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Nairaland Forum / Nairaland / General / Politics / Floating Naira Is A Political Decision Not Economic One (2969 Views)
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Floating Naira Is A Political Decision Not Economic One by googi: 4:14pm On Jun 14, 2023 |
How many African countries have ever recovered from depreciation of their currencies? When it comes to African currencies, it is how low it will go. It has been to the advantage of western countries to buy our resources at low and lower prices. China and other Asian countries have joined. Compare that to when the Chinese depreciate their currency to corner the market share for their manufacturing sector. The world go to China, even for covid 19 masks. Making the same argument for African countries without manufacturing products in demand by outside world is so myopic and selfish of Western trained economists working for their masters and pockets. When Mugabe got tired of promises and took back their land, it was not an economic decision to turn Zimbabwe currency to toilet paper. Zimbabwe was still rich in natural resources but they cut off demand for all Zimbabwe products depriving them of foreign income. This is how Structural Adjustment was introduced and our Oxford trained economists and importers of pins and junk bought the wish of their masters. What artificial product is in demand from Africa apart from buying our land and Natural Resources cheap? Strong African currencies can only come from inter African trade not from foreign trade and tastes after a century. Can anyone today believe we import garbage sent into high sea looking for buyers, used infected clothes, plastic rice etc. Africans, our Salvation is within us here in Africa, not in foreign countries. Even the common man that trade on each of these items fight to protect them. 1 Like 2 Shares |
Re: Floating Naira Is A Political Decision Not Economic One by CodeTemplar: 4:18pm On Jun 14, 2023 |
When the rates diverged they called it politics from uncle Meffy, it has converged now and must be an opposite political move. 4 Likes |
Re: Floating Naira Is A Political Decision Not Economic One by sapele914(m): 4:24pm On Jun 14, 2023 |
googi:Nigeria is credit worthy of a huge IMF & Paris Club loan. Float the Naira, it has been done, remove subsidy on petrol, it has been done. 24 Likes |
Re: Floating Naira Is A Political Decision Not Economic One by seborrhic: 4:33pm On Jun 14, 2023 |
Puerile and nonsensical argument as usual. To help you to reach a logical conclusion ask yourself this question:how many genuine businessmen where getting dollar at the official rate? If you had connections you could get dollar at official rate then go and sell same to abokis and make a hefty profit 20 Likes 1 Share |
Re: Floating Naira Is A Political Decision Not Economic One by yemmight(m): 4:39pm On Jun 14, 2023 |
Leave it as political. We want it that way. |
Re: Floating Naira Is A Political Decision Not Economic One by googi: 4:39pm On Jun 14, 2023 |
The policy of floating has been going on in African countries for over 70 years when currencies were backed by gold. Is it not ironic that even Gold Coast currency can be weaker than those of countries where the gold is deposited. Please, it is not about current policy of the Government, it has been implemented years before this Government. Ko le wok! sapele914: |
Re: Floating Naira Is A Political Decision Not Economic One by DeLaRue: 4:44pm On Jun 14, 2023 |
It was necessary but certainly a risky move. If the government is unable to meet the dollar demand at the new official rate, the black market rate will spike towards N900. So the key is government 's ability to meet demand. 2 Likes |
Re: Floating Naira Is A Political Decision Not Economic One by LikeAking: 4:44pm On Jun 14, 2023 |
googi: Dem no go hear. |
Re: Floating Naira Is A Political Decision Not Economic One by LikeAking: 4:45pm On Jun 14, 2023 |
DeLaRue: It's a big failure. Prepare for the worse. |
Re: Floating Naira Is A Political Decision Not Economic One by LikeAking: 4:46pm On Jun 14, 2023 |
seborrhic: Supporting bad government policies.. Dey play.. Make we wait till December. |
Re: Floating Naira Is A Political Decision Not Economic One by WorldRichest: 5:21pm On Jun 14, 2023 |
CodeTemplar: You dey mind idiots ad nincompoops ni? |
Re: Floating Naira Is A Political Decision Not Economic One by Omoawoke: 6:05pm On Jun 14, 2023 |
googi: I agree with you, I’m not too okay with this policy to float the naira |
Re: Floating Naira Is A Political Decision Not Economic One by helinues: 6:08pm On Jun 14, 2023 |
Oya repeat after me So pe o ti lo.... 1 Like |
Re: Floating Naira Is A Political Decision Not Economic One by Epistasis(m): 6:13pm On Jun 14, 2023 |
We don hear you... Obidafts as usual, if it was done by Obi you would have hailed the policy! 1 Like |
Re: Floating Naira Is A Political Decision Not Economic One by skj1377(m): 6:18pm On Jun 14, 2023 |
Floating Naira is not a beneficial policy . The demand for $ in most cases is because people don't believe in the Naira. Most businesses make money in Naira convert to dollars and store at best in domiciliary accounts in Nigerian banks. Other keep it in France , UK even india 1 Like |
Re: Floating Naira Is A Political Decision Not Economic One by googi: 6:26pm On Jun 14, 2023 |
Oponu, Everything has to be along ethnic lines. Mention one African country that has ever recovered since Structural Adjustment, you no gree. Epistasis: 3 Likes |
Re: Floating Naira Is A Political Decision Not Economic One by TheBillyonaire: 6:45pm On Jun 14, 2023 |
A low value naira is a trigger you need for export. Floating currency without building the export infrastructure and activating export manufacturing is a panacea for currency disaster. So I expect the President to set up Construction and Enterprise Banks for rapid credit provision for manufacturing and export processing. This is why we need the eNaira......some numbers in money database. |
Re: Floating Naira Is A Political Decision Not Economic One by ivolt: 6:46pm On Jun 14, 2023 |
googi:From your topic, I had assumed I will be reading scholarly article on economics of floating exchange. But I was disappointed, you are appear to be one of those who believes that pan-Africanism and emotional appeal is an economic theory. Please tell, what is the benefit of selling crude oil to South Africa over selling it to China? And if you are SA business man dealing in arms, will you prefer to accept the Naira over Dollar or Yuan for your sales to Nigeria for example? Despite the rhetorics from BRICS, Russia refuse to accept Indian Rupees as payment for the oil it sells to India. It prefers Dollars or Euros. This is in spite of the large size and stability of India's economy. This is to show you that economics is a cold heart discipline, nations do what they can to help themselves. Before you reply, go and do your research and come up with a list of countries that has escaped poverty by just trading with its neighbor. The productive capacity of a country should decide its exchange rate. Exchange rate should not be a bragging right. 6 Likes 2 Shares |
Re: Floating Naira Is A Political Decision Not Economic One by being(m): 6:52pm On Jun 14, 2023 |
@ OP, rest!! The true value of the naira based on our fundamentals is not 460, it is closer to 750.. Govt should not be losing naira revenue to people who simply have influence to get $ at 460 and sell at 750. Imagine govt losing N300/$!! What we should be talking about now is how govt will address the fundamentals that can bring d true fx rate lower. Btw d rate can't go up to N900 with current fundamentals except the fundamentals worsen.. it would have already gone up in the black market b4 now. 2 Likes |
Re: Floating Naira Is A Political Decision Not Economic One by Ofunaofu: 6:53pm On Jun 14, 2023 |
Epistasis: You are not sensible at all honestly If you don't have any thing reasonable to contribute, why not read and learn Must every thing be reduced to Peter Obi vs Tinubu brick bats We are talking about an economic policy that may make or mar our legal tender, you are talking trash |
Re: Floating Naira Is A Political Decision Not Economic One by egopersonified(f): 7:03pm On Jun 14, 2023 |
Please what do you advice we learners, buy dollar now? |
Re: Floating Naira Is A Political Decision Not Economic One by masseratti: 7:08pm On Jun 14, 2023 |
DeLaRue:you guys simply do not understand what "floating currency" means.. It's simply means there is no more government "official" rates anymore. Everything is now market rate... Black market, white market any color market.. Banks will be selling dollars same rates it's been sold by aboki.. You can walk into a bank now and sell your dollars same rates with what aboki is buying from you.. No need for CBN to flush the market to BDCs or Banks at Government official rates again, CBN will now be selling at market rates to banks simply and straight forward. 1 Like |
Re: Floating Naira Is A Political Decision Not Economic One by masseratti: 7:11pm On Jun 14, 2023 |
ivolt:please don't waste your time with this emotional online "economics". |
Re: Floating Naira Is A Political Decision Not Economic One by TheOldGods: 7:28pm On Jun 14, 2023 |
What a foolish move by APC again. Dollar to 1k very soon |
Re: Floating Naira Is A Political Decision Not Economic One by Epistasis(m): 7:58pm On Jun 14, 2023 |
Ofunaofu:Dindinrin ni baba e... |
Re: Floating Naira Is A Political Decision Not Economic One by Epistasis(m): 7:58pm On Jun 14, 2023 |
googi:Oponu ni iya e... |
Re: Floating Naira Is A Political Decision Not Economic One by Ofunaofu: 8:02pm On Jun 14, 2023 |
Epistasis: You stink honestly |
Re: Floating Naira Is A Political Decision Not Economic One by Epistasis(m): 8:21pm On Jun 14, 2023 |
Ofunaofu: Oponu ni baba eee |
Re: Floating Naira Is A Political Decision Not Economic One by Houseofglam7(f): 9:39pm On Jun 14, 2023 |
Re: Floating Naira Is A Political Decision Not Economic One by googi: 2:33am On Jun 15, 2023 |
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