₦airaland Forum

Ope o!
I pray it gets stronger and stronger.
Sai PMB!! No to devaluation.
Glory be to God in the highest!!!
Hallelujah!!!!

odiks:
• BDCs to introduce forex band, reforms for parallel market

Foreign currency speculators, who launched an unprecedented attack against the naira in the last two weeks, got their fingers burnt on Tuesday when the nation’s currency staged a major recovery, rising to N310 to a dollar at the close of business, compared to N375 at which it sold on Monday.

The naira fell to an all-time low of about N400 to a dollar on the parallel market last week fuelling concerns that it would plummet further to N450-N500/$ this week.

But findings from THISDAY showed that the naira defied expectations, climbing to as high as N305 to the dollar at some parallel market points in Lagos on Tuesday afternoon, before settling at N310.

Forex dealers and currency analysts attributed the significant gain on the parallel market to excess supply of the greenback in the market, even as it looked like a lot of speculators lost the shirts on their back.

THISDAY gathered from a reliable source that speculators who thought that by attacking the currency last week, coupled with misplaced concerns that the Central Bank of Nigeria (CBN) was going to stop the allocation of forex for school fees and medical bills abroad, this would compel the central bank and President Muhammadu Buhari to alter their stance against the devaluation of the currency.

But they were disappointed when Buhari, in Egypt at the weekend, adamantly ruled out the devaluation of the naira on the grounds that Nigeria does not have the competitive advantage to benefit from an official currency adjustment.

Reacting to the president’s stance, speculators who had been betting that the naira would depreciate further, started dumping the dollars with reckless abandon, effectively creating excess supply of the greenback in the parallel market.

Commenting on the situation in the secondary forex market, the chairman, Association of Bureau de Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, said: “The market is moving from perception to reality.”

Similarly, an analyst at Ecobank Nigeria, Mr. Kunle Ezun, predicted that the naira would edge higher in the coming days.

“We expect that the naira would appreciate further. We have always said that what happened last week was purely a speculative attack.

Some people felt that if they pushed the naira down to that level, they could force the CBN to devalue, so that when the naira is devalued and the gap widens further, they would now bring out the dollar cash to make a kill,” Ezun said.

He however urged the fiscal authorities to introduce policies that would help stimulate economic activities, saying that the fundamentals of the economy were still weak.

ABCON also aligned with the federal government’s decision not to further devalue the naira.
Gwadabe said this at a media briefing, pointing out that devaluing the naira would create more problems than it would solve.

He said that as a way of enhancing transparency in the BDC sub-sector, his association had decided to introduce a forex rate band weekly.

This rate band is expected to serve as a guide for all BDCs and the public on the prevailing exchange rate across the country, he added.
In addition, it will be operated in line with the regulated forex rate in the economy.

“This is to forestall exploitation of forex end users, and also to ensure that end users are informed to avoid falling victims of exploitation.

“The band will be announced via weekly press releases that will be circulated to the media for publication.

“ABCON will introduce a series of measures aimed at transforming the operations of BDCs in Nigeria to align with global best practices. These include: review and updating of BDC operational manual; introduction of live trading platforms; automation of all transactions and documentation requirements; and increased partnership with the CBN and other relevant agencies.

“Further, as part of its responsibility as a self regulatoryorganisation (SRO), and also in continuation of its aim to transform its members to compete within the global regulatory currency market, ABCON will seek the approval of relevant monetary and fiscal authorities as well as partnership for effective use of the nation's external reserves to enhance domestic trade and foreign exchange management.

“To this end, our website and internet platforms will be developed to position BDCs to serve as agents of Western Union and currency auctioneers.

“We would also develop platforms that will allow our members to access sources of autonomous foreign exchange like govt agencies, embassies, IOCs and export proceeds, etc,” he explained.
He also urged the federal government to introduce policies that would diversify the economy to increase non-oil export earnings, and reduce imports.

This, according to him, would lead to increased foreign exchange inflow and a reduction in demand for foreign exchange.

In addition to policies that would diversify the economy, ABCON suggested that the CBN should review the policy of dollar importation into the economy for the purpose of defending the naira.

According to the association, the central bank should introduce a policy whereby the naira is used to intervene in the real sectors of the economy to boost productivity.

Furthermore, Gwadabe said as a way of reducing demand for dollars, the CBN should explore the option of promoting the use and acceptability of naira for transactions within the West African sub-region.

He added: “We observe that this is already happening at the level of informal trading activities within the sub-region, and it is our belief that this can be replicated at the level of formal economic activities.”

http://www.thisdaylive.com/articles/speculators-get-their-fingers-burnt-naira-strengthens-to-n310-/232783/

waiting for the wailers to twll us its a lie

RichYoungNigga:
Analysis from uneducated people.
So, because naira gained 60 naira, you have the courage to dance around ??

The oil sale is only source of Nigeria income, what happens when the top dogs like Saudi Arabia and Iran floods the market with excessive oil ?? and they also sells way cheaper.

This your jubilation will turn to sorrow soon.
Let's watch and see.
Next month, $1 will exchange for 500 naira.

Doom monger. When oil was selling at 110 dollars per barrel, what did your friends do with our money?

plaetton:
You can't eat your cake and still have it.

First, let me repeat it for the hundredth time; the Naira has already been devalued by the market forces. That's why we are talking about it right now .

The on thing left is the for the government to acknowledge it by stoping the SUBSIDY called official rate. Their refusal to end this subsidy to banks, government agencies and select importers is penny wise, pounds foolish.
They are just delaying the inevitable.

Currency devaluation is a bitter pill we must swallow.

During the decades of sanctions, Iran's currency lost most of it's value against foreign currencies.

But it made them more self reliant in almost all areas of national life.

There are no miracle solutions to save the Naira.
We must focus on agriculture, infrastructural development, balance of trade with our trading partners, and, explore gold and solid minerals.

We should, as a matter of urgency, encourage rail links with our West African neighbors to facilitate trade.

Nigerian should take the lead in promoting crypto currencies like bitcoin for international transactions to help ease the demand for physical dollars.

Last , but not the least is that the CBN, as a matter if urgency, should once again allow Western Union and moneygram to pay out in dollars.

This would encourage Nigerians in the diaspora, who remit $23 billion yearly, to flood the economy with more dollars for both investments and support it would give to the Naira.

Paying out remittances at $200 while the Market is $375 is a GRAND THEFT that should not continue.

Lmao. I noticed you just said a lot again, without talking about the consequences of everything you suggested (i.e crazy inflation rate and an economic crisis) and how you will fix them.

1). You believe the naira has already been "devalued" by market forces and the best thing to do is for the government to let it assume that value. And as it continues the free fall by market forces, it should be allowed to fall - thus slowly but surely killing it off and turning it into toilet paper, no? Hysterical.

2). Iran's case is a peculiar one and it has no correlation with naij is currently going.

The truth is that naij is between a rock and a hard place, and there are no quick fixes. I think the reason why you lot are harping on about devaluation, without disucssing the effects/downsides is cos IMF, World Bank, FT, and Economist said so. However, in economics and finance, almost everything is about speculations and gambling. Hence economists always disagree. The same forces said the same thing about the economic policies of George Osborne but he proved them wrong and the UK's economy is enjoying its healthiest span in over a decade. They said the same thing about Mark Carney when he went against the grain economically with Canada before the 2008 global economic crisis. And guess what? - Canada was the only Western country that escaped the 2008 economic crisis.

It seems you care more how much you can get out of ya remittance than saving the naira. But what use would the value be when inflation is ridiculously high and you can't buy anything with whatever value you get out of it?

RichYoungNigga:
Analysis from uneducated people.
So, because naira gained 60 naira, you have the courage to dance around ??

The oil sale is only source of Nigeria income, what happens when the top dogs like Saudi Arabia and Iran floods the market with excessive oil ?? and they also sells way cheaper.

This your jubilation will turn to sorrow soon.
Let's watch and see.
Next month, $1 will exchange for 500 naira.

" your jubilation will turn to sorrow soon.
Let's watch and see."




look on d bright side

fineguy11:
Trash.

Lol.


From you, I will take that as a compliment.

RichYoungNigga:
Analysis from uneducated people.
So, because naira gained 60 naira, you have the courage to dance around ??

The oil sale is only source of Nigeria income, what happens when the top dogs like Saudi Arabia and Iran floods the market with excessive oil ?? and they also sells way cheaper.

This your jubilation will turn to sorrow soon.
Let's watch and see.
Next month, $1 will exchange for 500 naira.

So bro what are you waiting for? Go buy at 310 and sell next month at 500. Ewu

I Respect Buhari for his firm stand and decision. This is how a leader should be. When you know what is good for your nation, you stand for it rather than allowing your nation to control you.

It appears that cbn pushed more dollars out.

But using that method, how apc government would maintain low dollar rate is a hurdle.

fineguy11:
UK and CHINA are minor oil producers,,Angola and Venezuela are major oil exporters/ core opec members,and will support any move to curtail supply in the global oil market..

Check Saudi Arabia out put for 2 yrs running

juman:
It appears that cbn pushed more dollars out.

But using that method, how apc government would maintain low dollar rate is a hurdle.

CBN did nada

Good Morning NL,
I heard if someone is travelling out of the country that travelex can sell to the traveller @ point of departure in Muritala International Airport.

I wanted to know if this is true and there operating hours, as i couldnt fing any of there nigeria contact on the internet.

Any response shall be appreciated.

Tokt:
as far as i am concerned. Below is the official rate. Parallel market can go fucck itself with Ipob fools.

I'm not Igbo but all I can say is U lack morals as the so called IPOB are the ones who demand dollars more than anyone else in Nigeria.frm last I check buying and selling of cows don't involve dollars

opomulero:
Good Morning NL,
I heard if someone is travelling out of the country that travelex can sell to the traveller @ point of departure in Muritala International Airport.

I wanted to know if this is true and there operating hours, as i couldnt fing any of there nigeria contact on the internet.

Any response shall be appreciated.

Guy buy ur forex b4 yoy reach that point or else U will be gutted

RichYoungNigga:
Analysis from uneducated people.
So, because naira gained 60 naira, you have the courage to dance around ??

The oil sale is only source of Nigeria income, what happens when the top dogs like Saudi Arabia and Iran floods the market with excessive oil ?? and they also sells way cheaper.

This your jubilation will turn to sorrow soon.
Let's watch and see.
Next month, $1 will exchange for 500 naira.

prophet of Doom...park well

erico2k2:
Guy buy ur forex b4 yoy reach that point or else U will be gutted

Thank you for your Advice

plaetton:
You can't eat your cake and still have it.

First, let me repeat it for the hundredth time; the Naira has already been devalued by the market forces. That's why we are talking about it right now .

The on thing left is the for the government to acknowledge it by stoping the SUBSIDY called official rate. Their refusal to end this subsidy to banks, government agencies and select importers is penny wise, pounds foolish.
They are just delaying the inevitable.

Currency devaluation is a bitter pill we must swallow.

During the decades of sanctions, Iran's currency lost most of it's value against foreign currencies.

But it made them more self reliant in almost all areas of national life.

There are no miracle solutions to save the Naira.
We must focus on agriculture, infrastructural development, balance of trade with our trading partners, and, explore gold and solid minerals.

We should, as a matter of urgency, encourage rail links with our West African neighbors to facilitate trade.

Nigerian should take the lead in promoting crypto currencies like bitcoin for international transactions to help ease the demand for physical dollars.

Last , but not the least is that the CBN, as a matter if urgency, should once again allow Western Union and moneygram to pay out in dollars.

This would encourage Nigerians in the diaspora, who remit $23 billion yearly, to flood the economy with more dollars for both investments and support it would give to the Naira.

Paying out remittances at $200 while the Market is $375 is a GRAND THEFT that should not continue.

some very good points raised,


The Naira is effectively devalued, however, govt is walking a tightrope. I just want to say a few things.

probably the 2 important things in any economy is the price of food and the cost of transport (fuel)


1. We cannot officially devalue the Naira while we are still importing fuel, pump prices either double because we now calculate using the devalued rate or we spend half of our current budget on subsidies

2. Buhari is right we have no competitive advantage in production such that officially devaluing the Naira benefits us. Most of the sectors that are hurting die to the scarcity of forex are sectors that are a drain on our economy. I.e the importation of consumer goods. For me that's their headache. Govt has said if you want to produce these goods locally we will subsidize your capital equipment at the official rate. We spend billions of foreign education and health, well maybe it's about time we invest in our schools and hospitals. There are certain industries that we have a competitive advantage in, are big employers of labour, for which the technology is not rocket science and whose products we have no business importing, Textiles, foodstuffs come to mind. We have rubber, we used to have tyre manufacturing companies, the list goes on. This is a big opportunity to restructure our coutry, there will be pain but if we endure we will be better for it.


3. So long as we are relatively self sufficient in food production and fuel prices remain stable, inflation will be relatively controlled


4. govt should officially recognize the parallel market, which will alow the inflow of forex from other sources like diaspora. Most of what goes on is actually technically illegal and if I export I am not going to bring my money back at the official rate.

olu77:
beautiful you.
I run a home for fatherless children, all the proceed would have gone there.
Now am I patriotic or not?

Stop lying

We are not out of the woods yet.

While there is an observable appreciation....oil prices are still low.Very low.

Nigeria needs oil to be at $123 per barrel to balance the books. Oil is still below $35. So....in my opinion, this appreciation is temporary. What we need is millions more dollars.....and we may just get to $1=n200. Just.

So....don't rejoice yet. Buhari may have been sensible not to devalue yet.....but if oil prices stay low over the next few months....we may have to devalue.

Good Morning NL,

Please is there a way i can get Turkish Lira to buy in Nigeria?

Kindly give a helping hand.

Thank you

SirShymexx:
Lmao. I noticed you just said a lot again, without talking about the consequences of everything you suggested (i.e crazy inflation rate and an economic crisis) and how you will fix them.

1). You believe the naira has already been "devalued" by market forces and the best thing to do is for the government to let it assume that value. And as it continues the free fall by market forces, it should be allowed to fall - thus slowly but surely killing it off and turning it into toilet paper, no? Hysterical.

2). Iran's case is a peculiar one and it has no correlation with naij is currently going.

The truth is that naij is between a rock and a hard place, and there are no quick fixes. I think the reason why you lot are harping on about devaluation, without disucssing the effects/downsides is cos IMF, World Bank, FT, and Economist said so. However, in economics and finance, almost everything is about speculations and gambling. Hence economists always disagree. The same forces said the same thing about the economic policies of George Osborne but he proved them wrong and the UK's economy is enjoying its healthiest span in over a decade. They said the same thing about Mark Carney when he went against the grain economically with Canada before the 2008 global economic crisis. And guess what? - Canada was the only Western country that escaped the 2008 economic crisis.

It seems you care more how much you can get out of ya remittance than saving the naira. But what use would the value be when inflation is ridiculously high and you can't buy anything with whatever value you get out of it?

You keep harping on " saving the Naira ".
Saving the Naira from what ?
For whom ?
And till when ?
Till Jesus comes to save us all?

And yes, remittances from Nigerians in the diaspora has been a key pillar of support for the Naira for several decades now. That is fact.

And yes, remittances contribute a substantial percentage to our foreign reserves, as well as being a lubricant for economic activities.

Every nation, except Nigeria, pays great attention, not only to the remittances, but also to those remitting the funds.

Now, I laugh when you say that the UK economy is enjoying it's healthiest span in over a decade, I laugh out loud.
Anyway, that's those are irrelevant and unconnected to the issues we are addressing here.

The issue is that Nigeria is in a perfect storm of low oil prices that are sure to reverberate pain throughout the economy, and a confused, erratic, inept leadership made of very strange bedfellows.

Currency values are sensitive to short and long term economic policies, which unfortunately, Nigeria does not have at the moment.

RichYoungNigga:
Analysis from uneducated people.
So, because naira gained 60 naira, you have the courage to dance around ??

The oil sale is only source of Nigeria income, what happens when the top dogs like Saudi Arabia and Iran floods the market with excessive oil ?? and they also sells way cheaper.

This your jubilation will turn to sorrow soon.
Let's watch and see.
Next month, $1 will exchange for 500 naira.

Son, if u are updated about current happenings around the oil sector you will know that even major oil producers are affected the fall in oil price and they actually want to do the reverse of what you are saying-cutting back oil supply to stabilise the price. Read http://www.wsj.com/articles/saudi-russia-qatar-venezuela-agree-to-freeze-oil-output-at-januarys-levels-1455615900

So the oil powers coming to talk about this tells u it doesnt favour them, except maybe Iran that just had its sanctions lifted.

So chill and celebrate this as much as we were complaining when the Naira was falling!

RichYoungNigga:
Analysis from uneducated people.
So, because naira gained 60 naira, you have the courage to dance around ??

The oil sale is only source of Nigeria income, what happens when the top dogs like Saudi Arabia and Iran floods the market with excessive oil ?? and they also sells way cheaper.

This your jubilation will turn to sorrow soon.
Let's watch and see.
Next month, $1 will exchange for 500 naira.

why do some people take pride in wishing failure for their own country;......pray for the peace of Jerusalem, for those that love her will prosper

RichYoungNigga:
Analysis from uneducated people.
So, because naira gained 60 naira, you have the courage to dance around ??

The oil sale is only source of Nigeria income, what happens when the top dogs like Saudi Arabia and Iran floods the market with excessive oil ?? and they also sells way cheaper.

This your jubilation will turn to sorrow soon.
Let's watch and see.
Next month, $1 will exchange for 500 naira.

you are one of those that don't mean well for this country, sorry to say. Pray for the peace of Jerusalem and those that loves it shall prosper. Nigeria is our own Jerusalem, so as we are eagerly waiting on God for the peace to manifest, so what become the lot of u planning to see her fall?

Good Morning NL,

Please is there a way i can get Turkish Lira to buy in Nigeria?

Kindly give a helping hand.

Thank you

Worried somebody

Savigne:
The first thing I said when I read this was "Praise God"...
Thats how I went to buy plantain yesterday and the seller gave me some miserable looking plantain for 200h,when I asked why,she looked at me like I was daft and replied "Dollar don dear"...Na so I jejely carry myself and said plantain face house oo.

Didn't know we were importing plantain
So everything is now to be blamed on the exchange rate, abi?

lookandlaff:
some very good points raised,


The Naira is effectively devalued, however, govt is walking a tightrope. I just want to say a few things.

probably the 2 important things in any economy is the price of food and the cost of transport (fuel)


1. We cannot officially devalue the Naira while we are still importing fuel, pump prices either double because we now calculate using the devalued rate or we spend half of our current budget on subsidies

2. Buhari is right we have no competitive advantage in production such that officially devaluing the Naira benefits us. Most of the sectors that are hurting die to the scarcity of forex are sectors that are a drain on our economy. I.e the importation of consumer goods. For me that's their headache. Govt has said if you want to produce these goods locally we will subsidize your capital equipment at the official rate. We spend billions of foreign education and health, well maybe it's about time we invest in our schools and hospitals. There are certain industries that we have a competitive advantage in, are big employers of labour, for which the technology is not rocket science and whose products we have no business importing, Textiles, foodstuffs come to mind. We have rubber, we used to have tyre manufacturing companies, the list goes on. This is a big opportunity to restructure our coutry, there will be pain but if we endure we will be better for it.


3. So long as we are relatively self sufficient in food production and fuel prices remain stable, inflation will be relatively controlled


4. govt should officially recognize the parallel market, which will alow the inflow of forex from other sources like diaspora. Most of what goes on is actually technically illegal and if I export I am not going to bring my money back at the official rate.

Food for thought. If you have a bad mind.u manage to secure forex at 199 frm cbn to import PMS and at the parallel mkt it's 400 what will U do?import fuel or sell to BDC and make instant gains?

All those selling fake dollar yawa don ghas

HungerBAD:
Sai Buhari.

Where are those that called Buhari a Dullard?

Where are those that insulted the Minister of Finance?

Where are the Doom Prophets?

When we said this artificial scarcity of Dollars, was orchestrated by the last standing soldiers of the Clueless one, we were called names. It's alright, Nigeria is getting there now.

Buhari 5- Boko Haram 0

Buhari 5- Corruption 0

Buhari 5- Artificial scarcity 0

Buhari 5- MTN 0

Buhari 5- The Economy IMPROVING.


Changeeeeee.

Gbammmmm Gbammmmm Gbammmmm Gbammmmm Gbammmmm Gbammmmm.Buhari 5 Ekpas 0.Baba's positive stubbornness is yielding results.

opomulero:
Good Morning NL,

Please is there a way i can get Turkish Lira to buy in Nigeria?

Kindly give a helping hand.

Thank you

Worried somebody

U wont unless by luck.it's as worthless in the world of BDC like the Naira.U need dollars then convert it once U r there to local currency

kahal29:
Mmmmmh.

Here is what My Able President is doing in Saudi. Read and be enlightened.

http://www.thisdaylive.com/articles/buhari-s-oil-agenda-in-saudi-arabia/232729/

Forget this article. See Saudi's stance on the issue.

http://www.ft.com/intl/cms/s/0/f8896d4e-da3c-11e5-98fd-06d75973fe09.html#axzz414g1I5s5

olu77:
beautiful you.

I run a home for fatherless children, all the proceed would have gone there.

Now am I patriotic or not?

God bless you as you take care of those fatherless children.