How can you advise people to start hoarding dollars You well so?

Which kind thing be this?!

Largeman4uall:
deflower is one of this country saboteur , how could u advice ur fellow Nigerian to start hoarding dollar n bringing wrong idéa to mislead people. ï know u were among of bad people .

At the moment, from an investment point of view, it is wiser to keep your savings in foreign currencies than in naira. The naira is losing value at a fast rate. If you don't want to do so - it is a choice, but the rich and privileged in this country are doing it. Until there is a restriction or a law to make it a crime.

Yes common sense is NOT common... it is obviously applies to you.

Your weak point is banks are hoarding and are still hoarding.... banks don't HOARD their dollars 100%... they also get dollar inflow (pounds and euros) from outside Nigeria asides from the usual CBN sales of dollar to them!

They are required by CBN to sell dollars to certain set of people using Form A.

Go and learn basic economics!

mykelmeezy:




common sense they say isn't common



what part of the THE OP SAYING PEOPLE SHOULD BUY DOLLAR TO HOARD is a foolish idea don't you understand




okay fine you are right n m wrong

unclezuma:


So why quote me in it...you move along and look before you quote.

obviously your brain is heated up,if not you will know that it's a mistake I quoted you.instead to thread cautions you 're calling names and resort to abuse,shm reflections of failed home system,not everybody you talk anyhow to here go learn from home how to talk

deflover:


I am ready for them

You made a lot of sweeping statement without data. E.g the economy just stopped growing for the first time in 20 years. This is not true. The economy has been tanking since 2011. It was merely covered up by selling down reserves and oil reserve account. While the economy looked healthy FDI and reserves ( at an average oil price of $110 pb) was falling consistently. Please see the large quote below.

" ..In 2012 as Nigeria was getting ready to rebase its economy showcasing that it was now the biggest economy in Africa, investors were staying away, by 2012 FDI had reduced from a yearly inflow of USD$8.841 billion in 2011 down to USD$7 billion in 2012……by 2013 FDI net inflow had further reduced to USD$5.6 billion, by 2014 with a foreign reserve of USD$37.5 billion…..FDI net inflow further reduced to USD$4.6 billion, and by 2015 with a foreign reserve of USD$31.3 billion, FDI net inflow had reduced to USD$3.1 billion. All time low since 2004..."

As for defending the naira with reserves, there is no problem with this as the rate of accretion is larger than the rate of disbursement. The reserves will continue to grow albeit slowly. And it isn't just a blind defence of the naira but the empowerment of the small retail user. The very segment that we expect growth and the restructuring of the economy to come from. There is a big difference between selling down reserves to maintain a political naira and using a superior accretion rate to stimulate internal consumers. The funds aren't going out to Dubai, they are creating goods and services. Nigeria.

Here is another quote from the article below that shows how we got here.

"All the Excess crude oil sales were diverted into private pockets that eventually ended up in the economy which would have given Nigeria between USD$30 billion to USD$40 billion.
Depletion of the foreign reserve ended up in private pockets and flooded the economy…USD$31 billion.
The emptying of the Excess cruse account…..USD$40 billion
The borrowing of dollars was used for re-current expenditures (salaries and travels) and they also ended up in people’s pockets and flooded the economy……..USD$21.8 billion.
In essence the supply of the dollar was so much that it created stability for the demand in the economy even when the companies were mopping funds and leaving"


I recommend you read this link as I couldn't have addressed your post better. There is a video you can watch in the piece. Let's use data and not anecdotes.

https://leadershipandadvancement.com/2017/02/25/the-dollar-recession-obasanjo-jonathan-and-buhari-the-unknown-truth-behind-the-economy/

Djailer:

Bringing your attention to the emboldened;

Osinbanjo only took reigns on the affairs of the country about a month ago which is in the first quarter of this year. The economic indices you wrote are for last year, how then are you blaming Osinbanjo for the so-called decline in the manufacturing sector of last year's output.?

Is Osinbajo different from Buhari? Are they not in the same administration! Are they not in the same party? Did both of them not promised jointly during campaigns to deliver on their promises?

I totally agree. The fundamental problems need to be tackled. The cash is too much. But the people who can enforce these rules also have dorm accounts with large deposits of foreign currency. Even our acting president had quite an amount.

Boss13:


The problem with this is that we are a cash dominated economy. Nigerians love cash. It is a crime in foreign countries to move about with large volume of cash. The police can take it from you. The CBN tried to do something about it, but the generally public screamed. Why should people keep money in foreign currencies in Banks - it is absurd. Are you a BDC? Almost everyone has domicillary accounts with foreign currencies.

The CBN should apply more harsh terms to drive down the volume of cash in this country. Except multinationals, people should not keep FXs in their account. If you want Fx apply for it and use it immediately and not save it in your bank account

greenpasture:


You made a lot of sweeping statement without data. E.g the economy just stopped growing for the first time in 20 years. This is not true. The economy has been tanking since 2011. It was merely covered up by selling down reserves and oil reserve account. While the economy looked healthy FDI and reserves ( at an average oil price of $110 pb) was falling consistently. Please see the large quote below.

" ..In 2012 as Nigeria was getting ready to rebase its economy showcasing that it was now the biggest economy in Africa, investors were staying away, by 2012 FDI had reduced from a yearly inflow of USD$8.841 billion in 2011 down to USD$7 billion in 2012……by 2013 FDI net inflow had further reduced to USD$5.6 billion, by 2014 with a foreign reserve of USD$37.5 billion…..FDI net inflow further reduced to USD$4.6 billion, and by 2015 with a foreign reserve of USD$31.3 billion, FDI net inflow had reduced to USD$3.1 billion. All time low since 2004..."

As for defending the naira with reserves, there is no problem with this as the rate of accretion is larger than the rate of disbursement. The reserves will continue to grow albeit slowly. And it isn't just a blind defence of the naira but the empowerment of the small retail user. The very segment that we expect growth and the restructuring of the economy to come from. There is a big difference between selling down reserves to maintain a political naira and using a superior accretion rate to stimulate internal consumers. The funds aren't going out to Dubai, they are creating goods and services. Nigeria.

Here is another quote from the article below that shows how we got here.

"All the Excess crude oil sales were diverted into private pockets that eventually ended up in the economy which would have given Nigeria between USD$30 billion to USD$40 billion.
Depletion of the foreign reserve ended up in private pockets and flooded the economy…USD$31 billion.
The emptying of the Excess cruse account…..USD$40 billion
The borrowing of dollars was used for re-current expenditures (salaries and travels) and they also ended up in people’s pockets and flooded the economy……..USD$21.8 billion.
In essence the supply of the dollar was so much that it created stability for the demand in the economy even when the companies were mopping funds and leaving"


I recommend you read this link as I couldn't have addressed your post better. There is a video you can watch in the piece. Let's use data and not anecdotes.

https://leadershipandadvancement.com/2017/02/25/the-dollar-recession-obasanjo-jonathan-and-buhari-the-unknown-truth-behind-the-economy/

The OP is also saying the same thing. Recently Nigeria just borrowed $1billion using Eurobond and intend to borrow more $500million because the Acting President and Finance minister felt it was oversubscribed. Guess where the CBN is funding the PTA/BTA and schools fees from?

Just like you said, the CBN is only funding consumption and the policy will back fire whether we like it or not.

dabraska:
I totally agree. The fundamental problems need to be tackled. The cash is too much. But the people who can enforce these rules also have dorm accounts with large deposits of foreign currency. Even our acting president had quite an amount.

This has ALWAYS been the fundamental problem of Nigeria and not corruption. Laws are not drafted for the general good of the country, but to serve the selfish few and privileges. Laws and directives that harm the rich and privileged are quickly screamed at and those that promote their interest are quickly signed.

We are in a jungle whether we know it or like it and in a jungle, only the strong survives.

Boss13:


Is Osinbajo different from Buhari? Are they not in the same administration! Are they not in the same party? Did both of them not promised jointly during campaigns to deliver on their promises?

There's no political fact in your claims. And certainly no correlation with what the OP has asserted.
Giving the fact that no two persons are the same and that a vice president has no real power, the role of acting president is clearly different from the role of vice president and Osinbanjo is taking some limited personal initiative now that his boss is on medical leave abroad.

On the subject the OP raised, faulting the vice president's monetary directives on the indices of last year when the policy wasn't yet given is purely a case of intellectual dishonesty and ill wish for the vice president intervention on the free falling naira.

Boss13:


The OP is also saying the same thing. Recently Nigeria just borrowed $1billion using Eurobond and intend to borrow more $500million because the Acting President and Finance minister felt it was oversubscribed. Guess where the CBN is funding the PTA/BTA and schools fees from?

Just like you said, the CBN is only funding consumption and the policy will back fire whether we like it or not.

I absolutely disagree. First of all debt is not a problem if it builds infrastructure that grows the countries assets on its balance sheet. Second the CBN is catering for the very small Enterprises that make small overseas payments for things like hosting. There are only two ways to come out of recession; cut or spend. Nigeria has chosen infrastructural expenditure and the support of the millennial generation. Absolutely nothing wrong here.

What I pointed out was that spending by the GEJ administration was criminal. It didn't improve the asset side and it didn't spur growth. Not all spending is the same. Tariffs on non essential items is at a 20 year plus high. So where is consumption being funded?

Getting spending right is the key. Cutting is not an option in the Nigerian environment.

deflover:


This is not about doing good sir
Please take time to read
These are economic facts
This is not hating nor loosing faith
Its more about the fraud called CBN intervention funds
What it will do to us in the long run.

how people celebrated that move by osinbajo shows the level of illiteracy in our country. How can an import-dependent economy sustain such a policy by mere injection of funds /dollars into the system? Let's see how long they can sustain this. Naira will gain value when we start exporting more and importing less . It won't add value with this policy cos it's not sustainable.

bayulll011:


obviously your brain is heated up,if not you will know that it's a mistake I quoted you.instead to thread cautions you 're calling names and resort to abuse,shm reflections of failed home system,not everybody you talk anyhow to here go learn from home how to talk

Says an idiot who starts a quote with mind boggling insults; are you well at all? How am I supposed to know that was a mistake, it means you have serious psychological issues please go seek help.

Djailer:


There's no political fact in your claims. And certainly no correlation with what the OP has asserted.
Giving the fact that no two persons are the same and that a vice president has no real power, the role of acting president is clearly different from the role of vice president and Osinbanjo is taking some limited personal initiative now that his boss is on medical leave abroad.

On the subject the OP raised, faulting the vice president's monetary directives on the indices of last year when the policy wasn't yet given is purely a case of intellectual dishonesty and ill wish for the vice president intervention on the free falling naira.

I have addressed the OP comment is a separate post of mine and I completed agreed with him. I am only addressing this comment in which people tend to want to separate the president and the Vice President.

There is something called Presidency in this country, if you are not aware and both the offices of the President and Vice President are within the Presidency. Who told you the VP has no real power! Yes the VP has his roles and duties, just like you have yours in your office and as a matter of fact, the VP is responsible for the economy. He chairs the Economic meetings and report to the President on the economy.

This division is nonsense. I can agree that there is a bit of swiftness in trying to address some pertinent issues by the acting president, but the president and the Vice President are not different. They both have a mandate to deliver jointly.

greenpasture:


I absolutely disagree. First of all debt is not a problem if it builds infrastructure that grows the countries assets on its balance sheet. Second the CBN is catering for the very small Enterprises that make small overseas payments for things like hosting. There are only two ways to come out of recession; cut or spend. Nigeria has chosen infrastructural expenditure and the support of the millennial generation. Absolutely nothing wrong here.

What I pointed out was that spending by the GEJ administration was criminal. It didn't improve the asset side and it didn't spur growth. Not all spending is the same. Tariffs on non essential items is at a 20 year plus high. So where is consumption being funded?

Getting spending right is the key. Cutting is not an option in the Nigerian environment.

I did not say borrowing is wrong. Maybe you didn't read my comment well enough. However, I can say borrowing in Nigeria is wrong because we never seem to get it right. Our budgets are never implemented and yet we borrow to fund budget deficits. This only means we borrow for consumption, we eat our savings and then eat our borrowings and still cry out.

I totally disagree with you on cutting down to get out of a recession. Well your term "cut" was vague so I don't know what you mean by cut. Cut down on what? Recession is when your economy is retracting and I believe you know this because I took time to read your previous comment. Based on that you need to produce more as an economy. Maybe your cutting may mean for individual companies who may tend to revise expenditure plans in view of a recession. But from a macroeconomic point of view - you SPEND the hell out of a recession. America, under Obamacare, did that and incurred $1.2trillion in debts.

I also agree with you on spending right, a concept that is alien to Nigerian politicians. So I am really concerned when we borrow because such funds are used for the wrong things.

Boss13:


I have addressed the OP comment is a separate post of mine and I completed agreed with him. I am only addressing this comment in which people tend to want to separate the president and the Vice President.

There is something called Presidency in this country, if you are not aware and both the offices of the President and Vice President are within the Presidency. Who told you the VP has no real power! Yes the VP has his roles and duties, just like you have yours in your office and as a matter of fact, the VP is responsible for the economy. He chairs the Economic meetings and report to the President on the economy.

This division is nonsense. I can agree that there is a bit of swiftness in trying to address some pertinent issues by the acting president, but the president and the Vice President are not different. They both have a mandate to deliver jointly.

I started by saying there's no political 'fact' in your claims. This is because there re some truth but certainly no facts. Even an adviser to the president is part of the Presidency. But this by no means indicate that they have independent powers of their own. In political reality, the vice president has no real powers

Even in advance democracies like in America, the vice president has too little powers that even the house speaker is more powerful. There's no vital document that the vice president must sign failure which there would be no passage of a bill or release of fund. You should acquaint yourself with the portfolio of the vice president and see that it's not a very powerful office in the light that it is next to the president. It has no real powers and nowhere else is it more evident than in African democracies. There's a big difference or divide between the office of the president and vice president.

In another news/thread - Dollars is trading at N460 - N470. Is the OP not right about his post? There is no magic in this. If you do the right thing, you get the right result. If you use palliatives, you get palliatives results.

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unclezuma:


Says an idiot who starts a quote with mind boggling insults; are you well at all? How am I supposed to know that was a mistake, it means you have serious psychological issues please go seek help.

Not suprised a slowpoke will always be one

deflover:
Last week we saw one of the greatest drop in the value of the dollar with a sharp gain of the naira in the black market. How was this achieved. Who made this happen. Who is the smart ass.
Anyway this move made a lot of people poorer i.e currency speculators who kept buying the dollar putting a demand on the dollar while the naira suffered from low demand till it hit the high of 2016 and just then the CBN intervention came in with a mad flood of much more dollars and the mopping up of naira so that there was a scarcity of naira.
And wholla the dollar came crashing down while the more the naira was mopped out of the system.

This brilliant intervention means the CBN is using our reserves to fight the dollar war
How sustainable is this ....will the CBN be willing to continue this.

As a forex trader with 10years experience I watched with my mouth open as it happened and shook my head as the internet was glowing with news how osinbanjo is the man
How he tamed the dollar in one swing of the magic wand.I saw panic selling going on as many turned in thier dollar. While smart investors bought all these dollars for keeps.
Now the dollar fall has stopped
Why did it stop
I thought it will fall for ever as we are made to believe.
Just yesterday while watching ARISE TV the news came out of the economy contracting by -1.4% for the first time in 20years.
Meaning for the first time in 20years the economy stopped growing
Now the real bad news was from the PMI ( producers manufacturing index) saying it fell
What does this mean
It mean the real people who needs the dollars are not getting it
But osinbanjo gave dollars for school fees payment
While the manufacturers who need dollars are not getting it

Even the economy according to the news saw major improvement from the oil sector because militants have stopped bombing
So the non oil sector fell even the most holy agriculture.

Osinbanjo has stated in the last FED meeting he favours a devaluation of the naira.
Right now the naira is 405naira to 1 dollar
Let's assume he goes ahead to devalue to let's say 20 basic points
That would be 425naira to 1 dollar
Now imagine what the black market will do
We will be looking at 550-600naira to 1 dollar
Already JP Morgan is worried that Nigeria is not attracting FDIs ( foreign direct investments)
What does that leave us
It leaves us with an economy that will keep shrinking and a dollar war we can't win as fear will make more people demand for dollars as naira will keep falling.
My advice to you
Keep buying the dollar for keeps
Keep your bulk money in dollars
The trip to hell is about to get nasty
God save our soul

we dey wait

Kolade9:
He didnt tame shiii,No be dem let am go up before?
They should return it to where it wqs during Jonathan's time.

simple

deflover:


You see the problem
I am a wailier
A this a that
No difference to politician
Anti progress

You see my friend
Just because it hurts doesn't stop the doctor from going in
I gave you facts but I am a wailier making you a zombie I guess

Dispute the message
Tell me I am lying that these facts are not there

I tell people to protect themselves by buying dollars
So it makes me evil right
My friend be wise
Buying the naira won't save you nor us
The road is nasty and survival is the one right of all humans

So people should be buying and hoarding the dollars because your prayer was for the economy to get back to her worse state so your likes can continue selling the dollars your hoard? You need to be arrested as one of those sabotaging the economy..

pressplay411:


I understand you're just a pessimist. Even worse anti-progress, an epitome of a consummate saboteur, a true Wailer's role model. But to advice people to keep buying and hoarding the dollar (obviously for forex trading) at the expense of the naira, further depreciating it's value makes absolutely no sense.

How will Nigeria ever grow with such mentality? With anti-progress negative business ideas like this?
You're no better than a common political brute frustrating the nation's Electricity just to keep his Generator and Oil businesses thriving.

We need help and reorientation in this country. Our sense of patriotism has gone extinct.

This is too harsh

ISTANDWITHBUHAR:



So people should be buying and hoarding the dollars because your prayer was for the economy to get back to her worse state so your likes can continue selling the dollars your hoard? You need to be arrested as one of those sabotaging the economy..

I think you are missing the point, if I want to import in two months time, its a good idea to buy the green back now, cos from his analysis, the green back is going to bounce back cos the measures put in place are dummy, if you read btween the lines the FG has not solved the problem, it only postponed it hoping for a miracle.

tamonokare:


Please what are gift cards ?

Physical 280 . ecode 250

mykelmeezy:





check the meaning of flaw


i don't fully agree with the op certainly not


but he asked a meaningful question we are all ignoring


sustainability



first off I believe the dollar crisis was man made


the government brought out the policy n scored a political point



but on the long run..(worst case scenario)


is it sustainable


if the reserves start falling?
if the militant starts bombing?
are we willing to continue the policy or


there will be the sudden but this time more excruciating rise in dollar price?

So much contradicting statements from you. The government brought out the policy to score a political point because the last government depleted our reserves and gave out our foreign reserves to political godfathers coupled with dwindling oil revenues .......... what then did those who stole our dollars do? They unleashed their boys in the creek to cripple the economy all in the hope of making the government backtrack on its policy ............. but the strong determination of the government to ensure the right thing is done made sure they didn't succeed ........... now they have unleashed their internet warriors and paid bloggers just like the CBN governor have been saying.

ekanDamie:
op is the problem of Nigeria. greed is what you are encouraging at the detriment of other people.
so, those that have money now to mop up the excess dollar in circulation and thus create an artificial scarcity so, we would be back to square 1?
that's a wicked advice.

if people trade freely with this dollars without hoarding, and oil sales increase as it is now, the dollar will stabilize at least at 350 by the quarter of this year.
then if we can increase our reserves n boost other sectors of the economy increasing our GDP thru local production and increase IGR from non oil sector as well as reducing our recurrent expenditure, oga, dollars will drop to 100naira.

I concur

MrMcJay:


So much words but little sense. Even Dalung has better understanding of issues than you.

Sometimes, the exchange rate is supressed artificially but the deal thing is to let it flow with the dynamics of the economy. What Osinbajo has done is to take the game out of the hands of the speculators and back into the control of the CBN.

Now, speculators are unsure of the next move as they have dollars on their hands but are considering their options.

You are offloading your own USD but advising others to keep theirs, wehdone.

though I think the op is self serving with his goal but he made good points.

Like the government can only sustain aiding the value of the dollar for long before the circle starts again. What we have now is a temporary fix that can only be sustained by good policies(which doesn't seem forthcoming). There is so much pressure in our microeconomic environment that these aids wouldn't sustainably calm.

Kolade9:
He didnt tame shiii,No be dem let am go up before?
They should return it to where it wqs during Jonathan's time.

Common sense is not common, Na them let am go up?sometimes i wonder if you guys even go school or did economics in school..

maybe na them also let price of crude oil come down then hahaha..

erico2k2:

I think you are missing the point, if I want to import in two months time, its a good idea to buy the green back now, cos from his analysis, the green back is going to bounce back cos the measures put in place are dummy, if you read btween the lines the FG has not solved the problem, it only postponed it hoping for a miracle.

And that's like praying for more dooms days to come now, We are happy it's falling and he is coming with useless analysis saying it will soon go back up..

Even if it will be should he say that if he is not praying for such to happen....

Can he pray for himself to get sick?

mykelmeezy:


so stfu with the useless hypocrisy against school fees

I think you would still had made sense without the quoted.

No i don't have kids schooling abroad, and Yes, I will love to send my kids to schools abroad for the same reasons you mentioned.
But come to think about it, what percentage of Nigerian students school abroad? Obviously the children of the rich, a larger percentage of the parents of these kids have milked Nigeria dry and made the educational sector useless for the children of average Nigerians. And you are still happy we will be subsidizing them at the expense of other Nigerians who have not been paid salaries for up to six or more months.

We have become an alternative seeking people, and we want to cling to our fake lifestyles at the expense of the greater majority.

youngsahito:
we need to produce those raw material in Nigeria so as to discourage importation.the only way to have made in naija goods

I agree with you, but it will take some time before this can come into the mainstream, what can we do before then?