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Nairaland Forum / Nairaland / General / Business / It’s N209 To $1 As Appetite For Dollars Falls (42606 Views)
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Re: It’s N209 To $1 As Appetite For Dollars Falls by AhmadMind: 10:37pm On Aug 03, 2015 |
2 Likes |
Re: It’s N209 To $1 As Appetite For Dollars Falls by bigfrancis21: 10:45pm On Aug 03, 2015 |
Antiparticle: In a way, I applaud the initiative taken by Emefiele to have Nigerian banks reject dollar payment into bank accounts. This would create excess supply of dollars in the economy and when there is excess supply over demand for dollars, according to the laws of economics, the price of dollars would fall and suppliers would be willing to sell out their dollars at cheaper prices to the few willing buyers, thus reducing the overall Dollar-Naira exchange rate. Those harbouring dollars or who moved dollars into the country in hopes to sell them at a high naira exchange rate (N240) to willing buyers will soon find out that the demand for dollars has fallen and may be forced to sell their dollars now at say N209 to $1 before it continues to fall beyond the exchange rate at which they bought it and they incur losses instead. It is quite a good idea and it has left me wondering why they had not come up with this idea sooner than now. 3 Likes |
Re: It’s N209 To $1 As Appetite For Dollars Falls by 2sex(m): 10:45pm On Aug 03, 2015 |
Temysteve:bros na me ooo. no vex. na wetin i see i post abi na me get newspaper ni? I have stopped buy things cos of this exchange rate. I am a PMB supporter to the core.... my only problem with him now is the area of appointments which constitute majorly Northerner . |
Re: It’s N209 To $1 As Appetite For Dollars Falls by mavinc4u(f): 10:45pm On Aug 03, 2015 |
Jackie555: Are they? You never cee chon chin. When they know people would decide to take that route since they Can't deposit. Is all about the law of diminishing returns. |
Re: It’s N209 To $1 As Appetite For Dollars Falls by AhmadMind: 10:47pm On Aug 03, 2015 |
[size=16pt]Thank you brother ..... Decode Decode Decode!![/size] [size=28pt]The buy and sell on parallel market DOES NOT AFFECT THE FOREX RESERVES!![/size] [size=18pt]#Commonsense...... If every nigerian went online and started purchaching goods at CBN rate... How will CBN meet the obligation to convert at 199=$1?? It will put so much pressure on the Forex Reserves..... The buy and sell on parallel market DOES NOT AFFECT THE FOREX RESERVES!![/size] mavinc4u: 2 Likes |
Re: It’s N209 To $1 As Appetite For Dollars Falls by cabaliciouscabal: 10:48pm On Aug 03, 2015 |
PDP Rouges will be d most disappointed creature in d whole wide world, all d monies dey av embezzled will turn to toilet rolls in dia very eyes, carry go Baba go slow as u ar fondly called by d Wailers, d end will justify d means. We love u PMB. Pls does anybody knows Weda Bode George is still in Nigeria or has gone on exile, as Boasted. 1 Like |
Re: It’s N209 To $1 As Appetite For Dollars Falls by darelar(m): 10:48pm On Aug 03, 2015 |
Gradually we are getting there. Nigeria is going to be great by the grace of Almighty God. |
Re: It’s N209 To $1 As Appetite For Dollars Falls by AhmadMind: 10:52pm On Aug 03, 2015 |
[size=18pt]KEEP DREAMING..... WHEN IN YOUR RIGHT MIND WILL DOLLARS BECOME T-PAPER..... OLUKU IS IT MERELY POLITICIANS THAT MOVE DOLLARS IF YOU HAVE O DEALING WITH DOLLARS GO TO YOUR VILLAGE AND STOPP WASTING UR TIMEE ONLINE.... DO SOMETHING TANGIBLE WITH LIFE[/size] cabaliciouscabal: 1 Like |
Re: It’s N209 To $1 As Appetite For Dollars Falls by Eyop: 10:53pm On Aug 03, 2015 |
AhmadMind: |
Re: It’s N209 To $1 As Appetite For Dollars Falls by Nobody: 10:57pm On Aug 03, 2015 |
bettercreature: I sold 230 today, don't u see u were d screwed one |
Re: It’s N209 To $1 As Appetite For Dollars Falls by MyMouth(m): 11:04pm On Aug 03, 2015 |
JustCalMeDBoss:But if the naira falls, it pmb abi? Silly Igbo bigot! 1 Like |
Re: It’s N209 To $1 As Appetite For Dollars Falls by NovusHomo(m): 11:11pm On Aug 03, 2015 |
“You cannot go to the United States where the dollar is spent and try to pay pound sterling into an account, because you will be arrested. Neither can you go into the United States and carry Euros into that economy and tell them to pay it into an account for you; you will be arrested. Hmm... |
Re: It’s N209 To $1 As Appetite For Dollars Falls by NovusHomo(m): 11:12pm On Aug 03, 2015 |
“You cannot go to the United States where the dollar is spent and try to pay pound sterling into an account, because you will be arrested. Neither can you go into the United States and carry Euros into that economy and tell them to pay it into an account for you; you will be arrested. |
Re: It’s N209 To $1 As Appetite For Dollars Falls by NaLaugh: 11:16pm On Aug 03, 2015 |
ozo13: What you're looking at online is the official rate, and that has barely made any changes beyond a few Kobos +/- over many months. All these reports you keep seeing on Nairaland are unofficial "street" prices AKA the mallams etc. I think it's just a lot of noise over nothing. Except of course for those in Nigeria who have to make payments in USD, and are forced to buy from the streets. As far as the larger economy goes, those "mallam rates," do not give any insight as to the strength or the weakness of the Naira. It's fluctuation is simply the effect of arbitrage games played by the mallams and other interested parties. 3 Likes |
Re: It’s N209 To $1 As Appetite For Dollars Falls by Antiparticle(m): 11:25pm On Aug 03, 2015 |
Chei, why you finish me like this na? And why all the abusive words? Why is your commentary so angry Anyways, while I agree with your statement that Emefiele likely used the word "arrested" purely for emotive reasons, it is still very unprofessional and cringeworthy of someone of this role. Someone who is responsible for the monetary policy of a large country as Nigeria should always try to avoid blatantly false statements because the markets are very sensitive to his utterances. Also, some people will mistakenly believe falsity that comes out of his mouth, regardless of his emotive intentions. False statements by Emefiele can have catastrophic consequences to investor confidence in our economy, which could further erode the Naira; this is fact. Have a good night. Chinom: 5 Likes |
Re: It’s N209 To $1 As Appetite For Dollars Falls by Antiparticle(m): 11:31pm On Aug 03, 2015 |
Your commentary makes so much sense. The article did say that it was the banks (not CBN) that independently made this decision on their own though. I also think, however, that if the economy does not improve fast enough then the Naira will eventually drop further. Iran is likely to start pumping oil again which may lead to a further drop in international oil prices; this would reduce our FX earnings further. Cheers. bigfrancis21: |
Re: It’s N209 To $1 As Appetite For Dollars Falls by Nobody: 11:32pm On Aug 03, 2015 |
This thread is not a propaganda at all.
|
Re: It’s N209 To $1 As Appetite For Dollars Falls by SangoCrusader: 11:41pm On Aug 03, 2015 |
Antiparticle: Please tell them o. All these people rejoicing, this is a temporary fix and the naira will certainly fall again. All Emefiele has succeeded in doing is putting lipstick on a pig... |
Re: It’s N209 To $1 As Appetite For Dollars Falls by Faraidi(m): 11:44pm On Aug 03, 2015 |
vicadex07:shut ur dirty mouth idiot,do u know the so called refinery was started durning his time? How did he distroyed the ecomony? Dollar was very low durning his time even the 209 he left it was the highest. Conpare to now! |
Re: It’s N209 To $1 As Appetite For Dollars Falls by SangoCrusader: 11:45pm On Aug 03, 2015 |
Chinom: "Close all domicillary accounts..." it is obvious that you are broke and most likely uneducated. Person wey get $£€ for account no fit yan like vulcanizer... 4 Likes |
Re: It’s N209 To $1 As Appetite For Dollars Falls by 19naia(m): 11:45pm On Aug 03, 2015 |
Where is this headed? Where will it end up? Nigerias economy is not yet stable, It is moving ,but a good resounding history and reputation is not there for faith to be built upon...Yet.. So the dollar is still very much an interest and demand for those in Nigeria who benefit from its stability. Trade to places within africa and beyond will enjoy the $ as the preferred currency. The banks have rejected $ and not the people who have it. It is still in demand, it is just being stiffled along usual transaction routes. Its only a matter of time before other avenues open up via the creative black market to have the dollar work for the people interested in it. corruption around the dollar can increase now as people try to find other ways, because the Naira economy has not yet proved it. $ still remains a very good internationl trade currency even for Nigeria government and its oil trade. So its just self deceit to play banking games with the dollar as if it will not choke some of the faith in international trade with Nigeria. Who wants to risk taking Naira to hold internationally for import and exports? No reputation to show Naira will be worth its value by the time the next ship of goods comes to port 30 days from now.. The $ has that reputation well established. People will bring $ to Nigeria to buy goods to take out, and people will take dollars from Nigeria to bring goods back in return, The truth is that it has nothng to do with the currencies banking practices, but has everything to do with the trade of goods. This bank move will stilfle the flow of the economy and bite back at the naira value and faith in it. My prediction is this will have a temporary reversal and slowing effect, but a more gradual and tame fall of the Naira will return soon and as long as the fall is gradual, the naira may still fall comfortably to below 250 per $ over a period of a few years. The other thing that could happen is a market crash or economic complications of other sorts like Nigeria so skillfully manages to dig up often. The only thing that can make room for the Naira is if the US economy crashes again, but that is likely to ripple across the world again and eventually reach nigeria and bring the Naira down to par. If chinas economy crashes first, it is hard to say, china may move into desperate over drive and flood the world with even cheaper bargains than usual just to get a better flow of income and pull itself out. The world will not be easy to resist cheaper deals from china. If USA decides to just leave china and bring jobs back home to boost economy at home, that can boost the dollar and hurt China and even the Naira comparison image. But USA politics is addicted to the richest people and those richest people are addicted to Cheap china labour. Favour still goes to china from USA. Naira is not fighting the dollar, Not even standing in the ring with the dollar. People are just comparing by the dollar. The nairas fight is truly within Nigeria and the market culture of productivity and better business practices. Even within Nigeria economy alone, Naira is struggling to be stable. International comparison and currency trade manipulations are hardly a real grasp on control over the Nairas real problem. 3 Likes |
Re: It’s N209 To $1 As Appetite For Dollars Falls by Nobody: 11:48pm On Aug 03, 2015 |
Sounds fair enough but there should be the option to collect your funds as dollars, so you can change it to Naira in black market if it would fetch you more money (Naira)... Chinom: |
Re: It’s N209 To $1 As Appetite For Dollars Falls by SangoCrusader: 11:48pm On Aug 03, 2015 |
AskProf: I'm sure you also believe in the tooth fairy @Askprof |
Re: It’s N209 To $1 As Appetite For Dollars Falls by jjman2322: 11:48pm On Aug 03, 2015 |
I see there arent a lot of business men here or company owners.. Let me explain how things work before you keep applauding the CBN: #1. In the USA, you dont need to deposit in other currencies because you can WIRE OUT YOUR USD to any country and they will convert it to their local currency. What this means is that if im in USA, I have $50,000 USD in my account, i Can send that money to Japan, China, europe, etc.. This is not Possible with our NGN.. You can't wire Naira outside Nigeria without converting it first.. So the CBN governor is a donkey for comparing both countries. Our currency is useless outside Nigeria. Some of you that have traveled out know you can't convert naira in UK, USA, China, however my dollars are good all over the world. #2. This policy will lead to more unemployment. Lots of companies buy spare parts, machines from China, India.. Let me give you an example. Say i need a new part for my machine, I get quoted $5,000 USD by a company in China.. The quickest most reliable way to pay them is to buy black market and deposit the cash in my DOM ACCT, then wire it off, and in 2 days they have shipped my part. With the new policy changes, there is no easy way to pay for these parts.. LC's and Bill for collections are taking 3-4 months since the CBN does not have enough dollars for importers and manufacturers.. Let me explain in simpler terms: If you wish to import raw material for production (which 100% of nigerian manufacturers do,(from plastic, to pharma, etc), then you have two ways of paying for the raw material: LC = Letter of credit, which basically means the bank in Nigeria debits your account, then once the shipper ships he gets the funds.. Last year and two, LC's were getting approved in 1-2 weeks. Now it is taking 3-4 months, so many manufacturers now source black market funds to pay for raw materials. Bill for collection basically means the shipper ships on credit and you submit the paperwork to the bank for payment. CBN usually approved the funds in 1-2 weeks, the last bill for collection submitted by my company took 4 months for approval. If it were not for black market we would have stopped production and had to lay off people. Many of you aren't into business and you don't understand what is going on. Let me explain in simple terms. What this simply means is that lets assume you have N5,000,000 and you want to go tour around and have fun in Europe: Back then, you could convert your Naira into dollar, pay into dom acct, then travel and have fun. Now the only OPTION is Naira card which now thanks to CBN has daily ATM limit of $300/USD per day, and maximum $50,000 per year spend per customer. For the average poor person who never crosses the border, this doesnt affect them. However, many Nigerians need to access more than $300/day and $50,000/year. Also, lets assume you want to buy a new car for your child in USA. Value of car = $20,000. Back then you go to mallam, buy $20,000 USD, send it to your child ($10,000 per day CBN LIMIT) and in 2 days your child buys the car. Now with the new rule your child better get used to taking the bus. What the CBN effectively did is prevent many law abiding Nigeria from remitting funds abroad. Its kinda like banning driving at night because armed robbers operate at night. For the average person , this policy is meaningless. For the rest of us business men who source parts, products abroad, we are in for hard times. Goodluck all 12 Likes |
Re: It’s N209 To $1 As Appetite For Dollars Falls by SangoCrusader: 11:52pm On Aug 03, 2015 |
Chinom: I'm in Great Britain, lived here 14 years and I hold three accounts in GBP, EUR and USD. All with HSBC. @Chinom Do you have any more trite to publish tonight? 1 Like |
Re: It’s N209 To $1 As Appetite For Dollars Falls by Antiparticle(m): 11:56pm On Aug 03, 2015 |
Indeed! Lipstick on a pig is the right phrase. Plus, this temporary fix doesn't affect the value of the Naira on the open market anyways; it may only bring its black market value to par with the open FX market value. But eventually the Naira's value on the open market may drop further once Iran starts selling oil again and/or if our economy doesn't improve fast enough; the black market value will follow such drop. It does shock me though how clueless and careless with words Emefiele sounds. I had thought he was better than this. SangoCrusader: |
Re: It’s N209 To $1 As Appetite For Dollars Falls by vicadex07(m): 11:56pm On Aug 03, 2015 |
brainless buffoon. Continue licking the asss of that balless otueke kleptomaniac. Faraidi: |
Re: It’s N209 To $1 As Appetite For Dollars Falls by Antiparticle(m): 11:59pm On Aug 03, 2015 |
Haha, lol exactly. Closing all domicilliary accounts will likely crash our economy further as it would make it difficult for companies and individuals to do business internationally. The @Chinom poster is most likely uneducated, he/she sounds like a stooge of Emefiele. SangoCrusader: |
Re: It’s N209 To $1 As Appetite For Dollars Falls by Antiparticle(m): 12:01am On Aug 04, 2015 |
@jjman2322 you make so much sense!!!! You just restored my sanity. |
Re: It’s N209 To $1 As Appetite For Dollars Falls by captain247: 12:07am On Aug 04, 2015 |
[quote author=CR77 post=36574702]As at today, dollars sell at 230 naira per dollar.[/quotequote I beg na were b that I get like $5000 to change n more. |
Re: It’s N209 To $1 As Appetite For Dollars Falls by Image123(m): 12:09am On Aug 04, 2015 |
Ogas jjman2322 and Antiparticle, don't Mastercards, Verve cards and other ATM cards pay for transaction from naira accounts? |
Re: It’s N209 To $1 As Appetite For Dollars Falls by Temysteve(m): 12:13am On Aug 04, 2015 |
2sex:better. We can't start criticising him 4 dat now nd @ d same time we can't call it racism. Let's just wait nd see d reason y he choose to appoint notherners only |
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