Is this not a devaluation? This is an increase in price by the Cbn.

This is another scam by CBN,
It is a known fact that the devaluation of the Naira in the past months has largely been as
a result of speculators and round tripping with cabals behind profiting while CBN had kept quiet
CBN dubiously devalued the Naira from 200 naira to a dollar using the floating FX rate policy which should be based on demand and supply
but has maintained Naira to dollar rate of about 307 Naira to 1 USD stipulating that banks cannot sell with more that 20% margin which it never enforced
if truly CBN is serious about strengthening the Naira, Pegging the Naira to a dollar at a particular rate should be the least of its concern
it should propose economic reforms to strengthen the naira while supporting local business initiatives and projects to will increase inflow of the dollar while leaving the rates to demand and supply.
Following the riot act from FG to CBN, we have seen a strengthened Naira with CBN making dollars readily available to banks and BDCs to the point where banks have become bloated having met there customer demand for USD.
With improved dollar liquidity in banks, there has been a free fall of the dollar at the parallel market with rates as low as 375 naira to a dollar lately.
So while Nigerians are happy that the naira would continue to gain strength possibly hoping for rates as low as low as 300
and that Naira debit cards will soon be enabled by all banks for international transactions

The CBN dubiously creeps in again pegging the naira to a dollar @ 360 at the bank, it beats me hollow

Am beginning to wonder if CBN under the current helmsman Emefiele really wants a strengthened Naira and an improved economy
because it policies are not only contradicting, such policies continues to inflict economic hardship on Nigerians and it is
rubbishing the economic progress made Buhari's administration.

Bobo419:
This is CBN pegging the dollar like they did before. I have no problem with that. What I do have problem with is the banks. The new policy says they should only sell Forex to parents who want to pay school fees abroad, BTAs and PTAs. However, watch shady bank managers selling the Forex to the Bureau de change operators who would bribe them.

All in all, this is a welcome development.

We Wait to see the impact of this on the parallel market. If the dollar should fall massively on the parallel market, that's when we'll feel the impact on the Maggi, tomatoes and general goods that are currently expensive.

Please note that the parallel market, at the moment, gives a true reflection of the naira value as against the dollar in Nigeria.

We still have a long way to go.

LOL even BDC's are scare to buy dollars from bank now, They are yet to sell the ones they bought when it was 450 haha.. Even BDC president said he only sell $4000 last week meanwhile he has been selling hundreds of thousand in the past hahha, Nobody ready to hoard dollars anymore..

Livebygrace:
Yet till now no effect has been made on goods in the market. People that were quick to skyrocket prices due to dollar hike are now sluggish to journey along with the dollar. An average Nigerian is a rogue.

Nigerians are wicked people. All that "church. church, God, God" na scam.

All u said is very correct but cost of Palmoil > Cost of G/oil, isn't that too much

khalids:


Yes this will always happen, because the people who sell does products, also by dollar dependent products and their lives are also affected by the inflation in the country.....

So in order to make ends meet, they also have to hike their prices....its just economics my brother
When inflation goes down, their prices will also go down

malton:


It will be hard for the naira to return to how it was before.

#360/$ is the best one can get for now until the indicators change.

Besides, this rate is not sustainable.

Naija's economy defies logic.

Bro before weekend it will fall to like 320 bookmark this page..

Now that Brent oil is $50.72 per barrel against $58 some months ago and the price is still going downwards, what measures are being put in place by CBN to ensure reserves won't deplete and this policy is sustainable? I am glad they are really fighting to ensure Naira has value and for speculators to force out selling.

WAR AGAINST FOREX SPECULATORS! DESTROYING ECONOMY SINCE 1458AD

kahal29:


It's called price sticky theory in economics which says it is easy for prices of goods and services to increase than to fall

Proudly economists.

osinbajo made this possible. I hail u my amiable n intelligent vp

I wonder why most people expect the new rates to reflect on the prices of goods and services immediately! Definitely the prices will adjust itself downwards in the coming weeks and months, we all know that it takes an average of 26 days for goods to arrive this country via water transportation (shipping).

WHY ARE PRICES STILL HIGH?
Most people placed their order and have it shipped at the rate of #500/$ (BDC Rate), and those goods have just arrived so they will surly sell to make up.
Some or all of the old stock have to go before the new price reflects.

HOW WILL THE PRICES NOSE-DIVE?
Once the first batch of goods purchased at the recent dollar price arrive the market place, prices will be forced to come down, because an average business man/woman wants to sell off and import more as soon as possible. So even those who still have old stock will have no other option than to sell bellow cost price to avoid losing their customers.



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BDCs would start complaining and try to force banks to sell to them.

But I thought the CBN exchange rate was N307.... why are they selling it a N357 to banks?

want to see it reach.....$1 to #155.75

BDC going the way of MMM!

YomiYarzo:
This is another scam by CBN,
It is a known fact that the devaluation of the Naira in the past months has largely been as
a result of speculators and round tripping with cabals behind profiting while CBN had kept quiet
CBN dubiously devalued the Naira from 200 naira to a dollar using the floating FX rate policy which should be based on demand and supply
but has maintained Naira to dollar rate of about 307 Naira to 1 USD stipulating that banks cannot sell with more that 20% margin which it never enforced
if truly CBN is serious about strengthening the Naira, Pegging the Naira to a dollar at a particular rate should be the least of its concern
it should propose economic reforms to strengthen the naira while supporting local business initiatives and projects to will increase inflow of the dollar while leaving the rates to demand and supply.
Following the riot act from FG to CBN, we have seen a strengthened Naira with CBN making dollars readily available to banks and BDCs to the point where banks have become bloated having met there customer demand for USD.
With improved dollar liquidity in banks, there has been a free fall of the dollar at the parallel market with rates as low as 375 naira to a dollar lately.
So while Nigerians are happy that the naira would continue to gain strength possibly hoping for rates as low as low as 300
and that Naira debit cards will soon be enabled by all banks for international transactions

The CBN dubiously creeps in again pegging the naira to a dollar @ 360 at the bank, it beats me hollow

Am beginning to wonder if CBN under the current helmsman Emefiele really wants a strengthened Naira and an improved economy
because it policies are not only contradicting, such policies continues to inflict economic hardship on Nigerians and it is
rubbishing the economic progress made Buhari's administration.

Sometimes I also wonder why pegging the dollars @ a particular rate instead of allowing law of demand/supply to set in. Suppose this current policy is sustainable, we could have naira appreciating to 320/dollars but the fact that it has been pegged @ 360, which means corrupt is still being played underneath. Who is deceiving who? Why can't they allow the market determines the value by itself? Though corruption too will take place. This country sef

All these interventions, who taught/lent the govt the idea now or if they have the idea before, why did they wait so long before applying the strategy?
Anyway, we are moving forward. That's gr8. I am not a wailer

I am not understanding o. does this means the cbn rate of 308 will be 357 or just for BTA/PTA only

Why should CBN sale dollar at this rate to banks instead of N197? This is wickedness of the highest order.

Livebygrace:
Yet till now no effect has been made on goods in the market. People that were quick to skyrocket prices due to dollar hike are now sluggish to journey along with the dollar. An average Nigerian is a rogue.

Agreed, but remember importers exchanged foreign currencies like dollar at 500 and above to import, so don't expect them to reduce the prizes immediately n suffer loss. We ll feel the changes after they must have sold their old goods n that's gonna take some time

Banks should allow us use our ATM abroad to put the final nail on the coffin of the BDCs

So in effect CBN is now saying that N360/$ is the lowest it's gonna fall? I was hoping for further dip.

scachy:

Agreed, but remember importers exchanged foreign currencies like dollar at 500 and above to import, so don't expect them to reduce the prizes immediately n suffer loss. We ll feel the changes after they must have sold their old goods n that's gonna take some time

That will B like next year

Livebygrace:
Yet till now no effect has been made on goods in the market. People that were quick to skyrocket prices due to dollar hike are now sluggish to journey along with the dollar. An average Nigerian is a rogue.

Don't worry bro. Those sellers whose price of goods are over the skies will actually lose out on the long run. Right now, lots of people are no longer buying goods the way they use to, and before they will sell their goods and return to the market to restock; they would have run at a serious loss.

We o see see who go laugh last....

You need to see how the prices of building materials are crumbling like a pack of cards--most especially with "alamako" (aluminium) materials...

Mny of the thieving sellers are already counting their losses....

FavoredGuy:
All these interventions, who taught/lent the govt the idea now or if they have the idea before, why did they wait so long before applying the strategy?
Anyway, we are moving forward. That's gr8. I am not a wailer

They are being mischief makers.they have enriched themselves friends and family . The sell by the backdoor to the BDC

YomiYarzo:
This is another scam by CBN,
It is a known fact that the devaluation of the Naira in the past months has largely been as
a result of speculators and round tripping with cabals behind profiting while CBN had kept quiet
CBN dubiously devalued the Naira from 200 naira to a dollar using the floating FX rate policy which should be based on demand and supply
but has maintained Naira to dollar rate of about 307 Naira to 1 USD stipulating that banks cannot sell with more that 20% margin which it never enforced
if truly CBN is serious about strengthening the Naira, Pegging the Naira to a dollar at a particular rate should be the least of its concern
it should propose economic reforms to strengthen the naira while supporting local business initiatives and projects to will increase inflow of the dollar while leaving the rates to demand and supply.
Following the riot act from FG to CBN, we have seen a strengthened Naira with CBN making dollars readily available to banks and BDCs to the point where banks have become bloated having met there customer demand for USD.
With improved dollar liquidity in banks, there has been a free fall of the dollar at the parallel market with rates as low as 375 naira to a dollar lately.
So while Nigerians are happy that the naira would continue to gain strength possibly hoping for rates as low as low as 300
and that Naira debit cards will soon be enabled by all banks for international transactions

The CBN dubiously creeps in again pegging the naira to a dollar @ 360 at the bank, it beats me hollow

Am beginning to wonder if CBN under the current helmsman Emefiele really wants a strengthened Naira and an improved economy
because it policies are not only contradicting, such policies continues to inflict economic hardship on Nigerians and it is
rubbishing the economic progress made Buhari's administration.

You just poured out my stand view.

If it comes down to 250, flight tickets would cost less and jumia/konga will come back to life. Dating site fraudsters go start to cry

malton:


It will be hard for the naira to return to how it was before.

#360/$ is the best one can get for now until the indicators change.

Besides, this rate is not sustainable.

Naija's economy defies logic.

I beg to disagree. The rate is very sustainable. Oil prices aren't going down the hill for the foreseeable time, so; the present rate can be maintain for the time being.

Yes. Nigeria's economy defies logic in the sense that, despite being a developing nation (according to western economic ideology,) and with Bokoharam on the other hand, it was able to recover speedily from such level of devastating recession, faster than the economies of Brazil, Greece, etc; countries which are tagged as developed nations.

Give it up for Nigeria.

AngelicBeing:
Good move but not enough, until it trickles down to the cost of living becoming affordable before l take them serious, l am not interested in a useless air-conditioned tea drinking CBN policies, l want to see a drop in the prices of rice, yam, beans, red oil, groundnut oil, tomatoes, onions, maggi, bournvita, milo, agege bread, ewa agoyin, semovita, semolina, amala, gbegiri, fish, meat, carrots, pepper, kerosine, butter, kulikuli, cement, cost of transport fares to different locations, etc, etc, as long as the prices of the items mentioned above is still high, l dont give a fu..ck if the dollar is 300 or 360, useless government feeding fat while the masses are dying

So you expect the government to wave a magic wand for the goods to reduce in price. Dont you know what is called value chain? I marvel at how people just open their mouth and spew...complete it yourself

Palm oil is mostly imported. People who sell these thing also have to buy cars, clothes etc from people who have to import it with a high dollar. If they sell their garri cheaply, how will they be able to afford the new price of other things. Think.

Jammiiee:
Funny enough commodities that have no link with the dollar also skyrocketed . Common Garri, even palmoil which is local is more xpensive than G/oil

[s]

ebby9z:

So you expect the government to wave a magic wand for the goods to reduce in price. Dont you know what is called value chain? I marvel at how people just open their mouth and spew...complete it yourself

[/s] My opinion, say yours and move on

Livebygrace:
Yet till now no effect has been made on goods in the market. People that were quick to skyrocket prices due to dollar hike are now sluggish to journey along with the dollar. An average Nigerian is a rogue.

God bless you and your generation for this talk....since there is no one to control them

Livebygrace:
Yet till now no effect has been made on goods in the market. People that were quick to skyrocket prices due to dollar hike are now sluggish to journey along with the dollar. An average Nigerian is a rogue.

Nigerians are the problem of Nigeria