₦airaland Forum

4Play:
Your premises are flawed and miss the substance of my posts. The government does not have to provide the forex as the market can adequately provide forex. The key difference is that the market will provide it at a price higher than N199 to the dollar which will reflect the true exchange rate value.

You may say that this may cause hardship for Nigerians but Nigerians are already experiencing hardship due to the hamfisted attempt to provide dollars at a fraction of its true value. Scarcity is the inevitable consequence of price fixing below the market value - hence fuel scarcity and dollar scarcity. Indeed, if you go back to the first Buhari government - we had scarcity of many goods as the government sought to fix the price of things like sugar.

One thing I have also noted in my previous posts is that the fixed exchange regime accelerates the Naira's depreciation as I noted here:#

GworoChewinMaga:
We must as a matter of urgency balance our deficit trade balance.

We export only crude and raw materials and in return basically everything else.

For us to begin to be a net exporter we must reduce our net imports.

The truth is that Nigerians do not deserve the life style they are living.

You basically produce nothing and depend on oil revenues shared through your corrupt governors to remain in existence.

The Nigerian policy is tantamount to a yeast culture where you consume and reproduce without recourse to the limited resources at your disposal and just like all yeast cultures when the food source is completely consumed, the culture dies out.

Nigerians should begin to wean themselves off the over dependence on free oyel money and this is why I am a staunch advocate in promoting cocoa and grounding plantations in the sw and North alongside any other cash crops you can scratch off your lands.

It's time to get back to work.

GworoChewinMaga:
Maybe in your niggeria utopia called nijeriya.

This is why I want Nigeria to split so all you lazy free loaders can continue your nigga life under your niggeria.

GworoChewinMaga:
Must you continue to import?

Devaluation will make our market look inwards and provide much needed foriegn investments.

This is how China, Korea and Japan developed.

We must begin to look inwards.

Even if we have 2 trillion dollars in reserves it will dry up sooner or later since we import everything including the kitchen sink.

989900:
Egypt's war on black market currency traders is not going to plan. One month after a devaluation that was supposed to ease an acute dollar shortage in the banking system, clandestine business is booming in cafes, shops and flats.

The central bank, which hoped the 13 percent devaluation would relieve downward pressure on the Egyptian pound, has cracked down on exchange bureaux trading far outside its set range.

And yet the gap between the official and black market rates, which briefly narrowed with the devaluation, is now wider than ever, with dealers buying and selling dollars for 20 percent or more above the official rate of 8.78 pounds.

Traders say the crackdown has only exacerbated the crisis. People with dollars are shunning the official financial system, starving it of foreign currency. This is putting yet more pressure on the pound, with potentially dire consequences for inflation, investors' confidence and economic growth.

"No one sells dollars to the banks any more. They all prefer to go to the black market which will pay them more," said one banker who asked to remain anonymous. "The dollars don't come into the banking system any more and the central bank's dollar reserves are not enough to support the country's import needs."

Egypt has struggled to restore growth since the 2011 uprising that toppled President Hosni Mubarak scared away tourists and foreign investors - vital sources of the foreign currency it needs to import everything from fuel to food.

Eradicating the black market is essential to restoring investors' confidence, easing the risk that the pound's volatility will erase their profits.

Already, foreign investors are struggling to repatriate earnings because the central bank's reserves have more than halved since 2011 to about $16.5 billion in March. This has made it hard for them to convert pound earnings into foreign currency through the banking system.

Even before last month's devaluation, which was accompanied by the launch of financial instruments aimed at attracting hard currency to the banks, the central bank had resorted to legal force. In February, it revoked the licenses of four exchange companies with 27 offices.

Since then, the expected influx of dollars has failed to materialize and this month it referred 15 more exchange firms to public prosecutors. Then on Wednesday the central bank said it had revoked the licenses of nine more companies for manipulating prices of dollars in the parallel market.

REPEATED OFFENCES

"The decision ... comes after repeated offences by these companies which distorted the exchange market and has harmed the national economy," said Gamal Negm, deputy central bank governor, in remarks published by the state news agency MENA.

Negm added that the bank is working on a new law that could raise the punishment for violators to a prison sentence.

Bankers say the clampdown has backfired because as it became riskier to deal on the black market, the dollar strengthened against the pound and people began hoarding foreign currency to speculate on the rate. This pushed the U.S. currency yet higher, and the pound hit a record low of 11.50 to the dollar this week.

"Traders are speculating on the dollar and those who need dollars for imports can't find the dollars and must buy them from traders and speculators, so the black market rate is putting the Egyptian economy in a tight spot," said Ziad Waleed, an economist at Beltone Financial.

Any further official devaluation would threaten to fuel inflation, a politically explosive development in a country where millions live in poverty. That leaves the central bank with few weapons in its arsenal.

One trader described the situation as a standoff, saying that while the central bank is trying to punish black market dealers, it does not have the resources to fight them.

"We will secure ourselves and we will continue to work and we will do it carefully, as if we were dealing in drugs. We will hoard the dollars and we won't sell. Where will the central bank get dollars from?" he said.

EASY EVASION

Just a few blocks away from one Cairo exchange bureau, a trader sipped coffee at a downtown cafe as he closed deals over the telephone away from the prying eyes of the authorities.

"Do you have riyals?" he asked another trader, quoting the black market rate for the Saudi currency. "I will take all of it."

This is one example of how easily traders are adapting to tighter oversight.

They quote official rates at the exchange bureaux, which are closely monitored, without making any deals. Business is then done at cafes or elsewhere at black market rates, dealers said.

Outside the bureaux, young men puff on cigarettes and whisper to customers: "Dollars? Euros?"

"No one buys or sells at the official rate, so as soon as the customer leaves there are guys standing outside to catch them and deal with the unofficial rates," said another exchange bureau manager in downtown Cairo.

It should be easy to clamp down on these men, but traders say agents of the Interior Ministry's General Department of Public Funds Crime Investigation Unit, which is responsible for tackling illegal trading outside the bureaux, are easily bribed.

Reuters spoke to 10 traders who either work, own, or collaborate with exchange bureaux and all said that their operations run smoothly thanks to bribes and favors that are given to Public Funds forces and central bank employees.

"It does not put a dent in profits," said one exchange bureau worker, adding that a single branch of the company he works for makes around 6 million Egyptian pounds ($675,680 at the official rate or about $522,000 on the black market) in profit each month on black market trades alone.

The Interior Ministry spokesman did not respond to requests for comment and officials at the central bank, which does not have a spokesman, were not available for comment.

Exchange bureaus are licensed to operate with a certain amount of funds but most have offices or apartments where business is carried out off the books.

"If they close the exchange bureaux we will continue to work from the streets and this way the dollar price will reach 13 or 15 pounds per dollar," one trader said.

LUGGAGE SHOPS AND CARS

President Abdel Fattah al-Sisi has made economic revival a priority but is also mindful of protecting the poor, with his government slowing cuts to subsidies which keep down some food and fuel prices but burden the budget.

If the central bank is forced into repeated devaluations to keep up with the black market, this would be a nightmare for authorities trying to stabilize the economy.

But so is the current situation, where the public sector functions at an official exchange rate wholly disconnected from the rest of the economy which has to deal on the black market.

Black market activity is fast and efficient.

In Cairo, a luggage store manager took 20,000 pounds from his wooden desk in return for $2,000, a deal made with a customer who had been turned down at the exchange bureau next door. The operation took under a minute.

One trader showed Reuters a car he uses to transfer funds to clients in rubbish bags hidden in the boot. "The largest amount this car carried is the equivalent of 11 million Egyptian pounds," he said proudly.

http://www.reuters.com/article/us-egypt-dollars-blackmarket-idUSKCN0XI1W9

@Modath: Pls. summarize for them you know who.

neolboy:
Former president, Goodluck Jonathan yesterday touched on some of the legacies of his administration while speaking to Friends of Africa Coalition on “Strengthening Democracy and Elections” at the mayor’s office in Newark, New Jersey, United States.

Speaking to the elite group, Jonathan said the 2015 general elections in Nigeria had potential for major crisis and that the campaigns leading to the elections almost polarised the country into Christian v Muslims and North v South divide.

The former president said that most world leaders were worried that the elections would result into major crisis.

“Some pundits even from here in the United States said that those elections would spell the end of Nigeria and that we would cease to exist as a nation because of the polls. That is where the leadership question comes into play.

“As a leader that was duly elected by the people, I considered the people’s interest first. How do I manage my people to avoid killings and destruction of properties? With the interest of the people propelling all the decisions I took, we were able to sail through. Indeed, we sailed through because I refused to interfere with the independence of the Independent National Electoral Commission, INEC, having appointed a man I had never met in my life to run it.

“My philosophy was simple. For elections to be credible, I as a leader, must value the process more than the product of the process. And the citizens must have confidence in the electoral body,” he said.

Jonathan said his strict adherence to the rule of the law ensured that Nigeria’s peace, prosperity and progress were not derailed by the conduct and results of the 2015 elections.

Speaking on the other legacies of his administration, he said: “I am proud to say that while I took over a Nigeria that was the second largest economy in Africa with a GDP of $270.5 billion in 2009, I handed over a Nigeria that had grown to become the largest economy in Africa and the 24th largest economy in the World with a GDP of $574 billion.

“I inherited a Nigeria in which the trains were not working, and handed over a Nigeria in which citizens can safely travel by trains again.

I inherited a Nigeria that was a net importer of cement, and handed over a Nigeria that is a net exporter of cement. In 2009 the richest Nigerian was the 5th richest man in Africa, but I handed over a Nigeria that produced the richest man in Africa.

“These are but a few of the parameters that illustrate some of the economic transformations we engineered during my term in office.”

The former president said this success was made possible by the fact that there was a stable political leadership in Nigeria that did not have to pander to any other constituency except the electorate who brought him to power.

Jonathan also argued that if the process that brought leaders to power “did not flow through the people, they naturally administered their governments to first and foremost serve the constituencies that brought them to power.”

Jonathan also met with the CEO of Moskeeto Armor, Robin R. Crespo and his team as part of events leading up to the World Malaria Day on
April 25th, 2016.

Moskeeto Armor manufactures clothing to protect against malaria, the zika virus, Denue and other vector-borne diseases.

It was successfully clinically field-tested in Nigeria in 2014.

When worn by children as a standalone product, Moskeeto Armor was 90% effective at reducing the malaria infection rate, and when combined with a bed net, the Moskeeto Armor combination was 97% effective at stopping the spread of malaria.

The Goodluck Jonathan Foundation is partnering with Moskeeto Armor to protect African children against malaria and other vector-borne diseases.

“The simple principle of ‘Love your neighbour as you love yourself’ lays a foundation of commitment to protecting nations,” said Jonathan during the meeting with Moskeeto Armor.

Continuing, he said “these crises caused by such small insects, transmitting these deadly diseases, have devastated so many lives across Africa and the world, but with one just as small idea, there is hope for a better tomorrow.”


source:www.thisdaylive.com/index.php/2016/04/23/in-new-jersey-jonathan-lists-his-legacies/

obailala:
Why should the Chinese come and develop Nigeria when they still have their own home country to develop?... You are obviously the one exhibiting typical black man mentality of never wanting to do anything for ourselves but expecting others to leave their concerns to come and develop/uplift us.

Nobody developed China but the Chinese; similarly no one would develop Nigeria but the Nigerians. The Chinese are in Nigeria for business and it is left to Nigerians to use their God given brains and hands to scratch out the developmental benefits of the Chinese doing business with Nigeria. Food has never been free anywhere in the world and until the black man realises this, Africa will continue to be the dark continent.

Abagworo:
Banks should be privatised mbok but security shouldn't .

Abagworo:
An indigenous firm,
B.G Technical Limited, has opened the first Pipeline,
Pigs and Accessories Factory in West Africa.
The factory is expected to conserve and generate
foreign exchange for Nigeria especially at this period of
meagre oil revenue, as it would help provide quality
products for the maintenance of pipelines so as to
prolong life span and reduce cases of pipeline rupture
as well as leakages.
With the factory commissioned, it will bring an end to
the importation of pipeline pigging products, boost
availability of quality products and help preserve
foreign exchange earnings for both operators and the
federal government.
The commissioning of the factory in Owerri, Imo State
was performed by the Acting Executive Secretary of
Nigerian Content Development Monitoring Board
(NCDMB) who was represented by Tunde Adelana.
Adelana who is the Director, Monitoring and
Evaluation at NCDMB, said the opening of the multi-
billion Naira pipeline, pigs and accessories factory for
the production of quality pigging pipeline products is
yet another evidence and validation that the efforts of
the board is paying off in real terms in the oil and gas
industry.
He described the event as another attestation to the fact
that Nigerians can develop the required industry
capability once the enabling environment is in place
and assured that the board will continue to support
B.G Technical and other local companies in their efforts
at acquiring additional capacities.
“The opening of the factory is indeed worthy of
celebration. Looking back at the years of pre-NOGICD
Act, investors like B.G Technical would probably not be
able to compete in the area of pigging services due to
the preponderance of foreign goods and services,” he said.

http://www.thetidenewsonline.com/2016/04/18/first-pipeline-pigging-factory-opens-in-owerri/

Joel3:
most of us need to study and understand international economic and politics, some zombies are jubilating that this administration has attracted deals with Chinese government worth $6 billion dollars to develop Nigeria infrastructure and Manufacturing company to diversify the Nigeria economy.

Noted that Nigeria is one of the biggest China exporting country and the Chinese will never jeopardize with any deal that is a threat to their market.

the Chinese knows how to play this type of politics, and they will never implement any deal that has any thing to do with diversifying the Nigeria economy.

TippyTop:
Do that and we stop the oil supply. We've been feeding your people since independence.

austinsmat:
fear of icc is the begining of buhari love for igbo overnight but is to late

yang:
Zoo Navy Launches Massive genocide Operation to Steal Oil in Niger Delta

I hope ICC is watching and taking evidence of the zoo president Buhari and his Hausa/Fulani Brothers coming to people's ancestral Land and killing them in the name of One Zoo

This is what they did in Odi, This is what they did in Onitsha, Aba, Agatu

This is the Hausa/Fulani genocide army looking to take over people's ancestral Patrimony

MrPresident1:
These people are just deceiving Nigerians, smh.

We do not need IMF loans but we collected loans from China, smh.

The West is dead, economically dead, they cannot lend any loans to anybody, IMF and IBRD/WorldBank are all agents of western imperialism, they are all in the final throes of death, so Nigeria cannot borrow from them because they no get any money to give anybody.

China cannot ascend to world Lucifer, it is not written of them to do so.

Every man prepare, stand up for the real Illuminati, the real deal Lucifer is here

Jesus Christ, the Son of God is here!

Joel3:
she must be insane, when workers has not been paid, no fuel, no light. she is not speaking for Nigeria. we need that IMF loan. period.



and she call that China deal loan? the Nigeria China deal. I don't call that loan. rather the government went to China to award frivolous blind contract to Chinese.

that is not loan.


find below answer to our problem.

hmuhammad:
The Managing Director of International Monetary Fund (IMF) Christine Legarde says the state of Nigeria’s economy is critical and requires proactive monetary, fiscal and structural policies to put it on the path of growth.

The IMF position during a media conference at the IMF WD spring meetings attracted the reaction of Nigeria’s Minister of Finance Kemi Adeosun.

The Minister, said Nigeria will overcome its economic challenges without taking loan facility from the IMF.

She disclosed this in a statement issued in Abuja on Saturday. Adeosun made the observation at the ongoing Spring Meetings of the IMF-World Bank in Washington DC in response to why the government has refused to apply for IMF loans.

The statement quoted the minister as saying that Nigeria was adapting to its new realities by implementing fiscal policies to steer the country back on track for stable growth with a diversified economy.

Signed by the Special Adviser to the Minister on Media, Mr Festus Akanbi, the statement said the minister expressed optimism that sound fiscal policies and investments would boost Nigeria’s economy by 2017.

Adeosun insisted that what the country was passing through was surmountable because government was already applying a “cocktail of measures to address the problem.

“Nigeria is not sick. The real vulnerability in the Nigerian economy is over-dependence on a single source of revenue; oil.

“We have resolved to build resilience into the country’s economy to hedge against future oil shocks. This is because dependence on oil brings about vulnerability and laziness.

“So, we are doing a combination of things to diversify our economy, with revenue mobilisation to enable sufficient investment in developing the non-oil sectors.

“We have great opportunities to reset the Nigerian economy and ensure that as we go forward, growth will be in a sustainable manner so that we won’t be vulnerable to oil price fluctuations.’’

Adeosun said with a truly diversified economy the government would have enabled opportunities for wealth creation that would have flow down to every Nigerian.

She said that the compelling business case in Nigeria is that the fundamentals remain very strong, a teaming, young growing population, rich in resources and that the government of the day is determined to finally get it right.

She added that the long term investors recognise this and understand the difference between short term and long term issues and that the case for Nigeria persuades one to plan for the longer term opportunities



http://www.nta.ng/news/investment/20160416-nigeria-is-not-sick-we-dont-need-imf-loans-finance-minister-kemi-adeosun/

chukwudi44:
very funny post!! this op has zero idea about how the economy works. .The only way to help yor ecnomy is to drastically reduc importation and start your own exportation,whether you import from china or the US,your econmy will continue to suffer.

The dollar is still the reference currency in the world and everyother currency would be referenced by it

Inani:
"U.S Market Panics Over Potential Dollar Crash As Buhari Signs Currency Deal With China. Economic pundits have likened this agreement to his 1984 military regime policy when he directed the Apex Bank to cause a change in the colors of the Nigerian currency. The exercise was designed to render the money alleged to have been stolen by Nigerian political leaders useless in their hands.
In a bid not to devalue, Buhari according to experts is seeking for a way to weaken the dollar dominated currency by approving Yaun to be one of the nation’s major foreign exchange currencies."

The Punch News.

To those shouting why buhari is traveling !!!
Naira to Yuan =N30 , Naira to Dollar =N198
70% of our Imports are from China....
No more trading with US '$' Dollar, go get Yuan '¥'
and Import from China.
CHANGE is here, embrace it.. #This is nothing but the truth.

poiZon:
the one that got married was s hooling at unical, she stayed near my family house at satellite town.
I know u go talk say na foster pikin but if he could stood for her during her marriage n all those years, then he could hv send her to university abroad.
dont forget during vacation, they did use to travel outside the country.

babyfaceafrica:
Give. Is the name of the schools of all your siblings in nigeria and let us know their classmates and let us do our research...all politicians lie..either PDP and APC...your gentle look no freak me abeg!!!!

babyfaceafrica:
Give. Is the name of the schools of all your siblings in nigeria and let us know their classmates and let us do our research...all politicians lie..either PDP and APC...your gentle look no freak me abeg!!!!

EverestdeBliu:
For Fucki.ng Fuc.k's Fucki.ng sake...can't this man just keep his ass at home?

Bawsse:
Bro u nt making any sense, wats d relationship between the topic and biafra?