Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 3,191,304 members, 7,943,721 topics. Date: Sunday, 08 September 2024 at 10:55 PM

IMF Proposes Devaluation Of Naira - Business (2) - Nairaland

Nairaland Forum / Nairaland / General / Business / IMF Proposes Devaluation Of Naira (18112 Views)

The 15 Fastest Growing Economies In Africa 2016 — IMF / What Is Devaluation Of Naira? / Landing Cost Of Petrol Increases Because Of Devaluation Of Naira (2) (3) (4)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (Reply) (Go Down)

Re: IMF Proposes Devaluation Of Naira by Katsumoto: 8:08pm On Feb 18, 2011
Kobojunkie:

Well . . again, Data was made available by Nigerian authorities is what I am on about. If you have another interpretation please present it so we look closely at the information from that time.

Anyways, since there seems nothing else to work with, I will go with that one. The reports show that we were not really doing that bad, on paper.

So we should ignore the reality on the ground and instead be happy with a report that was written by a group of hawks in association with the their incompetent and corrupt partners in Nigeria.

Data was supplied by CBN which was in partnership with the IMF which suggested SAP as a requirement for loans taken by IBB which Nigeria did not need and for programmes that are non-existent or white elephant.
Re: IMF Proposes Devaluation Of Naira by Kobojunkie: 8:11pm On Feb 18, 2011
^^^ well  . . .  I still don't want the BECAUSE YOU SAY IT I SHOULD BELIEVE IT nonsense please. The statement made requires some serious back up to show it was truly the case, even then.
Re: IMF Proposes Devaluation Of Naira by Katsumoto: 8:12pm On Feb 18, 2011
Chyz*:

Lets just be glad Goodluck has no control over CBN decisions. Sanusi is a smart man, if it is not good for the economy, he won't allow it.

Devaluation of Naira is not the best for Nigeria without a concommitant prudent spending on infrastructure to boosting manufacturing and exports.

The basic reason why you devalue your currency is to make your exports cheaper than your competitors.
Re: IMF Proposes Devaluation Of Naira by Nobody: 8:14pm On Feb 18, 2011
naijaking1,

go back to sleep jor!!

Read and understand the topic first before jumping in next time.

The talk is not about propping up the Naira - tell me how the Naira is being propped up?.

naijaking1:

I'm surprised we're propping the value of the naira shocked
Reminds me of the Abacha days, when we paid so much to protect the 'prestige' of the naira
Re: IMF Proposes Devaluation Of Naira by Katsumoto: 8:16pm On Feb 18, 2011
Kobojunkie:

^^^ well  . . .  I still don't want the BECAUSE YOU SAY IT I SHOULD BELIEVE IT nonsense please. The statement made requires some serious back up to show it was truly the case, even then.

Why don't you go and ask the people of Greece, Portugal, and Ireland if their lives are better or worse with SAP being implemented in their countries?

The implementation of SAP lowers the standard of living in any country. FACT
Re: IMF Proposes Devaluation Of Naira by Kobojunkie: 8:18pm On Feb 18, 2011
Katsumoto:

Why don't you go and ask the people of Greece, Portugal, and Ireland if their lives are better or worse with SAP being implemented in their countries?

The implementation of SAP lowers the standard of living in any country. FACT

But why are you on about SAP? Is SAP the same as devaluation?
Re: IMF Proposes Devaluation Of Naira by EzeUche2(m): 8:18pm On Feb 18, 2011
Katsumoto:

Why don't you go and ask the people of Greece, Portugal, and Ireland if their lives are better or worse with SAP being implemented in their countries?

The implementation of SAP lowers the standard of living in any country. FACT

And we finally agree on something. Stick to economics and we shall become the best of friends.
Re: IMF Proposes Devaluation Of Naira by EzeUche2(m): 8:18pm On Feb 18, 2011
Kobojunkie:

But why are you on about SAP? Is SAP the same as devaluation?

Devaluation was a MAJOR part of the SAPs was it not? Coupled with opening up our economies to free trade.
Re: IMF Proposes Devaluation Of Naira by 9jarukus: 8:19pm On Feb 18, 2011
after watching this tell me what u think
https://www.youtube.com/watch?v=yTbdnNgqfs8
Re: IMF Proposes Devaluation Of Naira by Kobojunkie: 8:19pm On Feb 18, 2011
Katsumoto:

Devaluation of Naira is not the best for Nigeria without a concommitant prudent spending on infrastructure to boosting manufacturing and exports.

The basic reason why you devalue your currency is to make your exports cheaper than your competitors.

Sigh . . .  and all the times I posted something similar you ignored it because?
Kobojunkie:

I don't know if the Naira is overvalued either . .  . all I see is a situation where we keep reporting near EXCELLENT GROWTH quarter after quarter but it never seems like we actually manufacture anything to take advantage of the devaluation, which we could.

Honestly, my qualms is I SEE near EXCELLENT GROWTH  . . . but I don't see us taking advantage of it. If we didn't depend so much on imports, devaluation( even the last one) would have worked out really well for us. but it seems we (not some other country) are refusing to work harder at improving manufacturing, and that is the reason.
Re: IMF Proposes Devaluation Of Naira by Kobojunkie: 8:21pm On Feb 18, 2011
EzeUche_:

Devaluation was a MAJOR part of the SAPs was it not? Coupled with opening up our economies to free trade.

Devaluing a currency has little or nothing to do with SAP . . . Our SAP package included that.
Re: IMF Proposes Devaluation Of Naira by Chyz2: 8:21pm On Feb 18, 2011
Pay attention to the beginning about Nigeria:

[flash=350,350]
https://www.youtube.com/watch?v=hBQZELCKB2s&feature=related[/flash]
Re: IMF Proposes Devaluation Of Naira by 9jarukus: 8:22pm On Feb 18, 2011
take ur time and listen this then tell me what u think
https://www.youtube.com/watch?v=yTbdnNgqfs8
Re: IMF Proposes Devaluation Of Naira by 9jarukus: 8:24pm On Feb 18, 2011
and this is the confession of an economic hitman
Re: IMF Proposes Devaluation Of Naira by EzeUche2(m): 8:24pm On Feb 18, 2011
Chyz*:

Pay attention to the beginning about Nigeria:

[flash=350,350]
https://www.youtube.com/watch?v=hBQZELCKB2s&feature=related[/flash]

Say what you like or dislike about Sani Abacha, but the man was a REAL man in which he would not allow anyone to push him around. Louis Farrakhan is correct in his assessment and he is known for telling it like it is. My SOLE problem with Louis Farrakhan is that I heard he played a role in the death of Malcolm X.
Re: IMF Proposes Devaluation Of Naira by EzeUche2(m): 8:26pm On Feb 18, 2011
Damn I lost my ability to do flash movies.
Re: IMF Proposes Devaluation Of Naira by naijaking1: 8:28pm On Feb 18, 2011
GenBuhari:

naijaking1,
go back to sleep jor!!
Read and understand the topic first before jumping in next time.
The talk is not about propping up the Naira - tell me how the Naira is being propped up?.


Dear Gen. Buhari,
I know you barely passed English language during your adult class army evening education, but please go back and re-re-re-read the following:

“Despite world oil prices well in excess of the budget benchmark price, the government spent all current oil revenues and drew on savings in the Excess Crude Account, at a time when stabilisation called for a rebuilding of buffers. Despite high inflation, the CBN reduced the rate on its standing deposit facility. In response to pressure on the currency, the CBN sold reserves rather than raise interest rate or let the exchange rate depreciate. The CBN recently raised interest rates, but short-term real interest rates remain negative,” the IMF noted in the statement.

It said further that monetary tightening may be needed should inflation pressures continue.

It stated that directors took note of the staff’s assessment of an overvaluation of the naira, and stressed that greater exchange rate flexibility would prevent one-way bets in the foreign exchange market and cushion external shocks."

So, you have it. ---- and just in case you don't know, overvaluation is propping up the currency.
Is English language not better than writting backwards in Arabic
Re: IMF Proposes Devaluation Of Naira by 9jarukus: 8:29pm On Feb 18, 2011
this the confession of an economic hitman
https://www.youtube.com/watch?v=yTbdnNgqfs8
Re: IMF Proposes Devaluation Of Naira by Chyz2: 8:31pm On Feb 18, 2011
9jarukus:

this the confession of an economic hitman
https://www.youtube.com/watch?v=yTbdnNgqfs8


https://www.youtube.com/watch?v=yTbdnNgqfs8 (then highlight it with flashpoint). -----this is how u get the video to show up on the thread.
Re: IMF Proposes Devaluation Of Naira by 9jarukus: 8:32pm On Feb 18, 2011
<iframe title="YouTube video player" width="200" height="180" src="http://www.youtube.com/embed/yTbdnNgqfs8" frameborder="0" allowfullscreen></iframe>
Re: IMF Proposes Devaluation Of Naira by 4Play(m): 8:40pm On Feb 18, 2011
The CBN has been depleting the foreign reserves in a futile bid to hold up the value of the Naira. The Naira's value falls where the demand for foreign exchange exceeds its supply. The CBN tries to mitigate the Naira's fall by dipping into the foreign reserves to improve supply. The problem is, I think they've overdone it this time. If rising oil prices has not provided Nigeria with enough US dollars, it's time to allow the Naira fall. The more the foreign reserves are depleted, the more rapid the Naira will fall.
Re: IMF Proposes Devaluation Of Naira by Kobojunkie: 8:41pm On Feb 18, 2011
I found this document

http://depot.gdnet.org/cms/grp/general/Nigeria_proposal.pdf 


written by  a Nigerian @GenBuhari. You only need to read the section BACKGROUND TO THE STRUCTURAL ADJUSTMENT PROGRAMME IN NIGERIA . Again, as you may have guess, I am not saying all SAP was good but devaluation to blame for what happened during IBB, I find hard to believe.
Re: IMF Proposes Devaluation Of Naira by Katsumoto: 8:42pm On Feb 18, 2011
Kobojunkie:

Sigh . . .  and all the times I posted something similar you ignored it because?

They are not related

Devaluation usually happens when a country is in economic turmoil and it devalues it currencies to boosts its exports. Germany is the second largest exporter in the world, it does need a weak currency to be able to compete. Despite most Euro-zone countries (Including Germany for export reasons) needing the Euro to be lower in value, the ECB has not gone for that option.

This does not apply to Nigeria because Nigeria is yet to get the basics right. You can't be implementing step 6 in a solution when you have not even started with step 1. When Nigeria becomes an export giant, it may or may not require devaluation. At this point in time, it doesn't.
Re: IMF Proposes Devaluation Of Naira by Kobojunkie: 8:46pm On Feb 18, 2011
^^ That it does not apply to Nigeria in the way you have it, IMO, does not mean it cannot work for Nigeria. That it usually happens when a country is in economic turmoil, does not mean to me that we cannot use it now to help boost our exports. If we were willing to invest in improving manufacturing, I see devaluation working for us.
Re: IMF Proposes Devaluation Of Naira by Katsumoto: 8:48pm On Feb 18, 2011
4 Play:

The CBN has been depleting the foreign reserves in a futile bid to hold up the value of the Naira. The Naira's value falls where the demand for foreign exchange exceeds its supply. The CBN tries to mitigate the Naira's fall by dipping into the foreign reserves to improve supply. The problem is, I think they've overdone it this time. If rising oil prices has not provided Nigeria with enough US dollars, it's time to allow the Naira fall. The more the foreign reserves are depleted, the more rapid the Naira will fall.

I don't get your point. Perhaps you can explain the process better.

When a country uses its foreign reserves to buy the dollar, the value of its own currency falls. For instance, China uses it huge reserves to buy the dollar so as to keep the Yuan low. How does the CBN buying the dollar over-values the Naira?
Re: IMF Proposes Devaluation Of Naira by Katsumoto: 8:53pm On Feb 18, 2011
Kobojunkie:

^^ That it does not apply to Nigeria in the way you have it, IMO, does not mean it cannot work for Nigeria. That it usually happens when a country is in economic turmoil, does not mean to me that we cannot use it now to help boost our exports. If we were willing to invest in improving manufacturing, I see devaluation working for us.

What exports? Our main export is crude oil and devauing the Naira does not improve that. There is a steady market for that. When Nigeria starts exporting goods that are in competition with other countries, then you might have a point.

Secondly, if you are competiting with another nation whose exports are ridiculously low, devaluation does not help you. Will Germany devalue its currency (if it still had one) because it wants BMW, Benz, and Porshe to compete with Skoda or Tata?

If you are the only country supplying a particular product, devaluation makes no sense.
Re: IMF Proposes Devaluation Of Naira by Kobojunkie: 8:55pm On Feb 18, 2011
uum

a) Oil is [b]not [/b]our only export.

b) I don't believe we are currently completing with any nation at this time
Re: IMF Proposes Devaluation Of Naira by Abagworo(m): 8:55pm On Feb 18, 2011
We are all going too far to solve a simple problem which we know the source.Subsidy of petroleum products is the bane of our economic growth.Much of our import is refined petroleum products which the Government still goes ahead to subsidize.If our refineries were really functioning and we produce up to 90% of our consumption,up to 30% of our foreign exchange will be retained since we will be producing and refining here in Nigeria.

That 30% will even improve the value of Naira while our reserves will continue to swell.
Re: IMF Proposes Devaluation Of Naira by naijaking1: 9:04pm On Feb 18, 2011
Katsumoto:

I don't get your point. Perhaps you can explain the process better.

When a country uses its foreign reserves to buy the dollar, the value of its own currency falls. For instance, China uses it huge reserves to buy the dollar so as to keep the Yuan low. How does the CBN buying the dollar over-values the Naira?

Oga, I'm not an expert on this subject, but I know enough to understand that unlike China, Nigeria is not buying up US treasury bonds and soaking up the dollar.
Instead Nigeria is consuming $ from its foreign reserve as way of meeting local demand for the dollar. So, you can see how drawing down our reserve to meet local markets will temporarily stablize the naira, but eventually the naira will crash to its natural level when either the reserve dries up or there is political will to stop drawing the reserve.
Re: IMF Proposes Devaluation Of Naira by Ibime(m): 9:07pm On Feb 18, 2011
Dividends of goodthief Jonathan.

It makes no sense to devalue the Naira as we don't have the export base.

Interesting to note that IMF has told us that the pressure on Naira is due to depleted foreign reserves and vanished ECA.

Now that Goodthief has gone cap in hand to borrow from them, they now have the right to make demands on our fiscal policies.

All because one incompetent rascal wanted to buy his way into power.
Re: IMF Proposes Devaluation Of Naira by naijaking1: 9:22pm On Feb 18, 2011
EzeUche_:

Damn I lost my ability to do flash movies.


Don't worry, you have not lost anything.
Quoting Farrakhn to support your theories on economic issues is like quoting Michael Jackson to support your article in the Annals of Surgery, it a joke!
Bye the way, did anybody see his explanation of why Abacha was killed by those seductive 20-year old Indian prostitues
Re: IMF Proposes Devaluation Of Naira by Katsumoto: 9:26pm On Feb 18, 2011
4 Play:

The CBN has been depleting the foreign reserves in a futile bid to hold up the value of the Naira. The Naira's value falls where the demand for foreign exchange exceeds its supply. The CBN tries to mitigate the Naira's fall by dipping into the foreign reserves to improve supply. The problem is, I think they've overdone it this time. If rising oil prices has not provided Nigeria with enough US dollars, it's time to allow the Naira fall. The more the foreign reserves are depleted, the more rapid the Naira will fall.

Katsumoto:

I don't get your point. Perhaps you can explain the process better.

When a country uses its foreign reserves to buy the dollar, the value of its own currency falls. For instance, China uses it huge reserves to buy the dollar so as to keep the Yuan low. How does the CBN buying the dollar over-values the Naira?

4 Play,

I get your point now; I was making an assumption that the CBN was buying dollars in the open market.

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (Reply)

Dangote Pledges To Assist FG To Turnaround Nigeria’s Economy / Online Business: Do People Really Sell Online In Nigeria? / 2% Of Nigerians Own 90% Bank Deposits — NDIC

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 62
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.