₦airaland Forum

There have been talks about the ongoing intervention by CBN, some say it isn't sustainable, some say it's superficial but I have a different perspective on this; well I often do on most matters and socio economic issues.

For me, This dollar hike of a thing has always been about demand and supply.
Let me just summarize it.
Dollar went up cos there was more demand than supply, what made it even worse was that those that had dollars; some banks,bdc that were given dollars by the CBN hoarded it which means the little dollar available wasn't even changing hands.

With the increase in our foreign reserve, cbn now has the reserve to meet the demand and cbn has also done well by putting up policy to checkmate round tripping to some extent and making sure dollars is available to genuine customers. With these intervention, we have seen downward fall of dollar as supply is gradually equating to demand and this will also make us know the true value of naira.

As this continues, there will be a time the cbn would not even need to intervene cos the currency hoarders and speculators will get their fingers burnt as they will loose their investment as a result of the naira becoming stronger forcing them to dispose their dollar so as to recoup some of their investment. This will bring about more inflow of dollars to the economy which is part of what our economy needs right now.

My verdict is that this move from the cbn is laudable and also sustainable.

P.S I am not partisan but PRO-NIGERIA

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989900:
Dollar has also depreciated a little against most major currencies.
As rates converge, the Naira will appreciate.

Yeah, we are on the same page