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Nairaland Forum / Nairaland / General / Business / The Naira In 2016: To Devalue Or Not To Devalue? (19945 Views)
Recession: EU Advises Nigeria To Devalue Naira. / EXCLUSIVE: CBN Will NOT Devalue Naira, Mulls Proposal For New Forex Window / Pls, What Does It Mean To Devalue Naira? (2) (3) (4)
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Re: The Naira In 2016: To Devalue Or Not To Devalue? by Xerum(m): 4:58pm On Feb 20, 2016 |
LRNZH You just surmarised a large part of my epistle in less than 10 paragraphs. Nice one! |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by LRNZH(m): 5:00pm On Feb 20, 2016 |
paschu: I agree with you and understand how Wikipedia works. If you followed my discussion with the gentleman, I defered to him where he claims to have a slightly different experience with black market exchange rates. Moreover, his is a single data point which is dependent on where he accessed the black market and when exactly. Rates quoted in these referneces I cite for a single year would be an average for the whole year. For the black market, how do you even arrive at representative average from Kano to Abuja to Lagos to Port Harcourt? It is not straightforward, but at the same time doesn't weaken my arguments in the OP. |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by dancewith: 5:13pm On Feb 20, 2016 |
Much of what is happening now is a direct product of the insane policies of the present administration. It is an aberration that whenever they do things that worsens whatever is bad already, they readily resort to blaming the previous govt for the result We are talking about serious disparity in exchange rate. Someone asked: How did we get to here?. To answer this, consider that the issue of stanking oil prices has been hugely addressed by the govt restrictions on several access to foreign exchange, making it almost impossible to have any significant supply of dollars, hence the resulting galloping dollar rates to the naira Dollar sales to BDCS has also ceased as is access to foreign exchange even for legitimate demands like PTA/BTA and LCs. One would have expected that these restrictions easily cushioned the impact of the price fall in oil So since supply of dollar is low, prices would inevitably rise. This isn't advanced maths. How does the government address this and what is their economic focus? The answer is somewhere in their reactions. The present government has done almost no projects or awarded any contract. Meaning whatever revenue they derive is mostly unspent aside recurrent expenditures. Their next moves shows just how lost they are The Buhari government, clearly with policies to restrict import, obviously should be targeting increased export. But an exporter that gets paid in foreign exchange, which would have been the offsetting balance to dollar demand, is forced to sell the export proceeds to the already rich commercial banks, and you guessed it, at the ridiculous official exchange rate of N197!. So if an exporter sells Koso woods to a chinese company and receives $100k, he is forced to sell the dollars to the commercial bank that received it at N197 rather than sell it at the open market and make more income. This has made many exporters and potential exporters abandon the effort as doing so would be unprofitable and punitive If this isn't the most insane way to encourage export then nothing is. It clearly shows the govt actually isn't even focusing on boosting export. For me, the high exchange rate represent a golden opportunity for Nigerians to enter the bush, farms, factories etc to source for export products and not only revitalize the economy but diversify it If this doesn't show how lost this government is, nothing else will. I do not support devaluation simply because once you do, the parallel market would simply move ahead and the disparity continues. The solution is in export The only way to bridge the gap is to boost supply of foreign exchange. This happened sometime last year when the greenback traded for N196 before the electioneering gimmicks intervened to drive it up |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by ahmedjika: 5:18pm On Feb 20, 2016 |
my problem with nairalanders they don't go beyond local news |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by LRNZH(m): 5:27pm On Feb 20, 2016 |
ahmedjika: How do you mean? |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by cckris: 5:44pm On Feb 20, 2016 |
azikiweironsi:There's time to show class. There's time to show them pepper for not liking you. |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by cckris: 5:46pm On Feb 20, 2016 |
ahmedjika:Majority here are below 30. How do you expect them to have depth? |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by bodee(m): 6:16pm On Feb 20, 2016 |
Emekamex: |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by onatisi(m): 6:24pm On Feb 20, 2016 |
cckris:Boss in fact the matta taya me!!!! I really weep for my fellow Nigerians. |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by Lito18: 7:19pm On Feb 20, 2016 |
LRNZH:Next time make your story short and concise. No one has the luxury of time to read this length of an article. |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by LRNZH(m): 7:24pm On Feb 20, 2016 |
Lito18: I wish it was easy to do that and still get the message across. I'd like to see a demonstration from you or someone else. Thanks for the feedback though. |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by boookworm: 7:50pm On Feb 20, 2016 |
[color=#006600][/color] Naira not to devalue, the odd is 58.12 |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by LRNZH(m): 9:11pm On Feb 20, 2016 |
andy24: You are welcome. |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by Rajjah(f): 7:13am On Feb 21, 2016 |
LRNZH:well am against devaluation because if that is allowed hmmmmm, dis country might collapse. Imagine a state in which you empty your pocket to consume few unit of commodity. It wont be funny. Again its we the masses that will suffer more. I stand with the President if he refuses for further devaluation. |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by swagifted(m): 9:25am On Feb 21, 2016 |
praxisnetworks:I swear, d feeling is mutual fam, am an economist as well...why do people hate to see things from our perspective vis a vis the economic woes... 1 Like |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by swagifted(m): 9:47am On Feb 21, 2016 |
If one day $1 equal 1naira, do you know what the implication will be, nobody will patronise nigerian goods and services, imagine buying an iphone from US (or any online store) plus shipping for $850( 850naira)....or buying a car of $20,000 for 20,000....and foreign investors coming with dollars will be disappointed with the rates...people will probably order dia meals from U,S as well. |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by LRNZH(m): 1:28pm On Feb 21, 2016 |
swagifted: What is your perspective if I may ask? |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by swagifted(m): 1:55pm On Feb 21, 2016 |
LRNZH:I believe the rate of dollar is actually frustrating importing flow (which Is good for local manufacturers)...the rich that like patronising foreign goods and services will have to channel it to local goods and services (make the gap between dem and d poor reduce)...and also the rate is enticing to foreign firms to invest in nigeria, the current oil shambles is an eye opener, u can't depend on it all the time. And to our brothers earning in dollars...well...na dem d tin de sweet .pass.. Currently d only people worth emulating now is the chinese, dia work rate is too fast, (why?..population)...and dia war on corruption is not a joking sturvs(you see why EFCC/ICPC need to continue dis war , just to reduce blackmail ,it should not be biased...dat have bin efcc's wahala since nuhu ribadu left). And we like benchmarking us with america as if we are mates, we must create our own benchmark and work with it, it will be hard, but we must chew the bitter kola dat we have bin planting since d oil boom, until d agrarian sector begin to bear sweet fruits again. It took a lot of years for us to damage d system to dis extent, it will take more to fix it. *drops mic for now* |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by ekeneidiagbor: 6:22pm On Feb 21, 2016 |
Emekamex: but that is exactly what the CBN is hoping to achieve with her forex policy |
Re: The Naira In 2016: To Devalue Or Not To Devalue? by iseeicome: 8:21am On Sep 23, 2017 |
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