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Nairaland Forum / Nairaland / General / Politics / Naira "Appreciation": Why Nigerians Should Not Celebrate (47110 Views)
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Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by Mynd44: 3:03pm On Aug 04, 2015 |
Bayswater:Why should anyone counter his posts when they his comments are incomplete? The Naira started crashing in November and was devalued then. That is when this issue started, if you want to have a reasonable discussion, started from there and don't pick issues from the middle. That's if any of you dare though 13 Likes |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by Nobody: 3:03pm On Aug 04, 2015 |
joseph1832:Small boi |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by kennyman2000(m): 3:04pm On Aug 04, 2015 |
speechless.. |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by UdaraIsAFruit: 3:04pm On Aug 04, 2015 |
Bayswater: "We don't produce, we import, we have no policy to promote local production nor infrastructures in place toencourage manufacturers, yet we expect the naira to appreciate. That is no done anywhere." So why create a thread with a misleading topic? 2 Likes 1 Share |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by willyede(m): 3:04pm On Aug 04, 2015 |
@barcanister i am really enjoying your post. Please keep it up |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by Mynd44: 3:05pm On Aug 04, 2015 |
joseph1832:But was there ever any time they sold petrol for 87? We all know that was all for election campaign na 5 Likes |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by Nobody: 3:06pm On Aug 04, 2015 |
Realdeals:But we import isn't it? Or are we locally dependent? Don't we send people abroad for studies? Which country have you heard or seen implement the Cbn's policy? |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by Jesusloveyou: 3:08pm On Aug 04, 2015 |
Is d op telling us to fold our hands, without doing anything? To allow d dollar climb to 300 naira? This is d best way for now until, we fixed our refinery to work in full capacity, in order to reduce importation, and again, those who stockpile their ill gotten wealth in dollars, need to dislodge their dollars first, i hope d cbn to blocklist more useless items, our economy must work by all means. 3 Likes |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by zeestunner(m): 3:10pm On Aug 04, 2015 |
helpee:F is for fufu e b like say u de hungry 1 Like |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by Bayswater: 3:11pm On Aug 04, 2015 |
They have still not addressed the issues Barca raised, they will rather ask questions or seek to nullify his postulations with unreasonable logic. He gave reasons why Nigerians need not celebrate the recent decrease in the aboki dollar rate (not even the official rate), I am yet to see any response telling us why his assertions are wrong. 2 Likes |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by ZKOSOSO(m): 3:12pm On Aug 04, 2015 |
The Olodo of Daura is just displaying his brain content as usual by applying "buharinomics" or "koboko economics" where you flog the Naira to appreciate against the Dollar by force by fire!! This crass buharinomics is part of APC lying wonders to deceive the nation that they are working. Meanwhile he has no concrete economic blueprint to follow. No minister to hold responsible while he alone is running the budget of 2015 oil economy with hausafulani brothers. We are watching. 2 Likes |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by MizMyColi(f): 3:13pm On Aug 04, 2015 |
smh. *Deep Sigh* Biko where are our inhouse staunch economists cum historians? Jarus, Israeliairforce, Agabai23 Barcanista has raised valid points... Let's attack the points raised and reach a valid conclusion concerning our currency appreciation/depreciation and the way forward. I will be lurking on the sidelines...gleaning from reasonable insights. |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by Mynd44: 3:14pm On Aug 04, 2015 |
Jesusloveyou:The OP is forgetting that when the National security (which the Nation economy is) is threatened, knee jerk policies must be applied to curtail further threats. We cannot keep defending the Naira with our reserve, its pointless. We still import fuel with foreign currencies which is a major issues so temporal issues have to be put in place which is what the CBN has done. That is place, we can now find better ways to keep the Naira where we want it and that will include reducing the value of imports which primarily is petroleum products by ensuring our refineries work (thanks to the past administration for fixing the refineries and thanks to the new one for reducing vandalism) 12 Likes |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by joseph1832(m): 3:15pm On Aug 04, 2015 |
MizMyColi:Yes what if! Tell me, how does the exchange rate affect you? Has it so far hampered you from performing you duty in your place of work? And how come your master only focus on those operating dormicilliary account? I believe they're not the only ones living in Nigeria are they? 4 Likes |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by MizMyColi(f): 3:16pm On Aug 04, 2015 |
joseph1832: [size=14pt]*iGnored*[/size] 7 Likes 2 Shares |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by Mynd44: 3:18pm On Aug 04, 2015 |
MizMyColi:If you read the OP well, there is actually no point to address. Most of it is philistinism. If there is any issue to be raised it has to start from when the Naira started falling and it got devalued, then we take why the CBN was defending the Naira and then the recent desperate moves the CBN has taken. That is the reasonable debates but since the OP has personally decided to leave some vital parts out (either cos he does not know or cos he is avoiding them) what should anyone discuss? 25 Likes |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by joseph1832(m): 3:20pm On Aug 04, 2015 |
OREMUSSANCTUS:His Royal mumuness! I troway salute!!!. Mynd44:Be that as it may, the OP is being one sided as usual, I wonder what concerns dollar increase and decrease with the market woman who sells Tomatoes in Oshodi market. MizMyColi:Like you have something to say. 10 Likes |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by najoke: 3:22pm On Aug 04, 2015 |
Mynd44:GBAM!!! www.nairaland.com/attachments/2159958_respect_jpeg50eeaea475f0931a8847b39aa6267f95 19 Likes |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by doncaster(m): 3:24pm On Aug 04, 2015 |
Mynd44:The depreciation of the naira at the tail end of 2014 was due to the slump in oil price. If you had watched, the rubble(russia) and venezualan curruncy went downwards as well cos both countries like Nigeria depend on the oil as the mainstay of their economy. The rubble was the biggest earner during the Q1 of this year as soon as the oil price started going up due to some measures putin put in place. Now I dont expect naira to slump further than what it was before May cos oil price has gained. Honestly if PMB had constituted his carbinet things wun't be this way. Now the price of oil is dropping again only God know our faith in months to come. 1 Like |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by OrlandoOwoh(m): 3:25pm On Aug 04, 2015 |
Naira appreciates, you wail. Naira depreciates, you wail. Wailing wailer, are you cursed? 19 Likes 2 Shares |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by mygee2(m): 3:28pm On Aug 04, 2015 |
Shut up bastard u never see light in anything 5 Likes |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by felai: 3:29pm On Aug 04, 2015 |
Ymodulus: I doff my hat for you. This is how we ought to respond to posts. Very intelligent analysis devoid of all the insults. I learnt a thing or two from the OP and also this great mind too. If you are not too knowledgeable enough on what's been discussed must you comment foolishly? 7 Likes |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by Mynd44: 3:32pm On Aug 04, 2015 |
#000000 |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by Nobody: 3:33pm On Aug 04, 2015 |
Bayswater:Allow them to rant. You supposed to don know them na |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by Mynd44: 3:34pm On Aug 04, 2015 |
doncaster: Now you got that right that the main reason the Naira fell in November was because of oil prices but then you should also ask what they heck happened to our reserves when oil was selling for $100 and thereabout? Now the Naira fell to 204 as at February from 154 in November which is basically almost 30%. Can we blame that totally on oil prices? No, it is bad fiscal planning. We were exporting crude oil whose prices was dropping and importing refined petroleum products at subsidized rates when we could have had refineries and had no need to import fuel. So an economy where the National budget is about $25-30 billion is importing fuel alone with almost $7 billion then subsidized it in which the major export was crashing which had its Central bank instead of marking policies to stem the crash was "defending" it with hundreds of million every month and you ask what was supposed to happen to the Naira? I still wonder what the absence of a minister for finance would have done as this is a CBN affair 12 Likes |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by Bayswater: 3:37pm On Aug 04, 2015 |
Mynd44: Now that you know the reason for decline in the naira value, will you disprove the issues barca raised? I 1 Like |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by holysina(m): 3:43pm On Aug 04, 2015 |
neurologist: some times it is better to be silent than quote some one only to ended up abusing the person. if you feel he has not made any point simply point them out. in life you learn every day even from your enemies. if you keep insulting ppl unnecessary simply because you don't agree with their view then you might end up disagreeing with every one including your own self 4 Likes |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by MizMyColi(f): 3:45pm On Aug 04, 2015 |
Mynd44: That's why I mentioned economists cum historians. Let's assume that it is Barca's intention to deceive us. I expect that people who are well informed will take time from their busy schedule and set the records straight. Also, if you ask me, I really don't think it is necessary to dig up archives from the past. Because, those in that time must have flogged the issue then. We have heard all too often how the PDP was and allies destroyed our nation. APC was installed to salvage the situation. Se grab? So, I believe it's the reason for the rather topical than historical issue before us. The big question now is can anyone inform us why this problem persists, and the way forward, if any? 8 Likes 1 Share |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by Chiaka(f): 3:47pm On Aug 04, 2015 |
Is the value of the Naira really appreciating in the real sense or the CBN and the FG are playing pranks on Nigerians? Why are commodities still high in the market? Answer is the naira has only appreciated in the black market but interbank rate remains the same at N199 per USD. I support the move at least for now to stop dollar deposit because its causing a lot of imbalance between official rate and black market rate, especially in the face of downing economy. Formally official and black market rate used to be quite close , at most about 2 to 3 naira difference. What we had before this new policy was made was about a difference of 40 Naira between official and black market rate, banks/some individuals deliberately keep off dollars to allow for some artificial scarcity in the black market while the banks /individuals cash on the difference of recycling dollars/Naira between the difference in black market rate and official rate. For example, I spend N199,000 to buy $1,000 @ 199 official rate , then go to the black market to sell the $1,000 @240 naira per USD = 240,000 Naira , I make a profit of (240,000 - 199,000 = 41,000 Naira). I head to the bank again with N199,000 buy $1,000 go black market sell of and make another profit, I go on and on, making easy money. Now think of when I buy say $100,000 dollars at official rate and sell of to black market @240 per 1$, that's easy huge profit. Salient Question and Effects: 1. What happens to a businessmen with domiciliary account seeking to deposit dollars and transfer to their partners abroad after buying the dollar from BDC or Bank? Answer : No Biggy! They can use their Naira debit/Credit card to pay and the transaction will be done at the official exchange rate. Better still raise legal papers like LC for huge imports. This helps the drive towards a cashless society CBN has been clamouring about. 2. The bank's refusal to accept dollar deposit means business transaction on that will be halted. Because no domiciliary account holder will be willing to withdraw from his account when he knows that he won't be able to make further deposit due to the CBN's policy except if his intention is solely for converting the dollar to naira for local transaction. Answer: but they are allowed to do whatever business they deem fit with the money locally or internationally. There is no withdrawal or spending restriction on domiciliary account, just deposit restriction. 3. Instead of doing transactions from domiciliary account, businessmen will be left with no choice but to operate domiciliary account in neighbouring countries where they will be making transactions or resort to wiring money via Western Union in neighboring country. Answer: The policy does not stop them from doing business with their accounts sir. It just stops cash deposit of USD. Your business can still be done electronically and currency conversions made through the interbank rates which is traceable and good for transparency. Its only people with shaddy business that will be affected! 5. Should the above persist it will get to a certain point where there will be scarcity of the dollar in the market. When it get to that point, the dollar rate is astronomically shooooooot up in the market because demand will outweigh supply. At this point, the naira problem will be worse than it was. Answer: Scarcity of dollar maybe at the long run for now this is the way to go to curtail the difference in exchange btw black market and official rate. If its left to continue will eventually devaluate even the official rate because of the artificial scarcity that was created. Is The Naira Really Appreciating? Make no mistake, the naira-dollar rate is yet to appreciate in the international market. As at May 29 the naira/$ rate was N199 in the market. The rate as at today Aug 5, 2015 is still N199. You can't appreciate a currency via the backdoor. Even the black market rate cannot be regulated through the back door. Answer: Well this has regulated at least the black market rate even if its through the back door or front door. Now its about 200 Naira to 1USD in the black market as against about 240 Naira previously. Though official rate remained unchanged like you pointed out In China the maximum daily deposit/withdrawal of foreign currencies is $10,000(or equivalent). Is it not better to place a transactional limit for foreign currencies than discourage deposit completely(that will solve nothing)? We don't produce, we import, we have no policy to promote local production nor infrastructures in place toencourage manufacturers, yet we expect the naira to appreciate. That is no done anywhere. 20 Likes 5 Shares |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by Chiaka(f): 3:48pm On Aug 04, 2015 |
Is the value of the Naira really appreciating in the real sense or the CBN and the FG are playing pranks on Nigerians? Why are commodities still high in the market? Answer is the naira has only appreciated in the black market but interbank rate remains the same at N199 per USD. I support the move at least for now to stop dollar deposit because its causing a lot of imbalance between official rate and black market rate, especially in the face of downing economy. Formally official and black market rate used to be quite close , at most about 2 to 3 naira difference. What we had before this new policy was made was about a difference of 40 Naira between official and black market rate, banks/some individuals deliberately keep off dollars to allow for some artificial scarcity in the black market while the banks /individuals cash on the difference of recycling dollars/Naira between the difference in black market rate and official rate. For example, I spend N199,000 to buy $1,000 @ 199 official rate , then go to the black market to sell the $1,000 @240 naira per USD = 240,000 Naira , I make a profit of (240,000 - 199,000 = 41,000 Naira). I head to the bank again with N199,000 buy $1,000 go black market sell of and make another profit, I go on and on, making easy money. Now think of when I buy say $100,000 dollars at official rate and sell of to black market @240 per 1$, that's easy huge profit. Salient Question and Effects: 1. What happens to a businessmen with domiciliary account seeking to deposit dollars and transfer to their partners abroad after buying the dollar from BDC or Bank? Answer : No Biggy! They can use their Naira debit/Credit card to pay and the transaction will be done at the official exchange rate. Better still raise legal papers like LC for huge imports. This helps the drive towards a cashless society CBN has been clamouring about. 2. The bank's refusal to accept dollar deposit means business transaction on that will be halted. Because no domiciliary account holder will be willing to withdraw from his account when he knows that he won't be able to make further deposit due to the CBN's policy except if his intention is solely for converting the dollar to naira for local transaction. Answer: but they are allowed to do whatever business they deem fit with the money locally or internationally. There is no withdrawal or spending restriction on domiciliary account, just deposit restriction. 3. Instead of doing transactions from domiciliary account, businessmen will be left with no choice but to operate domiciliary account in neighbouring countries where they will be making transactions or resort to wiring money via Western Union in neighboring country. Answer: The policy does not stop them from doing business with their accounts sir. It just stops cash deposit of USD. Your business can still be done electronically and currency conversions made through the interbank rates which is traceable and good for transparency. Its only people with shaddy business that will be affected! 5. Should the above persist it will get to a certain point where there will be scarcity of the dollar in the market. When it get to that point, the dollar rate is astronomically shooooooot up in the market because demand will outweigh supply. At this point, the naira problem will be worse than it was. Answer: Scarcity of dollar maybe at the long run for now this is the way to go to curtail the difference in exchange btw black market and official rate. If its left to continue will eventually devaluate even the official rate because of the artificial scarcity that was created. Is The Naira Really Appreciating? Make no mistake, the naira-dollar rate is yet to appreciate in the international market. As at May 29 the naira/$ rate was N199 in the market. The rate as at today Aug 5, 2015 is still N199. You can't appreciate a currency via the backdoor. Even the black market rate cannot be regulated through the back door. Answer: Well this has regulated at least the black market rate even if its through the back door or front door. Now its about 200 Naira to 1USD in the black market as against about 240 Naira previously. Though official rate remained unchanged like you pointed out. 2 Likes 2 Shares |
Re: Naira "Appreciation": Why Nigerians Should Not Celebrate by doncaster(m): 3:49pm On Aug 04, 2015 |
Mynd44:On Foreign Reserve(FR) i blame it on the federal and state govt. Although we don't know tells us the truth these days. The governors takes more of the blame as regards FR. They are always on the neck of the FG to share share share without thinking about the future. Nigeria needs restructuring to be honest. Running from pillar to post wun't help us. 1 Like |
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