₦airaland Forum

ibabz:
Ogbeni, you go explain tire with no evidence.

Where did you see the excess dollars coming in.

You have excess dollars which should have reduced the dollar value without spending extra $8billion to support the naira.

1. You are correct, me self don tire trying to help people understand what's going on. Please vote for who you like. I've never voted in Nigeria.

2. Where did I see the excess dollars coming in? Some information are slow to make it to the press, so I understand your scepticism. However, some people have this information. If the CBN had not bought the excess dollars that came in over the past few weeks, dollar will probably have gone down to less than N1400. The CBN stepped in to buy the dollars because such sharp drop will have caused instability in the market. The CBN rightly prefers sustainable stability over unsustainable sharp drop.

3. As for the $8 billion, that refers to how much the CBN spent to defend the naira over the last 18 months or so.

As we speak, this year so far,the CBN has not been defending the naira due to the excess dollars coming in. If this situation continues for most of the rest of the year (nothingis guaranteed), the CBN will not need to intervene as often as it did in the past. If the CBN only spends N$1 billion to $1.5 billion defending the naira this year, that would be a fantastic result.

Nigeria's economic indicators today are much better than they were last year or the year before.

That is why more dollars are flowing into the country.

Foreign investors are not mugus. They don't take money into a failing economy.

They can see what those of us residing in Nigeria can't see. They already see the green shoots of recovery in the Nigerian economy.

What they see is a country that is the economic powerhouse of Africa that is now taking many right economic decisions.

Nigeria is now on the path to economic revival. We need to build on the few succeses of recent months, and the government must do all that it can to ensure that most of the population share in the coming prosperity.

Lovit:
Once a pack of cards don scatter, e no dey easy to re-arrange

Removing subsidy and floating the Naira at the same time is the greatest mistake of Tinubu, unfortunately. they can't take us back to where we were even if they want to, everything don scatter

Tinubu is a curse to Nigeria!

We were living a fake life based on unsustenable subsidies. We were heading for certain economic doom. Thank God for Tinubu.

Who borrows money to pay subsidies

Does anybody borrow money to eat How sustenable is it

SIRAO:
You lack knowledge of macro economics, every country do defend their currency. Now defending naira with 8billions dollars and defending with 40 billion dollars re the the same ,? Floating the naira have dramatically reduced the amount used in defending it abnitio

Stop deceiving yourself.
Defending the naira is suppose to be temporary. The economy cannot improve without productivity.
The dollar that we are drooling about is just a piece of paper. A social construct that only has value because it was exchanged for valuable goods and services.
Until the naira goes through that process, everything the government is doing is for the purpose of saving face.

MadamExcellency:
The Government has started doing what should have been done after the refineries started working. There is no reason the dollar shouldn't fall to N500. Our refineries are working. Let's stabilize foreign exchange and see multinationals come back to invest in Nigeria.

which refinery is working?

DeLaRue:
So Mr Buhari was spending $10 billion per year to keep the rate at around N650 to $1 (only people going for hajj, and highly connected politicians got dollar for N450).

Now let's assume the current government spent $4 billion in each of the past 2 years.

But so far this year (2025), more dollars have been flowing in than the Nigerian currency market can absorb.

The CBN is stepping in to buy that excess dollars.

Effectively, there has been a complete turnaround. The CBN is not currently defending the naira due to excess dollar inflow.

That means if this situation persists for most of this year, the CBN's annual intervention may fall from the claimed $4 billion to my be $1 billion - $2 billion.

Isn't that fantastic.

Remember, as I mentioned previously, during early Feb, Brazil was spending $7 billion PER DAY to defend its currency.

If Nigeria ends up spending $2 billion PER year to defend the naira this year, please let us appreciate the work of the CBN a little.

There is no perfect country in the world.

This is a lie. These exchanges are called spot sales. Where a country sells dollars from it's reserves to receive more of it's own national currency. The problem is if after the spot sale, the national currency drops, then it would have played a losing bet. Brazil sold $17 billion from their reserves via spot sales to boost the value of the Real. That's because they want to reduce over-dependence on the dollar for international trade. And Brazil's currency is still much stronger than naira anyway.

DeLaRue:
Nothing new.

Every country steps in to support their currency.

In late January 2025 (last month), Brazil was spending about $7 billion dollars PER DAY! to support its currency against the dollar.

Around the same period, India spent over $20 billion dollars within 3 days to support the Indian Rupee.

Japan spent over $60 billion to defend the Yen against the dollar last year, yet the Yen has lost so much value against the dollar in the past 2 years.

If Nigeria spends $8 billion in 2 years, that's still reasonable, compared to when we were spending about that amount every year under Mr Buhari.

Truth is, the dollar is just too powerful against most currencies. Many governments have to defend their currencies, otherwise...

Dont mind the guys blaming the govt.

They made a mistake, and they simply trying to correct it via such subject means.

It's still to the interest of Nigerians, and if they left the naira to float to N3,500 to $1, it is still same people that will come out here and shout and blast the govt.

Someone called it Gwo Gwo Gwo Ngwo policy.

Jokerman:
What I don't understand is Buhari spent $10Billion to keep Naira at $448/$450 by the end of 2022.

However, $8 Billion of Tinubu's subsidy cannot move the naira to at least $1000??

🤔🫤

Oluwole economy at work

DeLaRue:
Nothing new.

Every country steps in to support their currency.

In late January 2025 (last month), Brazil was spending about $7 billion dollars PER DAY! to support its currency against the dollar.

Around the same period, India spent over $20 billion dollars within 3 days to support the Indian Rupee.

Japan spent over $60 billion to defend the Yen against the dollar last year, yet the Yen has lost so much value against the dollar in the past 2 years.

If Nigeria spends $8 billion in 2 years, that's still reasonable, compared to when we were spending about that amount every year under Mr Buhari.

Truth is, the dollar is just too powerful against most currencies. Many governments have to defend their currencies, otherwise...

Problem is that your drug pusher president says he's floating the naira, which means no subsidy for the naira, meanwhile he's subsidizing the naira.
THE LIES AND DECEPTION IS THE ISSUE.

DeLaRue:
So Mr Buhari was spending $10 billion per year to keep the rate at around N650 to $1 (only people going for hajj, and highly connected politicians got dollar for N450).

Now let's assume the current government spent $4 billion in each of the past 2 years.

But so far this year (2025), more dollars have been flowing in than the Nigerian currency market can absorb.

The CBN is stepping in to buy that excess dollars.

Effectively, there has been a complete turnaround. The CBN is not currently defending the naira due to excess dollar inflow.

That means if this situation persists for most of this year, the CBN's annual intervention may fall from the claimed $4 billion to my be $1 billion - $2 billion.

Isn't that fantastic.

Remember, as I mentioned previously, during early Feb, Brazil was spending $7 billion PER DAY to defend its currency.

If Nigeria ends up spending $2 billion PER year to defend the naira this year, please let us appreciate the work of the CBN a little.

There is no perfect country in the world.

i dont understand you, CBn intervention on forex simply means "injecting" more dollar into the market, which one is Cbn os buying up again
if there is excess dollar, naira would be gaining strength .. not reverse

Are you even knowledgeable about these stuff , do you even know the laws of DD & SS abeg

DeLaRue:
So Mr Buhari was spending $10 billion per year to keep the rate at around N650 to $1 (only people going for hajj, and highly connected politicians got dollar for N450).

Now let's assume the current government spent $4 billion in each of the past 2 years.

But so far this year (2025), more dollars have been flowing in than the Nigerian currency market can absorb.

The CBN is stepping in to buy that excess dollars.

Effectively, there has been a complete turnaround. The CBN is not currently defending the naira due to excess dollar inflow.

That means if this situation persists for most of this year, the CBN's annual intervention may fall from the claimed $4 billion to my be $1 billion - $2 billion.

Isn't that fantastic.

Remember, as I mentioned previously, during early Feb, Brazil was spending $7 billion PER DAY to defend its currency.

If Nigeria ends up spending $2 billion PER year to defend the naira this year, please let us appreciate the work of the CBN a little.

There is no perfect country in the world.

i dont understand you, CBn intervention on forex simply means "injecting" more dollar into the market, which one is Cbn os buying up again
if there is excess dollar, naira would be gaining strength .. not reverse

Are you even knowledgeable about these stuff , do you even know the laws of DD & SS abeg

If Elon Musk should send the notorious DOGE email to Tinubu saying " Describe your duty and what you did in the last one week" I can tell you, this man T- nubu won't be able to log into his laptop the next day to resume duty, that is to say-fired

Edimakan:

These Mumu Ronu slaves are saying they're not supporting d naira. This government is d worst in history of humanity

chidiokay:
i dont understand you, CBn intervention on forex simply means "injecting" more dollar into the market, which one is Cbn os buying up again
if there is excess dollar, naira would be gaining strength .. not reverse

I understand that you don't understand. Only very few people who know what's going on behind the scene in the currency market would know.

Yes, the CBN has been buying excess dollars coming in into the country.

If the CBN had not been buying those excess dollars in recent weeks, naira may have risen sharply, may be to up to N1350. But it may not have been sustainable for more than a week or 2, then the dollar may have fallen back to maybe N1600.

Nigerian manufacturers and even foreign investors do not like or want such volatility. They prefer stability.

And the CBN has delivered some stability for the naira since the start of the year. They did not want the excess dollar inflow to cause instability, hence the reason the CBN stepped in and bought the excess dollars, WITH NAIRA.

So as you can see, the CBN not only sells dollars to defend the naira, it can also buy excess dollars to ensure the naira doesn't rise too sharply and inorganically.

The man on the street may want naira to jump to N1200, N1300 etc, but manufacturers, foreign investors, and the CBN do not want that to happen suddenly.

Paraman:
Is there a time the NBS said inflation drop by 10%?

That is what government is peddling around.
They can as well rebate $ to Naira to N1500, then Naira depreciation will drop from 237% to 3.3% and their supporters will applaud them

Samunique:
My brother, I'm a Yoruba man, but to say the truth, Tinubu was sent from the pit of hell ( the western imperialists ) to deal with Nigeria and destroy her completely.

If not, how can you float the naira and at the same time borrowing dollars to defend it, is this not insane

You devalued the naira by floating it, people and businesses are suffering from the negative effects, then you're still defending it with the same foreign currency 💲,

Pls what's Tinubu doing exactly 🙏?

Is he aware that people are dying as a result of his daredevil approach to the economy?

Something that the previous administrations like Obj, Gej, even Pmb, avoided, even when they were pressured to do so by the satanic world Bank.

I think people may need to talk to Mr president to have a rethink about his daredevil economic policies and his tendencies to please the foreign imperialists who had wanted to put Nigeria on it knees for a long time, bcs they see her as a threat to their imperialistic agenda for the Africa.........

Mr president needs to know that he's there to serve Nigeria not to pls the slave masters. Bsc all I see here is someone dancing to the tunes of foreign dictatorship in order not to offend them. Only the wise will understand! 😭😭😭😭

my brother you've said it all, humanity first,people are really suffering and the worst is that the suffering is unnecessary and avoidable if the leaders have empathy and genuine concerns for the people, they will not dance to the tune of the imperialists, who doesn't mean well for the country
No nation leaves its currency to the vagaries of market forces completely,it is suicide, no country removes subsidy completely
You don't cure cost push inflation like we have now in Nigeria with additional costs all the time it's a recipe for disaster, the government is pushing its luck too far
I am yoruba too,but me and my family needs to survive we need and enabling environment to do so and this government is not providing that,its so fixated on revenue generation
It has to balance things

Reinvented:
That is what government is peddling around.

Nobody in government has said anything about inflation being 10%.

We need to stop peddling misinformation.

Official current inflation rate is 24%.

Lol...anybody reading it will think the poster below is making some points....not knowing he/she is posting gibberish and half truths. I am not surprised though, because they most times assune every reader here is semi educated like they are.

There are basically 2 exchange rate systems

1. Floated exhange rate system where the rates are determined purely by the forces of demand and supply( US,UK, Canada, Australia, etc) . The government bank(Central or Reserve ) only intervenes using monetary policies like the interest rates to adjust or fight cyclical imbalances, but it never buys, hoards nor sell foreign currencies

2. Managed exchange rate system where the governments intervene to manage the exhange rates either regularly or when necessary. For some of these, the government's bank sometimes participates directly by buying, selling or controlling the flow of foreign exchange in and out of the country(like CBN does). A variant of this model is where the government fixes the exhange rate periodically. Another variant of this is called managed floating system where the governments indirectly props the national currency against certain foreign currencies but allows it to float against others.

Now read the following

Fact 1. The Nigerian government came out to tell the whole world that it now runs a a fully floated exchange rate system( sources: Tinubu, Wale Edun, Cardoso, etc....I doubt they knew the meaning of what they were saying or they were directly being mischevious with the truth knowing the gullibility of the people they lead) and that the rates are now determined by the market forces while condemning the practices of managed exhange rate system used by Buhari and Emefiele, as being partly responsible for the current economic woes.

Facts 2. Japan does not run a fully floated......it has been running a manged floating system since 1973. It regularly intervenes to ensure its currency was devalued to the USD because it was largely dependent on exports to the US. It spent $60bn in 2022 to manage the Yen when its trade imbalance to the US reached the highest as a result of its trade deficit to the US only(China had become the Asian largest exporter to the US years before then gradually waning Japanese influences in the trade advantages the US)

Fact 3. India runs a managed floated exchange rate system and not a fully floated one. India, right from day 1 told everyone that not only market forces will determine its exhange rate, their governmnet will intervene to fix the rates periodically......Nothing more to be said here.

Fact 4. Brazil runs a managed exchange rate system. Managed for USD, Euro and Yuan( major countries they export to), the rest are fully floated. Brazil never lied to anyone that only market forces will determine its exchange rates....they were clear that they were running a dual exhange rate or manage the exhange rate system starting from the 1st term of President Lula.

There was a reason the poster below never used the US,UK,Canada,etc as examples. You are either running a fully floated exchange rate system or a managed one. There is no in-between. That the government of Nigeria has spent $8bn to defend the naira while being hush about it should tell you they don't know what they are doing. At least under Buhari and Emefiele, they were open about how much they spend periodically to defend naira.

Truth is you cant claim you are floated and at the same time be subsiding the currency.....it is a clear sign you dont know what you are doing. They were quiet about the $8bn because ghey realised it would be news and would go contrary to the lies they had sold to their gullible populace/followers

Kalo kalo economics.

DeLaRue:
Nothing new.

Every country steps in to support their currency.

In late January 2025 (last month), Brazil was spending about $7 billion dollars PER DAY! to support its currency against the dollar.

Around the same period, India spent over $20 billion dollars within 3 days to support the Indian Rupee.

Japan spent over $60 billion to defend the Yen against the dollar last year, yet the Yen has lost so much value against the dollar in the past 2 years.

If Nigeria spends $8 billion in 2 years, that's still reasonable, compared to when we were spending about that amount every year under Mr Buhari.

Truth is, the dollar is just too powerful against most currencies. Many governments have to defend their currencies, otherwise...

I knew it'll be the obidenses that flood this thread.

I love the way the person above is schooling them.

Bitter souls love negative news.

Tinubu is a politican, and politicans are going to take decisions to get them elected, not necessarily the best decisions needed for the country.

That's 8 billion wasted. For nothing, because Nigerians want to import more and more stuff.

The problem ulitmately is our dependence on oil money. Oil money is not enough. Spending it on yacht and so forth is basically putting more strain on our thin finances. Defending the naira, which is a big reason why we have debts...(infact Buhari used ways and means so many times to defend the naira and pay for subsidy, and tinubu is doing it low key)...is makign things worse.

But the truth is, Nigerian politicans want to be elected. They do not want to leave a better legacy for tomorrow...because it means hard work, more hardship, and making unpopular decisions.

Here on this site, you can look at the agbado and the obident/pdp and even the secessionists. Their rasion d'etre is basically looking for more dollars to spend. IN a way, they are all alike.

Anyway, may God help us to see sense. Mumu leaders and mumu people, opposition and loyalists.

Lol...I have read enough to understand that the guy does not even understand what he is writing. He is contradicting himself here and there.......i don begin ignore am make him no dirty my brain...

.

chidiokay:
i dont understand you, CBn intervention on forex simply means "injecting" more dollar into the market, which one is Cbn os buying up again
if there is excess dollar, naira would be gaining strength .. not reverse

Are you even knowledgeable about these stuff , do you even know the laws of DD & SS abeg

galserv:
We were living a fake life based on unsustenable subsidies. We were heading for certain economic doom. Thank God for Tinubu.

Who borrows money to pay subsidies

Does anybody borrow money to eat How sustenable is it

SO, why did tinubu oppose subsidy removal in 2012?

The palaver I have with you guys, is that in 2012, these problems were there, yet you guys oppsed subsidy removal because power.

The funny thing is that yesterday's GEJIte is today's supporter of subsidy. They even now claim it helps Nigerians.

Meanwhile, we got ten years of severe economic malaise thanks to the protests, and then you guys taking power, and keeping subsides in place, until it got unsustainable.

Your hero is responsible.

DeLaRue:
The CBN has never said they are not or will never defend the naira.

No Central bank in the world will say that.

I think you have been listening too much to 'experts' on Arise who say things like the Naira is on a free float.

Have you ever heard of those words directly from the mouth of the CBN Governor.

Switzerland has one of the strongest and most stable currencies in the world. Yet, its Central bank does defend the Swiss Francs if they need to.

Every central bank steps in to defend its currency. They just don't announce it. It is one of the priority tasks of every Central bank.

Nigerias just get worked up over the most basic things.

Lie will kill u one day if u don't stop u APC slaves. Evidence plenty online

Ojuntana:
https://nairametrics.com/2025/02/22/fg-has-spent-8-billion-to-support-the-naira-rewane/

This abracadabra is audio...it's just a matter of time, water will find its level

Jokerman:
But Tinubu told us he has stopped subsidizing the Naira, hence it's floatation.. why go back to his vomit??

Well, let's waits for the APC Social media soldiers WhatsApp group message

APC n lies. Naira refused to float, hence subsidy returns

DeLaRue:
.

However, in the past couple of months, the naira has stabilised, so no.need for the government to routinely defend the naira for now.

The CBN has done an excellent job.

By killing the naira and the economy abi?

No make me catch you

More Malta refineries to be built by private persons.

DeLaRue:
So Mr Buhari was spending $10 billion per year to keep the rate at around N650 to $1 (only people going for hajj, and highly connected politicians got dollar for N450).

Now let's assume the current government spent $4 billion in each of the past 2 years.

But so far this year (2025), more dollars have been flowing in than the Nigerian currency market can absorb.

The CBN is stepping in to buy that excess dollars.

Effectively, there has been a complete turnaround. The CBN is not currently defending the naira due to excess dollar inflow.

That means if this situation persists for most of this year, the CBN's annual intervention may fall from the claimed $4 billion to my be $1 billion - $2 billion.

Isn't that fantastic.

Remember, as I mentioned previously, during early Feb, Brazil was spending $7 billion PER DAY to defend its currency.

If Nigeria ends up spending $2 billion PER year to defend the naira this year, please let us appreciate the work of the CBN a little.

There is no perfect country in the world.

Agbado!!
Where's the sense in stopping the defending of naira at 400 per dollar with $8bn only to defend with $4bn at 1500/$
And where's your evidence that more dollar is coming in than the market can afford? Shouldn't that lead to an increase in the value of the naira compared to the dollar?

DeLaRue:
Nothing new.

Every country steps in to support their currency.

In late January 2025 (last month), Brazil was spending about $7 billion dollars PER DAY! to support its currency against the dollar.

Around the same period, India spent over $20 billion dollars within 3 days to support the Indian Rupee.

Japan spent over $60 billion to defend the Yen against the dollar last year, yet the Yen has lost so much value against the dollar in the past 2 years.

If Nigeria spends $8 billion in 2 years, that's still reasonable, compared to when we were spending about that amount every year under Mr Buhari.

Truth is, the dollar is just too powerful against most currencies. Many governments have to defend their currencies, otherwise...

but the govt has been saying that they are not defending the naira. what was the need of floating the naira which multiplied cost of of items at least 3* if we were still going to defend the naira?

Alliswell248:
U are wrong.
Learn to comment as a responsible person, and not a dullard

The government is not printing money like emefiele did.

How are you so sure? At least I know that Tinubu has recommended printing notes before. It’s very loud in the media. And by the way we warned when Buhari was still in government that he doesn’t know what’s happening in his government. Was Emefiele’s antics any surprising to you?

This Economist are the Problem and CBN. Can we not Pull out from the IMF and World Bank. Our Money Naira based on Gold Standard. How can one Country be 36 Trillion dollars in Debt but we with Little debt have Stability problem. It's really disgusting what the Government is Doing.

Ojuntana:
https://nairametrics.com/2025/02/22/fg-has-spent-8-billion-to-support-the-naira-rewane/

My brother.....na "sidon look mode" I dey now l. I don't worry myself about a government that tells obvious lies and the people who choose to believe the lies....its their problem

Ojuntana:
This is concerning
There seems to be a disconnect between the policy being propagated in the public space and the one implemented with real effects on Nigerians
The clueless government have been claiming that floating naira is one of the reforms that have been yielding fruits with the naira getting stronger
Now we're being told $8bn was used to shore up the naira and another $4bn to shore up reserves
The rebased rate was expected to reflect the new trends based on those reforms
What is obvious is that the rebased inflation rate does not reflect the market.
The former rate is more realistic
Where did the figures come from then?
Where exactly is this so-packaged reforms taking Nigeria to?
Is there any tangible benefit to be derived in the true sense and what are the benefits?