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Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu - Business (2) - Nairaland

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FX Crisis: Naira Depreciates By N130 Against Dollar In 24 Hours / Kingsley Moghalu Reveals The Problem With The Naira / Flutterwave Launches Swap To Solve Nigeria’s FX Problems, Backed By The CBN (2) (3) (4)

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Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by Nobody: 7:35pm On Sep 21, 2021
This is a very incisive analysis. But will those shithead leaders hear this? angry
Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by babzo(m): 7:35pm On Sep 21, 2021
Woww. This is someone who should be in government!

2 Likes

Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by Angelfrost(m): 7:36pm On Sep 21, 2021
nymphomaniac:
This is a good read. Enough of Nigerian leaders painting utopian endgames for our currency. We either do something about it or face a further steep decline of the naira.

Painfully, Meffy knows all these things but instead, chose to chase ABOKIFX.

The only hope for our Naira is for the government to sit up(embrace good leadership and reduce import /encourage export, stop loan collection) cut off the rottening arm (revoke BDC licenses and embrace rate convergence) and cauterize the wound (continue the path of 1 and 2 above) before it becomes too late.

Meanwhile, what is today’s $ to N rate sef?

The government will do no such thing...

Reason?! They don't know or have a fvcking clue about how a proper economy works!!!

6 years... And not a real or visionary economic plan in place! Just taking loans to erect white elephant projects while diminishing internal productivity.
Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by nymphomaniac(m): 7:36pm On Sep 21, 2021
TenQ:

Fiscal and Monetary policies have failed us.
Industrialization on an industrial scale is the solution.
Nigeria is a consumer nation and we must change the narration to a producing country.

There is no short-cut
with our clueless leaders? LMAO
Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by ivolt: 7:37pm On Sep 21, 2021
Tonymexes:
Sound people like this should be running this country. Nigeria is an unfortunate place,ruled by hopeless idiots
I doubt if you understood the article.
Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by nymphomaniac(m): 7:37pm On Sep 21, 2021
Angelfrost:


The government will do no such thing...

Reason?! They don't know or have a fvcking clue about how a proper economy works!!!

6 years... And not a real or visionary economic plan in place! Just taking loans to erect white elephant projects while diminishing internal productivity.
thank you for reminding me that at this rate, the country is Fvcked! sad
Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by Angelfrost(m): 7:39pm On Sep 21, 2021
babzo:
Woww. This is someone who should be in government!

He is among the many who should be leading the nation... But your country men will rather have their idiotic and inept tribesmen in office at all cost, and based on widespread popularity!

If we can't agree and unite to elect leaders like this, then what is the point continuing as a nation?!!... Why not go our separate ways, let those who have chosen to be unfortunate continue down that part alone.

3 Likes

Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by TenQ: 7:40pm On Sep 21, 2021
nymphomaniac:
with our clueless leaders? LMAO
Both the clueless leaders and our brightest economists do not want to go in that direction.

They prefer solving the problem by CBN pronouncements and adjustments of lending rates, VAT and anything that looks like big economic grammer

1 Like

Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by dandadee: 7:41pm On Sep 21, 2021
When the price of oil drops, and as the world innovates toward alternative energy sources, the amount of external reserves we have to back up the international value of our legal tender (our reserves) frequently comes under pressure.
Abeg I need explanation in plain terms on the need to back up value of legal tender with external reserves..I no too sabi economics..

2 Likes

Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by vRendoh(m): 7:42pm On Sep 21, 2021
...we got the numbers.....where dem ?...pls be productive with your numbers. Brings dollars o ejò o
Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by SmartPolician: 7:42pm On Sep 21, 2021
My response to this informative read is that Buhari needs to sack Emefiele. That job is too big for him.
Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by Dliquidmetal(m): 7:46pm On Sep 21, 2021
Economics is just so beautiful, I love this but I trust our leaders to keep playing politics. As an fxtrader, reading things like this just brings me some kinda joy I cant describe lol

1 Like

Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by Victerica(m): 7:47pm On Sep 21, 2021
To much grammar.

Trying to convince us but the too much grammar is confusing.

Let's learn to use simple words to express ourselves.

If Buhari read this, will he understand peacefully without headache?

2 Likes

Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by Keating: 7:47pm On Sep 21, 2021
lalasticlala:


https://threadreaderapp.com/thread/1439009262664044545.html

Great speech

Kingsley Moghalu for President 2023.
Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by juddexy2(m): 7:48pm On Sep 21, 2021
ecolime:
You cannot give what you don't have. We failed to diversify our economy when oil money was flowing in like water. Oil is gradually going out of fashion. No thanks to green energy, Covid-19, etc..

This is why I support collection of VAT by states. It will make every state look inward and be productive.
Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by BarristerAlarig: 7:49pm On Sep 21, 2021
nymphomaniac:
This is a good read. Enough of Nigerian leaders painting utopian endgames for our currency. We either do something about it or face a further steep decline of the naira.

Painfully, Meffy knows all these things but instead, chose to chase ABOKIFX.

The only hope for our Naira is for the government to sit up(embrace good leadership and reduce import /encourage export, stop loan collection) cut off the rottening arm (revoke BDC licenses and embrace rate convergence) and cauterize the wound (continue the path of 1 and 2 above) before it becomes too late.

Meanwhile, what is today’s $ to N rate sef?




583 according to Barter
Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by emonis88: 7:50pm On Sep 21, 2021
Don't worry an aboki, n a south south lanky r ur minister of finance n CBN gov , cus our president doesn't even understand the basics of running a business, talkless of a country. We sidon dey look.
Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by Lugianostar(m): 7:53pm On Sep 21, 2021
We have failed completely by refusing to diversify our economy but solely depend on oil we cannot even account for and gradually the oil boom is thing of old and what we fail to do yesterday is staring us in the face now. Fx trading is good and a lot of countries have invest in so much and they have seen the benefits in their comparative advantage their countries have over others. Our Naira @ 550 to $1 is a misfortune for us do have an edge in building a fortune in this new nomenclature called forex.....!
Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by ivolt: 7:57pm On Sep 21, 2021
nymphomaniac:

The only hope for our Naira is for the government to sit up
What does this practically mean?
The government has no card to play against demand and supply.


(embrace good leadership and reduce import /encourage export, stop loan collection)
Unless you turn a mindless dictator, you can't reduce import with any positive effect.
The attempt to directly control the import of rice led to more than 100% increase in its price.

The only thing the government controls here is the loan.
But they don't just take loans for joke.
All the sharing of money aka social investment and arms deal has to come from somewhere.


cut off the rottening arm (revoke BDC licenses and embrace rate convergence) and cauterize the wound (continue the path of 1 and 2 above) before it becomes too late.
BDCs are already cut out of fx supply and the slide still continues.
The populace believe the country is very rich but just need a better money sharer.

The reality is that there is no magic fix for our forex short term without the populace taking a financial hit first.
Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by Housing(m): 8:00pm On Sep 21, 2021
I didn't buy, the more will devalued our currency the more its free fall. Naira was allowed to finds it's natural level in late 80's it led to devaluation. Again it was floated to find it's level lat 2016 - early 2017 it's lost over 80% of it's value.

When PMB threatened to outlaw BDC if the free fall continues a miracle happened. From N520 to a US Dollar it appreciated to N327/US Dollar. Before it continues another round of free fall.

Bankers makes great deal of fortune from round tripping and insiders trading. To remain in the FX department in any bank today you must rub palms.

Our economy is in tatters because of the insecurities in the country. Cost of transporting a 30tons truck from Lagos to Kano was less than Five Hundred Thousand (N500,000) as at March 2021 but today you will be luck to get it done at Seven Hundred Thousand Naira (N700,000).

Nigeria can not afford to float Naira it can only lead to Zimbabwe.

The Federal Government should unbanned every every essential and consumable good for the time being as the insecurities as slow down productions in all facets of our to an all times low. We need to rejig to the economy for our to survive the shortages. Thus will can prohibit importations of what we sufficient in or those with alternatives.

The country is more or less in a war situation and needs availability of essential needs for it's citizens at a cheaper rate.
Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by danowena: 8:12pm On Sep 21, 2021
BarristerAlarig:




583 according to Barter
Please stop trying to create unnecessary sensationalism. Barter has always been at least N20 Naira more than street value. I have been using the app for more than 2 yrs so don’t argue.
And btw, forget the sensationalism and smear campaign, I bought dollar yesterday at 560 yet punch is screaming N575. I bought today at 545 I am waiting for what the press will scream today.

6 Likes

Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by RiceProducers: 8:12pm On Sep 21, 2021
nymphomaniac:
This is a good read. Enough of Nigerian leaders painting utopian endgames for our currency. We either do something about it or face a further steep decline of the naira.

Painfully, Meffy knows all these things but instead, chose to chase ABOKIFX.

The only hope for our Naira is for the government to sit up(embrace good leadership and reduce import /encourage export, stop loan collection) cut off the rottening arm (revoke BDC licenses and embrace rate convergence) and cauterize the wound (continue the path of 1 and 2 above) before it becomes too late.

Meanwhile, what is today’s $ to N rate sef?

This in Nigerianese you are speaking.
Hot air going nowhere.

Government is already reducing imports and encouraging exports. Why do we like 1+1=2. What's the new thing in this now?

Stop loan collection - that's rubbish. The country has to grow. There are 170m young people.

Revoke BDC licenses - done and undone many times, like ding dong.

You have to dig into the figures.
The offending products are:
1.Petrol and LPG
2. Vehicles
3. Rice, wheat and fish

Have a strategy for each product.
No. 1 - will go away in 2023
No. 2 - domicile assembly locally
No. 3 - outright ban on importation

3 Likes

Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by Neurotika: 8:18pm On Sep 21, 2021
A little knowledge is a dangerous thing. He lost me when he opted for a free float system in a country with serious structural deficiencies militating against those invisible hands. Foreign debt overhang, inflation, market imperfection (speculation, collusive oligopoly especially in the parallel market), massive window for currency abitraging, bottlenecks in accessibility of FX at the official rate, interest rate, unilateral source of FX earnings, unfavourable balance of trade etc....cannot make such a system work in this peculiar situation. Hmmm, interesting times we live in....

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Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by Bngf: 8:19pm On Sep 21, 2021
Oh
Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by jeffoe(m): 8:20pm On Sep 21, 2021
Leaders write books to inspire and educate their followers. This guy is a Leader

1 Like

Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by BruncleZuma: 8:21pm On Sep 21, 2021
We have not fixed our power situation...there lies the basic truth. No power, no industrialization, no domestic production, no export...dead naira.

2 Likes

Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by Mrlola: 8:23pm On Sep 21, 2021
Thinktwicemybro:
*CBN FX ISSUE: MY SUGGESTIONS*

Like it or not 90% of Nigerians are fraudulent and love quick money. I applaud the CBN from banning black market because they are the once increasing the dollar for no reason. This are my suggestions.

1. Banks should now have dollar account for customers.
2. Customers should be able to transfer naira to that dollar account and it will credit using the official rate of #410
3. Restrictions should be placed on that dollar account by which customers cannot witdraw more than a certain amount at a time.
4. Traveling customers who want BTA and PTA should transfer the money directly from their dollar account to their foreign account but the money will be in ledger and will be fully credited when the airline operator confirms the persons arrival to the country.
5. CBN should lunch payment on arrival policy for those who want to import goods.
6. Those who want to import large goods should inform the CBN, lodge the money into CBN, who will then pay for the goods once they arrive Nigeria.
7. Anything that can be produced in Nigeria should no longer be imported.

OP, did you complete primary six? This is too elementary!
Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by jaxxy(m): 8:25pm On Sep 21, 2021
Bad economy coming to haunt the naira.
Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by Nobody: 8:26pm On Sep 21, 2021
Tonymexes:
Sound people like this should be running this country. Nigeria is an unfortunate place,ruled by hopeless idiots

There is nothing special in what he wrote. A SS 2 student from a very good secondary school can also think and write like that.

4 Likes 1 Share

Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by Nobody: 8:28pm On Sep 21, 2021
Neurotika:
A little knowledge is a dangerous thing. He lost me when he opted for a free float system in a country with serious structural deficiencies militating against those invisible hands. Foreign debt overhang, inflation, market imperfection (speculation, collusive oligopoly especially in the parallel market), massive window for currency abitraging, bottlenecks in accessibility of FX at the official rate, interest rate, unilateral source of FX earnings, unfavourable balance of trade etc....cannot make such a system work in this peculiar situation. Hmmm, interesting times we live in....

If he becomes president, he wouldn't do much, i promise you.

2 Likes

Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by Ugandatales: 8:30pm On Sep 21, 2021
Thinktwicemybro:
*CBN FX ISSUE: MY SUGGESTIONS*

Like it or not 90% of Nigerians are fraudulent and love quick money. I applaud the CBN from banning black market because they are the once increasing the dollar for no reason. This are my suggestions.

1. Banks should now have dollar account for customers.
2. Customers should be able to transfer naira to that dollar account and it will credit using the official rate of #410
3. Restrictions should be placed on that dollar account by which customers cannot witdraw more than a certain amount at a time.
4. Traveling customers who want BTA and PTA should transfer the money directly from their dollar account to their foreign account but the money will be in ledger and will be fully credited when the airline operator confirms the persons arrival to the country.
5. CBN should lunch payment on arrival policy for those who want to import goods.
6. Those who want to import large goods should inform the CBN, lodge the money into CBN, who will then pay for the goods once they arrive Nigeria.
7. Anything that can be produced in Nigeria should no longer be imported.

If the Government can be strict on you last point, it will go a long in strengthening the Naira. We will suffer for a few months, but the benefits will be enormous.
Re: Nigeria's FX Crisis: What You Should Know By Kingsley Moghalu by priestcharm(m): 8:34pm On Sep 21, 2021
This is not totally correct. NIGERIA'S economy has always been monotonous since ages past and isn't the real reason for the sloppy fall of the naira. No government has tried to diversify Nigeria fx income than this government yet this government has witnessed the most spiral deviation of the naira in recent years. Enough of theories based on your knowledge of white men economics. The main problem has not been found and addressed

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