₦airaland Forum

Blazetrailer:
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...

.

i doubt he has basic knowledge of economics sef, excess dollar in Nigeria CBN cum dey buy am ni intervention.

Make God dey protect our brain cells for this nairaland

DeLaRue:
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.

i bind you in the name of jesus .. gerrout of here

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

What is 10% drop of a figure artificially pegged at 33%?

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.

Your analysis shows you have a poor knowledge of Economics.

You think refineries working is what will reduce the value of the dollar?

Don't compare your country to them ooo..bro
their minimum wage is better than ours and some other stuffs like dat ,that can help them economically though

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...

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

What is the difference between 34.8% and 24.4%?

The NBS is saying that the current inflation is 24.4% but it was 34.8% before they rebased it.

What a waste of public funds

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.

you are very clueless. What exactly are foreign investors coming to do? WTF would foreign investors do that $8billion wouldn't do? Your govt is just plain retarded.

DeLaRue:
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.

The rates are not stable because naira is doing fine. The naira is being helped to be stable not only by reserves but also by FG borrowing. If there is too much dollars it would impact the reserves and there won’t be need to be increasing external debt. Your claims don’t add up.

Nahunger:
Una go use Una mouth confess las lass..

No country can grow it's economy and strengthen it's currency through propaganda.

Well they called us enemies of Nigeria, now imagine wasting $8 Billion dollars, Meanwhile note

it is only a Nigerian girl you will see preparing for marriage and she only has #5k or less in her account.
With a mind blowing milage!!

It is only a Nigerian girl that knows what she deserves, but has 0 account balance, no job and her parents can't even afford to give her what she thinks she deserves.

It is only a Nigerian girl that believe what she deserves should be funded by a man's pocket.

Very delusional lot.




There are bad men and women out there but the choice of a bad wife is a mistake you should avoid at all cost.

The fuuuls will still blame Peter Obi, blame River Niger, blame Methuselah and other inconsequential things for naira instability

surgical:
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

👍👍👍❤️

Ibrahim79mantu:
The fuuuls will still blame Peter Obi, blame River Niger, blame Methuselah and other inconsequential things for naira instability

Or send VDM to attack one pastor to distract gullible Nigerians

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.

Complete turnaround? What kind of propaganda is this?

The so-called inflows, they are from who and who. Is it more FDIs, portfolio investments? When did this happen and how much have they brought in? You can’t just assume that you are privy to information that no one else on nairaland has access to.

The truth is that CBN has been intervening in the market by selling FX from time to time to ease the pressure on naira because that pressure is always there because the economy is heavily dependent on the dollar. Inflows from autonomous sources have been weak and most times when you hear news about N5-N10 rate improvement, it’s almost always as a result of CBN intervention to the authorized dealers.

Small money they could have used to maintain fuel price and supply

How

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.

The magic you are talking about will only occur is the money supply is reduced by reducing the minimum wage and decapitatalizing commercial banks.

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??

🤔🫤

Calculate the money supply during Buhari era and compare with Tinubu. If Buhari was pumping 1 trillion into circulation per day, Tinubu is pumping 10 trillion per day into circulation.

JovialJune:
And nothing to show for it, no meaningful changes in the cost of living smh.

What meaningful changes where you expecting from pumping more naira into circulation and borrowing more dollars to defend.

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...

Do they devalued their currency in the name of floating, pump more into circulation and borrow from IMF, World Bank etc to defend it?

Jokerman:
So why has the naira not dropped to like 700 per $1?

Seriously, you expecting naira to drop when more are been pumped into circulation per day

Emu4life:
Currency floating is scam

followed by subsidy removal

RZArecta:
you're angry about this one, fuel subsidy regime nko ?

The subsidy that you are secretly enjoying on imported petrol

Zackattack:
But it was N400/$ on the official market when Buhari left power.
How did it get to N1600 per $ if the naira is still being supported?

Buhari left your minimum wage at N30,000, how did it get to N70,000?

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

The government is not printing money like emefiele did.

This government is not printing more money like Emefiele did, keep deceiving yourself!

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.

APC online agent, you failed to realized that the CBN is printing trillions of naira and releasing it into the market to make naira useless.

Between Tinubu and Zelensky I don't know who to choose.

Tinubu economic team need to be sacked if they are still defending the Naira. Why did they stupidly remove it in 2023.?

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...

Is this not an attempt to shift the goalpost?

Gboss247:
Buhari left your minimum wage at N30,000, how did it get to N70,000?

30000/400


70000/1600

Do the Maths and see how you have retrogressed since Buhari era.

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...

one of the idiots on nairaland.

But your likes have been running around here claiming that the naira has been floating around without government defending it.

Now you are here saying nothing wrong with that?

Why destroy the currency, and then go back to your vomit?

You agbadorians are really dumber than the government you support.

Nothing Dey Una head.

DeLaRue:
No government in the world directly releases information about how much it is spending to defend its currency.

If a central bank gives a running commentary about how much it is spending, that will give ammunition for currency speculators to attack the currency even further.

That is why Central Banks around the world speak in codes, like '...if it is necessary to do so, we will step into the market'.

Whether it is Japan, Brazil, India, that's what a Central bank will say.

You don't go to war by disclosing your strategy. Instead, you keep your opponents guessing.

Even Mr Rewane is only guessing by looking at how much dollars Nigeria has borrowed and how much we have left.

It's just guess work. Only the CBN knows the correct figure. It may be significantly less than Mr Rewane has claimed.

shut up your smelly mouth. You said the naira wasn’t being defended, and insulted Buhari for doing that. Why are you here spewing rubbish again because dem don catch Una?

NothingDoMe:
They don't lie about it.

If they did you wouldn't know that the countries you mentioned were defending their currency.

Don’t mind that Mumu spewing trash out of his anus .

He thinks everyone is a zombie like he is .