Most of the dollars is being stolen rather

Chai..

So, men are the Nairas,,

Women are the Dollarrz,,

Nigeria should ditch the dollar like what other countries did.

nairalanda1:



LOL...and yeah, we are in the soup because...for years when oil prices were low, we had to take loans to keep the head above water.

Now most of our revenue is going to pay for those loans.

At the end, either we pray we get 30 trillion dolalrs in the federation account by this Firday, or we accept we are broke and cut our coats accroding to our size.

After the reggae comes the blues. When oil prices were high, all of you were enjoying. When oil prices were low, you took loans to keep enjoying. And you think there be no consequences....Awon oil rich country.

30 trillion dollars for wetin

oluwaseyi0:


Good idea on paper but it'll probably fail from number one

Closing all domiciliary account is not the issue, how many Ghanaian cedis account do we operate in Nigeria bank?

But the problem is after forcing people to convert to naira, the CBN simply do not have the dollar volume to honour everything you want to import or when you need to buy things overseas

For example if I want to buy good worth 5000 dollars there's no single guarantee that the government can give me the dollar if I give the naira equivalent

We are simply not earning enough dollars for CBN to help covert your naira to Dollar for foreign transaction

I get your point but when i said Dom account, i had the USD , GBP, CAD in mind because we don't trade in cedis.

Second, we don't need to earn dollars for a trade to occur in usd. Countries that earn less than Nigeria in FX still trade in USD

There is a global FX market where banks can purchase usd with NGN at official rate. All we need is have a stable official rate

There is a currency market different from the local black market and in fact virtual dollar is what we need not physical USD and the banks will reconcile their nostro and vostro accounts.

If the NGN is stable, foreign investors will come. For instance, imagine a foreigner invest 1usd in Nigeria when usd was 700, he converts this usd to NGN to run the business and he makes 100NGN as profit. Only for him to convert his 800NGN(capital+profit) back to USD when he wants to repatriate his funds and his 800NGN is currently not up to his initial investment of 1usd how will he come again.

Only people that send and receive diaspora remittance or people who save their monies in USD will be happy with this constant increase in Naira.

Real foreign investors who have industries to set up, will be pissed off.

BreconHills:


There is nothing that monetary policies can do. Much of the money buying up USD are funds stolen from government- that reside outside the system - currency washing

I remember you.
You were the one who was telling me about Tinubu's plan after subsidy removal when I asked
How far now? Has he implemented your ideas?

nairalanda1:
Exactly

But we all want free money so that we can have our cheap imports...so the CBN does practicies that are bad

But no, people will come here and call him IMF man, and start telling us the long stories of how the IMF wrecked this and that economy.

The harsh truth is, we are in the mess we are in because WE rely on ONE SOURCE OF INCOME, whose prices fluctuate, and as a result the income is never guaranteed, and never enough, so we have to take LOANS, AND MORE LOANS.

That's how we enter the IMF trap.



That's a major way we fund subsidy over the decades...see above.

The Fulani oligarchs were printing naira in Dubai and flying them into the country via numerous airports and airfields in the far north….,,,,what do you expect when there is no checks and balances! Igp Fulani, Dss Fulani, army chief Fulani , customs Fulani, chief justice Fulani’!

Seun:

Before Tinubu the official market was practically nonexistent. Nobody could access forex. Floating isn't the problem. It's demand and supply.

My boss. Long time we had a major disagreement. This one will be a major one.

For decades, I had been against the floating of the naira. When IMF gave floating the naira, removal of petroleum subsidy and opening of our ports as part of the conditionalities for giving us loan during IBB regime, I was part of Nigerian student that took to the streets in protest. At the end of the day, IBB backed out, but implemented some of the conditionalities through the back door through SAP. Now, as a student of O.A.U. we had robust debates on these conditionalities and it's destructive effects on the economy.

Today, I and great Nigerian students of then have been proven correct. No country that implemented those conditionalities did well. Infact all came out much worse, so much so that IMF later backtracked and confessed that those conditionalities don't work.

Now let me let you on a little secret, no developed country actually floats their currency, not USA, not UK, not China, not Japan. Countries control the exchange rate of their currencies through various mechanisms, in order to achieve certain balance of trade goals. The worst are the Arab countries, they have a strong grip of their currencies because just like Nigeria they depend a lot of export of crude.

Nigeria has put itself in a very vulnerable position. An unstable oil price will wreck havoc on our economy. If the US or Saudi Arabia manipulates crude prices to $120 per barrel, we would be buying petrol at N1200 per litre. We have not started talking about diesel and aviation fuel. At thar price up to 70% of Nigerian businesses would close down. We will depend even more on imported goods including food and basics.

This issue is very complex to be discussed in a few sentences typing on my phone.

But one thing I can tell you is that most of the economic structures put in place by IMF, World Bank and other financial institutions is to make us suppliers of raw materials and importers of finished products.

ogbonti:
I have said this ten times already here

Tinubu is printing trillions of naira and using it to buy dollars to loot - that’s why the naira is dying steadily- 😟

I thought as much. Bro wants to be richer 100 X RICHER than Dangote and co😂😂

Everybody has turned importer.

Drop shipment iso’nu. AliExpress oran.

Seun:

Before Tinubu the official market was practically nonexistent. Nobody could access forex. Floating isn't the problem. It's demand and supply.

Gbam! That's because the CBN had no dollar to sell.

Floating is a major problem because there is no water to float on, no upwards counter force to counter the force of gravity to create an equilibrium. The counter force should have been exports. At this rate the naira will keep on sinking until it gets to the bottom.

Datedoboy:
I had mentioned it in my previous post that it will get to NGN1,000 per Usd if drastic measures are not taken.

Again, I am saying it here that it will get to 2,000 before 2025 if we don't take these drastic measures.

These measures will make the Naira appreciate to at most NGN500 to a dollar in the short term and in the long term, NGN100

What are these measures? I will explain further but note that this is not about Exports.
Even if we export more than China today, the NGN will still decline further. How do i know this?

If you do your research, you will discover that Nigeria as at 2023, exported and earned more FX more than several countries and yet the currencies of these countries are stronger than the Naira.

So don't let anyone sell the idea that our economy is import dependent that is why our currency is falling. Even if we ban all imports and continue with (or increase) our current export, the Naira won't appreciate

A simple question you can answer is, when we banned rice importation, did our currency stop falling? No !!! So sit back as we take a dive to 4 policies which WILL make the Naira appreciate.

1. All domiciliary accounts must be closed.
Can a Canadian or US bank open Naira account for you? No! So why do we open Dom. Accounts for our citizens ? Now you may say what of imports? How do we pay for our goods in foreign currencies?

The answer is simple. Credit your account in Naira while your bank pays the USD or GBP equivalent on your behalf at official rate determined by CBN

2. Ban deposits and withdrawals in foreign currencies and convert all inflows including export proceeds in foreign currencies to Naira (again at official rate determined by CBN).

You don't need to stop people who sell at black market or hoard the USD. Let those who hoard the dollar keep it but once they know that after a said date, you can't deposit or hold your physical dollar, they will be forced to go to the bank to deposit it. Anyone found with physical hard currencies after the deadline, must be arrested

This policy alone will make the NGN appreciate to maximum of NGN600 after first two weeks of implementation and will mop up hidden/excess dollar in the system.

This policy will also discourage buying usd from the black market because there won't be any physical dollar to buy.

3. Increase interest rate for fixed Naira deposits to a minimum of 10%. This will encourage saving in Nigeria. Let a Naira 4 Naira scheme, replace the previous Naira 4 dollar scheme.

4. Increase interest rates on foreign currency deposits to 40% of principal amount if option 1 is not possible and convert all inflows to NGN without the option of collecting foreign currencies at the counter. You can't spend USD or GBP in Nigeria so why do you want to collect your inflows in foreign currencies?
This policy indirectly stops the black market arbitrage.

As the Government has floated the Naira, if these measures are not put in place, NGN2,000 to a dollar won't be surprising to me.

I am just a concerned Nigerian and i am open to constructive criticism.

You are right, to a greater extent.

We cannot, 100%, rule out importation as part of the reasons for Naira’s free fall.

People keep these dom accounts to fuel their penchant for imported products.

You can imagine Nigerians looking for dollar to import China made shoe racks, plastic juice extractors, handkerchief etc.

I expect CBN to also increase the list of products on import-prohibition list while they implement all your suggestions.

Importation is making us to be lazy, by the day.

Jcomtrader:
Any smart Nigerian better start saving jn usdt and usdc crypto
Your currency is dying
Inflation has wiped any salary raise in the last 10 years

lol, na today? Anybody that hasn't starting saving in USDT as at last 2 months is playing

IDnoble1:
IMF is the one misleading Nigeria. I don't think it means well for the country.

And I'm afraid with the rate at which PBAT is dancing to their tune.

They really want to crash it

but I just hope, PBAT know what he is doing, as am made to believe that he is a master strategist.
as a Master strategist, we are not expecting him to be pushed around by these sharks in IMF.
PBAT allow the masses of Nigeria to breathe.

Seun:

https://www.youtube.com/watch?v=It2zHSJBZns

During an interview with Arise TV, the IMF rep for Nigeria said that "a lot of the focus" on ending the free fall of the naira "should also happen on the supply of naira, not only on the supply of foreign exchange". He said that there is a need to "tighten monetary policy; to take liquidity out of the system."

He said, "there are too many nairas chasing yet too few dollars. As I have alluded before, in previous conversations.
It is very important to reduce the amount of nairas, reduce the growth rate of money supply domestically in Nigeria."

"In parallel also, fiscal policies should cease to rely on the Ways & Means."

"All the operations of the central bank that are not conducive to reigning in liquidity, phasing out financing of the fiscal deficit of the government, focusing on price stability, tightening monetary policy is going to be needed."

"It's costly - it doesn't come without a price, but it's a price worth paying."

Recall that Sanusi said the same thing and Bismarck Rewane has been calling for monetary tightening for years.

Naira re-design was Tightening monetary policy in disguise. Alot of naira need to be mop up from circulation and cashless policy should be encouraged. Government fiscal policies should cease to rely on the Ways & Means which the Buhari government used anyhow or better still kill the black market Bureau de change

Seun:

https://www.youtube.com/watch?v=It2zHSJBZns

During an interview with Arise TV, the IMF rep for Nigeria said that "a lot of the focus" on ending the free fall of the naira "should also happen on the supply of naira, not only on the supply of foreign exchange". He said that there is a need to "tighten monetary policy; to take liquidity out of the system."

He said, "there are too many nairas chasing yet too few dollars. As I have alluded before, in previous conversations.
It is very important to reduce the amount of nairas, reduce the growth rate of money supply domestically in Nigeria."

"In parallel also, fiscal policies should cease to rely on the Ways & Means."

"All the operations of the central bank that are not conducive to reigning in liquidity, phasing out financing of the fiscal deficit of the government, focusing on price stability, tightening monetary policy is going to be needed."

"It's costly - it doesn't come without a price, but it's a price worth paying."

Recall that Sanusi said the same thing and Bismarck Rewane has been calling for monetary tightening for years.

"It's costly - it doesn't come without a price, but it's a price worth paying."

Yes, it is costly but the price is worth paying.

The price will either be a downturn in the economy or an outright recession.

There might also be need for balance of payment support due to an empty foreign reserve.

Most importantly, Tinubu needs to stop being like Recep Tayyip Erdoğan of Turkey and let the Central Bank actually do its job.

Seun:

Before Tinubu the official market was practically nonexistent. Nobody could access forex. Floating isn't the problem. It's demand and supply.

You sound sympathetic to Tinubu's govt oga Seun. Maybe because you supported during polls sha but what you are saying is not adding up.
The official market was existent before Tinubu. Before the banks stopped intl transactions, people could buy on aliexpress and ebay with their debit card and get charged around N460/USD. As the admin of Buhari wound up, it became harder to get dollar for obvious reasons.

If you say demand and supply is the issue, demand is ever there but supply is the real issue and not "demand and supply" as one. Demand is made worse by the excess Naira in circulation. They printed under Tinubu in addition to what they printed under emefiele. That means more naira is available to buy fewer dollar and forex generally.

In conclusion, you may want to read up how Germany experienced inflation and their currency was exchanging at trillions to a dollar at some point. It is a similar problem we are facing but in far lesser extent for now.

The economy has become exremely tight and things are no longer the same.
The only option left is to look for how to earn in dollars.

I have one of the solutions here in this video.


https://www.youtube.com/watch?v=0vbG12XdjwA

grandstar:



"It's costly - it doesn't come without a price, but it's a price worth paying."

Yes, it is costly but the price is worth paying.

The price will either be a downturn in the economy or an outright recession.

There might also be need for balance of payment support due to an empty foreign reserve.

Most importantly, Tinubu needs to stop being like Recep Tayyip Erdoğan of Turkey and let the Central Bank actually do its job.

Key to strong Naira is not with CBN. That assumption is rife and only God knows the spell the world is under that brought about that.
Demand for, and supply of dollar can be combated with a 2-in-1 approach of local production only. Those printing of money and rate adjustment gimmicks are merely cosmetic approach to deep rooted issues.

adisabarber:
You pushed for floating of the Naira, it failed. Now you are saying another thing

China supports Yuan in the FX market because knows the importance of maintaining a strong currency. Even the mighty USA does the same thing for the Dollar though rather in an indirect way by maintaining higher yields on the Treasury notes thereby inviting other countries to buy her debt. Now comes the Kosi Kosi (kosi owo, kosi ina, kosi food always kosi kosi) country subscribing to what USA banks advocate for by liberalizing the free float of her currency. The same banks mind you selling derivatives shortening the currency thereby creating artificial pressure on the Naira. You can not put a price on stupidity.

nairalanda1:



USA that is a producer nation?

USA exports diversified products. That's why they have the cash. We just export oil, and the oil we sell yields a revenue that isn't enough for half our population, and that is before looting comes in.

Lolzzzzz 🤣

zeyt:
Nigeria should ditch the dollar like what other countries did.

Which countries are those, please? Even China secured 80% of her trade surplus in Dollars. China and Japan buy 60% of US Treasury debts they can't afford to go to war with the USA because they stand to lose out on their money. Look for the past 15yrs the USA has been living off free money interest rate was close to zero on the debt. Individuals putting money in a savings account were getting a 1% yield on their savings. Now fast forward to today, the Federal Reserve has increased interest to 5% individual are now getting close to 5% on their savings the 30-year mortgage rate is 7.5% why all of a sudden change, it all boils down to supporting the dollar.

What a bomshell!

The Easiest way to Boost the Naira is to forget about the existence of The Dollar

SuccessfulRichi:


I thought as much. Bro wants to be richer 100 X RICHER than Dangote and co😂😂

exactly - a man who can forge certificate - what else will he not do ?

MeineMutter:


You are right, to a greater extent.

We cannot, 100%, rule out importation as part of the reasons for Naira’s free fall.

People keep these dom accounts to fuel their penchant for imported products.

You can imagine Nigerians looking for dollar to import China made shoe racks, plastic juice extractors, handkerchief etc.

I expect CBN to also increase the list of products on import-prohibition list while they implement all your suggestions.

Importation is making us to be lazy, by the day.

It's not importation that's making us lazy, it's government policies, lack of a manufacturing base, lack of critical infrastructure and lack of benign fiscal and monetary policy that making us lazy.
You cannot be hard working with an official interest rate of 19% (actual interest rate is about 28%). And to make matters worse the banks will start demanding repayment the very month you took the loan, and the longest term you will get for repayment is 24 months. In 24 months most legitimate businesses have not started turning up a profit. If a bank borrows you N10 million and expects you to pay back with interest within one year, the best option is trading - trading imported goods.

Also corruption by government agencies and multiple taxation is a huge disincentive to manufacturing.

Then there is the almighty NEPA (power), you cannot manufacture profitably (in comparison to importation) when petrol is N600, diesel is N850.

iCauseTrouble:
I am so happy that I am lucky to be earning in dollars.
I have been supporting a project annually with 1 million naira since 2021.
In 2021, I exchanged $1,820 for 1 million naira at the rate of N550.
In 2022, I exchanged $1,388 for 1 million naira at the rate of N720.
In 2023 (Just yesterday), I exchanged $1,000 for 1 million naira at the rate of N1000.
These people are happy that I am a loyal funder of the project by giving 1 million naira yearly but they do not know that the value of the money has really dropped due to the Naira / Dollar exchange rate.
I just smile each year when I am about to donate

Teach me how to earn in dollars please

MeineMutter:


You are right, to a greater extent.

We cannot, 100%, rule out importation as part of the reasons for Naira’s free fall.

People keep these dom accounts to fuel their penchant for imported products.

You can imagine Nigerians looking for dollar to import China made shoe racks, plastic juice extractors, handkerchief etc.

I expect CBN to also increase the list of products on import-prohibition list while they implement all your suggestions.

Importation is making us to be lazy, by the day.

Well said. God help us

BoldBrainz:


This is even where you betrayed your ignorance.

When they say there's too much naira in the open market, it resonates with Emefiele's exact words that prompted the move to mop up liquid cash early this year.

Only problem is, his intentions were good, but his execution was flawed with political undertones. Buhari created the mess by ordering the printing of naira notes into the system, an advice that was birthed by his cabal. Somehow, Godwin Obaseki of Edo State got wind of it and raised the alarm, but it was termed "opposition politics". Then in Emefiele's bid to clean up his principal's mess, he got caught up in a political web that was his undoing.

He ended up being seen as a tool of political vendetta, when in actuality, the excessive cash in the Nigerian open market was putting pressure on the dollar. People with plenty money in hand, having known the value of the dollar, sought to convert the naira to the latter so they don't lose out, as the naira started to crumble. Where demand outweighs supply, inflation is inevitable. Even an average Nigerian with a basic knowledge of secondary school economics should know this.

Thank you for pointing out my ignorance. But since you went ahead to mention him mopping up cash earlier this year and also pointing out poor execution with political undertone. Any sensible individual can deduce alot from that sentence not to talk of his other blunders over the years.

RepoMan007:
The man who took it from N450 to N770 in 4 month is a genius, don't mind uncle meffy.

Lol

t2luv1:


Which countries are those, please? Even China secured 80% of her trade surplus in Dollars. China and Japan buy 60% of US Treasury debts they can't afford to go to war with the USA because they stand to lose out on their money. Look for the past 15yrs the USA has been living off free money interest rate was close to zero on the debt. Individuals putting money in a savings account were getting a 1% yield on their savings. Now fast forward to today, the Federal Reserve has increased interest to 5% individual are now getting close to 5% on their savings the 30-year mortgage rate is 7.5% why all of a sudden change, it all boils down to supporting the dollar.

I think you should get updated on what is going on BRICs countries.

OMEGA009:
Still waiting for an economist to explain why we have a parallel market

Because the official market cannot serve all the people who want dollars.