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Nairaland Forum / Nairaland / General / Business / Is CBN Defending The Naira Or Dollar? (15177 Views)
CBN Blows $36 Billion Defending The Naira In 2018, Up 130% From 2017. / ‘Anyone Caught Abusing The Naira Will Face Jail Terms’ – CBN Warns Nigerians / ‘this Is Why The Naira Fell Despite CBN Intervention’ – ABCON (2) (3) (4)
Re: Is CBN Defending The Naira Or Dollar? by Nobody: 7:40am On May 01, 2017 |
Artificially propping up the Naira is a temporary cure for Bubu initial approach. What killed the Naira was 1. De marketing of Nigeria by GMB when he entered Aso rock crashed Investors confidence and international financing plummeted. We are yet to recover 2. Stringent Dollar - Naira controls implemented by GMB also consolidated on his erstwhile international character defamation of the Nigerian populace. No foreign manufacturer can even give Nigerians loans or goods on credit anymore 3. Bubu's regressive trade restrictions was a death blow to a lot of future prospects. Many businesses who were not even on that list had a serious rethink because of GMB mindless banning spree. Such moves were only seen in Zimbabwe 4. Finally, Lack of a clear blueprint on policy direction, archaic ministers with archaic ideas, varying opinions amongst the ministers and government appointees, policy inconsistencies, general cluelessness in the country has clearly shown that Nigeria is not ready for business. Everything is on pause for now. Most foreign owned industries are just staying to maintain a presence. Nothing is happening at least in the real sector. Those enjoying this economy are from up north BDCs, some banks and government contractors As a result of all these the financial activities going on in the country plummeted . That was the cause of our recession. The useless CBN kept dealing with the subsequent inflation as if it was caused by too much naira, demand spike, rather than the lack of supply. They have continued to mop up imaginary Naira in the system by increasing interest rates and MPR. Interbank lending rates also increased. When this did not yield the result, they started pouring money to their brothers through bail out and contracts. While this may help in the short run, we can be sure that GMB government will not move Nigeria forward except a complete re branding of this country is undertaken to correct bad opinions he created Osibanjo understands this and that is why any few hours he gets to seat as president, he immediately engages SMES and business leaders on policy redirection 1 Like |
Re: Is CBN Defending The Naira Or Dollar? by fatymore(f): 7:40am On May 01, 2017 |
malware:buhari is incompetent for now.. Can a sick person function well.. Happy New month 1 Like |
Re: Is CBN Defending The Naira Or Dollar? by eph12(m): 7:40am On May 01, 2017 |
bettercreature:Govt is doing too much at 380? Where you see that one? 2 Likes |
Re: Is CBN Defending The Naira Or Dollar? by Mrchippychappy(m): 7:40am On May 01, 2017 |
if this topic was about gifty or efe or tboss e go don reach 10 pages by now. I swear Nigeria get serious educational crisis, most people aren't even concerned with what is going on in the economy and some don't even understand what the punch are trying to explain here. 1 Like |
Re: Is CBN Defending The Naira Or Dollar? by eph12(m): 7:41am On May 01, 2017 |
Baonel:Who will read this thing early this morning when we haven't had breakfast yet 1 Like |
Re: Is CBN Defending The Naira Or Dollar? by Proudlyngwa(m): 7:45am On May 01, 2017 |
What CBN is doing now, they should have done long ago. 2 Likes |
Re: Is CBN Defending The Naira Or Dollar? by eph12(m): 7:45am On May 01, 2017 |
bettercreature:I couldn't read everything there but I was able to scan through the loan rate part. If SMEs have access to cheaper loans the economy will be far better off, don't you think? We are defending the naira with nothing, absolutely nothing. If oil prices drop or something happens to our oil revenue today expect $=600+ |
Re: Is CBN Defending The Naira Or Dollar? by PBundles(m): 7:46am On May 01, 2017 |
China is a net EXPORTER we are a net IMPORTER, big difference. bettercreature: |
Re: Is CBN Defending The Naira Or Dollar? by nurex01(m): 7:48am On May 01, 2017 |
toyetade: 1 Like |
Re: Is CBN Defending The Naira Or Dollar? by malware: 7:48am On May 01, 2017 |
fatymore: The term sick is relative. We are all sick in our own unique ways. |
Re: Is CBN Defending The Naira Or Dollar? by Nakamura212: 7:49am On May 01, 2017 |
The man's policies are in favor of the banks, I mean this bank recorded more profits than usual while Nigerians r crying it's very simple to understand after all he was MD at zenith before his appointment who knws what he has made with zenith. Banks shut record low profit too, or by now Nigerians shut be smiling too. Stop telling us we r out of recession pls!!! |
Re: Is CBN Defending The Naira Or Dollar? by fatymore(f): 7:49am On May 01, 2017 |
malware:then he is incapable for now.... |
Re: Is CBN Defending The Naira Or Dollar? by dessey(m): 7:52am On May 01, 2017 |
Noted, Buhari answer the question. |
Re: Is CBN Defending The Naira Or Dollar? by malware: 7:55am On May 01, 2017 |
fatymore: You are not professionally eligible to determine that, are you? |
Re: Is CBN Defending The Naira Or Dollar? by Reference(m): 7:56am On May 01, 2017 |
The article is not creamy smooth but what I can say about this before awaiting responses is this: In letting the naira find its true market value remains the best tool for 'compelling' Nigerians to seek other means of obtaining it, whether generating their own, popularly called diversification or attracting those who already have it whether foreigners, exiles or locals to invest in dollars or dollar related enterprises. You simply cannot have a capitalist system which we operate with socialist guidelines. Someone somewhere is bound to be cheated, robbed and rendered poor and unfortunately in this case it is the 'common' man who has borne the brunt. Just like the fuel subsidy regime, the common man enjoys little benefit (his net fuel footprint is small but the cost to him of the loss of other social services such as roads, schools, hospitals is high, similarly with forex, the common man's share of the foreign reserve cannot be compared to that of the well to do on a personal and general scale. What government through the CBN should do, once again like the fuel subsidy regime is a deliberate phased floating over a five, ten or twenty year period so that inflationary pressures are spread out but for the CBN to continue to use oil prlceeds to subsidise 'consumption' in large parts is just callous and generations to come will curse us for not making hay when the sun of big oil finally sets. Old habits are painful to leave. That's why this government with all the political capital it had, had the greatest opportunity to effect real change but it rather chose to maintain the status quo of big oil, cheap forex, consumption based socio-governmental structures. No lesson has been learnt, the Niger-Delta is quiet so they think Nigeria has succeeded. So the next recession will be worse. Much worse. 1 Like |
Re: Is CBN Defending The Naira Or Dollar? by sureteeboy(m): 7:59am On May 01, 2017 |
toyetade:You want those polithiefians to loot thag one again? |
Re: Is CBN Defending The Naira Or Dollar? by Nobody: 8:01am On May 01, 2017 |
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Re: Is CBN Defending The Naira Or Dollar? by fatymore(f): 8:04am On May 01, 2017 |
malware:If you are person is ill.. Will you be capable of doing somethings.. Am talking on health ground.. Not professional wareva...Health is paramount you know. It post Like yours that his giving the cabal or presidency the hope that baba should still be functioning instead of resigning and take care of his health.. Am pro buhari Incase you thought am one of them |
Re: Is CBN Defending The Naira Or Dollar? by chiefeconomist: 8:10am On May 01, 2017 |
Mr. Boyo's knowledge of economics is very questionable. How on earth could you blame naira devaluation for all of Nigeria's ills? What many economists like Boyo fail to realise is that exchange rates are prices, they transmit what is happening in the underlying fundamentals. It's absolutely undeniable that Nigeria maintained an unwise fixed exchange rate system throughout the 1970s and most of the 1980s. That implied that there was no way to know when the naira's value was no longer realistic. We therefore kept the naira overvalued for far too long, which is precisely what turned Nigeria into an import-dependent country. When a currency is overvalued, imports become artificially cheap and exports become too expensive. It was in this backdrop that Nigeria was forced by reality to readjust its currency. My Boyo May blame the IMF for all things wrong in Nigeria but that doesn't change the fact that our own attitude toward the market led us to the fixed exchange rate regime which did the damage to our industrial based. Simple. |
Re: Is CBN Defending The Naira Or Dollar? by Miles300: 8:15am On May 01, 2017 |
Scatterscatter:u get sense pass emefiele 1 Like |
Re: Is CBN Defending The Naira Or Dollar? by ephi123(f): 8:18am On May 01, 2017 |
abescom: Word. Everything else is like bandaging a wound without first treating it. |
Re: Is CBN Defending The Naira Or Dollar? by nurex01(m): 8:39am On May 01, 2017 |
ephi123: |
Re: Is CBN Defending The Naira Or Dollar? by nurex01(m): 8:39am On May 01, 2017 |
abescom: |
Re: Is CBN Defending The Naira Or Dollar? by gabe: 8:41am On May 01, 2017 |
Mr Boyo has been consistent in his message. We collect income in dollars from oil sales. Share dollars so that the incoming dollars will compete with avialable naira for price. Thats what happens in a free market economy. Its simpe demand n supply. More dollars against available naira, price of naira appeciates. To prevent corruption, distribute dollar certificates so banks will give available naira. The banks can now cash their certificates at cbn, but govs cannot cash such. But what cbn does instead is print naira to cover the dollars earned at whatever rate they decide, while hoarding dollars and limiting supply. This creates an artificial dollar scarcity, increasing its price. This is a drama that occurs every month! 3 Likes 1 Share |
Re: Is CBN Defending The Naira Or Dollar? by nurex01(m): 8:43am On May 01, 2017 |
gabe: |
Re: Is CBN Defending The Naira Or Dollar? by nurex01(m): 8:43am On May 01, 2017 |
Good. |
Re: Is CBN Defending The Naira Or Dollar? by sunshineV(f): 8:48am On May 01, 2017 |
Anybody read this? pls summarize that poo |
Re: Is CBN Defending The Naira Or Dollar? by MrSly(m): 8:51am On May 01, 2017 |
bettercreature:It seems you are now used to the hardship. Was it $1=N380 when this government came to power. I don't wanna go into their empty promises of $1=N1. All we want from them now is to restore the economy to where it was when they met it. Goodluck in his corruption as APC made us to believe had a better economy than this pooh of APC lead govt. |
Re: Is CBN Defending The Naira Or Dollar? by MrSly(m): 8:55am On May 01, 2017 |
fatymore:Even when he was not sick what did he do? Buhari's problem is not illiteracy, it is lack of exposure and pride. |
Re: Is CBN Defending The Naira Or Dollar? by malware: 9:12am On May 01, 2017 |
fatymore: Can you authoritatively tell me one sickness Buhari is suffering from? |
Re: Is CBN Defending The Naira Or Dollar? by Nukilia: 9:33am On May 01, 2017 |
Proudlyngwa: You are correct! I think the CBN is just throwing money in a dark hole for now. The PMB government got no clue about running this kind of economy effectively. That is what we get when we vote incompetent people to lead us. |
Re: Is CBN Defending The Naira Or Dollar? by Nukilia: 9:35am On May 01, 2017 |
MrSly: The kind of people i n PMBs cabinet are not that smart as we think. They're all there for the money. This is a complex problem that needs critical analysis followed by pragmatic steps. They are a bunch of jokers 1 Like |
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