Smartchoiice:

Means devaluation of the Naira

BlackPantherCri:
In order words,

Naira will be allowed to free fall against the dollar. N400 to $1 loading

globalresource:
Is this not devaluation? Why using confusing language for Nigerians? CBN governor recently said he will not devaluate but behold the APC vir×s don catch am.

We are facing the economic realities. I dont see bubu team able to revive this economy. Buhari needs to bring more technocrat on board. But sorry he doesn't care much about the economy

agbari1:
What this means is that dollar was exchanged BY CBN for importer AT N357 and N307 for exporter. This means you you pay more Naira to get dollar if you are importing. This goes for payment of school fees abroad and other goods and services. Black market operators also get dollar from CBN at 357 to 1 dollars. That is why at black markets the exchange rate hovers around 358 to 362 to one dollar during the period. Government receives dollar from the sales of her oil which is kept by CBN. Projected budget of government for 2020 is based on oil benchmark price of 57 dollar per barrel. The price of oil has fallen in the global market to below $30. This means that government revenue has fallen substantially as oil accounts for about 90% of export earnings. In order to get more Naira to pay for internal spendings in the country such as payment of salaries and contractors, government must get more Naira. In doing so, quantity of Naira to be exchanged for dollar must be increased. Government doesn’t want to use the term “devaluation” hence it used exchange rate equalization. This means that no more 307, 357 Naira exchange to the dollar anymore but N380 for all multiple exchanges to a dollar. So our official rate to one dollar is now N380. Black market operators will be selling at amount higher than this may be N400 to one dollar depending on the availability of dollar in the market. Remember that over 50 oil cargo of Nigeria is on the see without willing buyers ad the demand for oil has reduced in the international market. The price is on the free fall because of Saudi and Russia price and output war. If the price of oil falls further to say $20 per barrel, Naira nearly collapse. Government may ban importation of less essential goods. It may go and borrow money from from international financial institutions such as IMF with stringent measures. It may devalue the currency further. Those with fixed income will be worse off. Prices of goods and services will go up. Demand for goods and services will fall. It will affect company revenue and lead to job loses.

einsteino:


it just means Naira has been devalued. The below quote says it all. Govt would be able to get more naira to service it's responsibilities at home with the less dollar it gets from oil sales abroad. The common man would be the one to bear the brunt, as his naira savings/income would henceforth buy less goods than it previously could(which are all imported with dollar). This leaves everyone earning in Naira with less disposable income to meet their needs. Govt devaluing naira, is simply Govt robbing nigerians to fix the mess the govt created.

post=87624249:


Anything that will move our darling nation forward at this perilous period and much after is what we are after.

This too shall pass.

IMASTEX:

Lol. The #30k wasn't paid on time hence his silence all this while. I wonder how they manage to sleep.

peacettw:
This is getting serious

panafrican:
https://www.bloomberg.com/news/articles/2020-03-20/nigerian-central-bank-starts-uniform-exchange-rate-for-naira

MondayOsunbor:


STUPID PRAYERS

NA WE GO HEAR AM

nedekid:

Even the 30k has been devalued. It is now worth 25k in purchasing power.

favinvest:
Immediately professionals start using confusing terminology plus big grammar most times it's a sign of bad news..

In simple layman's sentences: Are u devaluating the naira or not?

post=87624249:


Anything that will move our darling nation forward at this perilous period and much after is what we are after.

This too shall pass.

ehbellsho:
I am trying to understand but still can't/don't get it.
pls, anyone with the summary package?

grandstar:
This is a fantastic development and sound economics has been allowed to carry the day.

I suspect the severity of the economic crisis presently before the country may have forced the government's hand.

agbari1:
What this means is that dollar was exchanged BY CBN for importer AT N357 and N307 for exporter. This means you you pay more Naira to get dollar if you are importing. This goes for payment of school fees abroad and other goods and services. Black market operators also get dollar from CBN at 357 to 1 dollars. That is why at black markets the exchange rate hovers around 358 to 362 to one dollar during the period. Government receives dollar from the sales of her oil which is kept by CBN. Projected budget of government for 2020 is based on oil benchmark price of 57 dollar per barrel. The price of oil has fallen in the global market to below $30. This means that government revenue has fallen substantially as oil accounts for about 90% of export earnings. In order to get more Naira to pay for internal spendings in the country such as payment of salaries and contractors, government must get more Naira. In doing so, quantity of Naira to be exchanged for dollar must be increased. Government doesn’t want to use the term “devaluation” hence it used exchange rate equalization. This means that no more 307, 357 Naira exchange to the dollar anymore but N380 for all multiple exchanges to a dollar. So our official rate to one dollar is now N380. Black market operators will be selling at amount higher than this may be N400 to one dollar depending on the availability of dollar in the market. Remember that over 50 oil cargo of Nigeria is on the see without willing buyers ad the demand for oil has reduced in the international market. The price is on the free fall because of Saudi and Russia price and output war. If the price of oil falls further to say $20 per barrel, Naira nearly collapse. Government may ban importation of less essential goods. It may go and borrow money from from international financial institutions such as IMF with stringent measures. It may devalue the currency further. Those with fixed income will be worse off. Prices of goods and services will go up. Demand for goods and services will fall. It will affect company revenue and lead to job loses.

BreconHills:


Not strictly true. The import substitution policy has favoured companies that produce high Nigerian content - Nigerians wishing to eat imported food should rightly pay the going rate. You cant have your cake and eat it.

But you've all missed the real reason for the stages devaluation. It is simply to create more naira value for its oil receipts offsetting the fall in oil prices caused by Saudi Arabia vs. Russia oil price war.

Govt robbing nigerians to fix the mess the govt created.

Also not true, at least not completely true. The Nigerian problem has been caused by two things
1. Wealth without the creation of value - this is what accounts for high property values at the luxury end of the market.
2. The Nigerian fixation with all things foreign.- literally the apeing of europe and american lifestyle. And I use the word ape without apology.

If you want I can give you the data to show how this government has corrected the wrong allocation of assets by enlarging the circle of pain to include the previously untouchable UHNW and HNW segments.

mushystuff:
Reality has started setting in. Unfortunately this is coming after the selfish APC govt thieves have amassed obscene wealth at those obscene CBN rates!

agbari1:
What this means is that dollar was exchanged BY CBN for importer AT N357 and N307 for exporter. This means you you pay more Naira to get dollar if you are importing. This goes for payment of school fees abroad and other goods and services. Black market operators also get dollar from CBN at 357 to 1 dollars. That is why at black markets the exchange rate hovers around 358 to 362 to one dollar during the period. Government receives dollar from the sales of her oil which is kept by CBN. Projected budget of government for 2020 is based on oil benchmark price of 57 dollar per barrel. The price of oil has fallen in the global market to below $30. This means that government revenue has fallen substantially as oil accounts for about 90% of export earnings. In order to get more Naira to pay for internal spendings in the country such as payment of salaries and contractors, government must get more Naira. In doing so, quantity of Naira to be exchanged for dollar must be increased. Government doesn’t want to use the term “devaluation” hence it used exchange rate equalization. This means that no more 307, 357 Naira exchange to the dollar anymore but N380 for all multiple exchanges to a dollar. So our official rate to one dollar is now N380. Black market operators will be selling at amount higher than this may be N400 to one dollar depending on the availability of dollar in the market. Remember that over 50 oil cargo of Nigeria is on the see without willing buyers ad the demand for oil has reduced in the international market. The price is on the free fall because of Saudi and Russia price and output war. If the price of oil falls further to say $20 per barrel, Naira nearly collapse. Government may ban importation of less essential goods. It may go and borrow money from from international financial institutions such as IMF with stringent measures. It may devalue the currency further. Those with fixed income will be worse off. Prices of goods and services will go up. Demand for goods and services will fall. It will affect company revenue and lead to job loses.

wman:


Nonsense. Everyone has felt the pain of this administration including the poor. No one has been immune to Buhari's incompetence. Forget all those talks about UBNW and HNW.

Raalsalghul:


Yes of course: that's the objective of the prayers.

Perhaps then the suffering will lead to a revolution that'll oust the current crop of visionless leaders.

Think about it.

Lifestone:
We were promised exchange rate of $1.00/N1.00
This is scam!

PHijo:
God please make the price of oil fall below $15. This I pray in your holy and most high name.