4 Play:

That occurred when oil prices went from $147 p/b to $33 p/b and the USD spiked against other currencies which meant that Soludo could not have done anything other than manage the Naira's decline.

The difference today is that oil prices are high and the USD is weak, yet, the Naira is still weak. That's more the fault of the FG and its reckless spending but little to do with Sanusi. My gripe with him is that he is wasting foreign reserves trying to hold the Naira's official rate in a narrow band between N155 - N150 when the real value of the Naira is much lower.

2bosun:

You're joking right??

It has everything to do with the CBN governor and his policies. Nigeria gets revenue in dollars but instead of sharing the allocation in dollars (or certificates). The CBN in their "wisdom" decide to print the Naira equivalent to allocate to states and hoard the dollar revenue. This floods the economy with too much Naira chasing fewer and fewer goods and services. So really, the more revenue is coming in- the weaker the Naira is going to get until it's corrected. Ex- President Yaradua cancelled the dollar allocation account due to his obsession with the rule of law back then.

To make matters worse they end up borrowing the Naira back from banks at a rate of 10% to reduce inflation- it's almost criminal!

At the moment, the CBN sells $400,000 every week to registered Bureau De Change- which illegal smugglers and looters patronize- so the dollar still does not enter the system.

At some point in time, they would have to consider re-denominating the Naira if they really intend on moving this country forward. If not, it's going to be $1=N200 before we know it.

Brai777:

I rarely add comment on NL, we are ignorant and most of the time we make un-informed comments. I am not here to defend the CBN governor. I work in the financial sector and if you know the damage these BDC mallams are doing to the economy you will weep for the country. These BDC mallams buy so much US dollars, failed to render account of how the US dollar was used by way of injection into the economy, they sell to your corrupt politicians who then carry the raw cash $$$$$$ under diplomatic passport to Dubai, China, India and other countries with lenient anti money laundry laws.

More than 80% US Dollar sold by CBN find its way outside Nigeria and that is why despite weakening US Dollar, Naira could not appreciate. If you have a genuine need for US dollar, take your documents to bank and buy at N151 -N154.

I rarely add comment on NL, we are ignorant and most of the time we make un-informed comments. I am not here to defend the CBN governor. I work in the financial sector and if you know the damage these BDC mallams are doing to the economy you will weep for the country. These BDC mallams buy so much US dollars, failed to render account of how the US dollar was used by way of injection into the economy, they sell to your corrupt politicians who then carry the raw cash $$$$$$ under diplomatic passport to Dubai, China, India and other countries with lenient anti money laundry laws.

More than 80% US Dollar sold by CBN find its way outside Nigeria and that is why despite weakening US Dollar, Naira could not appreciate. If you have a genuine need for US dollar, take your documents to bank and buy at N151 -N154.

Brai777:

I rarely add comment on NL, we are ignorant and most of the time we make un-informed comments. I am not here to defend the CBN governor. I work in the financial sector and if you know the damage these BDC mallams are doing to the economy you will weep for the country. These BDC mallams buy so much US dollars, failed to render account of how the US dollar was used by way of injection into the economy, they sell to your corrupt politicians who then carry the raw cash $$$$$$ under diplomatic passport to Dubai, China, India and other countries with lenient anti money laundry laws.

More than 80% US Dollar sold by CBN find its way outside Nigeria and that is why despite weakening US Dollar, Naira could not appreciate. If you have a genuine need for US dollar, take your documents to bank and buy at N151 -N154.

jodeci:

In essence as the exchange rate begins to go higher everyday,the Black market mallams will go out of business.

Stupidity reigns supreme on NLand, a country that PRODUCES NOTHING of note, IMPORTS nearly EVERYTHING and EXPORTS only ONE product of note wants a relatively strong currency. This thread is riddled with so much ignorance its alarming. Wrong information on CBN policy, upside down economic analysis (guys please review your O.A Lawal) Very few people here know what they are talking about. *bracing for the inevitable insult that will follow*

first, the US does not depend on Nigeria for manufactured goods or consumer products!

A fall in naira will mean that US goods will be too expensive relatively compared to China imports, therefore more consumers in Nigeria will switch to made in China products than those made in the US.

A fall in naira will mean we can't afford to issue contracts to US companies as they will be paid in dollars therefore all our rail contracts, power plants etc etc will be handed to Chinese companies which will be paid less as the Yuan is more affordable.

A fall in naira will mean we can't depend on US companies for our refined crude products, we will ultimately look forward to some Asian company!

Nigeria depends on oil exports which is priced in dollars and NOT naira, so in that aspect, Nigeria stands to gain more from a devaluation of naira.

So, for you guys having us to believe that the US must be responsible, what do you think the US stand to gain from a fall in Naira?