₦airaland Forum

Endlesslove33:
50bn for vehicle of house of representative
Pmb is sad abt it

musicwriter:
Here is the question I have whenever you people bring up this argument:-

Is dollar transaction restriction the only way the CBN can raise dollars?. Is dollar transaction restriction the only way the CBN can encourage dollar inflow into Nigeria?

Aren't there other avenues, like making policies that will encourage dollar inflow into the country?.

Paypal for example; only allow Nigerians to "send" money through their service, but doesn't allow us "receive" in return. Therefore, everyday Nigerians wire millions of dollars overseas via PayPal, but have no way to bring back same to our country.

What is preventing the CBN from getting PayPal to immediately allow Nigerians start receiving money?.

This is just one example out of many of how the CBN can encourage dollar inflows into Nigeria.

Bevista:
I understand your skepticism. But according to PMB during the budget presentation to NASS, government Fiscal Policies and CBN Monetary Policies are perfectly aligned. We will need to watch these policies evolve before making an informed opinion. I would prefer if they talked more about their policies and explained where they are going and what they are going to achieve, as this would help gear up investors. Investors do not like uncertainty.
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The CBN is adopting an expansive monetary policy. They have reduced MPR and also reduced CRR for public sector deposits. In an ideal world, this should lead to re-pricing down of loan interest rates as well availability of more funds for loans. But the transmission mechanism of Central Bank policies are not always perfect. Even in the US and Europe, while they adopted QE, most banks were not loaning all that excess money out. Since they are the ones bearing the risk, they are always concerned about the health of the economy and the capacity of creditors to pay back.
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In theory, the CBN monetary policies are appropriate, but they need to monitor to ensure a proper transmission mechanism of the effects to the real economy.

Bevista:
Quite frankly, they should not be the priority, especially for a growing economy like ours. What we really need are those that will invest in the REAL economy with the opportunity for job creation, import substitution, exports and tax revenue for government.

Activa:
Thanks.

Do we really need more of them or real FDI?

Bevista:
There are a combination of factors responsible for the pull out:
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(1) As an investor who has money in a country that is largely dependent on oil, you are aware that the economy and the currency will be largely influence by the price of oil in the international market. With lower oil prices, the CBN might be constrained to devalue the naira to protect Foregin Reserves. This move will devalue their investment so it's best to pull out now before the inevitable finally happens. It's not only Nigeria, even the Canadian Dollar is being hammered right now. Most oil dependent countries are having their currencies devalued.
(2) Also, with lower oil prices, the country will have less wealth and so very little disposable income to invest in the stock market to push prices up. Infact, most investors might start selling their shares to meet basic needs which will might cause a selling frenzy. So as an International investor, it's best to leave now.
(3) There is also the tight FX Controls that the CBN is currently implementing which is making the foreign investors very weary. They are not sure if they need to repatriate their tomorrow, whether will be able to access dollars, so they better leave now while they still can.
(4) You have to also look at what is happening in the US. The FED has increased its interest rate for the first time in 10 years with opportunities for further increase in the coming quarters. This makes the US a relatively better investment destination, so International Funds are flowing out of emerging markets like Nigeria to the US.

Activa:
How can you describe holders of hot money in the capital market as foreign investors?

See the way you even linked reserve to the pull-out. Na wa o

Guy, you're going too deep into what you don't know.

Activa:
You said it's 100% allowed for people to pay cash dollar into their dom accts.

I gave you an evidence that deposit of dollar cash into dom accts is not allowed.

You posted a totally unrelated link of the ban on debit cards.

I can now see that you don't have a good understanding of the topic you started.

Bevista:
The CBN is concerned about the NET inflow through the Foreign Reserves Account. If the demand exceeds inflow and they continue to meet all demand, then the Foreign Reserve will continue to decline.
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Foreign Investors and International Merchants watch these Foreign Reserves like hawks. Once they feel that it has gotten uncomfortably low, they will refuse to do business with Nigeria because they will be worried about our capacity to meet up payment obligations. It is for this reason that the CBN tries to control the outflow from this Reserves to ensure that we still have enough to meet the most essential items like Fuel imports for a few months.

EternalTruths:
Nigeria is having difficult in selling their oil

This approach is a short term solution that is good but will backfire on the long run if Buhari fails to enthrone True Federalism.

So comrade

They are right on the short term

Activa:
Be careful not to misinform people.

If it's 100% allowed, then explain this:

https://www.thecable.ng/just-cbn-bans-deposits-dom-accounts

Activa:
What cbn holds is public knowledge. Our external reserve is less than $30b

If you continue to spend it without additions to it, it will finish and you won't be able to import anything again.

There's nothing like 'a whole cbn'. Cbn doesn't manufacture dollars.

Activa:
Are you sure this is allowed?

Activa:
You didn't answer his question.

Where will cbn get the dollars to PUMP into the market?

fulanimafia:
It is a serious challenge, over here in England we are resorting to Nigerian business owners that need Naira paid into their accounts at home in exchange for pounds, and the rates are quite competitive. The issue is the sustainability of such a measure over time.

datola:
You said CBN should pump dollar into the economy. Where is the money? Our place reserves is dwindling by the day.

Can't we do without these foreign tastes for now?

Jazzlite:
hmmm religion of peace indeed

Kirinwa:
Oga there's no need to engage someone in what you know to be true. Over the years in this thread, some advocate for price action(technical), some advocate for News(fundamental) while Profesional traders would tell you to combine both news and price action.

Trying to convince a core technical trader to believe in news is like trying to convince an atheist to believe in God or a diehard Manchester United fan to join Chelsea.

MrDojo:
Actually bro.....any evidence obtianed illegally becomes null........ If they dnt ave a credible source for the intel its useless in a law court..........

liberty300:
lol, Don't mind those fools. My friend made 64million a few months a ago from game stores and he's expect to make x2 of that amount by December.

Onitsha men make a minimum of 600k a day...go there and see bankers sitting in their shops with machine counters and safes inside the market

Even e-money that everyone knows is 35 years

Op that list should be "youngest lagos flexing men"

talktrue1:
Why won't it surge when the retired ones are called back to occupy the positions they retired from

Valendo:
Don't say what you don't know. The decision of the govt to fix the naira against the dollar was wrong and counterproductive. Nigeria is a mono product economy. Our major export is crude oil which is not even a refined product. You can only do this when your value of export is at per with the value of import. Virtually everything is wrong with this country and the better way out is true federalism. Let's be sincere with ourselves, this man seems to be confused. You don't rule like a dictator in a democratic system.

Acidosis:
3 people that will inevitably suffer the wrath of God are;


1. Media shops that have vowed to hide the truth always

2. The suffering and smiling sai baba crew

3. The clueless leaders.

Validated:
What does fixed Naira mean to the man with five children and no job?
What does a fixed Naira contribute to a farmer that needs fertilizers and implement, most of which are imported?
How does fixing Naira help the importation cost of critical raw materials for ailing industries?
Are you aware that some of the economic indices have gone SOUTHWARDS due to these archaic policies?
Have you quantified the implecation of importing refined products as we fixed our Naira?

in a free economy, you do not need to fix exchange rates. Have you thought of fixing stock prices on the NSE to avoid stock from depreciation? This measure is crude and not sustainable. At the rate things are going, you would soon find out that this economy havecrept into recession with it associated hyper and galloping inflation.

Validated:
Insanity is doing same thing all over and expect positive change. Why are you deceiving yourselves (FG & CBN).

Take a scenario: Assume you produce bread and FIX the price at N100. However, your buyers say they can only pay N75. How long are you going to hold on That is where we are in Nigeria today. Someone FIXED Dollar at N197 but the market is selling it at N241 a gap of 44% or 22% gap.
It is only a foolish economist that would tell you that there is no problem with this.

Validated:
At this rate, Naira on free fall, falling oil prices, inability to sell oil, Biafra agitation, Boko Haram moves, Governors inability to pay salaries, etc. I am sure that someone would soon call for CONFAB report. Except we continue to deceive ourselves, Nigeria's future lies ONLY on the CONFAB report. Whether we continue to massage the or masturbate around, the problem of structural imbalance will continue until we wake up.

The saying goes thus, "No matter how long you have travelled on the wrong road, the only way you can get to your destination is to stop and return to the right road". Nigeria has been travelling the wrong road in the past 55 years, the earlier we receive common sense and reverse our folly, the better.

palladin:
Read something different here on NL.



So who is telling lies.

ephemm:
saw something different on FP of NL yesterday

https://www.nairaland.com/2756549/over-400000-jobs-created-3rd

OK no argument - make Sango and amadioha join hand together to fire the person wey dey lie

No time for nonsense