₦airaland Forum

Truth234:
The naira recorded a gain against the United States dollar on the parallel market on Tuesday, a day after the Central Bank of Nigeria injected $240m into the foreign exchange market.

The local unit rose from 395/dollar on Monday to 390/dollar on Tuesday as the new forex supply weighed on the market.

The CBN had on Monday released the sum of $90m to meet requests for invisibles such as business travel and personal travel allowances, medical and school fees.

The apex bank also offered a total of $150m to authorised foreign exchange dealers in the interbank wholesale auction window same day.

The development brought to $240m the total amount of forex released by the regulator on Monday.

The regulator also adjusted the sale day of forex to Bureau De Change operators to Tuesdays only to reduce logistical difficulties.

As a result, the central bank would sell $10,000 only to low-end forex dealers once a week, instead of $8000 a week previously.

Economic and financial analysts said the spate of interventions and dollar supply by the central bank would determine the direction of the naira in the coming weeks.

On the back of the previous forex supply by the CBN, the naira had appreciated to 375/dollar early last week.

The local currency, however, weakened to 383/dollar on Thursday before dropping to 390/dollar on Friday.

“The latest dollar injection is yet to fully percolate into the forex market; when that happens, the naira will appreciate further,” a currency analyst at Ecobank Nigeria, Mr. Kunle Ezun, said.

The naira closed at 306.25 to the dollar on Tuesday at the interbank market, compared with 306.30 the previous day.

Meanwhile, the CBN said on Tuesday it would offer dollar forwards to be delivered within two months to offset a backlog of matured foreign exchange obligations to manufacturers, airlines, fuel importers and agriculture businesses.

“Authorised dealers’ accounts with the central bank will be debited in full for the naira equivalent of the dollar bid amount on a spot basis,” the bank said in a notice to commercial lenders.

“The central bank will settle the bids through forward settlements of two months,” the CBN added without specifying the amount of dollars to be sold.

http://investorsking.com/naira-gains-fresh-dollar-supply-now-390dollar/

abescom:
For me there is nothing to celebrate until we witness a crash in the prices of commodities. If prices of food items and other things had to shoot up using the increasing dollar/naira rate as excuse, the prices should come down now that the naira is gaining upper hand against the dollar and other currencies.

The government should force marketers, sellers, importers, manufacturers and their likes to crash prices if no we are only artificially increasing the value of the naira to make some select greedy bastardos rich.

The dollar, pound, euro and other currencies have been crashing against the naira for over 3 weeks now yet no impact is felt. Things are still as expensive as ever then what's the point?

I personally am not happy one bit. And it is because I earn in dollars. I don't mind dollar crashing if my buying power does not diminish but I seriously mind now that prices are still as high as they were. Bag of rice is still 20k+, my baby's food is still as expensive as before, Milton solution for my baby that was hitherto 700 naira is still 1200, pican teething that was just 1200 is now 2,000.

It is f*cking annoying and the government needs to do something very fast.

1000 Likes, l said same thing few weeks ago and some ignorant fellows came telling me nonsense, as long as the prices of basic food items like tomatoes, oil, maggi, onions, amala, ewedu, gbegiri, banga soup, goat meat, vegetables, agege bread, butter, milk, sugar, semolina, semovita, stockfish etc is still expensive, l dont give a fuc..k to all these useless CBN policies, nonsense

abescom:
For me there is nothing to celebrate until we witness a crash in the prices of commodities. If prices of food items and other things had to shoot up using the increasing dollar/naira rate as excuse, the prices should come down now that the naira is gaining upper hand against the dollar and other currencies.

The government should force marketers, sellers, importers, manufacturers and their likes to crash prices if no we are only artificially increasing the value of the naira to make some select greedy bastardos rich.

The dollar, pound, euro and other currencies have been crashing against the naira for over 3 weeks now yet no impact is felt. Things are still as expensive as ever then what's the point?

I personally am not happy one bit. And it is because I earn in dollars. I don't mind dollar crashing if my buying power does not diminish but I seriously mind now that prices are still as high as they were. Bag of rice is still 20k+, my baby's food is still as expensive as before, Milton solution for my baby that was hitherto 700 naira is still 1200, pican teething that was just 1200 is now 2,000.

It is f*cking annoying and the government needs to do something very fast.

abescom:
For me there is nothing to celebrate until we witness a crash in the prices of commodities. If prices of food items and other things had to shoot up using the increasing dollar/naira rate as excuse, the prices should come down now that the naira is gaining upper hand against the dollar and other currencies.

The government should force marketers, sellers, importers, manufacturers and their likes to crash prices if no we are only artificially increasing the value of the naira to make some select greedy bastardos rich.

The dollar, pound, euro and other currencies have been crashing against the naira for over 3 weeks now yet no impact is felt. Things are still as expensive as ever then what's the point?

I personally am not happy one bit. And it is because I earn in dollars. I don't mind dollar crashing if my buying power does not diminish but I seriously mind now that prices are still as high as they were. Bag of rice is still 20k+, my baby's food is still as expensive as before, Milton solution for my baby that was hitherto 700 naira is still 1200, pican teething that was just 1200 is now 2,000.

It is f*cking annoying and the government needs to do something very fast.

Saintp:
The only thing the govt can do is to fix the economy which will then support our forex. You cannot have cost of goods to be reduced at this point because the forex market is not yet stable. For example, it fell to 350 at some point but rose again to 395 in a space of one week. This is bad for business, a trader can't sell at cheap now because he or she is not sure if forex would remain the same when he wants to restock. Until there is stability where a trader is sure to get forex within a particular range for months or years, the cost of goods will not go down.

nonxo007:
Hopefully we are getting there....#1 = $1

Nope 50- $1[/color]

Korrection:
These are all on media and paper..I sell cars and nothing my country people...nothing has changed.....

JustinSlayer69:
These aggressive interventions should have started when it was 300 Naira to a dollar to ensure it stayed below 300

CosmicJames:
The problem of Nigeria is that we like to suffer ourselves in this country. Is not as if the Dollar is not available. No the Dollar is available in abundance. But some people are just holding onto it and let the masses suffer.
I wish they (CBN) will also release our CC for online transaction and not to continue blocking it and making us suffer for nothing like they are doing now.

Saintp:
The only thing the govt can do is to fix the economy which will then support our forex. You cannot have cost of goods to be reduced at this point because the forex market is not yet stable. For example, it fell to 350 at some point but rose again to 395 in a space of one week. This is bad for business, a trader can't sell at cheap now because he or she is not sure if forex would remain the same when he wants to restock. Until there is stability where a trader is sure to get forex within a particular range for months or years, the cost of goods will not go down.

abescom:
For me there is nothing to celebrate until we witness a crash in the prices of commodities. If prices of food items and other things had to shoot up using the increasing dollar/naira rate as excuse, the prices should come down now that the naira is gaining upper hand against the dollar and other currencies.

The government should force marketers, sellers, importers, manufacturers and their likes to crash prices if no we are only artificially increasing the value of the naira to make some select greedy bastardos rich.

The dollar, pound, euro and other currencies have been crashing against the naira for over 3 weeks now yet no impact is felt. Things are still as expensive as ever then what's the point?

I personally am not happy one bit. And it is because I earn in dollars. I don't mind dollar crashing if my buying power does not diminish but I seriously mind now that prices are still as high as they were. Bag of rice is still 20k+, my baby's food is still as expensive as before, Milton solution for my baby that was hitherto 700 naira is still 1200, pican teething that was just 1200 is now 2,000.

It is f*cking annoying and the government needs to do something very fast.

Iamwrath:
Where would govt had gotten the money from ? They opposed loan from China , they opposed fight against corruption , they bombed pipelines, crude sold less than $40 per barrel ? where would the Government have raised the funds from ?

abescom:
Are you telling me someone who is selling Tomatoes for instance can't reduce their prices? Or rice? I can understand if the prices of luxury items don't come down just yet but what or perishables?

And would the sellers of even the luxury items have hesitated in increasing their prices if the naira was crashing?

kingviny:
Hmmn... But for how long can this be sustainable?

What CBN and FMF need to do are as follows:-

1. Create a CBN dollar card and mandate all dollar users to make use of this card for all dollar based transaction. Go cashless on dollars too.

2. Get a presidential order to outlaw the use of or sale of physical dollars in Nigeria. Dollar bills should be out of circulation in Nigeria. If you need dollars, apply for it through a bank or a bureau De change and once approved, your dollar card will be credited with electronic dollars backed by CBN real dollars.

These 2 measures will eliminate the parallel markets effectively. As for hoarders of dollars, this policy should be put in place:-

3. All electronic dollar monies approved and sold to end users must have an expiry date of 3 months. If you don't use it, you loose it! You can re-sell back to your source before the expiration of your e-dollars but after 3 months, it will vanish into oblivion.

This will effectively deal a great blow on speculators and hoarders of dollars who indeed are the enemies of Nigeria. 60% of our naira depreciation problem are caused by these people. The rest are caused by importers and Nigerians schooling, shopping and touring abroad frequently.

The solution to these is beyond CBN (Central Bank of Nigeria) and FMF (Federal Ministry of Finance), it is another topic for another day.

If my suggestions are adopted, the likes of Andrew Yakubu and even all those who have alot of dollars in their domiciliary accounts would all be forced to sell in exchange for a CBN dollar card and e-dollars which can now be pegged to #300 for now until we are able to start producing most of the things we are currently importing before further reduction should be done.

We should also step up on our quality control. If we have quality schools, quality products and a developed tourism, then people would not need to source for these abroad with scarce dollars. With less demand for dollars, over time dollar to naira can slowly but surely be 1 to 1 like the good old 80s before SAP.

HEIR:
is it your dollars? Like I can't tell you what to do with your hard earned dollars, except its stolen money. Trust apart from the government most individuals and companies who earn in dollars would rather save (hoard) in hard currency and sell to black market if they need to spend money locally. So its now left for the government to make good policies that can keep the dollars in check. And of cos earn more foreign exchange.
Lastly, let's not be deceive the Presidency and CBN knows exactly what to do. They know the cabal who control the dollars, who of cos are their family, friends and cronies. Those who sponsored their elections. I remember for CBN gov Sanusi stated Buhari government has made people billionaires with his forex policies. One can easily guess who approves cheap dollars for them to sell at black market rate.

kingviny:
Hmmn... But for how long can this be sustainable?

What CBN and FMF need to do are as follows:-

1. Create a CBN dollar card and mandate all dollar users to make use of this card for all dollar based transaction. Go cashless on dollars too.

2. Get a presidential order to outlaw the use of or sale of physical dollars in Nigeria. Dollar bills should be out of circulation in Nigeria. If you need dollars, apply for it through a bank or a bureau De change and once approved, your dollar card will be credited with electronic dollars backed by CBN real dollars.

These 2 measures will eliminate the parallel markets effectively. As for hoarders of dollars, this policy should be put in place:-

3. All electronic dollar monies approved and sold to end users must have an expiry date of 3 months. If you don't use it, you loose it! You can re-sell back to your source before the expiration of your e-dollars but after 3 months, it will vanish into oblivion.

This will effectively deal a great blow on speculators and hoarders of dollars who indeed are the enemies of Nigeria. 60% of our naira depreciation problem are caused by these people. The rest are caused by importers and Nigerians schooling, shopping and touring abroad frequently.

The solution to these is beyond CBN (Central Bank of Nigeria) and FMF (Federal Ministry of Finance), it is another topic for another day.

If my suggestions are adopted, the likes of Andrew Yakubu and even all those who have alot of dollars in their domiciliary accounts would all be forced to sell in exchange for a CBN dollar card and e-dollars which can now be pegged to #300 for now until we are able to start producing most of the things we are currently importing before further reduction should be done.

We should also step up on our quality control. If we have quality schools, quality products and a developed tourism, then people would not need to source for these abroad with scarce dollars. With less demand for dollars, over time dollar to naira can slowly but surely be 1 to 1 like the good old 80s before SAP.

kingviny:
Hmmn... But for how long can this be sustainable?

What CBN and FMF need to do are as follows:-

1. Create a CBN dollar card and mandate all dollar users to make use of this card for all dollar based transaction. Go cashless on dollars too.

2. Get a presidential order to outlaw the use of or sale of physical dollars in Nigeria. Dollar bills should be out of circulation in Nigeria. If you need dollars, apply for it through a bank or a bureau De change and once approved, your dollar card will be credited with electronic dollars backed by CBN real dollars.

These 2 measures will eliminate the parallel markets effectively. As for hoarders of dollars, this policy should be put in place:-

3. All electronic dollar monies approved and sold to end users must have an expiry date of 3 months. If you don't use it, you loose it! You can re-sell back to your source before the expiration of your e-dollars but after 3 months, it will vanish into oblivion.

This will effectively deal a great blow on speculators and hoarders of dollars who indeed are the enemies of Nigeria. 60% of our naira depreciation problem are caused by these people. The rest are caused by importers and Nigerians schooling, shopping and touring abroad frequently.

The solution to these is beyond CBN (Central Bank of Nigeria) and FMF (Federal Ministry of Finance), it is another topic for another day.

If my suggestions are adopted, the likes of Andrew Yakubu and even all those who have alot of dollars in their domiciliary accounts would all be forced to sell in exchange for a CBN dollar card and e-dollars which can now be pegged to #300 for now until we are able to start producing most of the things we are currently importing before further reduction should be done.

We should also step up on our quality control. If we have quality schools, quality products and a developed tourism, then people would not need to source for these abroad with scarce dollars. With less demand for dollars, over time dollar to naira can slowly but surely be 1 to 1 like the good old 80s before SAP.

kingviny, well said.

As for the bold, over to the new 'saint' sherrifat in town.

abescom:
For me there is nothing to celebrate until we witness a crash in the prices of commodities. If prices of food items and other things had to shoot up using the increasing dollar/naira rate as excuse, the prices should come down now that the naira is gaining upper hand against the dollar and other currencies.

The government should force marketers, sellers, importers, manufacturers and their likes to crash prices if no we are only artificially increasing the value of the naira to make some select greedy bastardos rich.

The dollar, pound, euro and other currencies have been crashing against the naira for over 3 weeks now yet no impact is felt. Things are still as expensive as ever then what's the point?

I personally am not happy one bit. And it is because I earn in dollars. I don't mind dollar crashing if my buying power does not diminish but I seriously mind now that prices are still as high as they were. Bag of rice is still 20k+, my baby's food is still as expensive as before, Milton solution for my baby that was hitherto 700 naira is still 1200, pican teething that was just 1200 is now 2,000.

It is f*cking annoying and the government needs to do something very fast.