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Nairaland Forum / Nairaland / General / Business / What exactly Is The Benefit Of Floating The Naira? (25823 Views)
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Re: What exactly Is The Benefit Of Floating The Naira? by Abdulhakeem7(m): 8:35am On Feb 14 |
PoliteActivist:How many investors or travelers are coming to Nigeria that we have to punish over 200m Nigerians? 4 Likes |
Re: What exactly Is The Benefit Of Floating The Naira? by Dynamicboss: 8:36am On Feb 14 |
PoliteActivist: China is an industrialised and export based economy Such policy is backfiring in Nigeria because it is an import based economy with almost zero infrastructure and other amenities |
Re: What exactly Is The Benefit Of Floating The Naira? by CodeTemplar: 8:36am On Feb 14 |
Same benefit as exchanging your personal product and service for its actual value. Unfloated naira meant somebody was always paying out some percentage of the naira anytime you buy forex to augment the value you get forex for. It was a form of subsidy and was a burden to the government even though they wouldn't want to admit that jus to project a better scorecard for economy under them. |
Re: What exactly Is The Benefit Of Floating The Naira? by casualobserver: 8:37am On Feb 14 |
ckc: Do you really want to learn or do you want to abuse? If you want to learn I will give you more than 1. 1. More Naira revenue for all tiers of government. Because the official dollar is sold at a higher level, there is more money for government to do what government is supposed to do..roads, schools etc. 2. Closure of arbitrage and round tripping. Because of the floating of the naira, elites can no longer just get dollars at the official rate and sell to the black market. That money that some of our bankers used to make themselves a fortune now goes to the government 3. Because imported products are now expensive people are forced to consume products with little or no foreign composition. An example is bread people will eat more akara, for breakfast instead of bread which consists of imported wheat, margarine yeast etc. more akara consumption will lead to more profits for the beans farmer in Nigeria not the wheat farmer in Ukraine and Russia. 4. Floating of the Naira means you will get more Naira if you export products. So the cocoa farmer will make more money. There are many more but there will be pain. 4 Likes 1 Share |
Re: What exactly Is The Benefit Of Floating The Naira? by pocom16: 8:37am On Feb 14 |
PoliteActivist: So how many don enter naija to buys stuffs and do vacations 1 Like |
Re: What exactly Is The Benefit Of Floating The Naira? by GeneralDae: 8:37am On Feb 14 |
sammhi:If you don't float, then you must defend with sufficient dollars else your black market widens. 3 Likes 2 Shares |
Re: What exactly Is The Benefit Of Floating The Naira? by israelmao(m): 8:38am On Feb 14 |
Floating the Naira means harmonization of the market parallel with official market in forex and allowing the forces of demand and supply to determine foreign exchange rate.One the benefits is to strengthen Naira but our local currency is still struggling to regain strength since this policy set to sail.Another benefit is to check arbitrary increase in exchange rate but that still persistent because banks are engaging in illegal and unofficial sales of dollar to maximize profit. |
Re: What exactly Is The Benefit Of Floating The Naira? by TheOldGods: 8:38am On Feb 14 |
PoliteActivist:did you hear yourself? China devalue their currency because they produce almost 70% of everything being used in the world today. All phone parts, cars etc, even if they devalue, the demand for their money will still be higher. How can Nigeria devalue when they don't produce and export nothing. Infact due to the devaluation, companies are now leaving the country. Alot of companies has exited the country to go to other countries where the dollar is stable. And you're here capping . 6 Likes 2 Shares |
Re: What exactly Is The Benefit Of Floating The Naira? by airsaylongcome: 8:39am On Feb 14 |
tommy589: In simple, non-technical, non-jargon English, what does the bolded mean? |
Re: What exactly Is The Benefit Of Floating The Naira? by kiddkash(m): 8:39am On Feb 14 |
DeLaRue:They had wrong thinkings, floating the economy was a wrong move and he can't go back now because he would be mocked. Before floating a currency, you consider your GDP and your MPS. Do you know the MPS of Nigeria? |
Re: What exactly Is The Benefit Of Floating The Naira? by Blitzking: 8:40am On Feb 14 |
PoliteActivist:But it will make my children unable to afford things in my house cos in the first place it wasn't free for my children..so my children might starve to death cos a foreigner has a higher purchasing power..he would also rent all my room and store my food creating artificial scarcity for my children and remember my children are already shortchanged cos the little they had has already lost value. The question is how can I attract foreign investment without making my children suffer...economist in the house over to you we need to solve the riddle. 1 Like |
Re: What exactly Is The Benefit Of Floating The Naira? by Inspirer1: 8:40am On Feb 14 |
PoliteActivist:so with other indices such as insecurity and low purchasing power how will such investments yield, hence leading to closing down of such investments if at all they even bring any. |
Re: What exactly Is The Benefit Of Floating The Naira? by alimiadedayo1: 8:40am On Feb 14 |
Gadafii:Don't mind those half baked knowledge and lack of understanding.. wrong misapplication of economics tools is the problem with Nigeria.. What i mean is that, floating of naira but they adopt this policy at the wrong time.. Floating can only work where there are a lot of local manufacturing companies that can meet up our demand otherwise,people will experience hyperinflation and things will get worse. Imagine Tinubu removing subsidy and floating of naira at the same time, is that not act of wickedness? 1 Like 1 Share |
Re: What exactly Is The Benefit Of Floating The Naira? by tuzle(m): 8:41am On Feb 14 |
loffyloffy:they borrow in dollar and not naira. So won't repaying cost more for them. Let say I borrowed $1000 last year when the rate was at $1 for #800, and I am supposed to pay this year. That means I will be paying at the rate of $1 to #1500 which means I have paid more especially if I earn in naira. |
Re: What exactly Is The Benefit Of Floating The Naira? by Bridget95(f): 8:41am On Feb 14 |
PoliteActivist:what is Nigeria producing if we are to go with your narrative. The useless policy has made it more expensive to buy goods and services abroad and within the country. 1 Like |
Re: What exactly Is The Benefit Of Floating The Naira? by uniquetechng: 8:42am On Feb 14 |
Gadafii:Stop wasting your time replying that boy, he is not aware of the happenings in the country. |
Re: What exactly Is The Benefit Of Floating The Naira? by Procashtips(m): 8:42am On Feb 14 |
PoliteActivist: Only if you're a manufacturing hub and makes alot exporting. Do we have these qualities? |
Re: What exactly Is The Benefit Of Floating The Naira? by epainos: 8:43am On Feb 14 |
ckc: The truth is that the economy was already dead before the policy was implemented. Subsidies keep making it worse and covering up. Someone must pay for it. If we don't pay for what those people who live from Awolowo, Zik, and Bello's ....OBJ, Jonathan, Yaradua, etc did...and all the 70 years plus have caused Nigeria, our children will pay 10 times more. So, we should suffer it now, face Tinubu and compel whoever is coming on board in 2027 to keep providing solutions. What everyone wants is a subsidy... who is paying for it later? Our innocent kids. So, let us pay for it. We are innocent too, but it is well. |
Re: What exactly Is The Benefit Of Floating The Naira? by gfelo(m): 8:43am On Feb 14 |
Sound good on paper how then the price sachet water locally produced is on the increase we can all see everything locally produced are so going high, we all know salary and wages remain the same malali: 1 Like |
Re: What exactly Is The Benefit Of Floating The Naira? by tuzle(m): 8:44am On Feb 14 |
Anguldi:the country itself doesn't help small industries. Imagine wanting to start a small industry and u have to depend on diesel or fuel to run ur business and many more factors that doesn't help. |
Re: What exactly Is The Benefit Of Floating The Naira? by Judolisco(m): 8:44am On Feb 14 |
Instead of people to learn... They'll come here and be shouting tinubu.... U don't know where you'll meet yourself in d future... Better learn |
Re: What exactly Is The Benefit Of Floating The Naira? by ValarDoharis: 8:44am On Feb 14 |
How did the PDP did it for 16yrs? Remember the military left nothing DeLaRue: 1 Like |
Re: What exactly Is The Benefit Of Floating The Naira? by lexy2014: 8:44am On Feb 14 |
PoliteActivist: Which people and investment does floating the naira? What type of people are you talking about here? How many people and investments has floating of the naira brought to Nigeria? |
Re: What exactly Is The Benefit Of Floating The Naira? by Blaze14k: 8:44am On Feb 14 |
PoliteActivist: Nigeria is a consumer nation. Our export is way lower than our import. The dollar will keep rising and things will get more expensive |
Re: What exactly Is The Benefit Of Floating The Naira? by VeeVeeMyLuv(m): 8:46am On Feb 14 |
Abdulhakeem7:I wonder o Help me ask am |
Re: What exactly Is The Benefit Of Floating The Naira? by ValarDoharis: 8:46am On Feb 14 |
Yet, these things are still not in place because of ineptitude and insecurity malali: |
Re: What exactly Is The Benefit Of Floating The Naira? by uniquetechng: 8:47am On Feb 14 |
blacknp:Nigerians are one of the least subsidized people in the world so stop making it look like subsidizing the citizens with tax-payers money is a bad practice. Do you know how much each senator earns monthly in Nigeria doing nothing ? Our politicians earns far higher than their counterparts for say US yet offers nothing in terms of civil services to the nation other than enriching themselves and their unborn generations. |
Re: What exactly Is The Benefit Of Floating The Naira? by GeneralDae: 8:48am On Feb 14 |
airsaylongcome:Ways and Means is debt issued to the federal Government by the CBN. The CBN is the bank of the FG but worldwide (including in Nigeria), the Central Banks are only allowed to give a certain percentage to the FG. CBN has access to unlimited naira because they can print it but if you keep printing for the Government there becomes too much naira in the economy not tied down to equal amount of goods and services. When that happens, you have too much of the currency in the economy not tied down to anything that brings returns for economic growth, so the currency loses value and there is inflation. America prints more than any other country but because the currency is sought after worldwide, they make up for it. So Emiefele printed excess naira into the economy like many other nations in the World in 2020, 2021, and 2022 but it was careless and just too much. Today, there is 78 trillion naira money excess supply that can chase few dollars. This means people (usually politicians and the elites) have enough naira to buy dollars. 1 Like |
Re: What exactly Is The Benefit Of Floating The Naira? by ogawisdom(m): 8:48am On Feb 14 |
Terrible decision that we must protest for it to be reversed before it is too late |
Re: What exactly Is The Benefit Of Floating The Naira? by Obviouslyblunt: 8:49am On Feb 14 |
PoliteActivist:not when the country isn’t stable for investment . This will only make people buy at lower prices in Nigeria and ship out or hoard the item till it increases in price. |
Re: What exactly Is The Benefit Of Floating The Naira? by ValarDoharis: 8:49am On Feb 14 |
APC and voodoo economics. PDP was running low exchange rate but still had the 3rd fastest growing economy in the world! Genius100: |
Re: What exactly Is The Benefit Of Floating The Naira? by franchasofficia: 8:50am On Feb 14 |
PoliteActivist:This only works in a business friendly and investment welcoming environment like China where there is: 98% security guarantee 100% electricity supply 150% cheap competent labor supply 85% foreign investment friendly policies in terms of tax and other deductibles. It is useless in Nigeria where there is: 0% security of lives & properties Unfriendly business environment that rips off investors via government agencies and officials corruption and corrupt practices 1% electricity supply <25% competent labor supply >150% national corruption that rips off investors via corrupt staffs and management Difficulty in accessing FOREX to repatriat your earned profit back to your country 3 Likes |
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