate,
Pls what is the correct monetary application that a CBN governor should take between inflation rate and interest rate inorder to avoid further inflation according to time tested sound economic principle.(this is available in almost all good macroeconomics textbook

AntiWailer:
Nobody expected Naira to rise just by shutting AbokiFX down. If you believed that, you are either ignorant, mischievous or just a victim of picking common thoughts on the street.

For Naira to rise, we need to manufacture and export. Reduce imports drastically and reduce our reliance on dollars then the basic Economics of Demand and Supply will kick in on the price.

The problem AbokiFX bring is speculation issues. it is one of the problems and others would be tackled accordingly. There are about 7 other reasons to be tackled.
1. Inflation rate.
2. Interest rate.
3. trade balance.
4. Government debt
5. Terms of trade
6. Political and stability of performance.
7. Recession
8. Speculations.

If you observe the list closely you will discover that the Govt's failure is responsible for majority of them and that is why there is no hope anytime soon. The decision which is a right decision no doubt, at best took care of only item 8. the 7 other monsters must be dealt with.

Many people asked several questions around where AbokiFX get their data from. There was no sensible answer.

Also a lot of people rely on AbokiFX to make decisions on how much they will buy or sell their dollars so let us take an example.

If AbokiFX continues operations and all of a sudden post #750 to 1 dollar (recall we don't have any logic behind the price they post), thousands of people who use AbokiFX to av an idea of how much they will sell will definitely not sell at 450 right ?

Even if people say they are mad, they will not sell cos they believed if AbokiFX says 750, it is likely close. The refusal to sell automatically impacts supply while the demand for dollars keep going up, price will definitely rise at a rate not steady.


Please note that this is highly intellectual. I will try and reply every mention.

If u don't understand, I can forgive you but if your response is only insult because it is too much for your capacity to think, i can also forgive you but will likely ignore you.

I agree it is not every time posts would be interesting like Squid Game or Tonto Dike vs Kpopo.

You’re right , but if you go to places like Paxful , the rate used is 575 and not 420 which stands to reason that there’s a way the rate is calculated. I’m not saying I know it , but there’s a way and I’ll try and investigate it.

Esseite:
AbokiFX was a major problem... when they were churning out rates, the Fx rate was increasing every 6hrs despite the CBN pumping scarce FX into the system.

Now the CBN has stopped supplying dollar to the BDC, the BTA Fx is gotten with so much scrutiny, yet the Naira has refused to fall further, while little gains are trickling in..

The bargaining power returned to the people..

But we can still fix it better...

Matheusmartin:
...
Tull tomorrow, I still do not understand what Emiefele was trying to do here..

I met the man once during his time as DMD, and had not been impressed at all. He is more of yes sir man.

AntiWailer:
Nobody expected Naira to rise just by shutting AbokiFX down. If you believed that, you are either ignorant, mischievous or just a victim of picking common thoughts on the street.

For Naira to rise, we need to manufacture and export. Reduce imports drastically and reduce our reliance on dollars then the basic Economics of Demand and Supply will kick in on the price.

The problem AbokiFX bring is speculation issues. it is one of the problems and others would be tackled accordingly. There are about 7 other reasons to be tackled.
1. Inflation rate.
2. Interest rate.
3. trade balance.
4. Government debt
5. Terms of trade
6. Political and stability of performance.
7. Recession
8. Speculations.

If you observe the list closely you will discover that the Govt's failure is responsible for majority of them and that is why there is no hope anytime soon. The decision which is a right decision no doubt, at best took care of only item 8. the 7 other monsters must be dealt with.

Many people asked several questions around where AbokiFX get their data from. There was no sensible answer.

Also a lot of people rely on AbokiFX to make decisions on how much they will buy or sell their dollars so let us take an example.

If AbokiFX continues operations and all of a sudden post #750 to 1 dollar (recall we don't have any logic behind the price they post), thousands of people who use AbokiFX to av an idea of how much they will sell will definitely not sell at 450 right ?

Even if people say they are mad, they will not sell cos they believed if AbokiFX says 750, it is likely close. The refusal to sell automatically impacts supply while the demand for dollars keep going up, price will definitely rise at a rate not steady.


Please note that this is highly intellectual. I will try and reply every mention.

If u don't understand, I can forgive you but if your response is only insult because it is too much for your capacity to think, i can also forgive you but will likely ignore you.

I agree it is not every time posts would be interesting like Squid Game or Tonto Dike vs Kpopo.

.

AnonPoet:
https://punchng.com/one-month-after-aboki-fx-shutdown-naira-fails-to-rise/
https://punchng.com/one-month-after-aboki-fx-shutdown-naira-fails-to-rise/

A government that hates the truth.
What has AbokiFx got to do with the gross mismanagement of our national assets of good people, their education and physical assets?

Until we become an exporting nation before Naira can be strong but these people think it is by paper and talk!

AntiWailer:
Nobody expected Naira to rise just by shutting AbokiFX down. If you believed that, you are either ignorant, mischievous or just a victim of picking common thoughts on the street.

For Naira to rise, we need to manufacture and export. Reduce imports drastically and reduce our reliance on dollars then the basic Economics of Demand and Supply will kick in on the price.

The problem AbokiFX bring is speculation issues. it is one of the problems and others would be tackled accordingly. There are about 7 other reasons to be tackled.
1. Inflation rate.
2. Interest rate.
3. trade balance.
4. Government debt
5. Terms of trade
6. Political and stability of performance.
7. Recession
8. Speculations.

If you observe the list closely you will discover that the Govt's failure is responsible for majority of them and that is why there is no hope anytime soon. The decision which is a right decision no doubt, at best took care of only item 8. the 7 other monsters must be dealt with.

Many people asked several questions around where AbokiFX get their data from. There was no sensible answer.

Also a lot of people rely on AbokiFX to make decisions on how much they will buy or sell their dollars so let us take an example.

If AbokiFX continues operations and all of a sudden post #750 to 1 dollar (recall we don't have any logic behind the price they post), thousands of people who use AbokiFX to av an idea of how much they will sell will definitely not sell at 450 right ?

Even if people say they are mad, they will not sell cos they believed if AbokiFX says 750, it is likely close. The refusal to sell automatically impacts supply while the demand for dollars keep going up, price will definitely rise at a rate not steady.


Please note that this is highly intellectual. I will try and reply every mention.

If u don't understand, I can forgive you but if your response is only insult because it is too much for your capacity to think, i can also forgive you but will likely ignore you.

I agree it is not every time posts would be interesting like Squid Game or Tonto Dike vs Kpopo.

Quoted because I find this enlightening.

Buhari no send una whether the naira reach 1k to a dollar. So far as his Fulani brothers are still massacring and and kidnapping innocent Nigerians for ransom. Emefiele should bow his silly head in shame for wrongly accusing Abokifx for the naira failings.

AntiWailer:
Nobody expected Naira to rise just by shutting AbokiFX down. If you believed that, you are either ignorant, mischievous or just a victim of picking common thoughts on the street.

For Naira to rise, we need to manufacture and export. Reduce imports drastically and reduce our reliance on dollars then the basic Economics of Demand and Supply will kick in on the price.

The problem AbokiFX bring is speculation issues. it is one of the problems and others would be tackled accordingly. There are about 7 other reasons to be tackled.
1. Inflation rate.
2. Interest rate.
3. trade balance.
4. Government debt
5. Terms of trade
6. Political and stability of performance.
7. Recession
8. Speculations.

If you observe the list closely you will discover that the Govt's failure is responsible for majority of them and that is why there is no hope anytime soon. The decision which is a right decision no doubt, at best took care of only item 8. the 7 other monsters must be dealt with.

Many people asked several questions around where AbokiFX get their data from. There was no sensible answer.

Also a lot of people rely on AbokiFX to make decisions on how much they will buy or sell their dollars so let us take an example.

If AbokiFX continues operations and all of a sudden post #750 to 1 dollar (recall we don't have any logic behind the price they post), thousands of people who use AbokiFX to av an idea of how much they will sell will definitely not sell at 450 right ?

Even if people say they are mad, they will not sell cos they believed if AbokiFX says 750, it is likely close. The refusal to sell automatically impacts supply while the demand for dollars keep going up, price will definitely rise at a rate not steady.


Please note that this is highly intellectual. I will try and reply every mention.

If u don't understand, I can forgive you but if your response is only insult because it is too much for your capacity to think, i can also forgive you but will likely ignore you.

I agree it is not every time posts would be interesting like Squid Game or Tonto Dike vs Kpopo.

Your analysis is sound. Kudos.

Classic shadow chasing. Next, he will blame the Sun or Rain or even the Third Mainland bridge. Mumu.

Vice-President Yemi Osinbajo has called on the Central Bank of Nigeria to allow the naira reflect the realities of the market.

The national currency is changing for N411/$ at the official side of the market but N565/$ at the parallel market, which many believe is reflect of the true value.

Speaking at the midterm retreat of President Muhammadu Buhari’s second tenure, the vice-president said the exchange rate is artificially low, and this is deterring investors from bringing foreign exchange into the country.

“As for the exchange rate, I think we need to move our rates to [be] as reflective of the market as possible. This, in my own respective view, is the only way to improve supply,” Osinbajo said.

We can’t get new dollars into the system, where the exchange rate is artificially low. And everyone knows by how much our reserves can grow. I’m convinced that the demand management strategy currently being adopted by the CBN needs a rethink, and that is just my view.

https://www.nairaland.com/6797395/osinbajo-asks-cbn-bow-market

This among others is what the Vice President had to say last week about the exchange rate. This is the Vice President of Nigerian saying this. He is privy to better and more accurate information / data than most Nigerians. He also heads the Presidents economic team.

To put this in perspective, a few weeks earlier, abokifx was taken offline cos it was supposedly encouraging / enhancing speculations against the Naira by publishing higher rates than CBN's / official rates. A few weeks later, the Vice President is echoing / supporting abokifx' position, by saying the Naira is over-valued. What a contradiction! Dig? Abokifx getting banned for publishing data to support what the Vice President' position.

Somewhere in the VP's statement, he cited an example of a foreign investor bringing in $ into the country say at 420 and in a few weeks is forced to buy the same $ for say 500 and above. So the SPREAD is huge. What this spread indicates is that, (without getting into detailed technical and fundamentals of exchange rates mechanism) there is huge exposure and lack of confidence in the Naira. This is also calculated in the rates. (Volatility / spread)

Further I miss a very vital term: "ARBITRAGE" in this discussion, this is part of what is responsible for the thriving black / parallel market, as it were.

And to those holding the position that the Naira has stabilized or wld have hit $ = 750-1000 Naira had abokifx not been banned, on the former, we are all aware that there is a correlation between the price of crude and Naira exchange rate, right? And we all know what the price of crude has been doing in past weeks? So we need to make this discourse as complete as possible.

And on the later, since we are all here to learn, may I ask how you guys came to the aggregation of between 750-1000?

This is my 2cent on this interesting topic. Thanks all.

socialmediaman:
It’s because the despot in Aso Rock pretends to be fighting corruption when massive corruption is right there within his cabal

When people steal money in your father’s office with his colleagues, will you come & blame the President for his own papa’s criminal actions?

from what I've seen so far, this buhari fg don't care if d naira fall 1k to $1, what d care is to support d fulani people & empower d people of nijer republic

Sammerboi:
Buhari no send una whether the naira reach 1k to a dollar. So far as his Fulani brothers are still massacring and and kidnapping innocent Nigerians for ransom. Emefiele should bow his silly head in shame for wrongly accusing Abokifx for the naira failings.

Only Zombies will be blaming the president for monetary policy decisions, most people shouting do not even have any means of making foreign exchange, all they hope for is dollars from NNPC?

newisd75:
from what I've seen so far, this buhari fg don't care if d naira fall 1k to $1, what d care is to support d fulani people & empower d people of nijer republic

Wailer, what do you do, to add dollars to Nigeria’s economy? The leeches & ones that add no value to society, are the ones that always make the loudest noise.

AnonPoet:
https://punchng.com/one-month-after-aboki-fx-shutdown-naira-fails-to-rise/
https://punchng.com/one-month-after-aboki-fx-shutdown-naira-fails-to-rise/

Nigeria government and CBN knows exactly what is crashing naira value in commercial market and foreign exchange, they just want to bully Abokifx and other bureau de change outlets, as usual someone has to take the blame for their failure to stabilize Nigeria economy.

egoldman:
Before the Abokifx site was launched, was naira doing well?

VERY GOOD QUESTION. ALL CURRENCIES ARE SUBJECTED TO SPECULATION, INCLUDING THE ALMIGHTY USD. FACT IS WITHOUT SPECULATION THERE WOULD BE NO FX TRADE. SO WHY DO OTHER CURRENCIES COPE WHILE THE NAIRA CONTINUALLY GETS CLOBBERED?
SIMPLE, NO FISCAL POLICY TO BACK UP MONETARY POLICY. TO COVER UP FOR THAT INADEQUACY, THE CBN LOOKS FOR SOFT TARGETS TO BLAME. ABOKIFX FITS THAT ROLE PERFECTLY.

AntiWailer:
Nobody expected Naira to rise just by shutting AbokiFX down. If you believed that, you are either ignorant, mischievous or just a victim of picking common thoughts on the street.

For Naira to rise, we need to manufacture and export. Reduce imports drastically and reduce our reliance on dollars then the basic Economics of Demand and Supply will kick in on the price.

The problem AbokiFX bring is speculation issues. it is one of the problems and others would be tackled accordingly. There are about 7 other reasons to be tackled.
1. Inflation rate.
2. Interest rate.
3. trade balance.
4. Government debt
5. Terms of trade
6. Political and stability of performance.
7. Recession
8. Speculations.

If you observe the list closely you will discover that the Govt's failure is responsible for majority of them and that is why there is no hope anytime soon. The decision which is a right decision no doubt, at best took care of only item 8. the 7 other monsters must be dealt with.

Many people asked several questions around where AbokiFX get their data from. There was no sensible answer.

Also a lot of people rely on AbokiFX to make decisions on how much they will buy or sell their dollars so let us take an example.

If AbokiFX continues operations and all of a sudden post #750 to 1 dollar (recall we don't have any logic behind the price they post), thousands of people who use AbokiFX to av an idea of how much they will sell will definitely not sell at 450 right ?

Even if people say they are mad, they will not sell cos they believed if AbokiFX says 750, it is likely close. The refusal to sell automatically impacts supply while the demand for dollars keep going up, price will definitely rise at a rate not steady.


Please note that this is highly intellectual. I will try and reply every mention.

If u don't understand, I can forgive you but if your response is only insult because it is too much for your capacity to think, i can also forgive you but will likely ignore you.

I agree it is not every time posts would be interesting like Squid Game or Tonto Dike vs Kpopo.

Wow. You are a rear breed on Nairaland. Its a pleasure reading your educative post. This kind of piece is very rear on Nairaland.

Well done

Buckeyemedia1:
Wailer, what do you do, to add dollars to Nigeria’s economy? The leeches & ones that add no value to society, are the ones that always make the loudest noise.

u look like a die hard buhari supporter, people like u is d reason y nigeria is like this

alizma:

If there is anyone who is foolish here, you are the one. Were you following the fall of the naira before abokifx was stopped from daily publishing, are you in a business that has direct impact of exchange rate(dollar), If yes, how many times have you had the cause to increase your price due to dollar increase since abokifx was stopped from publishing black market rate?


The problem with you guys is that you talk when you are supposed to be listening and learning.
First of all, let me tell you that naira has recovered a little on the black market where abokifx was actively and "ignorantly" stirring the tide against the naira.
Secondly, if the CBN had allowed abokifx to continue the way it was operating, we would have been talking about $1 to 1k by now.
Thirdly, as at the time abokifx was stopped, prices of goods with direct dollar rate effect were increasing on daily basis due to daily increase in the rate as published by abokifx but in the last two, three weeks ago I don't think those importing goods have had reason to increase their prices on the bases of dollar rate but rather, people have adjusted their prices downwards. I am speaking from experience and now I will like you to sincerely and honorably answer the first two questions I asked you.

This shows you have no idea what you are talking about so let me educate you.

One of Nigeria's largest imports are heavy machinery from abroad, you can check the Nigerian foreign trading statistics and see for yourself.

We need these machines to build consumer products and sell them, all your "made in Nigeria" products are made with foreign machines.

If the exchange rate increases, the prices of the machines and their spare parts increase as well, meaning manufacturers have to increase prices to offset the cost of production. Go and ask anyone working in heavy industry and they will tell you the same thing.


The Naira only gained on the dollar because the dollar recently lost part of it's value
https://www.cnbc.com/2021/10/01/forex-markets-dollar-federal-reserve.html

Abokifx is closed so why is the naira still dropping even at the official market?

https://www.premiumtimesng.com/news/top-news/489949-naira-in-another-record-fall-at-official-market.html

Secondly, if the CBN had allowed abokifx to continue the way it was operating, we would have been talking about $1 to 1k by now.

They have shutdown Abokifx now, so why is the exchange rate still increasing? Who will you blame now for the government's stupidity?

AntiWailer:

The problem AbokiFX bring is speculation issues. it is one of the problems and others would be tackled accordingly. There are about 7 other reasons to be tackled.
1. Inflation rate.
2. Interest rate.
3. trade balance.
4. Government debt
5. Terms of trade
6. Political and stability of performance.
7. Recession
8. Speculations.

Many people asked several questions around where AbokiFX get their data from. There was no sensible answer.

Also a lot of people rely on AbokiFX to make decisions on how much they will buy or sell their dollars so let us take an example.

If AbokiFX continues operations and all of a sudden post #750 to 1 dollar (recall we don't have any logic behind the price they post), thousands of people who use AbokiFX to av an idea of how much they will sell will definitely not sell at 450 right ?

AbokiFX is not the problem of the forex crises here. CBN is just looking for someone to blame for their gross incompetence.

If AbokiFX speculate 1dollar to N100, does it make it a reality? CBN should deal with the real issues, some of which you’ve listed here instead of chasing shadow or else the situation will only get worse.

Maybe they will now ban another MallamFX

Fooocked lazy brains government. Blaming without themselves

You make a number of points, but ask yourself, how is AbokiFX alone responsible for everyone's speculation issues?
Next, ask yourself, how were the speculated/parallel markets fixed BEFORE AbokiFX was available?

The Nigerian government majors in the minor, out of 8 reasons you listed, they're out there waging war on one and expect any tangible results.
Fix the fundamentals and the rest would fall into place.

AntiWailer:
Nobody expected Naira to rise just by shutting AbokiFX down. If you believed that, you are either ignorant, mischievous or just a victim of picking common thoughts on the street.

For Naira to rise, we need to manufacture and export. Reduce imports drastically and reduce our reliance on dollars then the basic Economics of Demand and Supply will kick in on the price.

The problem AbokiFX bring is speculation issues. it is one of the problems and others would be tackled accordingly. There are about 7 other reasons to be tackled.
1. Inflation rate.
2. Interest rate.
3. trade balance.
4. Government debt
5. Terms of trade
6. Political and stability of performance.
7. Recession
8. Speculations.

If you observe the list closely you will discover that the Govt's failure is responsible for majority of them and that is why there is no hope anytime soon. The decision which is a right decision no doubt, at best took care of only item 8. the 7 other monsters must be dealt with.

Many people asked several questions around where AbokiFX get their data from. There was no sensible answer.

Also a lot of people rely on AbokiFX to make decisions on how much they will buy or sell their dollars so let us take an example.

If AbokiFX continues operations and all of a sudden post #750 to 1 dollar (recall we don't have any logic behind the price they post), thousands of people who use AbokiFX to av an idea of how much they will sell will definitely not sell at 450 right ?

Even if people say they are mad, they will not sell cos they believed if AbokiFX says 750, it is likely close. The refusal to sell automatically impacts supply while the demand for dollars keep going up, price will definitely rise at a rate not steady.


Please note that this is highly intellectual. I will try and reply every mention.

If u don't understand, I can forgive you but if your response is only insult because it is too much for your capacity to think, i can also forgive you but will likely ignore you.

I agree it is not every time posts would be interesting like Squid Game or Tonto Dike vs Kpopo.

newisd75:
from what I've seen so far, this buhari fg don't care if d naira fall 1k to $1, what d care is to support d fulani people & empower d people of nijer republic

You are an example of when an illiterate is given the opportunity to talk

Lmao! Gains? What gains??

Esseite:
AbokiFX was a major problem... when they were churning out rates, the Fx rate was increasing every 6hrs despite the CBN pumping scarce FX into the system.

Now the CBN has stopped supplying dollar to the BDC, the BTA Fx is gotten with so much scrutiny, yet the Naira has refused to fall further, while little gains are trickling in..

The bargaining power returned to the people..

But we can still fix it better...

There is a marked improvement. At least now the rate is stable and not swinging around some point determined solely by AbokiFx

Because Naira went down flat.

Theunbothered:

This shows you have no idea what you are talking about so let me educate you.

One of Nigeria's largest imports are heavy machinery from abroad, you can check the Nigerian foreign trading statistics and see for yourself.

We need these machines to build consumer products and sell them, all your "made in Nigeria" products are made with foreign machines.

If the exchange rate increases, the prices of the machines and their spare parts increase as well, meaning manufacturers have to increase prices to offset the cost of production. Go and ask anyone working in heavy industry and they will tell you the same thing.


The Naira only gained on the dollar because the dollar recently lost part of it's value
https://www.cnbc.com/2021/10/01/forex-markets-dollar-federal-reserve.html

Abokifx is closed so why is the naira still dropping even at the official market?

https://www.premiumtimesng.com/news/top-news/489949-naira-in-another-record-fall-at-official-market.html



They have shutdown Abokifx now, so why is the exchange rate still increasing? Who will you blame now for the government's stupidity?

The questions I asked are very clear and require simple answers, stop the history and answer the questions honorably and sincerely.

Oyiboman69:
hoax...not in line with reality, and that's why we're still here today.

I will liked you to state the current economical situation of the country,whether it is conducive or not,then I'll see any reasons reason to believe you,however small it may be.

Hoax you said, are you in a business that has direct link with dollar rate? I told you I am speaking from experience and you still come here to type hoax. Do you know what it means when someone says he/she is speaking from experience?