Shooyie:
Prof Osinbajo was trying to call the attention of the CBN governor to those who buy at official rates and sell at the parallel market which allows them make huge profit at the expense of unsuspecting Nigerians.

Playing to the gallery for political points

Emphasizing the problem is not the solution to it. Even the blind can see that any form of difference btw government and alternate market rate will be exploited for gains by people and also, no investor will want to exchange at official rate if unofficial rate is more promising.

Dats wot capitalism is all abt! How to close d gap is d real issue. Coming from a govt. dat. Promised to make N1=$1? SMH. They stopped BDCs on allegation of terrorism financing, without any tested alternative. Rather than expose those involved in it for prosecution

Tareq1105:


Blame your BDC brothers who are working against the naira.

And I guess my BDC brothers were put in charge of the country and economy? How convenient it is always to blame everyone else but the ones in charge.

The solution to the problem is simple.

I do not support the devaluation of the Naira to 575 as that would make the Naira too weak. The Naira hit that low because the CBN ended the sale of $20,000 weekly to each BDC weekly at about 410 and who resold it at the parallel market rate of around 480. All that was needed to end the massive difference was simply to devalue the official rate of Naira at the official rate to about 460-470 to close the gap.

Rather than do devalue, since Buhari would have none of that, he blamed the 480 rate to the activity of greedy BDC's. Instead, the CBN ended the sale of dollars to the BDC's and commercials were now to be selling to the public at the official rate. PMB was simply living in denial.

This action of sales through the banks led to artificial scarcity in the market as it takes weeks before you get your dollars due to bureaucracy unlike instantly from the BDC's. I was once at a bank and a travel agent came in to buy dollars from the mallams who lurk in banks.He complained that his client who is studying overseas is desperately in need of dollars to pay his fees and can't wait for the banks, that they will take forever. The travel agent berated the government for stopping sales of forex to the BDC's. That is what caused the fall of the Naira to the 575 level it is today.

When Lamido Sanusi assumed office in 2009, he met an official rate of 120 to a dollar and 190 at the parallel rate. This was due to the fact that Charles Soludo, his predecessor, refused to devalue the Naira when it was so glaringly necessary. Oil prices had collapsed from over $120 the previous year to $35 in 2009. Soludo, probably out of shame refused to do the obvious.

Lamido Sanusi on the other hand had no such qualms. He wasn't the creator of the mess he met on the ground. He simply devalued the Naira to around 155 and the parallel rate hit 160 overnight. Problem over. He said the official rate must not have a differential of more than 3% from the parallel rate as it leads to roundtripping and other malpractices. It might be wise to try it again.

s

Lovenorth:
This media call will not solve the problem, let him talk to his boss head on. I look at this as another way of manipulating politics, he is only selling himself to the Nigerian people

He should not sell himself to Nigerians. If he wants the top job, he only needs to sell himself to Buhari. Once Buhari endorses him, he is 70% likely to get the top job. Buhari has a powerful fan base in the North that would be Osinbajo's if supported by him. Osinbajo would most likely get the Yoruba vote. By then, he already has two-thirds of the country in his hand.

lexy2014:


calling here and there as if it is phone call. members of osinbajo social media team trying desperately to justify their pay. is osinbajo and d CBN governor not in d same govt that osinbajo is trying to call d attention of d CBN governor?

They video will answer your question. Kill your curiousity. Watch from the beginning to the end.

Is it wrong to sell himself.

Lovenorth:
This media call will not solve the problem, let him talk to his boss head on. I look at this as another way of manipulating politics, he is only selling himself to the Nigerian people

TheRareGem1:


They video will answer your question. Kill your curiousity. Watch from the beginning to the end.

seems u didnt understand what u read. calling here and there as if it is phone call. members of osinbajo social media team trying desperately to justify their pay. is osinbajo and d CBN governor not in d same govt that osinbajo is trying to call d attention of d CBN governor?

teeytimi:
Buhari intentionally create artificial scarcity just to enrich his aboki brothers who easily get dollar at 410 and In turn sell it at 570 all at the expense of other Nigerians.
Smh

Exactly!

The $100/month limit on debit cards is simply ridiculous and a clear plot to create artificial scarcity of the dollar.

Cbn should increase the limit to $1,000/month for savings account and see how the rate of dollars will drop overnight.

These guys are just thieves I swear

Ehisod:
Is it wrong to sell himself.

No, it is good to sell himself but he should do that openly. Why is he afraid?

lexy2014:


members of osinbajo social media team trying desperately to justify their pay. is osinbajo and d CBN governor not in d same govt that osinbajo is trying to call d attention of d CBN governor?

You never have anything logical to contribute honestly.

Is like his past time is now to give "Talk shows" upandan on white elephant policies his lords will never implement.

Shikena:

The people of Nigeria.
*Make your point and stop beating about the bush, smartie pantie

please kindly ignore this kindergarten brain like someone as said. You have time share.

grandstar:
The solution to the problem is simple.

I do not support the devaluation of the Naira to 575 as that would make the Naira too weak. The Naira hit that low because the CBN ended the sale of $20,000 weekly to each BDC weekly at about 410 and who resold it at the parallel market rate of around 480. All that was needed to end the massive difference was simply to devalue the official rate of Naira at the official rate to about 460-470 to close the gap.

Rather than do devalue, since Buhari would have none of that, he blamed the 480 rate to the activity of greedy BDC's. Instead, the CBN ended the sale of dollars to the BDC's and commercials were now to be selling to the public at the official rate. PMB was simply living in denial.

This action of sales through the banks led to artificial scarcity in the market as it takes weeks before you get your dollars due to bureaucracy unlike instantly from the BDC's. I was once at a bank and a travel agent came in to buy dollars from the mallams who lurk in banks.He complained that his client who is studying overseas is desperately in need of dollars to pay his fees and can't wait for the banks, that they will take forever. The travel agent berated the government for stopping sales of forex to the BDC's. That is what caused the fall of the Naira to the 575 level it is today.

When Lamido Sanusi assumed office in 2009, he met an official rate of 120 to a dollar and 190 at the parallel rate. This was due to the fact that Charles Soludo, his predecessor, refused to devalue the Naira when it was so glaringly necessary. Oil prices had collapsed from over $120 the previous year to $35 in 2009. Soludo, probably out of shame refused to do the obvious.

Lamido Sanusi on the other hand had no such qualms. He wasn't the creator of the mess he met on the ground. He simply devalued the Naira to around 155 and the parallel rate hit 160 overnight. Problem over. He said the official rate must not have a differential of more than 3% from the parallel rate as it leads to roundtripping and other malpractices. It might be wise to try it again

U may as well go to the market and declare that a Derica of Rice will be N200 nation wide going forward, inorder to close the gap caused by rising food cost

Krismas:
U may as well go to the market and declare that a Derica of Rice will be N200 nation wide going forward, inorder to close the gap caused by rising food cost

Did you understand what I wrote?

airsaylongcome:


Lol. And this isn't a devaluation? Okay let's call it a "right-valuation"...revalue it to market realities

I wonder ooo... Most Nigerians don't understand English at all. What does he mean that our exchange rate is low and there's need to move it closer to the market realities?? It means actually raising our official exchange rate closer to 570 which is the current market reality and that means devaluation. Most Nigerians are just daft. Tufiakwa!!

grandstar:


Did you understand what I wrote?

Wen Sanusi closed the gap in his tenure how did that better the naira? Why did it slump so badly since 2015? Artificial closing d gap is devaluation and it will help the naira slump ever deeper in few years from now.

always remember folks, the easiest thing for lawyers to do is talk, they know how to talk and they always talk a big game, infact it is what they are trained and paid to do.

Nigeria has never been short of talkers, Nigeria has always been short of talkers who walk the talk when convenient and when not.

Lovenorth:
This media call will not solve the problem, let him talk to his boss head on. I look at this as another way of manipulating politics, he is only selling himself to the Nigerian people

Can you afford him

Krismas:
Wen Sanusi closed the gap in his tenure how did that better the naira? Why did it slump so badly since 2015? Artificial closing d gap is 0000000devaluation and it will help the naira slump ever deeper in few years from now.

Getting a visa stands on only basic foundation: that is - your present status. If you worked in Chevron 2 years ago and you were giving a visa, this year you're now self employed, they would have to re-evaluate your application.

In forex, your fundamentals are what determines your exchange rate.

The currency slumped because the price of oil slumped from about $100 per barrel in 2014 to $50 by May 2015 and still went further down to $35. So, let's say Nigeria exports 2m barrels of oil daily, multiplied by $100 you get $200m daily entering the economy. Then the price plummet to $35 and $70m daily instead. Would the value of the Nair increase or depreciate based on the fundamentals here?

grandstar:


Getting a visa stands on only basic foundation: that is - your present status. If you worked in Chevron 2 years ago and you were giving a visa, this year you're now self employed, they would have to re-evaluate your application.

In forex, your fundamentals are what determines your exchange rate.

The currency slumped because the price of oil slumped from about $100 per barrel in 2014 to $50 by May 2015 and still went further down to $35. So, let's say Nigeria exports 2m barrels of oil daily, multiplied by $100 you get $200m daily entering the economy. Then the price plummet to $35 and $70m daily instead. Would the value of the Nair increase or depreciate based on the fundamentals here?

Fundamentals u say? I believe the budget is a fundamental? U talked about earning less. If u know how to sew ur coat according to ur cloth, wot are u devaluing for?

Shooyie:
Laolu Akande
Senior Special Assistant to the President on Media & Publicity
Office of the Vice President
12th October, 2021

This guy is just too brilliant
Lawyer turn economist

hahn:


Exactly!

The $100/month limit on debit cards is simply ridiculous and a clear plot to create artificial scarcity of the dollar.

Cbn should increase the limit to $1,000/month for savings account and see how the rate of dollars will drop overnight.

These guys are just thieves I swear

My brother, before Buhari enter, it was $1,000 a day limit. Imagine going to the bank now to apply for BTA? All you needed then was your Naira card to spend overseas. This man has wrecked or finished the economy. It's unwise to rely on man (Read Psalms 146:3-4)

Krismas:
Fundamentals u say? I believe the budget is a fundamental? U talked about earning less. If u know how to sew ur coat according to ur cloth, wot are u devaluing for?

Fiscal discipline like you mention can be a good fundamental. Your currency is less likely to depreciate. But there are so many fundamentals that determine or 8nfluemve the value of your currency.

For instance, if Buhari is permitted to run for a 3rd term, this may lead to an massive outflow of dollars from the economy because investors have no confidence in h and are sure he is bound to win.

However, the depreciation of the Naira from last year was due to the collapse in oil prices which starved the economy of dollars but revenue as well. This would have compelled the government to borrow heavily.

.Add to it was the spending binge by the government to pull the economy out of the lockdown induced recession. The money used was largely borrowed and increased Naira in circulation.

So the CBN Governor no dey attend FEC..?

vicdom:

I wonder ooo... Most Nigerians don't understand English at all. What does he mean that our exchange rate is low and there's need to move it closer to the market realities?? It means actually raising our official exchange rate closer to 570 which is the current market reality and that means devaluation. Most Nigerians are just daft. Tufiakwa!!

Please keep quiet, that is not what it means. The CBN did something immediately this Government got in, they thought they were doing those who had savings in USD.

Your president gave the directive for Nigerians to only have access to $100 monthly, because in his Logic, Nigerians spend too much on foreign trips. ( The same trips he’s gone to severally this pandemic year alone). When they did that, they created a fake dollar scarcity, for the masses to get USD from black market, created a fake forex window, where only a selected few elites with importers privileged, like oil importers or to access USD at N190 (bankers call it round tripping) (fake buy and sell orders from Nigeria, channeled bank in as inflow to resell at black market), while the dollar was N240. (This has been on since this administration)

This artificial scarcity around the masses made it seems there’s no dollar, while some few were getting it discounted. Burea de change were also getting same, but because they only have access to such rate twice weekly (Tuesday and Friday) it was not enough for them to hoard. While you and me are fighting to get the USD at N570, some are getting it for fake import duties at N410, funded by the CBN.


What the Vice President is asking for is for a level playing ground where everyone gets the USD at the rate of the CBN. why are the banks afraid to pay more than $100 at the rate of N410..? Why are banks willing to pay you N5 extra on every USD? Because that’s only N5 from their N160 profit per USD, that’s %40 profit banks are making from every dollar.

Lemme ask you, do banks return their excess USD to the CBN…? If not, then why should someone who bought BTA..? Can you see where the Fraud lies?

grandstar:
The solution to the problem is simple.

I do not support the devaluation of the Naira to 575 as that would make the Naira too weak. The Naira hit that low because the CBN ended the sale of $20,000 weekly to each BDC weekly at about 410 and who resold it at the parallel market rate of around 480. All that was needed to end the massive difference was simply to devalue the official rate of Naira at the official rate to about 460-470 to close the gap.

Rather than do devalue, since Buhari would have none of that, he blamed the 480 rate to the activity of greedy BDC's. Instead, the CBN ended the sale of dollars to the BDC's and commercials were now to be selling to the public at the official rate. PMB was simply living in denial.

This action of sales through the banks led to artificial scarcity in the market as it takes weeks before you get your dollars due to bureaucracy unlike instantly from the BDC's. I was once at a bank and a travel agent came in to buy dollars from the mallams who lurk in banks.He complained that his client who is studying overseas is desperately in need of dollars to pay his fees and can't wait for the banks, that they will take forever. The travel agent berated the government for stopping sales of forex to the BDC's. That is what caused the fall of the Naira to the 575 level it is today.

When Lamido Sanusi assumed office in 2009, he met an official rate of 120 to a dollar and 190 at the parallel rate. This was due to the fact that Charles Soludo, his predecessor, refused to devalue the Naira when it was so glaringly necessary. Oil prices had collapsed from over $120 the previous year to $35 in 2009. Soludo, probably out of shame refused to do the obvious.

Lamido Sanusi on the other hand had no such qualms. He wasn't the creator of the mess he met on the ground. He simply devalued the Naira to around 155 and the parallel rate hit 160 overnight. Problem over. He said the official rate must not have a differential of more than 3% from the parallel rate as it leads to roundtripping and other malpractices. It might be wise to try it again.

s

Your friend is a liar, paying foreign school fees from Nigeria, is at the rate of N410 from any Nigerian bank, it is stated that foreign medical and school fees are not subject to parallel rate. you don’t need to buy USD from black market. What your friend did is the reason legit users find it hard to access.

Also what is the % of Nigerians abroad that pays more than $3000 per semester in higher institutions? Now do this maths. Supposing those students are allowed access to USD up to $1500 monthly by their Nigerian banks like before the administration got in, which Nigerians do you think will be struggling to access the USD..?

They took access of USD from the majority of users (masses) and gave that privilege to a selected few while the masses gets $100 monthly, and black market to struggle with.

Diasporas remittance is still the largest source of Forex for Nigeria (But same Diaspora's, can’t spend their inflows abroad at the same rate) and not even OIL. Now foreign companies who bring in their Dollar at N410 are forced to get the USD at 570 when they need need it locally. How do you expect them to make profit?

Osinbajo always talking like he is not part of the government.

By the way, a call for more market determined rates at the official window is effectively a call for devaluation. Or what would you call it, if CBN rates become 575 and parallel market rates become 600? The arbitrage would have been reduced but as far as everybody are concerned, devaluation has occured.

Not that devaluation is a bad thing though.

grandstar:


Fiscal discipline like you mention can be a good fundamental. Your currency is less likely to depreciate. But there are so many fundamentals that determine or 8nfluemve the value of your currency.

For instance, if Buhari is permitted to run for a 3rd term, this may lead to an massive outflow of dollars from the economy because investors have no confidence in h and are sure he is bound to win.

However, the depreciation of the Naira from last year was due to the collapse in oil prices which starved the economy of dollars but revenue as well. This would have compelled the government to borrow heavily.

.Add to it was the spending binge by the government to pull the economy out of the lockdown induced recession. The money used was largely borrowed and increased Naira in circulation.

The value of any currency is as it measures against another one. Value and purchasing power of a bill is same. It is on this base currencies are measured against themselves. Usually it is forces of demand and supply that determine XYZ Naira equals to YZX Dollars. Sometimes government can deliberately change the value I.e DEVALUE their currency like China to attract export. Since people like cheap things, $2 may afford a whole lot more apples in China than in Germany. In our case we really not exporting, mostly importing. We shudnt be devaluating. Earning less forex than u shud is not wot values ur currency. It is in other to afford excessive importation that we keep charging plenty Naira on small dollars.

KaluwisxPRO:


Please keep quiet, that is not what it means. The CBN did something immediately this Government got in, they thought they were doing those who had savings in USD.

Your president gave the directive for Nigerians to only have access to $100 monthly, because in his Logic, Nigerians spend too much on foreign trips. ( The same trips he’s gone to severally this pandemic year alone). When they did that, they created a fake dollar scarcity, for the masses to get USD from black market, created a fake forex window, where only a selected few elites with importers privileged, like oil importers or to access USD at N190 (bankers call it round tripping) (fake buy and sell orders from Nigeria, channeled bank in as inflow to resell at black market), while the dollar was N240. (This has been on since this administration)

This artificial scarcity around the masses made it seems there’s no dollar, while some few were getting it discounted. Burea de change were also getting same, but because they only have access to such rate twice weekly (Tuesday and Friday) it was not enough for them to hoard. While you and me are fighting to get the USD at N570, some are getting it for fake import duties at N410, funded by the CBN.


What the Vice President is asking for is for a level playing ground where everyone gets the USD at the rate of the CBN. why are the banks afraid to pay more than $100 at the rate of N410..? Why are banks willing to pay you N5 extra on every USD? Because that’s only N5 from their N160 profit per USD, that’s %40 profit banks are making from every dollar.

Lemme ask you, do banks return their excess USD to the CBN…? If not, then why should someone who bought BTA..? Can you see where the Fraud lies?

Stop insulting people.

It is very clear that you don't understand the VP.

Devaluation is not necessarily a bad thing. The VP's call for the reduction of the arbitrage and a change of the exchange rates towards more market determined rates is effectively a call for devaluation. Which rate do you think is the market determined rate? The one fixed by the CBN or the one that anybody willing to buy dollar buys at? So now on the basis of that, does this emotional nonsense you wrote make sense to you?