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Nairaland Forum / Nairaland / General / Business / What exactly Is The Benefit Of Floating The Naira? (25822 Views)
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Re: What exactly Is The Benefit Of Floating The Naira? by commoditiesnig: 11:37pm On Feb 13 |
DeLaRue:Excellent explanation! Kudos! 6 Likes 1 Share |
Re: What exactly Is The Benefit Of Floating The Naira? by blacknp(m): 11:38pm On Feb 13 |
Validated:Lazy man way no wan work, digitalized validated Almijiri, What is the difference between you & your Almijiri brothers in Jigawa & Gombe? The latter are on the streets, whilst the former is on the World Wide Web. Make all of una banbeallah dey wait for Tinubu. 4 Likes 1 Share |
Re: What exactly Is The Benefit Of Floating The Naira? by PoliteActivist: 11:40pm On Feb 13 |
Maxxim:*Politeness* See my post above. Actually the government just said, let's stop wasting resources trying to artificially hold up naira (with the attendant round-tripping, corruption, black market, hoarding, and speculation) and just let the market decide it's value with everything transparent. No way it can be a bad thing in the long run. 3 Likes 2 Shares |
Re: What exactly Is The Benefit Of Floating The Naira? by commoditiesnig: 11:43pm On Feb 13 |
Brilliant! Genius100: 1 Like |
Re: What exactly Is The Benefit Of Floating The Naira? by blacknp(m): 11:45pm On Feb 13 |
PoliteActivist:You even dey try to even convince these nomadic minded things, let them be waiting for government to keep giving them a subsidized existence. Nothing them they export for foreign exchange, 220 million sambos are waiting from 1.4 million barrels per day crude oil receipts, they no get shame, Oblivious minded Things waiting for the CBN to do magic. Una go wait tire. 11 Likes 2 Shares |
Re: What exactly Is The Benefit Of Floating The Naira? by loffyloffy: 11:45pm On Feb 13 |
Reducing Debt Burden: Nigeria owes money to other countries (national debt). Devaluation makes it easier to repay those loans because the Naira is worth less. It’s like paying back a smaller amount. [/quote] How can devaluation reduce debt burden..when the amount owing is in Dollars..please enlighten me 6 Likes |
Re: What exactly Is The Benefit Of Floating The Naira? by PoliteActivist: 11:50pm On Feb 13 |
Gadafii: It doesn't have to be big companies. People will learn how to make their own soaps and cough syrups, plus small mam and pap local manufacturers. Any local company that folds despite lack of competition from foreign-made (due to expensive dollar) should not be in business in the first place 9 Likes 2 Shares |
Re: What exactly Is The Benefit Of Floating The Naira? by GeneralDae: 11:50pm On Feb 13 |
Jessyjeff:Obasanjo floated naira. When Abacha died, parallel market was almost 90 naira while he kept official rate at 22 naira (x4 less). Obasanjo floated naira in order to get debt forgiveness amongst other things. So naira went from 22 to 90 and he left it at 150. 10 Likes 1 Share |
Re: What exactly Is The Benefit Of Floating The Naira? by hansomb: 11:51pm On Feb 13 |
malali:this is one reason for food scarcity, because Nigeria now prefer to export to neighboring countries 2 Likes |
Re: What exactly Is The Benefit Of Floating The Naira? by GeneralDae: 11:55pm On Feb 13 |
hansomb:To make matters worse, they export to countries buying it with CFA not even dollars, euros, or pounds. 3 Likes |
Re: What exactly Is The Benefit Of Floating The Naira? by hansomb: 12:02am On Feb 14 |
kokoA: |
Re: What exactly Is The Benefit Of Floating The Naira? by hansomb: 12:06am On Feb 14 |
The Honest Truth is all those theories if implemented will work. But has anything ever work in Nigeria? Truth is we have our dubious way/systems of doing things upside down hence the system even if it good doesn't turn out well. Corruption, nepotism, dishonesty has replaced the normal way of doing things to the extent that anyone that tries to do the right thing is seen as abnormal. 10 Likes 1 Share |
Re: What exactly Is The Benefit Of Floating The Naira? by Belial06: 12:25am On Feb 14 |
PoliteActivist: This is a very inane childish way of looking at it. In that case why isn't everyone rushing to Venezuela? If you don't understand something don't comment 7 Likes 1 Share |
Re: What exactly Is The Benefit Of Floating The Naira? by Anguldi(m): 12:37am On Feb 14 |
GeneralDae:Who told you Our neighbors french countries come with dollars |
Re: What exactly Is The Benefit Of Floating The Naira? by Anguldi(m): 12:38am On Feb 14 |
We've got a huge population but not productive. Industrialization is the way forward 7 Likes 1 Share |
Re: What exactly Is The Benefit Of Floating The Naira? by grandstar(m): 12:44am On Feb 14 |
Genius100: Beautiful answers. Nevertheless, it is time government fought inflation. Tinubu should allow the CBN do its work by increasing interest rates. Leaving interest rates way below that of inflation is very inflationary. 4 Likes 1 Share |
Re: What exactly Is The Benefit Of Floating The Naira? by PoliteActivist: 12:47am On Feb 14 |
Belial06:*Politeness* Floating is different from inflation. Also it depends on the type of country. Nigeria is the the type of country that CANNOT lose in the long run by floating her currency. The only losers will be those who wish to travel, those who need to buy foreign, round trippers, blackmarketers, currency hoaders and speculators, corrupt government and CBN insiders, foreign countries who'd get less of our japa youths and brains and visa money! 3 Likes 1 Share |
Re: What exactly Is The Benefit Of Floating The Naira? by mrdharkchild(m): 1:18am On Feb 14 |
Leaving it off for market forces( goods and services) to set market prices. But this only works in capitalist countries, i guess. Where privatly owned firms dictate the cost of things in the country. But I think Nigeria is neither a capitalist or a socialist country. To rule this country, you have to understand these terms 1 Like |
Re: What exactly Is The Benefit Of Floating The Naira? by SisterAnn(f): 1:50am On Feb 14 |
hansomb:I agree with you. Corruption is at the beginning and end of our national existence. 2 Likes |
Re: What exactly Is The Benefit Of Floating The Naira? by MarketDispatch: 2:31am On Feb 14 |
Genius100: In another way, could Government have forced the black market price per dollar to come down to government price ceiling to prevent arbitrage rather than float government price to meet Black market dollar price? I just think the Government naira float was not a well thought out policy.. someone (Cbn Gov) just slept the night before, woke up and decided to float naira without doing proper study to have answers/solutions to all the issues that may arise With the current float and analysing the below ...will a foreign investor be making profit or loses? 3 Likes
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Re: What exactly Is The Benefit Of Floating The Naira? by Maxxim: 7:11am On Feb 14 |
PoliteActivist: Until when did they start to implement the floating of the naira, I guess it's not up to two weeks now. Which means the government has been deceitful all this while, somehow the government was still using some means to purchase the dollar at cheap rate through banks until lately the official rate matches the parallel. So it's right to say the government has not been transparent whatsoever. All the methods adopted to build the economy up to this moment is one sided and detriment to the live hood of the citizens and no investor will want to risk their funds into a temporary and fluctuating economy. 2 Likes |
Re: What exactly Is The Benefit Of Floating The Naira? by BenuePolitician(m): 7:36am On Feb 14 |
We Nigerians ourselves are majorly responsible for how our economy and Naira nosedived in recent years, due to greed and greedy mechanisms put in place to make and make more money. Now everybody is complaining before when somebody will buy Dollar @400 Naira and sell for 800 Naira because he/she wants to make excess profit. Nobody was complaining. The problem with the country is simple"Greed mentality" exist in 8 of every 10 Nigerians, how will commodities not keep raising everyday?? Tinubu removed subsidy then overnight marketers started selling the un-subsidised fuel left in stock @600 per liter yet they blame Govt for everything bad when in truth its we ourselves that pilot our problems due to GREED, GREED AND GREED 4 Likes 1 Share |
Re: What exactly Is The Benefit Of Floating The Naira? by MarketDispatch: 7:43am On Feb 14 |
Currently if a foreign investor invests $200,000 dollars at an exchange rate of 1400. to $1. =.N280,000,000 After a while investment is now worth N300,000,000 but at an exchange rate of N1500 to $1.. have you made any profit? No...it's just been a complete waste of time. and stress. 7 Likes 1 Share |
Re: What exactly Is The Benefit Of Floating The Naira? by Jessyjeff: 7:57am On Feb 14 |
GeneralDae:Olusegun Obasanjo never floated Naira, he did some devaluation of Naira. During his administration the CBN was still defending Naira to a large extent. Floating a currency means abandoning any form of control mechanism, while currency devaluation means allowing your currency lose some percentage points to other major currencies. Every other administrations in Nigeria since independence has never floated the Naira, except Tinubu's. 6 Likes |
Re: What exactly Is The Benefit Of Floating The Naira? by Iamanoited: 8:04am On Feb 14 |
LEGALIZING ABOKI MARKETS. IT'S BUHARINOMICS AND EMEFIELE CONTINUE. |
Re: What exactly Is The Benefit Of Floating The Naira? by Peppysco: 8:28am On Feb 14 |
Validated: Your rigid,unyielding and dark mindset won't make you understand all the explanations given. Your mind is programmed already, nothing will make any sense to you right now. 4 Likes 1 Share |
Re: What exactly Is The Benefit Of Floating The Naira? by GeneralDae: 8:30am On Feb 14 |
Jessyjeff:Okay fine. He devalued naira but the reason he could defend it was that he was constantly selling 2.2 million bpd of crude oil. At a point, we had an excess crude account of 104 Billion dollars in 2004, it was almost wiped out under same Obasanjo regime. He was also forgiven debts in 2004, so no debt servicing to drain dollars. 5 Likes 2 Shares |
Re: What exactly Is The Benefit Of Floating The Naira? by FutureFocus: 8:31am On Feb 14 |
You think IMF is your friend ? 2 Likes |
Re: What exactly Is The Benefit Of Floating The Naira? by Alphiegabe: 8:31am On Feb 14 |
It would stop dollar racketeering 1 Like |
Re: What exactly Is The Benefit Of Floating The Naira? by sammhi(m): 8:32am On Feb 14 |
ckc:None The worst CBN Gov in history... Destroying our industry and causing hyper inflation all in the name of floating Naira How can you float something you don't have Senselessnness 2 Likes |
Re: What exactly Is The Benefit Of Floating The Naira? by fareed69(m): 8:32am On Feb 14 |
Kenneth4u205: Hear yourself. |
Re: What exactly Is The Benefit Of Floating The Naira? by yeshuasfootstep(m): 8:34am On Feb 14 |
What actually is currency devaluation first? It is advice good countries give to foolish ones while making sure their own currency is top notch. It is an exercise selfish, wicked and greedy politicians rush to carry out knowing their stacked foreign currencies will appreciate. It is an exercise that shows the gullible's penchant for hoping on hopelessness, that their money will bounce back without a selfless, purpose driven , production oriented leadership. So don't expect any benefit unless you're among the benefitting class. 2 Likes |
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