₦airaland Forum

iwaeda:
You floated Naira and still defending by selling dollars to black market operators to keep the rate to abysmal N1650 per dollar. Truth is that your policy have thrown millions to abject poverty. Nlfpmod, we warned them, he is only a TAX collector.

They won't listen na 😁😁😁😁

They wanted to teach someone a political lesson 😁😁😁😁

Ofunaofu:
So the naira was actually floated. 

I thought Tinubu paid agents, BATerians said that the naira wasn't floated but rather that the naira was allowed to find its true value. 


I have asked them severally here, have the naira finally found its true value, but they keep changing the goal post and speaking from two sides of their mouth.

If you don't understand a concept, Google it or humbly ask. It's by floating Naira that gives it real value I.e without pegging or subsidy. It's value will be determine by market Demand
and Supply.

The decision It's not actually bad but lack of intentionality to grow our economy sectors is the problem. BAT is just keep giving money out to his allies in the name of palliative, buying this and that instead of spending on productive activities

Truly failing you

9jatriot:
Floating the exchange rate was a very bold step. Also fortunes favors the brave.

But I thought the exchange rate was floated by the then acting CBN governor before Cardoso took over office, abi my memory de fail me. A simple google search will clear my confusion but I non get the power to check now.

Yes
The untold hardship they could not bring on Nigerians
Within 30days Emilokan did

etrouble:
Emilokan JAGABAN m.

What General Ibrahim Badamosi Babangida, General Sani Abacha, General Abdulsalami Abubakar, General Olusegun Obasanjo, General Muhammadu Buhari, Alhaji Musa Yar’Adua and Dr Goodluck Jonathan could not do for about 40 years, Emilokan JAGABAN did it in the first 30 minutes of his government.

Now you all should know whom the real General is.

Is their official rate not way higher to black market rate that Cardosso and his principal met it

INTEGRITYA1:
If floating of Naira is counter productive I will suggest it should be reverse, the effects are too harsh at the moment but we're still looking if it will be beneficial in the long run.

We understand the wider gap between official rate and parallel market back then and how some big wings are putting on Babariga and went to CBN to get Dollars on official rate and sell at almost double in parallel Market most especially during Emefiele.

It's seems Tinubu want to correct that abnormality by closing the gap but instead of floating the Naira, he could have find a way to bring the parallel Market rate down closer to the official rate. Because since CBN is still pumping/selling dollars to Bureau dey change and instruct them to sell within the agreed margin, it means Naira is not reflecting the real market value since CBN is still struggling to force the rate down in order not go up beyond the current range without which the rate must have go up further.

Though the floating of Naira actually increase the government earnings but there is no meaningful savings because government spending has really go up in the same manner and all what suppose to be gains has been eroded.

The major beneficiary of the policy are those living abroad and those earning foreign currencies because they are able to get more value when converting the foreign currencies to Naira and opportunity for them to do so much more back home when sending money home or investing in Nigeria.

Though it will eventually lead to overall net income from abroad.

But we are watching with Keen interest.

seguntijan:
Indonesia floated its currency in 1998, prompted by the Asian Financial Crisis, and the Rupiah depreciated from 625 to $1 to 16,000 - $1 in the same year. As of 1998, Indonesia's GDP was $95bn. The country was bankrupt. It ran to IMF 4 times, had food shortages, and had massive riots. The rupiah gained value to 8,000 in 1999 and went back to 16,000. The economy started to grow gradually since then, witnessing a rise in non-oil export revenues and capital inflows into the Jakarta stock exchange.

The Rupiah has traded between 15,000 - 16,000 to the $ since 1999. Currency stability - easier flow of capital - easier investments - price stability - easier growth. I tried to explain in the thread that fx stability is a more important factor for economic growth, not the exchange rate, and Nigeria must choose between price stability and a pegged volatile fx rate. With the same period between 1998 - 2022, Nigeria's GDP grew from $218bn to $420bn with a pegged / fixed exchange rate system that we had to defend with our fx reserves while Indonesia moved from $95bn to $1.3trn. Fx reserves are meant to facilitate economic trade, Nigeria chose to use over $200bn of its reserve to defend a pegged currency.

Now my questions to you are :

1. Did the weak Rupiah prevent the Indonesian economy from growing from a gdp of $95bn to $1.3trn ?

2. Did the weak rupiah prevent consistent Gdp growth YOY?

3. Has Indonesia not done well with its weak currency?

4. Can Indonesia make $250bn from exports without a weak currency?

What is your point again?

All these your comparisons and analysis are unrelated and unnecessary.
Economic growth without Economic development is a mirage.
Besides, what you failed to understand is that the amount of leakages and corruption in the system rubished the comparison.
You didn't tell us the level of padding in Indonesian budgets or the number of Jets, Yatchs, Limo and buildings etc, their president acquired in those down periods.

The CBN governor is useless. Him and Tinubu brought a demonic hardship upon the people while they're feeding fat

oyeb15:
The fool said he increased interest rate to curb the too much money in circulation.


Pls where is d too much money in circulation. Maybe d once in bullion vans in Boudilion

The man's analysis is very annoying.

Greyworld:
DUMMY PRAISE SINGER.

Bloody Canary

Mentally unstable hatred filled unstoppable crying baby

chukwuibuipob:
This government is indeed, really working .They'll fix the country

.. working for their pockets and bank account

iwaeda:
You floated Naira and still defending by selling dollars to black market operators to keep the rate to abysmal N1650 per dollar. Truth is that your policy have thrown millions to abject poverty. Nlfpmod, we warned them, he is only a TAX collector.

Wow , yes its true. For d first time I see someone who sees tinubu the way he is

Incompetent and clueless people in government

APC plans is just to add more hardship to nigerians...to make nigerians to lavish in poverty, hunger, hardship so that during the election they can easily buy votes with 2k and easily win election...it's a pity

But they denied it before. Foolish people

BreconHills:
Current fx disparities are tiny. Even in OECD countries there are minor disparities.

Fuel subsidy is significantly reduced and will reduce further.

Electricity subsidies are still a thing and will continue to give a human face to reforms.

The result of the reduction in subsidies is a superior balance of payments sheet with imports dropping and exports rising creating positive trade balances for the first time in years.

More long term fx flows using offshore gas fields are in play and the reserves have continued to rise dramatically.

So why no impact on street?

Government is favouring financing budget deficit with fx gains over a strong naira - brutal but necessary. Policy will change a) based on local adaptation and innovation. b) when unimpaired reserve threshold reaches x

Fiscal policy is non existent. Wale must make up or ship out.

But things are significantly better than they appear. Street may not agree but governments are not elected to carry out whims of street.

If street does not like them in 2027 it knows what to do.

Everything else is cho cho cho.

Opari

excuses must be made 😂😂

Thanks so much.

IbeOkehie:
Yes. Subsidy is needed WHEN government sets a fixed price.

Or put it this way...subsidies are a predictable consequence of fixed prices.

So the EXISTENCE of a CBN rate means the government is paying a forex subsidy. The amount of subsidy is equal to the difference between the black market and official CBN rate

Good Luck to Nigeria

Omooba77:
https://www.vanguardngr.com/2024/10/why-we-floated-the-naira-cardoso/

President: He who is without Sin cast the first stone
CBN GOV: Gbogbowa ni barawo policy
MASSES: Hungry dey oooo

etrouble:
The road is rough and the task is tough, but with consistency and truthfulness, WE SHALL SUCCEED

You want truthfulness from people of questionable character? You are on a very long and hard thing.

femi4:
The value is still cosmetic, there is still some level of control. The true value of naira in exchange for a dollar isn't less than N2000

That's the same foolishness that happens to fuel price. Subsidy at N141 and subsidy at N1200

A cup half full or half empty,it only depends where your interests lies........in my posit I clearly stated that no govt in the world would leave their currency to the full whim of the forces of demand and supply.

It's very obvious you don't know how much it costs the govt to keep the exchange rate at 460 or basically how these dynamics work.you should go learn before opining..... everything isn't politics......if you recall, everyone of the presidential candidates acceded to fact that our forex regime was dysfunctional to our economy including subsidy

etrouble:
Emilokan JAGABAN m.
What General Ibrahim Badamosi Babangida, General Sani Abacha, General Abdulsalami Abubakar, General Olusegun Obasanjo, General Muhammadu Buhari, Alhaji Musa Yar’Adua and Dr Goodluck Jonathan could not do for about 40 years, Emilokan JAGABAN did it in the first 30 minutes of his government.
Now you all should know whom the real General is.

There is no need chest beating when your roof is on fire. what's the wisdom in that? Suffice to say that why do you have to empty your pocket doing charity when there is no means of restoring all you've given out?

Floating the Naira is ok, but it was wrongly done at a very wrong time. Nigeria is a foreign dependent economy, where there is minimal or low productivity. The model to apply would have been to increase local productivity and export, spur up those aspects of the economy that has been in limbo and create an intentional economic revolution on Agriculture, trade, solid minerals, oil and gas, entertainment and manufacturing sectors. When you have gotten a solid internal back-up and assurance of forex earning, then plan to float the Naira. This is what Peter Obi has been campaigning about. It's not Rocket science. If the country is good, it will favour you and I, all of us. Our brothers and sisters that are fleeing the country to go develop other people's economy will rather stay back to build Nigeria for posterity.

At a time when the world was recovering from a dangerous pandemic caused by Covid-19, an inexperienced president floated the Naira and removed subsidy at the same time. What a double tragedy! That was an insane catastrophic move. It's an empty cheer to praise the one who caused all these retrogressive poverty and hardship in Nigeria today. Even though you may love your 'emilokan' to a fault, let your education about life be your guide.

Ofunaofu:
This is the problem I have with you lots. Defending incompetence and cluelessness with bold ignorance

The past one year and fews months have clearly shown that Buhari, Emefiele was far competent, managed the economy better than Tinubu and his patch patch CV CBN governor

But here

What amuses me about you lot is the brazen ignorance you espouse with so much confidence.

naijaboy756:
Is there disparity now or not?

These guys just like higher bands of hardship

Fuel from #197 to #1200 both 197 and 1200 has subsidy payments

Naira from 460 to 1,600 both still has disparities

Very visionless idiots . These people would rather the masses suffer than make their fellow bourgeois feel a pinch . All they needed to do to close the “gap” they created is simple .
1. Suspend all BDC licenses indefinitely .
2. Give a deadline for all dollars to go into domiciliary accounts .
3. Ban deposits of dollars into accounts after expiration.
4. All dollar transactions must be interbank .
5. Enable Naira cards make a minimum international dollar transaction .
6. Criminalize physical possession of dollars notes without authorization and make some heavy arrests of top people.

But you and I know it will NEVER be done because even cardi B will be affected . So Nigerians MUST suffer .

I Remember what my last foreign boss said.”Nigeria is the only country I have been where dollars is sold like pepper on the streets and never available in the banks.”

Carry on Cardoso. We believe you

naijaboy756:
excuses must be made 😂😂

Time will tell.

Lithiumite:
What amuses me about you lot is the brazen ignorance you espouse with so much confidence.

What also amuses me about you is the boldness with which you exhibit stark ignorance of the workings of this Tinubu regime. You don't know it. 

Tinubu has become the most unreasonable, wicked, and draconian regime Nigeria has ever had. 
Tinubu calamitous economic policies I haven't created a single job, but here you are displaying Stark ignorance.

Listen, patriotism is defending your country against its government. That's what Patriots do.

Omooba77:
https://www.vanguardngr.com/2024/10/why-we-floated-the-naira-cardoso/

FAILURES in bold.

Na only failed policy na I’m dem Dey make explain action for.

Policy wey dey ok no need explanation.

persius555:
This cardoso is really a dummy. You work day and night on the monetary aspect of the economy leaving a huge gap in the fiscal policy. Ain't the two suppose to go and in hand.

For niw, we remain unproductive and companies continue to fold up as a result of harsh fiscal policies that are only geared towards squeezing money out of an already bleeding economy.

The truth Nigerians should like to know is that the cbn himself isn't sure things will ease anytime soon. That's why he cant give a timeline of when there's likely going to be improvement in the economy.

For now, they are dragging as many Nigerians into the poverty sinkhole with this floatation policy.

Bad news, dangote wont sell any cheal oil anytime soon.

It's heartbreaking that dummies like these are at the helm of affairs or these deliberately wants to push Nigerians into poverty for future manipulation.

etrouble:
The road is rough and the task is tough, but with consistency and truthfulness, WE SHALL SUCCEED

We understand you are just desperately trying so hard to sound intelligent but it's so clear to all that you got no idea what is being talked about here

You float the naira and removed subsides and yet refused to pay a living wage to workers, no be juju be that

etrouble:
Emilokan JAGABAN m.

What General Ibrahim Badamosi Babangida, General Sani Abacha, General Abdulsalami Abubakar, General Olusegun Obasanjo, General Muhammadu Buhari, Alhaji Musa Yar’Adua and Dr Goodluck Jonathan could not do for about 40 years, Emilokan JAGABAN did it in the first 30 minutes of his government.

Now you all should know whom the real General is.

What a fool.

seguntijan:
Indonesia floated its currency in 1998, prompted by the Asian Financial Crisis, and the Rupiah depreciated from 625 to $1 to 16,000 - $1 in the same year. As of 1998, Indonesia's GDP was $95bn. The country was bankrupt. It ran to IMF 4 times, had food shortages, and had massive riots. The rupiah gained value to 8,000 in 1999 and went back to 16,000. The economy started to grow gradually since then, witnessing a rise in non-oil export revenues and capital inflows into the Jakarta stock exchange.

The Rupiah has traded between 15,000 - 16,000 to the $ since 1999. Currency stability - easier flow of capital - easier investments - price stability - easier growth. I tried to explain in the thread that fx stability is a more important factor for economic growth, not the exchange rate, and Nigeria must choose between price stability and a pegged volatile fx rate. With the same period between 1998 - 2022, Nigeria's GDP grew from $218bn to $420bn with a pegged / fixed exchange rate system that we had to defend with our fx reserves while Indonesia moved from $95bn to $1.3trn. Fx reserves are meant to facilitate economic trade, Nigeria chose to use over $200bn of its reserve to defend a pegged currency.

Now my questions to you are :

1. Did the weak Rupiah prevent the Indonesian economy from growing from a gdp of $95bn to $1.3trn ?

2. Did the weak rupiah prevent consistent Gdp growth YOY?

3. Has Indonesia not done well with its weak currency?

4. Can Indonesia make $250bn from exports without a weak currency?

What is your point again?

Indonesia is one of the biggest manufacturing economies in Asia. How many things does Nigeria manufacture? Don't just be regurgitating stats. Make them contextual.

It took Indonesia 26 years to get back to stability, and their per capita income is still lower than lesser countries like Thailand because of their weak currency. So their citizens are effectively poorer than Thailand citizens (and that's a poor country). It's hard to defend policies that are not well thought out.

Ofunaofu:
What also amuses me about you is the boldness with which you exhibit stark ignorance of the workings of this Tinubu regime. You don't know it. 

Tinubu has become the most unreasonable, wicked, and draconian regime Nigeria has ever had. 
Tinubu calamitous economic policies I haven't created a single job, but here you are displaying Stark ignorance.

Listen, patriotism is defending your country against its government. That's what Patriots do.

Which of the previous administrations has attempted full liberalisation of the Forex market or full subsidy removal.....the joke is on you, didn't each one of them contemplate it but where not bold enough to implement..... When you want to compare you need to get your bases right.