Stats: 3,190,093 members, 7,939,415 topics. Date: Wednesday, 04 September 2024 at 03:43 AM |
Nairaland Forum / Nairaland / General / Politics / Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption (12046 Views)
How Tinubu’s Forex Policy Is Growing Remittance Into Nigeria / Naira Swap: PDP Is Supporting A Policy That’s Wrecking Families - Arewa Group / Why Osinbajo Won't Become President Yet - BBC (2) (3) (4)
(1) (2) (3) (4) (5) (Reply) (Go Down)
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by KaluwisxPRO: 4:15am On Oct 13, 2021 |
einsteine: Mr man, nobody is calling for devaluation including the VP. You still don’t get the MEMO, fake importers gets USD for N410 to return back to the country without importing nothing. Wtf is wrong with you and comprehension. Dollar scarcity is fake in Nigeria, there’s USD to go round, wether we export or not. (Example: Dangote gets USD at N410 to import oil) no matter the quantity, even if he doesn’t import the quantity he applied for in USD equivalent he still gets the USD while importing less and keeping the rest profit) Diaspora remittance and foreign companies inflow has been sustaining this Country until Buhari said southerners are spending excessively abroad, so he cuts the spending limit Via the CBN. We’re talking about calling off the Fraud like in subsidy, you’re talking nonsense about devaluation, who told you 570 is the actual exchange rate without the fraudulent CBN.? Naira would be far less than 250 should the fraud be called off, the big boys don’t want that. If India can use their FDI alone to sustain their forex market, why is Nigeria different? Both countries boast of same diaspora’s remittance. 5 Likes 1 Share |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by kuljoe4: 5:58am On Oct 13, 2021 |
Realdeals: We are an importing country, Don't you think it will raise the demand for dollar thereby depreciating the naira |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by lexy2014: 6:32am On Oct 13, 2021 |
Shooyie: Neither do u. Meanwhile, 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? |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by cardoctor(m): 6:35am On Oct 13, 2021 |
They will still pop another loop hole |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by orisa37: 6:53am On Oct 13, 2021 |
That's better EXPLAINED. 1 Like |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by hahn(m): 7:45am On Oct 13, 2021 |
grandstar: And after that he went and blocked the borders. Why people voted for him the second time really baffles me ![]() 2 Likes 1 Share |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by grandstar(m): 9:54am On Oct 13, 2021 |
Krismas: Let's practicalize what you said. That since the the country isn't exporting, a devaluation of the currency is wrong. Forex is always entering and leaving the foreign reserves. It grows when more comes in than flows out and vice versa. Now assuming $200m is coming in daily and CBN sells $180m daily and it being bought at 217 to a dollar Now, the price of crude oil collapses and $70m is coming in daily. You keep selling $180m daily to the market because you don't want people to suffer, what do you think will happen? Your foreign reserves will begin to go down rapidly This is what put many countries, especially African, in trouble in the past and they were forced to run to the IMF for help. Some only had 1 week of imports in their foreign reserves. What is better, to have a weeks imports in your foreign reserves or the recommended minimum of four months? To achieve 4 months, what does the country have to do? Reduce sales to $60m daily or keep it at 180m. Should the Naira still be priced at 217 or some adjustment is needed? |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by grandstar(m): 10:10am On Oct 13, 2021 |
KaluwisxPRO: First, he is not my friend. He is a travel agent who came to buy forex for his customer who is studying overseas. He needed the dollars immediately. Or do the banks give you the dollars same day or instantly like the Hausa forex dealers? |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by 2MuchSense: 11:00am On Oct 13, 2021 |
My concern is whatever he is 'calling' for, he should be demanding or implementing or atleast scheming to implement. If he the Vice Preaident is 'calling for' what should I be doing? 'praying for'? |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by KaluwisxPRO: 11:37am On Oct 13, 2021 |
grandstar: If you’re paying for school fees abroad as a Nigerian student, your funds get paid to the school account directly at 410 rate, the Naira is debited from your funded Naira account. The bank requires your admission letter and other school documents for the transaction to be done 1 Like |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by grandstar(m): 12:14pm On Oct 13, 2021 |
KaluwisxPRO: He needed the money immediately. Something tells me he wasn't going to get ii instantly if he went through the banks I'm sure there's Form M to start with it.. Also, it may not have been for his school perhaps something related to his studies such as accommodation or a school project. It had 100% to do with studies. He wasn't lying!!! The issue is not whether the student was a liar but that you like the 410 exchange rate. That is the bottom line for you. This is simply sentiments and not pragmatism. It is wise to accept reality rather live in denial. Denial just makes things worse. Someone suggested Naira rate be 460 as that is what the banks really charge. Since, the parallel rate was 480 before the market went bunkers when the CBN ceased selling dollars because it was rattled by the BDC resale of the funds at around 480. Why not simply close the gap by devaluing the Naira at the official rate to 460. That would have been the pragmatic and economically prudent thing to do. But no, a certain man who has no understanding of market forces, who did not know that East Germany no longer existed in 2015, is calling the shots. |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by einsteine(m): 3:03pm On Oct 13, 2021 |
KaluwisxPRO: Emotional trash. Like I said, you don't understand what the VP was saying. Read what Bismarck Rewane a renowned Economist who understands that the VP was saying the Naira official rate is artificially LOW is saying https://www.nairaland.com/6799727/bismarck-rewane-vp-osinbajo-absolutely |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by KaluwisxPRO: 4:22pm On Oct 13, 2021 |
einsteine: Are they both not part of this Government? You want me to listen to failure with nothing to show for it? Tf for ![]() |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by Ambber(f): 2:19am On Oct 14, 2021 |
No. He wants to pave way for his political colleagues to start holding the economy to ransom in anticipation of 2023, the dollars they have stacked in my bourdilon homes under air conditioning. |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by grandstar(m): 2:50am On Oct 14, 2021 |
basty: Your medicine is far worse than the disease. |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by grandstar(m): 3:10am On Oct 14, 2021 |
lexy2014: The problem lies with Buhari. Buhari knows nothing about economics, yet he meddles in the exchange rate policy. The Central Bank which is semi-autonomous, should have asserted its autonomy by the governor telling the president not to meddle. Sadly he isn't doing that. Why? GEJ suspended Lamido Sanusi because he was a loudmouth and one that could not be contained. They now hired a person who was the complete opposite-someone submissive and pliant. Sadly for the nation's economy, he was the ideal person for Buhari to push around. As for Osibanjo, he is submissive to his boss to a fault. From many of his utterances, he shows subtle hints that he does not support many of the presidents' policies. Why then does he not speak out? He is eyeing the top job. It is his]if he does not make the mistake Atiku made by standing up to his boss OBJ. Osinbajo is simply bidding his time. His statement about the need to allow "supply side" into the forex mix may piss off his boss who may worry he is not loyal enough and change course once he is in office. The Central Bank governor is not a politician. He is a technocrat.Were he to join a party, I doubt he would keep that job. Only the president and the vice are in the same party 1 Like |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by grandstar(m): 3:14am On Oct 14, 2021 |
lexy2014: It is independent of the government. What this means is that the government can not meddle into its affairs. Central Banks that are independent of government are trusted by investors and businesses globally than those that are not. 1 Like |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by grandstar(m): 3:18am On Oct 14, 2021 |
pquaver: Emefiele's problem is that rather than assert the semi-autonomy the CBN has, he has allowed the president dictate to him rather than tell him off as his British counterpart did to the former prime minister Theresa May. He was doing quite well until PMB assumed office and pegged the Naira 1 Like |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by grandstar(m): 3:50am On Oct 14, 2021 |
vicdom: That is not what he is saying. To understand things better, let us go back to the time of Charle Soludo as the CBN governor. Before he became governor, the official government rate was usually had about a 10% differential or more to the parallel market rate. So, let us say the official rate is 150, the black market would be 170. This created distortions and would also encourage round-tripping, that is where people would buy forex at the official rate and sell at the parallel market rate. Also, when exporters wanted to change their dollars to Naira, some banks expected the exporter to use the official rate which shortchanged exporters. Charles Soludo was determined to get rid of the differential. What did he do? To obtain forex from the banks was a bureaucratic process that took weeks. He decided the CBN sell dollars to the BDC's who would resell them to the general public. This led to dollars not only flooding the parallel market, but could be purchased and gotten instantly. If I am correct, the parallel rate shot up from 150 to 122 to $1. The official rate was 120. The differential was only N2. The differential was less than 2%. By the way, the CBN sold the Naira to the BDC at 120 and were to resell for a N2 profit. So, here is 2021 and the Naira is 575. The recent tumble of the Naira of about 480 to 575 in a space of weeks must have rattled the government hence the VP's words. Why did the Naira tumble to hit that low. It hit that low because the CBN ended the sale of forex to the BDC's and people now had to go to the banks and buy it. The drying up of dollars previously sold to BDC's was what caused the crash. So, if the CBN had not banned the sale, the parallel rate would have remained at around 480. It is a rate like this the VP had in mind. The banks I have been told actually sell forex at 460. The Naira's true value lies between the 460-480. To achieve this, all the CBN needs to do is to restart the sale of dollars to the BDC's to strengthen it at the parallel rate while the government should devalue the official rate from 410 to 460. At 460, most of the demand for forex at the official rate of 410 will disappear. I won't be surprised if the parallel market rate moves up to like 470. Lamido Sanusi said that the difference between the official rate and parallel rate must never be more than 3%. At 460-470, I think that is achieved. |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by lexy2014: 3:56am On Oct 14, 2021 |
grandstar: still, doesnt answer d question: is osinbajo and d CBN governor not in d same govt that osinbajo is trying to call d attention of d CBN governor? yes or no |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by lexy2014: 3:57am On Oct 14, 2021 |
grandstar: Who owns d CBN? |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by grandstar(m): 4:25am On Oct 14, 2021 |
lexy2014: I had to Google it to get you an answer. Who owns it or not is irrelevant. What matters are its duties. Because it's duties are so important, many governments have made their Central Banks independent. That means politicians or anyone can't dictate to them how to do their work. To understand it better, lets look at the Bundesbank, the German Central Bank. It was probably one of the first central banks to be made independent. It had an objective to keep the inflation rate not higher than 2% in any given year. Now, if the inflation rate should go above 2%, the government would increase interests rates which would encourage savings which would mean less money in circulation. Higher rates also reduce borrowing, which reduce the amount of money in circulation. This may at times lead the economy into a recession. The political parties were helpless as the bank is independent. They can't dictate to the bank to reduce interests rates that an election is looming. That is not the banks' problem. The politician or government will just siddon look. Other governments today have made their central banks today independent as well and are copying the Germans. Please Google "why are central banks independent of government?" Also read below "Inflation: Controlling inflation is the primary objective of any central bank. In order to do so, they need to control the money spent by the government. ... Hence, to prevent this, central banks have been made independent of government authority." 1 Like |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by BigIyanga: 4:33am On Oct 14, 2021 |
Chair of National Economic Team who has 90% of wealth in foreign currencies $£€. How patriotic and honest can he be? His zombie follower will make excuses for him.. he’s part of the cabal |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by BigIyanga: 4:34am On Oct 14, 2021 |
grandstar:Story.. Naija CBN serves at the pleasure of the executive president ; and it’s not independent! |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by grandstar(m): 4:58am On Oct 14, 2021 |
BigIyanga: The CBN is autonomous but the present governor has refused to assert his independence. Remember he was hired to replace the loudmouth and straight talking Lamido Sanusi. They needed someone paint and submissive which sadly turned out to be what Buhari needed. 1 Like |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by lexy2014: 6:56am On Oct 14, 2021 |
grandstar: offpoint. doesnt answer d simple question: is osinbajo and d CBN governor not in d same govt that osinbajo is trying to call d attention of d CBN governor? yes or no |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by lexy2014: 6:57am On Oct 14, 2021 |
grandstar: who owns d CBN and who does d governor report to? |
Re: Why Osinbajo Advocates Forex Policy That Curbs Arbitrage & Corruption by orisa37: 7:57am On Oct 14, 2021 |
OSINBAJO IS PROBABLY PERCEIVED MISCHIEVOUSLY AS CRUISING AROUND IN A BORROWED VOLVO LIMOUSINE. AND BUHARI ALWAYS USING IMPORTED TOOTHPICKS INSTEAD OF LOCALLY PRODUCED BROOMSTICKS. |
Wike: Nigeria Needs Someone With Courage To Fight Insecurity / PDP Presidential Campaign Council Appoints Dele Momodu, Others As Directors / Aisha Buhari Commissions Hospital Named After Her In Kebbi
(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. 79 |