grandstar:


Tranquill is correct.

The reason why the Canadian $ has lost value i because it is a massive commodities exporter like Nigeria. With less forex coming in due to lower prices for its commodities, this has led to its currency losing value despite their economy being much larger than Nigeria.

Buhari has refused to devalue. This is purely insane and the markets as equally gonee nuts. The curse of price controls has taken over.

Nobody is doubting Buharis integrity or his incorruptible nature but his economic policies stink.

Soludo and Sanusi, the latter who is a strong Buharist has comdemned his economic policies.

Emefiele is a mere figurehead. I predicted in a thread I started that the naira would touch 300 by 2019. I was flabbergasted it touched early this year. The naira will touch 400 year ending if things don't change.

It majorly has to do with the fall in the oil price. Crude oil until last year was Canada's largest export. All the countries with oil dependent economy are suffering same fate. In Nigeria, instead of looking for how to urgently address the situation, they keep talking about past administration. Some buffons who do not even know the simplest factors controlling economic indices are talking about how 'Jonathan squandered the foreign reserve'. Who 'squandered the foreign reserves' of Canada and other countries that are going through the same economic situation as Nigeria?

For your information I and some discerning minds, do have serious doubts about Buhari's so called "integrity and incorruptible nature" unless they have a different meaning from the ordinary dictionary definition.

Bevista:
Devaluation is very critical and long overdue. But, as I said, that will only help prevent an already bad situation from getting worse.
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Apart from crude oil, we export practically nothing, so we won't benefit that much from the devaluation but I agree, it is very expedient in the present circumstances.

To diversify the economy, the government needs to dollarise the monthly allocations to the 3 tiers of govrrnment.

Every month, the crude oil earnings are paid to the 3 tiers of government in naira. This naira substitution policy increases the money supply leading to excessive cash in circulation. The CBN now mops up this excessive cash through high interest bonds.

That is why the cost of credit is in double digits and credit scarce.

It is the naira substitution policy that prevented the naira from appreciating during the high oil price era.

Henry Boyo has advocated paying the 3 tiers with dollar certificates. It will now be dollars chasing naira leading to a revaluation of the naira and an end to excess money.

An end to excess money in circulation will lead to a collapse in lending rates.

A collapse of lending rates to single digits will boost borrowing by the real sector.

It is only when industriesscan borrow at less than 10% that the country can start diversifying.

As companies borrow to expand, the local market will become to small and exports will be the only option.

grandstar:


Tranquill is correct.




The reason why the Canadian $ has lost value i because it is a massive commodities exporter like Nigeria. With less forex coming in due to lower prices for its commodities, this has led to its currency losing value despite their economy being much larger than Nigeria.

Buhari has refused to devalue. This is purely insane and the markets as equally gonee nuts. The curse of price controls has taken over.

Nobody is doubting Buharis integrity or his incorruptible nature but his economic policies stink.

Soludo and Sanusi, the latter who is a strong Buharist has comdemned his economic policies.

Emefiele is a mere figurehead. I predicted in a thread I started that the naira would touch 300 by 2019. I was flabbergasted it touched early this year. The naira will touch 400 year ending if things don't change.

Everybody is saying, devalue! devalue! devalue!. do you not know the consequences. We import everything as such devaluation will lead to uncontrolled inflation.

emeeco:


Everybody is saying, devalue! devalue! devalue!. do you not know the consequences. We import everything as such devaluation will lead to uncontrolled inflation.

are you digging your head in the sand?Are you playing ostrich? The naira is 300 already at the parallel market. It will touch 400 year ending.

grandstar:
To diversify the economy, the government needs to dollarise the monthly allocations to the 3 tiers of govrrnment.

Every month, the crude oil earnings are paid to the 3 tiers of government in naira. This naira substitution policy increases the money supply leading to excessive cash in circulation. The CBN now mops up this excessive cash through high interest bonds.

That is why the cost of credit is in double digits and credit scarce.

It is the naira substitution policy that prevented the naira from appreciating during the high oil price era.

Henry Boyo has advocated paying the 3 tiers with dollar certificates. It will now be dollars chasing naira leading to a revaluation of the naira and an end to excess money.

An end to excess money in circulation will lead to a collapse in lending rates.

A collapse of lending rates to single digits will boost borrowing by the real sector.

It is only when industriesscan borrow at less than 10% that the country can start diversifying.

As companies borrow to expand, the local market will become to small and exports will be the only option.

I have heard the Henry Boyo proposal, but it makes Zero sense to me for the following reasons:
(1) Sharing dollars directly to the three tiers of government will completely undermine the Foreign Reserves. We would probably not have any Foreign Reserves right now to support imports.

(2) I do not see how sharing dollars increases the total FX in the country. It will simply redistribute a finite amount of dollars. This will increase the supply of dollars in the parallel market but with zero supply effect on the larger economy.

(3) The governors and L.G. Chairmen might as well loot the dollars directly and wire them out to their foreign accounts.

(4) The whole excess money discussion makes absolutely no sense to me
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What Nigeria needs right now are policies and programs to encourage Import Substitution and Exports. We simply need to earn more dollars and demand less of foreign goods. That is a sure way of strengthening the Naira.

baralatie:
Nigerians are heading not for doom but a big shining glory just be optimistic!

Your recommendation is HOPE, but hope in itself is not a strategy. There can be no meaningful development without true federalism.

#000000

Guys don't you think its high APC stopped this blaming game, sit down and think of a way forward. I mean they should put their act together to see how they can move this country forward.

If Soludo and Sanusi says we should devalue our Naira then lets do it. Me I don dey tire for this government ooooo. Why put all your resources, your energy and your time to fight corruption while the country is plunging downward at a speed of light.

Abi na the law of Kama they work against this government.

God forgive us in away way we have sin against you or any human or any party.

grandstar:
are you digging your head in the sand?Are you playing ostrich? The naira is 300 already at the parallel market. It will touch 400 year ending.

The parallel market is market for those who want to import what we can avoid importing. Even if its a thousand, it should not serve as any measure.

Devaluation is the last thing we need. If we devalue, the cost of fuel importation will rise, either subsidy comes back, or pump prices will rise.

The stock market is not the only sector of the economy. And the expectation that devaluation will lead to increase in FDI, is flawed.

Why? The fear among foreign investors is that if they invest today and Nigeria devaluates tomorrow, the real value of their investments will fall.
However, given that the naira and crude oil prices move in same direction; and the crude oil price has not reached bottom. They will expect another devaluation later, and as such put off investments now.
Also, devaluation will lead to inflation, and this will affect the basket of goods a given income can purchase. Consequently, the quoted companies might experience decrease in sales and profits, and also increase in production costs. If the companies are not performing, why would someone invest in them.