einsteine:


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?

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.

Realdeals:
There's virtually no way it can be curbed inasmuch government is still the largest earners of FX. What will determine the rate for the government to sell, the parallel market?

Each time they try that, the parallel market price will react and keep going up, will they also keep adjusting?

The solution is for CBN to stopped selling FX entirely, banks and BDC should go and source it elsewhere.

We are an importing country, Don't you think it will raise the demand for dollar thereby depreciating the naira

Shooyie:


You never have anything logical to contribute honestly.

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?

They will still pop another loop hole

That's better EXPLAINED.

grandstar:


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)

And after that he went and blocked the borders.

Why people voted for him the second time really baffles me

Krismas:
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.

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?

KaluwisxPRO:


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?

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?

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'?

grandstar:


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?

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

KaluwisxPRO:


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

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.

KaluwisxPRO:


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.

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

einsteine:


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

Are they both not part of this Government? You want me to listen to failure with nothing to show for it? Tf for?? I’m telling the actual problem, you say na Wetin One mad man talk be solution, is he not part of this government?

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.

basty:
As far as we have these Aboki BDC operators, Naira can never be stabilized.

Even banks buy dollars at official rates and sell to black market racketeers.
Nigeria can never be good under any Northerner. They are all bad managers.

Under Abacha, official rate was N22 to a dollar. These people will buy at official rate of 22 and sell at black market rate of N85

Buhari and his brothers are too corrupt and that is the enterprise of a Northerner and they keep destroying Nigeria economy.

The only way to get out is for the oil to dry up and we face Agriculture as our economic mainstay. It will be difficult at first but the economy would be stabilized later after the hardship.

Your medicine is far worse than the disease.

lexy2014:


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

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

lexy2014:


CBN is independent of who?

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.

pquaver:
The fact you work in the same company with your colleagues as some in the finance department do you tell the engineering department how to do their work? Emefiele is a competent economist.. Call him out for the perceived incompetence ( or is because he is our brother) n not saying gov.. When he is Hause or Yoruba do u remember that when u claim ndi igbo this n Dat?

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

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!!

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.

grandstar:


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

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

grandstar:


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.

Who owns d CBN?

lexy2014:


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

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."

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

grandstar:


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."

Story.. Naija CBN serves at the pleasure of the executive president ; and it’s not independent!

BigIyanga:

Story.. Naija CBN serves at the pleasure of the executive president ; and it’s not independent!

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.

grandstar:


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."

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

grandstar:


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.

who owns d CBN and who does d governor report to?

OSINBAJO IS PROBABLY PERCEIVED MISCHIEVOUSLY AS CRUISING AROUND IN A BORROWED VOLVO LIMOUSINE.

AND BUHARI ALWAYS USING IMPORTED TOOTHPICKS INSTEAD OF LOCALLY PRODUCED BROOMSTICKS.