Naira Depreciates Barely 48 Hours After It Strengthened Against The Dollar - Business (4)

Naira Depreciates Barely 48 Hours After It Strengthened Against The Dollar - Business (4) - Nairaland

Nairaland Forum › Nairaland General › Business › Naira Depreciates Barely 48 Hours After It Strengthened Against The Dollar (25621 Views)

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Re: Naira Depreciates Barely 48 Hours After It Strengthened Against The Dollar by Nobody: 5:51pm On Nov 28, 2015

CosmeticChemist:
The Naira will continue on its downward trend till january

www.nigeriansoapie.com

What will buoy it up after January?

Re: Naira Depreciates Barely 48 Hours After It Strengthened Against The Dollar by hahn(m): 5:59pm On Nov 28, 2015

voltron:
What will buoy it up after January?

See question shocked

Cosmeticchemist what's your answer?

Re: Naira Depreciates Barely 48 Hours After It Strengthened Against The Dollar by Nobody: 6:14pm On Nov 28, 2015

hahn:
See question

Cosmeticchemist what's your answer?

E fit be something wey I never see.. who knows.. USA will start buying our crude and we will start exporting BMW cars from Nigeria and stop importing stapler PINS

Re: Naira Depreciates Barely 48 Hours After It Strengthened Against The Dollar by CosmeticChemist(m): 6:15pm On Nov 28, 2015

voltron:
What will buoy it up after January?

Theres going to be a lesser demand after the festive period. There is a huge demand for imported items like rice, vegetable oil, frozen food etc

Re: Naira Depreciates Barely 48 Hours After It Strengthened Against The Dollar by hahn(m): 6:37pm On Nov 28, 2015

voltron:
E fit be something wey I never see.. who knows.. USA will start buying our crude and we will start exporting BMW cars from Nigeria and stop importing stapler PINS

Re: Naira Depreciates Barely 48 Hours After It Strengthened Against The Dollar by Nobody: 6:39pm On Nov 28, 2015

CosmeticChemist:
Theres going to be a lesser demand after the festive period. There is a huge demand for imported items like rice, vegetable oil, frozen food etc

Are you saying that revenue on Forex (import/exports) during the festive has that much impact than Crude sales?

Re: Naira Depreciates Barely 48 Hours After It Strengthened Against The Dollar by Nobody: 8:01pm On Nov 28, 2015

chukwudi44:
what exactly is this Kemi of a woman doing? seems to have gotten worse since she was appointed.We don't have time for a novice manning such a crucial role ,if she is not up to the task, let her be replaced with someone in the mould of NOI.The situation of our economy is just too critical to be left in the hands of a novice

Nwanne, the finance minister does not run monetary policy. That's the job of the CBN. It's the CBN's decisions on aggregate money supply, interest rates amongst others, that ultimately affect the value of the Naira, relative to other currencies.

So, neither NOI nor Kemi have control over monetary policy.

Re: Naira Depreciates Barely 48 Hours After It Strengthened Against The Dollar by conyema12(m): 8:20pm On Nov 28, 2015

Chukzyfcb:
Uhmm actually you are wrong! The CBN sells dollar to these bureau de change and give them instruction to sell @ 8% spread. Let's do the math: Let's do the maths
3.5% of 196.95 = 6.89
196.95+6.89= 203....which means;
Bureau de change are not supposed to be selling dollar more than 203 ,yet they keep selling to pple at a rate 240naira = $1 and above......I dunno if its in economics Textbooks but I do Know that GREED is one factor behind INFLATION,lol

Bros youve forgotten one of the fundermental rule in Economics, thats is the law of elasticity of demand.
Are the CBN able to supply dollar to BDC operator to meet up with the high demand for this hard currency, the answer is a big No, their reason being that it depreciates the foreign reserve.

This is the major reason Forex was banned for some 41commodities.

Re: Naira Depreciates Barely 48 Hours After It Strengthened Against The Dollar by Chukzyfcb(m): 11:53pm On Nov 28, 2015

conyema12:
Bros youve forgotten one of the fundermental rule in Economics, thats is the law of elasticity of demand.
Are the CBN able to supply dollar to BDC operator to meet up with the high demand for this hard currency, the answer is a big No, their reason being that it depreciates the foreign reserve.

This is the major reason Forex was banned for some 41commodities.

Yes there is elasticity of demand in certain business situation but in this case BDCs cannot function without CBN. CBN is more of the parent while BDCs are the children. So they supervise their actions! Knowing that BDCs can abuse the priviledge, that 8% spread was given as "PRICE-CONTROL". Its just that the directive is just to weak to be Implemented. Commercial banks can easily meet the needs of the people who need dollar. And No, you don't need to dip your hand into our reserves to sell dollar, that's like defending the naira , you just let the market forces of demand & supply determine the price and circulation. The CBN are actually doing the BDCs a favour by granting them excess power & weak Implementation of the spread.

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