₦airaland Forum

9jatriot:
CBN has done a lot of things right in recent times that even when we do not understand their actions, we somehow know that they are trying to achieve an aim.

Who else has noticed that Lamba king is now careful not to criticize the CBN in particular. When USD was increasing arbitrarily, he was always quick to release trader-level economic advice to make his followers think he knew what he is doing.

He was hoping that USD goes north of 2500 naira. I hope he learns that there is more to life than just saving cost.

Thank God most of his suggestions were at variance with those of the CBN otherwise his mob would have claimed that CBN took his advice to make the little progress they have been making.

May God continue to direct the CBN Chief.

Really happy for the progress thus far.

May Nigeria be better!

Nice one!

Another master stroke

Geovanni412:
I didn't mention it because the chances of that happening are minimal

However, if interest rate is reduced from that 24.75% by 300 or 400 basis points, that means the policies are working and prices of goods will substantially reduce

That would be a miracle- the type no Nigerian who is 50 yrs or younger has seen.


More info:
-https://www.nairaland.com/8042657/mpr-other-economic-metrics-explained
post by Donproject2 explaining Monetary policy key terms to note

Well, the ultimate plot is, increase the MPR to decrease the inflation rate, if this works, then reduce the MPR.

LegendHero:
Another way to look at this could be that CBN trying to increase FX inflow.

—Normally when you have cash reserve in $$ as an individual and you want to execute a project in Nigeria, you should have sent it as inflow and convert it to naira and etc.

—But some people got the $$, and instead of inflow, they keep their dollars assets, approach bank and get naira loan backed by that, so they just retain their dollars and put more pressure on the naira.

—Now you won’t be able to do that. Either use your asset in Nigeria as collateral (if you have), or send that $$ you’re keeping abroad back home for that thing you’re tryna do.

Now people can argue that it could cause distortion as those set of people won’t have incentive to get loan again and it might kill business and productivity. But I’m sure CBN have studied the merits and demerits of both arm.

MY FEAR IS THAT,ANOTHER GOVERNMENT WILL COME AND RUBBISH ALL THIS GAIN.

I WISH ALL THESE REFORMS ARE BACKED BY LAWS!

stagger:
Jimoh Ibrahim used this strategy to hedge his Naira loan exposures, only repaying them off when the Pound had significantly gained against the Naira.

See smartness.

Why did Nigerian government allow all this rubbish?
So those people will just be happy when the value of Naira was falling but they will be on pages of news paper condemning the government

Who do us like this with corruption

CountinBlessins:
Beautiful!!!!!!!!!!!!!!!!!

WHAT A MASTER STROKE!!! TINUBU I HAIL YOU! EVEN THOUGH YOUY STOLE PO's Mandate o, i havent forgiven you , but damn!!!! this man is brilliant!!!!!

WOW!!! JUST WOW!!!
If only you all realize what this master stroke move is!!!
He is blocking all the loop holes used by governors, senators etc all corrupt polirtcians use these loops holes to stole our wealth in dollars

And those ones will gang up against him in 2027!

DenreleDave:
when details follow, i will understand

But as for now, i dont understand

Cardoso is really sanitizing the system. This is a masterstroke.

The CBN knows that no debtor will be able to abruptly liquidate a loan within 90 days. The implication is that the debtor will be forced to sell the fx to the bank at prevailing rate. No bank wants its exposure risk-weighted 150% of CAR.

To people still hoarding the dollars, please continue.

9jatriot:
The man mostly responsible for this, who members of your camp support was in court today to defend himself on how he mismanaged the economy when he was given the chance.

APC took over from PDP in 2015 with too many promises. Most of them failed woefully.

APC has ruled since 2015, with the economy in absolute shambles under their watch.

Oga, how did the naira go from 199 to 1900 per dollar under the watch of your principal in 8 years?

How did the bag of rice go from 8,000 to 80,000 in 8 years under the watch of your principal?

How did plane tickets on the London route go from 200k to over 2m in 8 years under the watch of your principal?

How do you eulogize people who put you in misery, give you peanuts to shut your mouths and fight for them?

Get small shame na bros.

LegendHero:
Another way to look at this could be that CBN trying to increase FX inflow.

—Normally when you have cash reserve in $$ as an individual and you want to execute a project in Nigeria, you should have sent it as inflow and convert it to naira and etc.

—But some people got the $$, and instead of inflow, they keep their dollars assets, approach bank and get naira loan backed by that, so they just retain their dollars and put more pressure on the naira.

—Now you won’t be able to do that. Either use your asset in Nigeria as collateral (if you have), or send that $$ you’re keeping abroad back home for that thing you’re tryna do.

Now people can argue that it could cause distortion as those set of people won’t have incentive to get loan again and it might kill business and productivity. But I’m sure CBN have studied the merits and demerits of both arm.

They always think CBN don't think, they think they knows better than the Governor, you will some advice and you will just knode your head. From sombody that just finish j.s.s. 3 from agulu community school, Anambra

Excellent move

Here is the real gist, hopefully this will make the naira regain its value in earnest.

Sweet

YeyeGbami:
CBN no wan gree this time

honestly

Am beginning to love CBN of recent.

DeLaRue:
Good.

Nigerian banks are a big clog in the wheel of this economy.

My thoughts on recent times

Melagros:
COMRADES, I don't know when this drug lord will kick the ground

After you kick ground

clems88:
Let's see how far they will go. All I know is that the dollar is not having an organic fall, something is behind it. Las las na them go tire

If you have nothing to say,sharrap was the rise organic? Xombidient

garfield1:
If you have nothing to say,sharrap was the rise organic? Xombidient

you are an idiot for quoting me

This is good news and CBN should be commended for this initiative,may this leads to stronger naira,may all those enemies of Nigeria progress be put to shame...

clems88:
you are an idiot for quoting me

Your parents I guess

garfield1:
Your parents I guess

your parents and generation. Animal

clems88:
your parents and generation. Animal

Anumpama,onye ara ki ibu

garfield1:
Anumpama,onye ara ki ibu

ode

I PRAY GOD HELPS THE CBN TO STOP ALL NONSENSE INFRACTION AND CRIMINAL THINGS,UNPATRIOTIC COMMWRCIAL BANKS,BDCS,FOREIGN COYS AND FOREX FRAUD RINGS ARE DOING TO RIPE NIGERIANS CURRIENCY OFF IFSHA. ONCE ALL THOSE RUBBISH STOP OUR NAIRA WILL BE STRONG,INFLATION WILL DIVE DOWN,GOVT PRICE CONTROL SHOUKD KICK IN TO DESTROY UNFAIR COMPETIONS AND GREEDY MERCHANTS THAT INFLAT COMODITY PRICES

clems88:
ode

Odiok ono uka