Billyonaire:
So and farm, Economy is not for you. You are too old school to understand how life works in 21st century.

Billyonaire:
All they do is pump $300m, $100m, $400m to their surrogate bankers and round-trip while making billions, then the price goes up and again and the fraud continues.

It is either Buhari is too naive or he is involved in this fraud.

How come they dont know that you cant force the price of a currency down by temporal flooding the market with scarce dollars. The solution is local production and they have done nothing to encourage manufacturing, no loans for start-ups, no lowering of interest rates for production firms, no banning of govt purchases of foreign expensive cars. Our mumu too much sef.

Instead of injecting billions of dollars to stabilize Naira fraudulently, why not give the hundreds of millions of dollars as loans for young start-up entrepreneurs as grants and loans and see the economy evolve with time.

Our government's mumu too much sef.

Billyonaire:
Go and farm, Economy is not for you. You are too old school to understand how life works in 21st century.

A President should have a central command and control center with hourly data flow to make management policy. How do you formulate policy without having up to date info of cash flow on the economy and draw charts to predict possible outcome of actions you take. I am ashamed of an old man like you with such degree of ignorance.

LionDeLeo:


If the president does this, then what exactly is the job of cbn? Do you know the number of agencies under ministries and by extension under the presidency? That ideal president must be super human.

naijaking1:
Does Nigeria have an unlimited supply of the dollar?
If the answer is no, then you'll understand that using our small foreign reserve to prop up the naira temporarily is an economic foolishness.
Good export base of products and services is the only way to boost any currency. Injecting dollar directly to prop up the naira is also another form of corruption, because those famed economists that work at the CBN know that's it useless.

aribisala0:
Who calls it dollarization? Can you back this claim up with Evidence. The fact of the matter is the parallel market is the real market and market forces dominate. Once again the CBN is not a majority supplier to the market and so it is influential but more than half of the supply comes from elsewhere and the market is very efficient in price discovery dynamics

Billyonaire:


Hahahahaha You are a very funny dude. Do not tell me that you are serious with this question. CBN stands for Central Bank of Nigeria, and Buhari is the President of Nigeria, and Emefiele works for Nigeria and is under Buhari, while CBN is the banker's bank that warehouses all the funds under the Treasury Single Account. Every Ministry and Parastatal has the responsibility of documenting all their tasks and each Government parastatal MUST have a server and a back-up. The Presidency should have a command center where all servers are located with yet a Command portal to see the summary of every funds recovered daily.

Common men, you guys need to start studying. No wonder the country has failed. No business succeeds without documentation. There are turnkey modules tailored for Management of information of these nature and I do not want to sound too condescending on you, but the idea that a President can not access all these informations daily shows that you are still equipped with the paper and biro mentality in this day and age.

zedman1:
but why should anyone be happy about this? You like as people de suffer? Just so you could say"I told them" ehn? Continue

musicwriter:


Oh, really?....................

Why do you think central banks all over the world keeps adjusting interest rates?

Why do you think the US federal Reserve keeps fluctuating interest rates?

Why do you think China keeps tweaking value of the Yen?

davidif:


What is he saying again? I told you earlier that when the central bank intervenes in the market to appreciate the value of the naira they have to sell dollars to buy naira in the open market which I said is unsustainable because we would run out of dollars eventually. So I said the Fed govt needs to stop intervening and trying to fix the exchange rate (setting it to the dollar) and let the market determine the value of the naira instead. How hard is all of This?

LionDeLeo:


You mean this command and control center had been there and pmb dismantled it?

aribisala0:
What do you mean by INTERVENE. How is intervention different from routine sales of oil receipts.
What evidence do you have that there is any intent to influence rates or appreciate the naira?
Has there ever been a time in recent history that the CBN DID NOT sell dollars every week?
I don't see this as targeting the exchange rate at all but rather performing statutory duty and selling to legitimate buyers within available supply.
It is only unsustainable if the sale exceeds receipts .Is that the case. Do you have the data.
.
? If you have data of how much the CAN made in dollars in the last 3 month so vs sales then share it.Otherwise you are engaged in alarmist speculation

davidif:


I don't know what you are getting at but the job of the central bank is to control the money supply of there currency and you do that adjusting interest rates. That's how modern economies work.

davidif:


Oh my goodness! kilo tun so again (What is he saying again). Always conflating so many points trying to sound super intelligent. What does oil receipt have to do with anything? Gosh! There is nothing more annoying than arguing with someone who is more interested in winning an argument than learning. People like You are just not humble enough to admit that they don't know much about a subject they just start arguing for their prides sakes.

Either way here is your evidence.
http://www.dw.com/en/value-of-naira-plummets-after-nigeria-ends-dollar-peg/a-19343401

http://www.businessinsider.com/what-is-a-currency-peg-2016-8

https://qz.com/564513/a-not-so-brief-history-of-the-fall-and-fall-of-the-nigerian-naira/

musicwriter:


Wait a minute!!. You're quoting all these economic jargons and you don't even know why central banks adjust interest rates? And you're talking about economics?

Of course, you don't know the so called free market is just a term the world bank and IMF use whenever targeting a country to exploit.

For your information, by adjusting interest rate, central banks regularly determine what rate commercial banks peg their borrowing and loan to the public at large. This immediately impacts the economy of that nation. In fact, when the US federal Reserve does that it affects the world. It could be used to cause inflation or deflation, create demands, jobs, buying power, e.t.c. whatever the purpose. Free market my foot!!.

davidif:

Dude it's not time to point fingers about who did what or who should have done what. Buhari is the president now and its his job to fix it or move so that someone else can do it. Pointing fingers and name calling is not going to solve this problem.

aribisala0:

Oil receipts are the source of dollar sales in the first instance in Nigeria and thereafter the CBN may resort to reserves.
People like me? I see you are running out of ideas and now need to make it personal. I am totally irrelevant let the ideas battle for themselves. I am not interested in you or what kind do of person you are.We are talking about the Naira,
I asked you for data on the sustainability or otherwise of the CBN so activities, I see you have no data and are merely guessing.
I never open links such as you are throwing at me.If you have run out of ideas let us call it

Jesusloveyou:
the same emefiele your ineffectual buffoon appointed is playing the same game he play under gej, if not for buhari hard stand, dollar would have be 1000 naira.
You ipods were the same ipods applauding your ineffectual buffoon for wasting more than 10billion dollars from foreign reserve to defend naira, even when oil price was very high.
And you ipods are now insulting and blaming buhari for doing the same with less than a billion dollars and also growing foreign reserve even when the oil price is very low.

davidif:


Like I did earlier, I presented you with links (including data) with which you can learn more but you are not interested so there is no point debating anymore. If there is one thing I have learnt is that no good comes out from arguing with someone who is ignorant and doesn't know it or worse of all someone who is close minded and refuses to learn anything that might challenge there world view because they feel they know it all. That's a fatal combination of stubbornees and arrogance.which is a waste of time so good to you sir.

Nick4life:
am I still part of the problem?

Dottore:
They said there's steady weekly supply of dollars by CBN yet Naira is still falling. I don't understand. Can someone pls explain. The worst is that I sold my precious dollar saving at 387 weeks ago.

Truth234:
The naira slid to 405 against the United States dollar on the parallel market on Friday amid tight supply of the greenback.

This was despite a series of currency forwards sold by the Central Bank of Nigeria this week aimed at clearing demand for the US currency on the official market, traders said.

The local unit had dropped to 397/dollar on Thursday, after hovering between 390 and 395 earlier in the week.

Following series of CBN interventions in the interbank market and fresh dollar injections for invisible transactions, the naira had appreciated to 375/dollar.

Analysts have reacted to the latest rebound of the dollar, saying speculators might be responsible for the loss recorded by the naira.

“The Nigerian economy is an import-dependent one. It is a question of demand and supply and the issue here has to do with liquidity. However, we cannot rule out the activities of speculators in this regard,” a currency expert at Ecobank Nigeria, Mr. Kunle Ezun, said.

The CBN had on Thursday offered $100m in currency forwards to be settled within 60 days.

The central bank has been selling dollars to try to narrow the spread between the naira’s official and black market exchange rates.

On Wednesday, the CBN intervened in the Bureau de Change segment of the market, selling $10,000 to operators aside the $10,000 it sold to them on Tuesday.

The central bank had also on Monday injected $240m into the foreign exchange market.

Specifically, it released the sum of $90m to meet requests for invisibles such as business travel and personal travel allowances, medical and school fees, while the sum of $150m was also made available to authorised dealers in the interbank wholesale auction window on the same day.

Economic and financial analysts said the spate of interventions and dollar supply by the central bank would determine the direction of the naira in the coming weeks.

The naira closed at 306.2 to the dollar at the interbank market on Thursday, same level it closed the previous day.

http://investorsking.com/naira-slides-405-amid-tight-dollar-supply/

Mrmoz:


Yes you are u ought to be praying for country not hope things get worst for ur own gain

davidif:


Oh Lord have mercy! This is getting too much.

First of all, Dr. Pseudo economist, this is the way central bank works. They have required reserves and excess reserves. Banks are required to deposit part of there money at the central bank (required reserves) and this is determined by the required ratio. The excess reserves are the cash reserves in excess of the required ratio that the bank voluntarily decides to keep with the central bank should they chose to.
http://www.investopedia.com/terms/b/bank-reserve.asp
Secondly, the central bank adjust rates via something we call open market operations where they can control the money supply by either buying or selling govt securities. For example in Inflatiin (in technical terms? excess money supply in an economy), the govt tries to reduce the money supply by selling govt securities which in turn increases the interest rates.

Thirdly, the central bank is the lender of last resort to banks What that means is that when ecobank is in trouble and no one wants to zenith does not want to lend them.money anymore because they dont have faith in them paying back there is no one else they can turn to except for the central bank. We saw this in the last financial crisis of 09 when the Fed reserve board in New York intervened to lend money to Bear Stearns an investment bank that was having serious troubles.

Another control the central bank imposes on banks is that they should have a minimum deposits in there own accounts (different from the required reserves) at the end of the day and If they don't they usually have to borrow (at interest of course) from other banks. This things are out in place to ensure a stronger banking system as supposed to the old days when a little thing resulted in panics which cascaded and shut down the economies leading to recession.
http://www.cnbc.com/2015/04/10/how-does-the-fed-raise-interest-rates.html

All this controls are put in place so as to stabilize the fimancial system so.that it would not be vulnerable shocks and other market forces like back In the day. For example, the bank panic of 1907.

musicwriter:


This doesn't deserve a reply, cause you're obviously talking something else. What I pointed out is "interest rate and central banks" not other duties of central banks. I wanted to inform you how that violates the principles of free market which you hold dear.

Go to Google and search "why do central banks adjust interest rate?". Alternatively, read this link by bank of England where the question was answered http://www.bankofengland.co.uk/monetarypolicy/Pages/how.aspx

I' am out.

Reference:


Then you are not a very brilliant person. You could have just waited for the assailant to run out of bullets as he fired wastefully away. Next time look at the fundamentals. Has the oil price appreciated significantly, no. Has government expenditure (waste) reduced significantly, no. Has the government evolved diverse income, no. Has government been able to attract serious FDI, no. Then why are you selling instead of buying. Isn't it obvious even to a dummy that the naira rise was woefully unsustainable and that it was just a political ruse and an opportunity for high level government theft through currency round tripping. That economic fundamentals may have just improved by an inch but the naira was subsidized by a mile. Now 'Team Toothpick' importers have arisen like the elephant grass at the scent of the new rainy season and they will be a thorn in the nation's economy going forward.

Nigeria is like a malaria or tuberculosis patient who will not take his medications seriously. The result is intransigent poverty and economic damage. Reforms are painful whether we like them or not. What we abuse the likes of the IMF for is what we have to face to survive. And whether we like it or not a weak naira is the only way to drag a stubborn, lazy Nigerian to diversify and produce stuff. Go to any major city of Nigeria and find all roads and highways dotted with 'shops'. Few make, everyone sells. That is poverty on display.

I have said it time and again. Nigeria needs a socio-economic overhaul, a renaissance where restructuring is complimented by sound free market policies of which the free exchange of the naira is compulsory. Government has no business setting the rate of the naira when its share of the economy is in the minority. Nigerians have much more money that all of government. Why should government dictate how much the naira trades for. This is the sad result.

dayus444:
But why is FG and the CBN always like this? Trying to use artificial, unsustainable measures to correct abnormalities caused by our status as a strictly consuming and import-dependent economy. Are they taking us for fools or what? Or are they just all totally dumb in that organization? Which way Nigeria?

The next news might be 'Naira tumbles to ***...'