₦airaland Forum

skydiver01:
CNB's two Month Naira for Dollar Initiative announced today/yesterday is below.

skydiver01:
CNB's two Month Naira for Dollar Initiative announced today/yesterday is below.

Lazyyouth4u:
Thanks for the education on the difference between UPDC and UPDC REIT

In any case, I maintain that REITs also make money from selling properties. Apart from rentals, they also raise cash from selling units in their properties.

You don’t have to agree with a lazy youth on this

jedisco:
We see're just in March and this will essentially be the second devaluation of the naira. I expect the parallel market to adjust for this once it comes into effect.

It's obvious CBN is banking on the Dangote refinery and foriegn remitances to save the naira. I wonder how they think subsidizing the dollar will save the naira.

This policy is obviously aimed at diaspora remitances hoping extra dollars in the market will reduce the exchange but I doubt it'd have any effect. Very few people abroad (if at all) are interested in sending money back to be exchanged at the bank rate or picked up in dollars to be sold and deposited back in the bank. Does not make sense. People are interested in sending money and seeing the naira equivalent (converted at market rate) deposited in their bank accounts immediately all with clicks of a finger. That's how it's done

They keep making basic financial blunders and wondering why things are going bad.
First they distributed dollars at subsidized rates to privileged folks despite every sensible group telling them the pitfalls in it. Few years down, it's not just special folks that have access... More and more people are now roundtripping and creating billions of naira out of thin air. Yet they wonder how the naira continues to slide. Just like fuel subsidy, there's been lots of sensible advice they didn't adhere to.

People here have mentioned smugglers. But I'd say they have little effect (if at all) on devaluation. Nothing guarantees the continued devaluation of the naira as having 2 exchange rates with almost 20% difference between them. Several months ago, I stopped keeping any tangible amount in naira and so far, it has been a sensible decision. I'd only change that when both rates merge. As far as this continues, we're guaranteed at least 20% devaluation in the naira every year (and that's being conservative).


We're getting to a stage where the average Nigerian will lose faith in the naira and rather keep savings in foriegn currency. Just like Venezuela and Lebanon, if we get to the tipping point, there'd be no return. The earlier CBN merges both rates and stops subsidizing the dollar, the earlier we start repairing our damaged economy. Even Dangote refinery wouldn't save the Naira if this continues

jedisco:
People here have mentioned smugglers. But I'd say they have little effect (if at all) on devaluation. Nothing guarantees the continued devaluation of the naira as having 2 exchange rates with almost 20% difference between them. Several months ago, I stopped keeping any tangible amount in naira and so far, it has been a sensible decision. I'd only change that when both rates merge. As far as this continues, we're guaranteed at least 20% devaluation in the naira every year (and that's being conservative).

jedisco:
Several months ago, I stopped keeping any tangible amount in naira and so far, it has been a sensible decision. I'd only change that when both rates merge. As far as this continues, we're guaranteed at least 20% devaluation in the naira every year (and that's being conservative).
g

Biafran4life:
Great economist.They just Marge the black market price and government price .let assume they pick#490 black market price and boom they have solved the problem.What happens if the black market moves to #650.They Marge again till infinity.Bros make owner they fear God because you have dollar account.What percent of Nigerians are using dollars

Tobex4realTobex234:
There's never a better time to do this IMO. Imagine gaining 20% without doing anything. If you invest your USD even in moderate instruments, that's an extra 6%. Nothing sweet like to they spend naira from USD income

purleesh:
Please apart from crypt0s, which other instruments do you keep your money in to preserve the value?

jedisco:
I do stocks and metals (gold)... I've started pulling out slowly from stocks cos the space is becoming more uncertain and it's not my forte. I do metals not for profit per se but cos it's traditionally been a hedge against inflation (over time).

But then at this rate, one doesn't necessarily need any foreign investment. Just keeping your savings in dollars guarantees almost 20% yearly appreciation against the naira which very few investment instruments in the country can meet.

Also, with the way things are going, the rates may get worse before they get any better. CBN it trying to bring down the market exchange rate so they can merge the two rates. But so far, all they've done has backfired.

My investment in crypt0 (bitc0in) was to hedge against the devaluation of hard currencies and get profit untop. It's estimated that about 20% of dollars in circulation was printed in 2020 (out of thin air). So the dollar is also being devalued. But the US can do that cos they know that poorly managed nations like Nigeria will come cap in hand and create a demand for their currency.

einsteine:
Why this sort of caustic response? Binance is bigger than every single financial institution in Nigeria and offers a guaranteed 7% per annum on stable coins. Don't allow your lack of knowledge get in the way of other people who may need to know about this investment option

Philantropists:
Wow now clap for yourself, you want to generate likes by sounding like a m.oron.

The company I talked about is listed in the US SEC. Do you have any constructive criticism? My guess is no.
Desist from quoting me then.

seyisanya:
Rental property and its inherent wahala. Please, invest in REITs and get your regular annual rent without stress. Imagine, you have to buy drinks for area boys. Which kind wahala b dis?

QuinModah:
Likes would not out money in my account. Same way you have explained to me it's listed do so today in church

QuinModah:
Likes would not out money in my account. Same way you have explained to me it's listed do so today in church

Lazyyouth4u:
Let me play devil’s advocate here

So you decide to buy shares in a REIT (instead of buying a property) and you are getting dividends from the shares. Cool stuff. But then you need cash for another project and decide to sell your shares but the share price has seriously fallen or you can’t even find buyer for the shares.

Wouldn’t you have been better off with a property in your name in a decent location where everything is within your control and stock market forces do not determine what you get if/when you decide to sell?

I’m not saying one is better than the other o. Abeg o. Na just realistic question I dey ask o

LagosInter:
Which Reit coy have you used? UPDC?

Lazyyouth4u:
Let me play devil’s advocate here

So you decide to buy shares in a REIT (instead of buying a property) and you are getting dividends from the shares. Cool stuff. But then you need cash for another project and decide to sell your shares but the share price has seriously fallen or you can’t even find buyer for the shares.

Wouldn’t you have been better off with a property in your name in a decent location where everything is within your control and stock market forces do not determine what you get if/when you decide to sell?

I’m not saying one is better than the other o. Abeg o. Na just realistic question I dey ask o

Lazyyouth4u:
Let me play devil’s advocate here

So you decide to buy shares in a REIT (instead of buying a property) and you are getting dividends from the shares. Cool stuff. But then you need cash for another project and decide to sell your shares but the share price has seriously fallen or you can’t even find buyer for the shares.

Wouldn’t you have been better off with a property in your name in a decent location where everything is within your control and stock market forces do not determine what you get if/when you decide to sell?

I’m not saying one is better than the other o. Abeg o. Na just realistic question I dey ask o

seyisanya:
-REITs investment is more liquid than physical real estate investment so it's easier to get a buyer for your REITs shares than your property.
-In order not to be in a difficult money situation, you can consistently invest your dividends in a Mutual Fund instrument which can come in handy in the situation above. Hence, you wouldn't have a reason to sell your shares prematurely.

seyisanya:
SFSREITs. It's not as liquid as regular stocks for obvious reason, but an 11.70% annual dividend on a REIT investment, without the accompanied landlord-tenant gbos-gbas, is a no brainer!

Additionally, due to the nature of the investment and its illiquidity status, it remains stable even in a bear market but will not be ideal for any investor that does not have a long term view in mind. You have to think of it like you're buying a physical structure in order to enjoy REITs investment.

jedisco:
It's not about having a dollar account or not. It's about the CBN doing something it and other failing nations have tried repeatedly without success and expecting a different result. We have tried this before with fuel subsidy. We always knew subsidizing fuel was unsustainable yet for over a decade we continued. Yes, we made billionaires out of it and ended up supplying neighbouring countries cheap petrol. How exactly did the average Nigerian benefit from that?
We've had this dual rate for some years now, what exactly has it solved?

As far back as 2016, Sanusi said that this dual rate was subject to abuse and would continuously lead to a widened gap. He said then that he could make a phone call, get dollars at CBN rate, round-trip it and make millions. Do you really think people have not been doing it? Even on nairaland, I've increasingly come across folks who round-trip but of course with pursued lips.

The question is how much demand for the dollar is real?

It's not about picking a given rate. Ideally, things should be let to float and CBN can manipulate the currency using other means. If however, CBN decides to fix a rate and defend it, that rate should be accessible to all.

There's no place in the world where a dual exchange rate hasn't brought chaos

Olaide1295:
Why is no one talking about the $25Billion CBN overdraft that the government wants to convert into debt?
The debt was taken without any linkage to Capital/Infrastructure expenditure. No explanation of how it was spent.

Debt to Revenue ratio is 80%. Is this not economic recklessness and are we not walking into a currency crisis?

jedisco:
It's not about having a dollar account or not. It's about the CBN doing something it and other failing nations have tried repeatedly without success and expecting a different result. We have tried this before with fuel subsidy. We always knew subsidizing fuel was unsustainable yet for over a decade we continued. Yes, we made billionaires out of it and ended up supplying neighbouring countries cheap petrol. How exactly did the average Nigerian benefit from that?
We've had this dual rate for some years now, what exactly has it solved?

As far back as 2016, Sanusi said that this dual rate was subject to abuse and would continuously lead to a widened gap. He said then that he could make a phone call, get dollars at CBN rate, round-trip it and make millions. Do you really think people have not been doing it? Even on nairaland, I've increasingly come across folks who round-trip but of course with pursued lips.

The question is how much demand for the dollar is real?

It's not about picking a given rate. Ideally, things should be let to float and CBN can manipulate the currency using other means. If however, CBN decides to fix a rate and defend it, that rate should be accessible to all.

There's no place in the world where a dual exchange rate hasn't brought chaos

emmanuelewumi:
Don't you have UPDC REIT, it is more diversified compared to Union Home REIT and SFS REIT.


UPDC REIT has luxury residential apartments, malls, shopping complex, office complexes, hostels, car parks and planning to have event and entertainment centers

Biafran4life:
They should allow the naira to float in an economy that is dependently on consumption.And you think it will solve the problem with no feasible production.Pls tell me why our professor of economics soludo and the super woman Ngozi in ministry of finance didn't trade that line then.Oga for what you suggested to make meaningful impact we have to revamp production.And since that is not achievable in a short time.I believe the government is banking on the refinery since about 50 percent of dollars consumption goes into that sector.As they are working on power to improve which has multiplier effect on the economy.We just cross our hands and hope it works.Don't forget we have economic team made up of sound minds equally making imputs.We all are the cause of Nigeria problem directly or indirectly.Our greediness/selfishness has no part two.