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Nairaland Forum / Nairaland / General / Business / Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg (28280 Views)
Naira Exchanges At Record-low, N510 A Dollar / Naira Sinks To Record Low At N420 Against Dollar / Speculators Get Burnt As Naira Gains Value (2) (3) (4)
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Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by JUBILEE2000: 11:25am On Jun 22, 2016 |
TheGoodJoe: Dollar will not settle for anything below N300 for a long time to come. A time will come when CBN can longer sustain this periodic intervention then speculators will determine the real value of the naira. This might take us back to square one if care is taken. Dont also forget that the dollar can never get to the man on the street at the interbank rate |
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by TheGoodJoe(m): 12:29pm On Jun 22, 2016 |
JUBILEE2000: A lot of analysts, before the kick off of the Policy expected the price to settle below that. That is what I am working with. They pointed that there will come a time CBN will stop intervening and let the demand and supply of the market take over the direction. The analysts also expect the naira value to fall before it settles below N300. That is the expected target and that is what I think will happen. Also, the price the consumers will finally buy dollars when it settles will not be much different from the Interbank rates. That is what this Policy is out to achieve. A narrow gap between the Interbank and Black Market price. |
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by pgo17(m): 1:01pm On Jun 22, 2016 |
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by skypeople(f): 2:06pm On Jun 22, 2016 |
. Seen |
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by IdJack(m): 3:12pm On Jun 22, 2016 |
ALL said and done; how much is dollars to naira now. That is what a layman that has dollars want to hear....HOW MUCH IS ABOKI buying dollars. From there you will know. But be it as it may...Where do CBN has Dollars to sell to banks, because they told us there dont have dollars. Na wa ooo |
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by trillville(m): 3:20pm On Jun 22, 2016 |
InvertedHammer: The start of the fall in oil prices coincide perfectly with an announcement that interest rates will be lifted by the US federal reserve. This occurred around June/July 2014. All other commodities such as gold and silver also fell in value. Oil prices further declined sharply in November 2014 when OPEC announced it wasn't going to reduce production outputs. Last December US federal reserve lifted it's interest rates for the 1st time in close to 10 years. At this same period oil hit its lowest levels of about 27 dollars. Finally, last month US job report numbers were so bad that it is near impossible that the Federal reserve would further increase rates this year and is even more likely to reduce rates. This is a huge positive for higher prices of oil. The value of the naira all things being equal should typically rise and fall as crude oil prices rise and fall respectively. PS I do not hold brief for this government neither am I an Emefiele follower. I only find it interesting that the CBN chose the very moment the US economy showed a major sign of weakness to reverse its bad policy of fixing the naira rate. |
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by Davedoz(m): 3:22pm On Jun 22, 2016 |
TheGoodJoe: I followed these thread to the last page just to read all your comments/posts. I will like to be your whatsapp friend so you can teach me all about economics and finance. In turn I will help with medical advice. That is if you want *winks* You'll be wondering, 'why is this guy saying all these things here, doesn't he know about pm?' my brother I'm saying all these here because that PM don frustrate me before before oooo |
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by ogundeleai(m): 3:27pm On Jun 22, 2016 |
I still don't understand this new cbn forex policy and at same time the so called naira value. Just 48hrs after new policy, I sold my dollar for 340 at Sabo and you continue hearing 285 |
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by InvertedHammer: 3:28pm On Jun 22, 2016 |
trillville:/ You succinctly observed that US policy and data influence the strength of her currency. Every G7 country that had intervened in the currency market against US dollar ended up with a nose bleed. It is akin to trying to catch a falling knife. A rising tide lifts all boats. So naira is just tagging along. If DXY reverses bullish, Emefiele can talk and act all he wants, naira will go down the shitter. \ |
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by JUBILEE2000: 3:46pm On Jun 22, 2016 |
TheGoodJoe: TheGoodJoe: A lot of analysts, before the kick off of the Policy expected the price to settle below that. That is what I am working with. They pointed that there will come a time CBN will stop intervening and let the demand and supply of the market take over the direction. The analysts also expect the naira value to fall before it settles below N300. That is the expected target and that is what I think will happen. Also, the price the consumers will finally buy dollars when it settles will not be much different from the Interbank rates. That is what this Policy is out to achieve. A narrow gap between the Interbank and Black Market price. TheGoodJoe: How narrow will this gap between the interback rate and the consumer's rate be? who regulates this gap? I have a problem with leaving the value of naira to be determined by demand and supply. The cabals will hijack this policy as usual. |
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by TheGoodJoe(m): 4:02pm On Jun 22, 2016 |
JUBILEE2000: Hijacking this will be difficult because it is now a banking business. The scare was in the black market but this policy is putting trading in the Banks. As much as we talk about the narrowing of the price gap of the Interbank and Black Market, most of the large volumes of trades (Importers, Airlines etc) will take place in the Banks. No more the black market. The sales of Dollars from our reserves was strictly for the bankers (Primary and Secondary dealers). So how much gap should we expect? I do not see it more than a few naira because the Banks will have dollars. If the Black Market is too costly, we walk into the Banks, submit to their requirements and get the dollars we need. The Black Market dealers have no choice but to sell at rates close to the Interbank rates. |
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by TheGoodJoe(m): 4:06pm On Jun 22, 2016 |
JUBILEE2000: The regulation will be done by the Interbank Market. They will determine rates and margins. This Policy will be driven by the buying and selling of dollars. So the banks will reduce activities that hinders buying and selling. The Interbank Market and the dealers are not buying to just sell. They are to keep the market going. That is what CBN is doing. Handing the exchange rate determination to the banks. |
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by utytill(m): 5:31pm On Jun 24, 2016 |
How is dollar doing with naira today?All those grammars and theories or stories won't work.A dollar will hits 300 naira soon.CBN losts control of our currency and the mosquitoes economic team is confused. |
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