EponObi:


It's simple. Supply and demand. You can't compare the pound with the naira because I'm the UK, the manufacture and export. Meaning, other nations buying their product translates to the strength of the pound.

In Nigeria we don't produce anything. We only buy and buy. Zero sell. This imples zero demand for the naira on the international market. Without demand, you can't find strength.

The past years, Nigerians don't understand how serious the issue is because the government has been protecting them by protecting the value of naira. We've defended the naira with $1.2b per month so that naira can maintain its peg against the dollar. That's why this administration isn't doing again, so with nothing to defend the peg and zero demand for naira, it has been on a free fall. What's happening now is that the naira is finding it's real value. What the real value is, no one knows.

Btw, if you are enlightened as you claimed, these are basic economics you should know. You should be the one explaining, not asking questions. No offense.

gaby:
Puekeyoooo

malali:
There is more than meets the Eye.

Why do i feel some people are counterfeiting the naira.

Because no one can really explain how there is an infinite amount of Naira in circulation. Even if the naira was free floating by now there should be an equilibrium. It should have pegged itself.

The only reason why the naira can be dropping till infinity is if the production is unlimited ? Counterfeiters ?

To be realistic, no amount of salary increments can resolve this.

This is very serious, the government has to act now........There are so many African countries, who do not even produce crude oil or subsidize forex but their local currency is stable.

Why is the naira dropping everyday ? Are people counterfeiting the naira ?

EponObi:


There's nothing like counterfeiting. What you see is simply the pressure of the demand for dollar.

The CBN unifying our exchange rates and the FG removing fuel subsidy are only two solutions to our three elephant problems. In fact, those two are the simplest to solve.

The biggest elephant is our trade balance. Imagine a country with over 200 million people not producing anything internally and only have to resort to buying things we need from other countries, down to toothpicks. That's one hell of a demand for dollars. And we import every day. Every single day.

The naira will continue to nosedive until it find a balance/equilibrium where our demand for foreign goods equals our demand for dollar. What the CBN and FG is banking on to solve this problem is that demand for dollar will keep on increasing, while naira crashes until we get to a point where people can't afford the imported derivative of goods and start buying local derivatives. With demand now shifting to local goods, the demand for dollar will reduce and naira will pick up strength from there. With the increasing demand for naira and people now favouring local alternatives, this would jump start local manufacturing and production in the country.

These are theories they are banking on. Will it succeed? We shall see.

Tinubu wants to make imported goods insanely expensive that people will start running away from them to local goods.

Our situation is like a vehicle without a driver that just started running down a hill. You can't stop, it's already in motion.

malali:


Well said, However i travel to over 30 countries on a regular basis, i can name a lot of countries which in the last 7 years, the currency against the dollar barely changes in 7 years ! And they dont have oil and also import a lot of what they use, We are all pretending not see the mismanagement of funds by these politicians from Tinubu downwards, most of these guys have more than their salaries can afford. They do not own businesses or inherited these wealth.
The subsidy was removed to loot the funds......Until corruption is addressed truthfully. Subsidy or no subsidy will not make a difference.
Thats my opinion.[/b][/color]

EponObi:


Can you please mention the countries? I want to take note. Thanks

EponObi:


It's simple. Supply and demand. You can't compare the pound with the naira because I'm the UK, the manufacture and export. Meaning, other nations buying their product translates to the strength of the pound.

In Nigeria we don't produce anything. We only buy and buy. Zero sell. This imples zero demand for the naira on the international market. Without demand, you can't find strength.

The past years, Nigerians don't understand how serious the issue is because the government has been protecting them by protecting the value of naira. We've defended the naira with $1.2b per month so that naira can maintain its peg against the dollar. That's why this administration isn't doing again, so with nothing to defend the peg and zero demand for naira, it has been on a free fall. What's happening now is that the naira is finding it's real value. What the real value is, no one knows.

Btw, if you are enlightened as you claimed, these are basic economics you should know. You should be the one explaining, not asking questions. No offense.

malali:


In sept 2020 1USDollars = 121 Haitian Gourde.
Today 1 USDollars= 131 Haitian Gourde

Mind you haitian is a 3rd world country, insecurity, kidnappings, cut off from the rest of the world by oppressors, devatsted by hurricanes and earthquakes.

In sept 2020 1 USDollars= 149 yemeni rial.
Today 1 USDollars =150 Yemeni rial.

Yemen is also a poor third world country, they are currently being bombed by US coalition forces, they were in a war with saudi for over 10 years.

Afghanistan 2020 1usd= 75 Afghani
Today 1 usd= 73 Afghani

Bangladeshi 2020 1usd= 89 bangladeshi taka
today 1 Usd= 108 bangladeshi taka.

I can go on and on. The government is deceiving Nigerians, by attributing it to lack of production alone, Theft and looting is the main reason Nigeria's currency is getting devalued daily.

Tohsynetita1:

That's why I can't do without checking Nairaland daily, it's a place of wisdom, even if you don't study a discipline, you will able to talk about it because of experts posts you have read.

EponObi:


There's nothing like counterfeiting. What you see is simply the pressure of the demand for dollar.

The CBN unifying our exchange rates and the FG removing fuel subsidy are only two solutions to our three elephant problems. In fact, those two are the simplest to solve.

The biggest elephant is our trade balance. Imagine a country with over 200 million people not producing anything internally and only have to resort to buying things we need from other countries, down to toothpicks. That's one hell of a demand for dollars. And we import every day. Every single day.

The naira will continue to nosedive until it find a balance/equilibrium where our demand for foreign goods equals our demand for dollar. What the CBN and FG is banking on to solve this problem is that demand for dollar will keep on increasing, while naira crashes until we get to a point where people can't afford the imported derivative of goods and start buying local derivatives. With demand now shifting to local goods, the demand for dollar will reduce and naira will pick up strength from there. With the increasing demand for naira and people now favouring local alternatives, this would jump start local manufacturing and production in the country.

These are theories they are banking on. Will it succeed? We shall see.

Tinubu wants to make imported goods insanely expensive that people will start running away from them to local goods.

Our situation is like a vehicle without a driver that just started running down a hill. You can't stop, it's already in motion.

Notfogotten:
Today's naira exchanges for NGN1,700.00.

Fuel landing cost now at NGN1,020.00

I card of paracetamol to sell at NGN500.00

A bag of cement now NGN 10,000.00

Change you Naira to Dollar now that you have the time.

Your politicians are stealing your naira and converting them to USD.

malali:


I agree with you, the naira is coming out of somewhere that the government doesn't have control over ? It feels like some people have bullion vans of naira in vaults at home, that they keeping changing to dollars.

The whole point of floating the naira is to find a balance, if the minting of naira has been compromised, the naira can fall too 1$ to 10,000naira.

The government should act now, if not this is going to be a disaster. I believe some people are hiding billions in naira at home and are changing it to dollars easily in the black market.

malali:


Well said, However i travel to over 30 countries on a regular basis, i can name a lot of countries which in the last 7 years, the currency against the dollar barely changes in 7 years ! And they dont have oil and also import a lot of what they use, We are all pretending not see the mismanagement of funds by these politicians from Tinubu downwards, most of these guys have more than their salaries can afford. They do not own businesses or inherited these wealth.
The subsidy was removed to loot the funds......Until corruption is addressed truthfully. Subsidy or no subsidy will not make a difference.
Thats my opinion.[/b][/color]

malali:


I agree with you, the naira is coming out of somewhere that the government doesn't have control over ? It feels like some people have bullion vans of naira in vaults at home, that they keeping changing to dollars.

The whole point of floating the naira is to find a balance, if the minting of naira has been compromised, the naira can fall too 1$ to 10,000naira.

The government should act now, if not this is going to be a disaster. I believe some people are hiding billions in naira at home and are changing it to dollars easily in the black market.

just2endowed:


That's why fg issues bonds and securities worth over 2 trillion naira to control money supply. It's a good step

malali:


Thats a good idea, to mop out the excess.