The Nigerian currency naira on Thursday, November 29, weakened by 1 percent on the black market to 370 per dollar – its record lowest since August 2017.
Reuters quoted traders as saying that some black market outlets were hoarding dollars, fearing a recent sharp fall in oil prices could lead to a shortage of the US currency.
Global prices of oil, Nigeria’s chief export, have dropped more than 20 percent this month.
Traders now fear that the Nigerian central bank may not have enough reserves to defend the currency against a possible further weakening of oil prices as foreign investors have been pulling money out of Nigerian assets.
“There’s no new investment coming in and oil prices have been dropping so investors are watching while some are exiting,” one trader said.
The central bank has been using up foreign exchange reserves to keep the naira stable, spending $2.2bn in October to prop up the currency as foreign investors have also left the market in favour of rising interest rates in developed economies.
The CBN data released on Thursday showed that the nation’s foreign reserves stood at $41.9bn as of November 27, down 12.3 per cent from a peak of $47.8bn reached in June.
Investors have also been pulling out funds from equities. On Thursday, the benchmark stock index fell by 1.33 per cent to 30,611 basis points.
The naira also weakened on the over-the-counter market where it is traded by banks. It was exchanged for between 364 and 364.50 to the dollar on Thursday, compared to 363 a week earlier. At forex bureau, it was quoted at 366 per dollar, while a unit fetched 306.30 on the official market.

Missed blessings

What a load of bull

The time of reckoning has arrived.

It was not a matter if this time will arrive but when. I predicted that with inflation in double digits and government borrowing high, it was just a matter of time before the naira weakens in value.

There was already a strong indicator of this not too long ago when the CBN barred importers of textiles from sourcing from the CBN window. It seemed the move was made to reduce mounting pressure on the Naira.

With the reduction of $4bn in the foreign reserves in the past 2 months, urgent steps needs to be taken.

The CBN must allow market forces to dictate and allow the naira slide. If prevented by introducing forex controls again as it did in 2015, a repeat of the 2016-2017 recession will be with the country again

Government needs to take these urgent steps to take the country completely out of the woods and an overdependency on oil exports.

1. Merge the multiple exchange rates
2. Lift the ban on importers of 42 items from accessing forex through the CBN window
3. Slash company taxes to 12%. Allow each state to add up to 5% on this tax which will be shared equally between the federal and state governments.

This is to investment competition between states.

4. Allow each state to determine it's own personal income tax and nothing greater than 25%.

This again is to encourage investment competition between states

5. Liberalise trade. End all import bans and reduce import duties to 0% minimum and 10% maximum

6. End the Naira substitution policy.

7. Improve the country's ranking to 40 or better

And so on and so forth

1 dollar will soon become 1naira when we get to next level.

It's expected... dollar is strong across board

Not a big deal.

Still 360 at various bureau d change

grandstar:



3. Slash company taxes to 12%. Allow each state to add up to 5% on this tax which will be shared equally between the federal and state governments.

This is to investment competition between states.

4. Allow each state to determine it's own personal income tax and nothing greater than 25%.

This again is to encourage investment competition between states

3. States and local have all those powers to tax everything but corporations. The nass could just change by law or amend constitution make it permanent.

4. There's nothing in constitution or law or laws preventing them personal income. They're just interested in petty trader taxes instead of permits and making better tax policy. The paye tax is income I believe.

Concurrent list constitution:

7. In the exercise of its powers to impose any tax or duty on - (a) capital gains, incomes or profits or persons other than companies; and documents or transactions by way of stamp duties.

Thunder Fire You there!

Na November we dey?

UNAM IKOT!

Enemies of Nigeria.

FAKE NEWS MONGERS.

grandstar:
The time of reckoning has arrived.

It was not a matter if this time will arrive but when. I predicted that with inflation in double digits and government borrowing high, it was just a matter of time before the naira weakens in value.

There was already a strong indicator of this not too long ago when the CBN barred importers of textiles from sourcing from the CBN window. It seemed the move was made to reduce mounting pressure on the Naira.

With the reduction of $4bn in the foreign reserves in the past 2 months, urgent steps needs to be taken.

The CBN must allow market forces to dictate and allow the naira slide. If prevented by introducing forex controls again as it did in 2015, a repeat of the 2016-2017 recession will be with the country again

Government needs to take these urgent steps to take the country completely out of the woods and an overdependency on oil exports.

1. Merge the multiple exchange rates
2. Lift the ban on importers of 42 items from accessing forex through the CBN window
3. Slash company taxes to 12%. Allow each state to add up to 5% on this tax which will be shared equally between the federal and state governments.

This is to investment competition between states.

4. Allow each state to determine it's own personal income tax and nothing greater than 25%.

This again is to encourage investment competition between states

5. Liberalise trade. End all import bans and reduce import duties to 0% minimum and 10% maximum

6. End the Naira substitution policy.

7. Improve the country's ranking to 40 or better

And so on and so forth

Mumu.

It is fake news.

Next time just ask google before exhibiting so much glee at bad news about your only country.

AndroBlaze:


Mumu.

It is fake news.

Next time just ask google before exhibiting so much glee at bad news about your only country.

Fake or not.
The initial rate isn't a favourable one as well. Maybe you don't really understand how encouraging it is for internet fraudsters.

Bull run

AndroBlaze:


Mumu.

It is fake news.

Next time just ask google before exhibiting so much glee at bad news about your only country.

Okay it is fake news but I still stand by my predictions.

It has nothing to do with my country or not. How can I be gleeful about sad news pertaining to the Nigerian economy since I live here It should even make me more acutely aware of the state of the economy so as to protect my investments!

Sleep with one eye opened in respect to the economy. The economic growth rate is presently lamentable and sadly will remain so till the end of PMB 2nd term.

Hope his replacement will end the multiple exchange rate policies he introduced as well as other counterproductive forex control policies which has held the economy down.