Naira Devaluation And Yemi Cardoso's Weak Argument - Politics - Nairaland
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| Naira Devaluation And Yemi Cardoso's Weak Argument by Bebigiby1(op): 7:08am On Oct 07, 2024*. Modified: 11:04pm On Oct 07, 2024 |
I opened the Nairaland frontpage this morning, only to read a post titled "Why We Floated The Naira – Cardoso".... I am not an economist but I am forced to make this post to dissect certain points made by the CBN governor that should be of great concern to Nigerians. While reading the post, the highlighted section below caught my attention... ".....But Cardoso, speaking for the first time on his journey on the saddle so far and focusing on the turbulence in the financial market following his assumption of office a year ago, explained that the floatation policy was meant to address the disparity between the official and parallel rates which encouraged arbitrage and speculation, eroding trust in the market. While addressing members of the Harvard Club of Nigeria in Lagos at the weekend on the topic: “Leadership in Challenging Times: Restoring Credibility, Building Trust, and Containing Inflation”, Cardoso recalled that upon assumption of duty, he understood that the credibility of the Central Bank of Nigeria (CBN) had to be the bedrock of the actions he and his team took. He stated: “Without credibility, no policy, however well-intentioned, can succeed. Floating the naira, a decision met with considerable public criticism, was necessary to bring the official exchange rate closer to market reality. ‘‘The disparity between the official and parallel rates had encouraged arbitrage and speculation, eroding trust in the market......" If this was the goal as stated by Cardoso in the excerpt above for the Naira floatation policy then it means the policy has failed totality as till date, the exchange rate disparity between parallel market rate and official rate still exists, there are rumors that CBN is also still defending the Naira through the backdoor by paying BDCs.... I do believe that the governor and other executives of the CBN are highly educated to know when a policy has failed and to know that if a policy is harming the economy it should be reversed. Again, Cardoso talks about safeguarding credibility of the CBN and monetary market as one of the reason for "floating" the Naira, if truly he cares about credibility then he should be making bold moves to sanitize and flush out corrupt CBN officials as the arbitrage and speculation he talked about are been sponsored and orchestrated by corrupt CBN officials in collaboraton with politicians, banks and BDCs which I do believe he knows quite well about the massive currency round tripping syndicate that has been in existence over the years. What Cardoso and his team did was to devalue the naira by over 35% and this devaluation policy remains one of the biggest mistake that was made by this government similar to the fuel subsidy removal. It is glaring that Tinubu's government lacks the capacity to manage Nigeria's economy. Tinubu is not serious about making genuine reforms that will improve the economy and combat corruption within his government but instead he has chosen to inflict pain on Nigerians by making draconian policies. Instead of floating the currency, why didn't the CBN collaborate with law enforcement agencies to lead an investigation to uncover those CBN officials, banks and BDCs engaging in speculative trading and currency round tripping....? Also regarding fuel subsidy, why didn't the government investigate and prosecute fraudulent oil cabals (Marketers) and NNPC officials inflating subsidy payments....? The CBN's naira floatation policy only succeeded in destroying Nigeria's economy. It has clearly wiped off the purchasing power of Nigerians, increased the prices of goods by over 300% and caused massive job losses in the productive sectors of the economy due to the ongoing shut down of businesses. How long will Cardoso continue to play the Ostrich over the devastation caused by his failed policies? Is it until the economy collapses totally before Cardoso will see that this policy is bad for the economy? I will repeat once more that the major problem that CBN should focus on is eradicating corruption and looting within the banking sector. Also effort needs to be made to support the manufacturing sector by providing loans and other financial insentives that will help the sector to thrive. If Tinubu and his government is serious about helping the economy which I doubt, they need to purge themselves of greed and corruption, focus on downsizing and cutting cost of governance, freeing up funds to invest in critical infrastructure like boosting electricity generation, tackle food crisis by flushing out terrorists killing farmers in the north and fixing one national refinery (PH Refinery) to produce petroleum products that will crash the price of fuel and further reduce the pressure on the Naira. These are what Cardoso should be pushing for instead of releasing a press statement justifying his failed policies..... 1 Like |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by CodeTemplarr: 7:15am On Oct 07, 2024 |
Closing of disparity or elimination of disparity, which are you basing your criticism on? Which is Cardoso addressing 1 Like 1 Share |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by helinues: 7:15am On Oct 07, 2024 |
Apply for the CBN governor position then as you know more better than the current person handling things 8 Likes 1 Share |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by Bebigiby1(op): 7:17am On Oct 07, 2024 |
There is still disparity between rates as he said that the floatation policy was aimed at closing it.... CodeTemplarr: |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by Bebigiby1(op): 7:19am On Oct 07, 2024 |
I did not say i know more then anyone in CBN but is it not clear to you that the policy has failed. Why is CBN bent on continuing with a failed policy that is ruining Nigeria's economy..... You should be concerned.... helinues: 2 Likes |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by helinues: 7:20am On Oct 07, 2024 |
Bebigiby1: ‘‘The disparity between the official and parallel rates had encouraged arbitrage and speculation, eroding trust in the market......"How is the policy failed? How is it ruining Nigeria economy? What do you understand by arbitrage? 5 Likes |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by Salewa97: 7:21am On Oct 07, 2024 |
Toh Yemi Cardoso should be sacked or resigned himself. 8 Likes |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by HellVictorinho8(m): 7:25am On Oct 07, 2024 |
helinues:Did he say cardoso knows less  Itz about who cares mur and applying is not d issue, Can tinubu accept him? Can d politics datz prevalent in nigeria motivate tinubu 2 accept him? I think political reforms are necessary 4 govt officials 2 start caring mur 1 Like |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by helinues: 7:25am On Oct 07, 2024 |
HellVictorinho8:You too what do you understand by arbitrage? 5 Likes |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by Bebigiby1(op): 7:25am On Oct 07, 2024*. Modified: 6:12am On Oct 09, 2024 |
You are in Nigeria.... I already made my points in earlier post.... none of the reasons Cardoso gave for the floatation policy has been achieved and he did not provide any timeline if it will be achieved meaning he is not sure about his own policy..... Nigeria's economy continues it's downward spiral as prices of goods and unemployment in manufacturing sector continues to rise due to the fx crises caused by this policy..... helinues: 1 Like |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by Ofunaofu: 7:26am On Oct 07, 2024*. Modified: 6:06am On Oct 08, 2024 |
Tinubu with his patch patch CV CBN governor have wrecked this country 1 Like |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by helinues: 7:27am On Oct 07, 2024 |
Bebigiby1:I asked you simple questions, you are writing unnecessary epistle Again what do you understand by arbitrage, I want make you guys first tell us what you understand by the word before knowing where to take things up 6 Likes |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by HellVictorinho8(m): 7:29am On Oct 07, 2024 |
helinues:Even if he didnt use dat word arbitrage as u expected, does it mean the economy isnt getin worse? We aint saying d economy was perfect under past policies, itz getin worse and thatz y we av an increasing number of people suffering or their suffering getin compounded, 1 Like |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by Bebigiby1(op): 7:30am On Oct 07, 2024 |
@hellinues I had wanted to ignore your previous comment because i know how you operate here but choose to reply your earlier post... I do believe you know the meaning of the word so you can answer your question... helinues: |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by HellVictorinho8(m): 7:31am On Oct 07, 2024 |
helinues:Arbitrage is also a case which doesnt change my name 1 Like |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by helinues: 7:32am On Oct 07, 2024 |
Bebigiby1:If you don't know the meaning yourself, nothing to argue with you as understanding the meaning should be the basis for this argument 7 Likes |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by helinues: 7:33am On Oct 07, 2024 |
HellVictorinho8:If you guys don't know the meaning of arbitrage and it's possible effects in any economy, then this thread has no basis to argue about 8 Likes |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by HellVictorinho8(m): 7:34am On Oct 07, 2024 |
helinues:What if we choose 2 withold what we know like you are doing |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by helinues: 7:36am On Oct 07, 2024 |
HellVictorinho8:Nothing like withholding, it simply means you don't know the basics terms in economy hence can't discuss it 7 Likes |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by HellVictorinho8(m): 7:37am On Oct 07, 2024 |
helinues:Same here but you havent proven the economy isnt getting worse WHICH IS OUR CONCERN |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by helinues: 7:38am On Oct 07, 2024*. Modified: 8:07am On Oct 07, 2024 |
HellVictorinho8:How is the economy worsen more? Why then was Naira floated? 5 Likes |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by HellVictorinho8(m): 7:38am On Oct 07, 2024 |
helinues:BUT YOU REFUSED 2 STATE WHAT YOU KNOW ABOUT IT TOO |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by trutharena: 7:40am On Oct 07, 2024 |
You dont expect him to be making comments on every social media criticism. 6 Likes |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by CodeTemplarr: 7:41am On Oct 07, 2024 |
Bebigiby1:Closing it to what extent? Absolute or relative closure of the disparity? |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by Bebigiby1(op): 7:41am On Oct 07, 2024 |
I already know you can be mischievious.... helinues: 2 Likes |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by HellVictorinho8(m): 7:45am On Oct 07, 2024 |
helinues:ITZ A MATTER OF WHAT YOU SEE AS WORSE THEN IF I AND MANY OTHER PEOPLE CANT AFFORD FOOD THIS MORNING AND YOU DONT SEE IT AS WORSENED ECONOMY,THEN NEVER MIND. YOU CAN ASSUME AM NOT WORKING OR BE ASKING MORE FRUITLESS QUESTIONS BUT AM TIRED OF UR RESPONSES |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by Bebigiby1(op): 7:56am On Oct 07, 2024 |
Don't mind @helinues he is not a neutral commentator.... HellVictorinho8: |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by Anither563: 7:59am On Oct 07, 2024 |
Hmmmm. This is quite insightful. Thank you for sharing. 1 Like |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by Kukutenla: 8:08am On Oct 07, 2024 |
Bebigiby1: HellVictorinho8:You guys are wasting your time with that guy. I can bet you be has not seen the word "arbitrage" before until this thread. He's just trolling you guys to distract from your take on issues. Go through his comments and you'll see how poorly educated he is. You guys should ignore him and continue with your discussion 2 Likes |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by helinues: 8:08am On Oct 07, 2024 |
HellVictorinho8: Bebigiby1:Why do you people in the opposition like to be creating threads on things you have little information about? The annoying part, you guys would still want to be arguing confidently on things you dont even know the basic terms. Na wah oo |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by brain54(m): 8:10am On Oct 07, 2024 |
Kukutenla: |
| Re: Naira Devaluation And Yemi Cardoso's Weak Argument by helinues: 8:15am On Oct 07, 2024 |
Kukutenla:All what you do on this forum is to attack, gossip and be petty always. And yet you are expecting things to change from your end with such obsolete methods. How can a known troller be calling others trollers? Are all of you too busy to even reflect on your comments history to see what you have been doing with whatever monikers you guys have been switching to to proof nothing Eish 1 Like 1 Share |
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