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Nairaland Forum / Nairaland / General / Business / Naira Now Undervalued After Float, Bank Of America Says (43346 Views)
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Re: Naira Now Undervalued After Float, Bank Of America Says by Flets: 8:13am On Jun 30, 2023 |
I have maintained that Tinubu opened up our forex market to the new cabal..... Banks, IMF, speculators etc. An import driven country with such huge balance of trade deficit has no reason to float its currency. Tinubu's government will not escape an uprising because the situation is impossible. People will have to fight back or die. How many businesses closed in one month? How many jobs lost in a month? The sense of hopelessness is unbearable 3 Likes |
Re: Naira Now Undervalued After Float, Bank Of America Says by JasonScoolari: 8:16am On Jun 30, 2023 |
femisplash:Lol, this one is mistaking me for his Dad. 🤣🤣🤣🤣🤣 7 Likes 1 Share |
Re: Naira Now Undervalued After Float, Bank Of America Says by Tsolutionifede(m): 8:29am On Jun 30, 2023 |
JasonScoolari:you wish NIGERIA is ungovernable for PBAT, surely it won't be comfortable, bearable and accomodating, for you and ur family, until Peter obi becomes president. Cursed region 2 Likes |
Re: Naira Now Undervalued After Float, Bank Of America Says by koxyz: 8:33am On Jun 30, 2023 |
GeneralDae:You should have listed the policies and strategies put in place to invalidate my statement. |
Re: Naira Now Undervalued After Float, Bank Of America Says by DonEd(m): 8:36am On Jun 30, 2023 |
koxyz: U dey mind those clowns. No export and they expect inflow 1 Like |
Re: Naira Now Undervalued After Float, Bank Of America Says by GeneralDae: 8:36am On Jun 30, 2023 |
koxyz:What policies and strategies do you think should have been put in place? 2 Likes |
Re: Naira Now Undervalued After Float, Bank Of America Says by GeneralDae: 8:37am On Jun 30, 2023 |
Flets:So central bank should keep subsidising forex and round tripping should continue? 2 Likes |
Re: Naira Now Undervalued After Float, Bank Of America Says by Flets: 8:45am On Jun 30, 2023 |
GeneralDae: I am sorry you don't understand the subject. CBN could stop round tripping without floating the Naira. All that was needed was to remove all restrictions imposed by Emefiele's CBN and stop selling CBN to different folks at different rates... sell at a particular rate to all. Floating the Naira is an entirely different animal. As huge as Chinese economy and market is, they could not afford to float their currency much more Nigeria that imports virtually everything. Una well at all? 2 Likes 1 Share |
Re: Naira Now Undervalued After Float, Bank Of America Says by Dotherightthing: 8:57am On Jun 30, 2023 |
Pigs... are still writhing from the 2023 election defeat 1 Like |
Re: Naira Now Undervalued After Float, Bank Of America Says by WantsandMore: 9:05am On Jun 30, 2023 |
JasonScoolari:You just had to be vindictive, how are you any different? 1 Like |
Re: Naira Now Undervalued After Float, Bank Of America Says by JasonScoolari: 9:09am On Jun 30, 2023 |
WantsandMore:Vindictive? Did you learn that word today? 1 Like |
Re: Naira Now Undervalued After Float, Bank Of America Says by WantsandMore: 9:18am On Jun 30, 2023 |
JasonScoolari:enlighten me 1 Like |
Re: Naira Now Undervalued After Float, Bank Of America Says by GeneralDae: 9:19am On Jun 30, 2023 |
Flets:So you believe the real value of the naira was 460/$ ?? You either float or you devalue by pegging at maybe 600. If you say everybody should access it at 460 naira (the overvalued price) then you would over-subsidise it. What you probably meant to say is that the CBN should not float but devalue to 600 naira/$ and then remove all restrictions in order to kill the black market. The CBN is however doing a managed float not a free float. 4 Likes 1 Share |
Re: Naira Now Undervalued After Float, Bank Of America Says by Flets: 9:24am On Jun 30, 2023 |
GeneralDae: Devaluing is the option, floating is not. You can even devalue to 700 and peg it there...... you can't float with the level of balance of trade deficit we have. What do we export outside crude?, do you know the volume of empty containers that gets shipped out daily from Nigeria? With this floating, there is no real value... the speculators and manipulators will have a field day. USD will exchange for 1500 and there is nothing anyone will do about until CBN takes charge again 1 Like 1 Share |
Re: Naira Now Undervalued After Float, Bank Of America Says by Flets: 9:25am On Jun 30, 2023 |
GeneralDae: And there is no managed float in this case..... you either fix a rate or you don't; you float or you don't. CBN does not have that unlimited supply of FX to handle a managed float |
Re: Naira Now Undervalued After Float, Bank Of America Says by GeneralDae: 9:29am On Jun 30, 2023 |
Flets:Devaluation in my opinion is a worse option. We do export officially more than we import. We export about 57 Billion dollars (80% crude oil and gas) and import 52 Billion dollars ( mostly electronics and PMS). We have been devaluing the naira since the time of Babangida, where has it gotten us? With managed free float, we can now allow the exports go freely through the official channel and give room for more dollars to be supplied to the I &E window. However, managed float here is the key. 1 Like |
Re: Naira Now Undervalued After Float, Bank Of America Says by GeneralDae: 9:30am On Jun 30, 2023 |
Flets:They've started doing it already. They buy and sell. 1 Like |
Re: Naira Now Undervalued After Float, Bank Of America Says by JasonScoolari: 9:36am On Jun 30, 2023 |
WantsandMore:I will only enlighten you to learn how to be more reasonable. 2 Likes |
Re: Naira Now Undervalued After Float, Bank Of America Says by Flets: 9:45am On Jun 30, 2023 |
GeneralDae: Your statistics are wrong. We import more than we export. Nigeria's 2022 total export is 47Bn USD - https://www.statista.com/statistics/383166/export-of-goods-to-nigeria/#:~:text=Goods%20totaling%20at%20a%20value,dollars%20were%20exported%20from%20Nigeria. Nigeria's 2022 total import is 53.6Bn USD - https://www.statista.com/statistics/383154/import-of-goods-to-nigeria/#:~:text=In%202022%2C%20goods%20valued%20at,dollars%20were%20imported%20into%20Nigeria. Much worse is that even the export which is predominantly crude, the IOCs retain approximately 40% of the proceeds which are not primarily repatriated to Nigeria. As such, less than 65% of Nigeria's export USD gets back to Nigeria How on earth do you believe that managed float will work in the corruption capital of the world where even the CBN officers and bankers are daily creating loopholes for sharp practices .... and this is in addition to the limited FX supply. 2 Likes 3 Shares |
Re: Naira Now Undervalued After Float, Bank Of America Says by Flets: 9:53am On Jun 30, 2023 |
GeneralDae:And that is why it will continue to devalue until CBN is forced to fix the rate. There will be no equalization |
Re: Naira Now Undervalued After Float, Bank Of America Says by LikeAking: 9:54am On Jun 30, 2023 |
jmoore: The main problem is looting by public office holders.. Judging by our population our imports is even too small. Our demand power is very weak, so our imports is minimal.. If they don't loot, it can get to even 100 naira to a dollar. 1 Like 1 Share |
Re: Naira Now Undervalued After Float, Bank Of America Says by GeneralDae: 9:54am On Jun 30, 2023 |
Flets:I was quoting 2021 data. Even your article says 2022 where export was less than import is rare. The point is that we still export a lot and can easily have positive trade of balance. That's not new to us the way many think. The only issue is that 80% of those exports are crude oil and gas. If we devalue the naira and CBN continues to regulate or peg it with dollars, we are still subsidising forex even if we kill the black market by removing all restrictions. Because removing all restrictions automatically balloons the demand at the official window. What we have done is float and then CBN buys and sells from time to time as a passive player. My point is that there's only a thin line between devaluation and floating. With both, what is crucial is supply of dollars. Even if we devalue, without supply of dollars, the centre would not hold. 2 Likes |
Re: Naira Now Undervalued After Float, Bank Of America Says by GeneralDae: 9:58am On Jun 30, 2023 |
Flets:I think at a point last week it was 841/$. Now it's 763/$ I believe. 1 Like |
Re: Naira Now Undervalued After Float, Bank Of America Says by zinaunreal(m): 10:46am On Jun 30, 2023 |
jumper524: Naira no get value. Which one be these Americans |
Re: Naira Now Undervalued After Float, Bank Of America Says by BigBlackPreek(m): 10:46am On Jun 30, 2023 |
VenExchangee:e clear í ½í¸ |
Re: Naira Now Undervalued After Float, Bank Of America Says by zinaunreal(m): 10:47am On Jun 30, 2023 |
Foolish frog face drug addiction president just came in worse than Buhari. Better get ready for more worse decisions |
Re: Naira Now Undervalued After Float, Bank Of America Says by JustPowerApps(m): 10:47am On Jun 30, 2023 |
What is BOA's business with naira As far as I know, even Wells Fargo makes more sense. Useless bank of America. |
Re: Naira Now Undervalued After Float, Bank Of America Says by Blaze14k: 10:48am On Jun 30, 2023 |
A typical agbadorian will tell you theres hope at the end of the tunnel. I wonder who go shout let this administration favour me and my family make thunder fire in generation. LET THE POOR BREATH 😂😂 1 Like |
Re: Naira Now Undervalued After Float, Bank Of America Says by Reference(m): 10:49am On Jun 30, 2023 |
That is good news hopefully to disuade speculators from attacking the naira. 1 Like |
Re: Naira Now Undervalued After Float, Bank Of America Says by bigtt76(f): 10:50am On Jun 30, 2023 |
dre11:
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Re: Naira Now Undervalued After Float, Bank Of America Says by Mummyfour(f): 10:50am On Jun 30, 2023 |
JasonScoolari:chai!! oga you get mouth o. Haaaa!! Iheavily padded itel A2 as his major property and traits of....... 1 Like 1 Share |
Re: Naira Now Undervalued After Float, Bank Of America Says by georgeakins: 10:51am On Jun 30, 2023 |
JasonScoolari: See how frustrated you're! Obi is a goner, he can only be biafran president. 1 Like |
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