They will continue to devalue the naira so far they have majority dollar revenue and majority naira expenditure and they will do it more when there is a drop in the price of oil. That should be expected. Apart from having dollar revenue and naira expenditure, all countries with low revenue per Capita because of no income tax always inflate their currency faster than those with high revenue per Capita and that is also normal. What is bad that must stop is how government sells dollar at a much lower rate to sone people inside the same economy!. Let everybody buy at the same rate. No matter that rate. Then they have no right to restrict people's access to their own forex. More than seventy percent of forex is not oil money but the government is trying to control everything. If you let people control their dollars, withdraw cash and etc, the price will drop unless they inflate the naira again.

abbey621:


I'm not the type to argue about illogical things hence I'll take a direct approach, he's the president now so I'll only hold him accountable as an elected official. You can choose to hold him accountable for what has happened Buhari's administration even though he was not elected by you and owes you not a DAMN thing......That's your cup of tea, that's your right and you are entitled to me but what you are not entitled to is me giving this more time and energy.......REST IJN!

Well, you're the one who introduced ad hominiem of claims of "years of economic and fiscal abuse".
If you had stuck to the present, I won't have taken you down memory lane.
So he's directly responsible for the present rise in cost of living and economic gloom of the average citizens presently.

seborrhic:
Good.
Once it converges around the parallel rate,further improvement will be seen.
A good part of what made the parallel market rate high was the round tripping.People would buy from the banks through connections and sell to the black market or the banks would hoard the dollars they buy from the CBN at favourable rate,sell to abokis and make huge profits while claiming in forms they sold to businessmen.
Why would anyone now sell to abokis if u can source from the bank.
Abokis too would in losing market have to bring down their rates or they lose some patronage particularly when people know there are fraud and counterfeit risks involved in trading in the black market.

You wrote brilliantly.

If thr Naira made a rebound, it may indicate the Naira might have found its true value. It's worrying fall might have ended.

I'm hoping company tax could be reduced below 20% or even 15%. This should bring in an huge inflow of both FDI and portfolio investment into the country.

However, this government came in just as the global economy was sputtering and would adversely it.

oneman2k7:
These people are chronic liar. They told us it was #663/$ last week and now 756.

No fear of God

Floating means it can go up and down.

Also, the present exchange rate discourages roundtripping.

Accessed:


There's so far PR can take the masses. Let the praise singers continue to pretend that all is well. The purchasing power of Nigerians is by far at its lowest rung. Most of these policies are ill-timed. Little or no palliatives to cushion the effects on the masses.

I really hope to be proven wrong, but Unifying the FX rate now is more calamitous than beneficial. It's like doing the right thing at the wrong time. You can't subject the naira to free market forces without ensuring we have a fair dollar supply over demand. Worst case scenerio, wait till the refineries take off, so that our dollar demand will reduce. So long as the demand for dollar continues to exceed the supply...we are on a jolly long ride.

Truth is most of us know it...but we are not ready to "hit him below the belt" because he's our own.

The sooner the subsidy is gone, the better for the economy. The sooner the Naira is floated also.

Waiting for the perfect time to implement "shock therapy" can never be perfectly timed. In nigerias case it should have been applied long ago.

neduboo:
How much then is black market price of 1$ to Naira

no more black market because all rates are now unified.

ZUKKYY:
Im asking how much was exchange rate of dollars before the new government came in.
Na $756 una the celebrate

I pity Nigerians honestly. We don suffer sotey, we no get sense again

abbey621:


Have you handled 100,000 dollars before.....Basically walk into your bank and tried to withdraw 100k dollars? Maybe that's too rich for your blood, how about 10k dollars? Those of us wey dey handle that type of money know the response the banks gave, from no cash available to CBN restrictions. This resulted in most of us patronizing black market for our businesses. Before you shout lies, ask your friends, boss, mentors etc where they source their dollars from!

Lol. U talking about official retail channels. That one na market? Lemme give you just one example. All the foreign companies operating in Nigeria approach cbn to repatriate their profit back home through the IE window. We talking about billions of $$. Black market cannot handle that.

All the abokis put together cannot raise the funds microsoft Nigeria needs to repatriate their profit back to Yankee.

mediclife1987:


Even abokis would no longer be able to get it at the bank rate they previously got it before sef.

This makes me really wonder how they'll make their profit as bureau de change

Spread. The buying price is usually different from the selling price, and the difference is their profit. So they can buy at 760, sell at 762.

didymario7:


Lol. U talking about official retail channels. That one na market? Lemme give you just one example. All the foreign companies operating in Nigeria approach cbn to repatriate their profit back home through the IE window. We talking about billions of $$. Black market cannot handle that.

All the abokis put together cannot raise the funds microsoft Nigeria needs to repatriate their profit back to Yankee.

You just proved my point why official channel should be supreme to black market. If CBN gets its acts together through sound policies, less and less people will patronize black market.

abbey621:


You just proved my point why official channel should be supreme to black market. If CBN gets its acts together through sound policies, less and less people will patronize black market.

I never argued with you over the supremacy over the black market, go back and check. What I said is that as long as the 41 blacklisted items remain on the list, black market will still be very relevant, of which you said at a time black market was bigger than official channel, which is a big fat lie!

didymario7:


I never argued with you over the supremacy over the black market, go back and check. What I said is that as long as the 41 blacklisted items remain on the list, black market will still be[b] very relevant[/b].

Depends on how you define very relevant, that's not even my argument, all I'm saying is that official channel will become supreme and less people will patronize black market, from over 70% patronization to less than 20%. In sane countries black market is virtually non existent but in 9ja it is thriving because of CBN's incompetency. Once CBN and the government at large gets itself together, the value of black market becomes diminished!

abbey621:


Depends on how you define very relevant, that's not even my argument, all I'm saying is that official channel will become supreme and less people will patronize black market, from over 70% patronization to less than 20%. In sane countries black market is virtually non existent but in 9ja it is thriving because of CBN's incompetency. Once CBN and the government at large gets itself together, the value of black market becomes diminished!

If they want to diminish it then they should get the over 41 items off the blacklist. Anything else, then we will just be moving in circles

didymario7:


If they want to diminish it then they should get the over 41 items off the blacklist. Anything else, then we will just be moving in circles

What are those 41 items and what percentage of forex black market transactions do they account for?

Seun:

Spread. The buying price is usually different from the selling price, and the difference is their profit. So they can buy at 760, sell at 762.

unlike when they bought at around 460 and sold 750.

didymario7:


Lol. U talking about official retail channels. That one na market? Lemme give you just one example. All the foreign companies operating in Nigeria approach cbn to repatriate their profit back home through the IE window. We talking about billions of $$. Black market cannot handle that.

All the abokis put together cannot raise the funds microsoft Nigeria needs to repatriate their profit back to Yankee.

Foreign companies operate in other countries too. The big problem is the attempt by government to control all forex and that is unfair. They should not even control all oil forex. Share the dollars to states so that a large chunk of forex will no longer be controlled by one institution. Government does not control forex in any efficient nation. The central bank only deal in the local currency. If there are many sellers, then the bottle neck will be removed. They don't need to black list anything. The control by government is the problem, then the power they have to print naira anyhow.

lawani:
They will continue to devalue the naira so far they have majority dollar revenue and majority naira expenditure and they will do it more when there is a drop in the price of oil. That should be expected. Apart from having dollar revenue and naira expenditure, all countries with low revenue per Capita because of no income tax always inflate their currency faster than those with high revenue per Capita and that is also normal. What is bad that must stop is how government sells dollar at a much lower rate to sone people inside the same economy!. Let everybody buy at the same rate. No matter that rate. Then they have no right to restrict people's access to their own forex. More than seventy percent of forex is not oil money but the government is trying to control everything. If you let people control their dollars, withdraw cash and etc, the price will drop unless they inflate the naira again.

Well said the whole thing is purely artificial to a great extent of let's say 80%. They try to create an impression that dollar is scarce which is totally bullshit. That was how $ to naira climbed from ₦‎180 in Goodluck regime to over ₦‎700+ under APC Regime in just a space of 8 years! Now unemployment rate has reached all time high of >40%! very heartless fellows.

The devaluation is mostly arbitrarily done.

abbey621:


I never said it will be higher than black market rather if official channel makes it easy to transact in dollars, no scarcity, no limit restrictions on deposit and withdrawals etc. If these things can be put in place, majority of sane people would prefer to transact using official channel than black market. E.g. You want to pay school fees for a course abroad or buy a car abroad from a dealer? There's no reason you shouldn't be able to do that through your bank!

Government can't just make USD easy to access na. It's not our official currency.

Seun:

Spread. The buying price is usually different from the selling price, and the difference is their profit. So they can buy at 760, sell at 762.

What a poverty stricken gain

#2.

crismark:

Government can't just make USD easy to access na. It's not our official currency.

We are a country that imports 50 times than export, guess which currency we transact with when importing? USD! Emefiele already tried to limit dollars but guess what happened? DISASTER!

abbey621:


We are a country that imports 50 times than export, guess which currency we transact with when importing? USD! Emefiele already tried to limit dollars but guess what happened? DISASTER!

Bro.... You want dollar to be given to anybody at anytime

Do you know the implications of that?

crismark:

Government can't just make USD easy to access na. It's not our official currency.

But It was easy to access under PDP govt

Why has it been so difficult to access under APC Regime? What changed?

crismark:

Bro.... You want dollar to be given to anybody at anytime

Do you know the implications of that?

We have anti money laundering rules, we have other policies in place, I don't see what you mean by dollars given to anybody at any time. If it is a legitimate business need, dollar should be easily accessible, no point in making the business/economic climate hostile!

abbey621:


We are a country that imports 50 times than export, guess which currency we transact with when importing? USD! Emefiele already tried to limit dollars but guess what happened? DISASTER!

Yes we don't export much goods but we have forex inflow. A huge one from remittances, online jobs, yahoo boys, farm produce, Nollywood and etc. Dollars from these channels is what is used to fund our imports.

lawani:


Yes we don't export much goods but we have forex inflow. A huge one from remittances, online jobs, yahoo boys, farm produce, Nollywood and etc. Dollars from these channels is what is used to fund our imports.

We have just as much forex outflow from visa fees, student abroad with wealthy families in 9ja, those buying anything online including vehicles, loan serviced by the government, vacation and business travelers etc. My dad bought a G-Wagon from a dealer in the USA last year, guess which currency? Forget am, Nigerians dey spend dollar like it is pure water.

abbey621:


We have just as much forex outflow from visa fees, student abroad with wealthy families in 9ja, those buying anything online including vehicles, loan serviced by the government, vacation and business travelers etc. My dad bought a G-Wagon from a dealer in the USA last year, guess which currency? Forget am, Nigerians dey spend dollar like it is pure water.

We are saying the same thing. Any dollar spent was part of what flowed in. All countries have forex inflow. If not from manufactured goods then from junk. Also from remittances, farm produce like cocoa, coffee etc. Oil I believe can't be up to thirty percent of forex inflow. Remittances should be more than oil. Even Nollywood maybe more than. No data. Does government have the right to control all?. Of course not because it is not their money. Can the Japanese government be dictating to Toyota how much to change their forex?. No they have power only over the yen

lawani:


We are saying the same thing. Any dollar spent was part of what flowed in. All countries have forex inflow. If not from manufactured goods then from junk. Also from remittances, farm produce like cocoa, coffee etc. Oil I believe can't be up to thirty percent of forex inflow. Remittances should be more than oil. Even Nollywood maybe more than. No data. Does government have the right to control all?. Of course not because it is not their money. Can the Japanese government be dictating to Toyota how much to change their forex?. No they have power only over the yen

Yet you will never see Toyota patronizing the black market because it is virtually non existent! Nigeria is unique as the free market is only as free as the government allows aka NO SUCH THING!

bionixs:
dumb. For your mind you are campaigning for your tribeman

Chukudi is pained🤣🤣🤣🤣

ZUKKYY:
producing how?

manufacturing
Food
Pencil
Toothpick

What does Nigeria produce yet na we buy iPhone and champagne pass
Ppl are even importing bread and pizza fa

VeeVeeMyLuv:

Round tripping

how is this production
You cannot deceive the market