Please 1 Dollar is now 730 Naira.

I am not a good economist or political analyst but I need a good person to help me explain what makes dollar rise in Nigeria.

I can't really understand what's happening.

Na lack of s3x dey make am rise. If you ask me, na who I go ask!


Abegi like for Peter Obi
Share for Tifnubu

LoveGifted:
Please 1 Dollar is now 730 Naira.

I am not a good economist or political analyst but I need a good person to help me explain what makes dollar rise in Nigeria.

I can't really understand what's happening.

E don reach 700..??
Thought it was still at 645

Scarcity. The scarcer a commodity, the higher its price.

Buhari's body odour..

Damnnnn
Na buhari dey make am rise
8f dem ask you for any reason or explanation, just tell em say na buhari and APC.

Huge imports, increased demand of dollar, low export to receive dollars, poor remittance of dollars into Nigeria from abroad in terms of investments or otherwise.

Poo'hari's "I am for no one body odour" .

It was exclusively reserved for terrorists doing legitimate Business through kidnapping.

Billions of Naira were just exchanged in Ruga bushes of Nigeria like Akara balls under the ransom business payments to terrorist

Shikena.

This is serious.
Its no longer a situation where we complain. This is serious

famouscargo4u:
Huge imports, increased demand of dollar, low export to receive dollars, poor remittance of dollars into Nigeria from abroad in terms of investments or otherwise.

Thanks.

A) You are probably importing more than you are exporting. Over dependence on dollar.
B) Political instability
C) Uncertainty about the country’s economy can stir fears for foreign investors. If they are leaving the country, they will need to trade naira for dollar.
D)Inflation
E) the country relies on foreign countries for most of her needs. Naija is simply not productive. No power, we depend on foreign refineries to even refine our crude
F) our low or sinking foreign reserve coupled with huge debt profile.

LoveGifted:
Please 1 Dollar is now 730 Naira.

I am not a good economist or political analyst but I need a good person to help me explain what makes dollar rise in Nigeria.

I can't really understand what's happening.

Incompetent APC administration. When the govt can not make good economic policies, this is what you see.

EDSG2028:
You are probably importing more than you are exporting.
Over dependence on dollar.
Political instability
Uncertainty over about the country’s economy can stir fears for foreign investors. If they are leaving the country.
Inflation

I think you guys are underestimating arbitrage. Official rate is 410, which only banks and few people can get, while black market is 700. What stops the banks from continuously exploiting this for profit? They can continue to buy and flip to Black market sellers at 650, making over #240 in profit. They've just printed 240 naira out of thin air. They can do this continuously without stopping, causing inflation of naira because they're printing money (naira) from thin air

Also, it doesn't help that CBN govenor threatened people that are buying dollar. Now everyone is panic buying dollar to keep, inflating the price of the dollar against the naira.

In a sane country, everyone would depart from APC.
I wonder if the leaders and delegates are charmed.

LoveGifted:
Please 1 Dollar is now 730 Naira.

I am not a good economist or political analyst but I need a good person to help me explain what makes dollar rise in Nigeria.

I can't really understand what's happening.

Lack of leadership.

If buhari travels abroad for medicals for a long time and Osibanjo is acting, Osibanjo will call cbn to order and the exchange rate will drop.

But as long as Buhari is around, cbn will continue misbehaving. Why is cbn refusing to give dollars to bdc where the black market rate can be regulated to some extent?

Buhari is just allowing cbn to misbehave.

@LoveGifted

Think of it this way.

Nigerian government may decide to print plenty of naira so that all Nigerians can become rich and spend money the way they like. This sounds good, right?

Well, the implication is that plenty of naira will be chasing few commodities on the market and mounting pressure on the few commodities. In the end, people won't be willing to work anymore because we all have money to throw around now. This leads to inflation - the prices of goods go up because plenty of naira are chasing few commodities.

Coming to dollars, every country needs to invest in some form of economic activity that attracts foreign exchange (foreign currency, dollar in this case). Unfortunately, the major thing we export that brings us dollars is crude oil and gas.

Bad enough, Nigeria is a country of 200 million people. We don't have the enabling infrastructure to support production. What this means is that it is cheaper to import many things from foreign countries than have those things produced locally.

For instance, the cost of manufacturing goods in China and moving them into Nigeria is by far cheaper than producing them in Nigeria because China has cheap labour, electricity, right government policies, etc. that support production.

As a result, more and more Nigerians are going for the USD so they can import things and sell to Nigerians. As the pressure mounts on the naira, it means that demand is higher than supply (that mainly comes through petrodollars). Just like what happens in the commodities above, the exchange rate will go up.

PS: There are other factors that affect it: Some Nigerians saving their money in dollars due to endless depreciation of naira, many Nigerians looking for dollars because they want to leave the country, others want to pay for school fees abroad and medical tourism, etc.


I hope this helps....

Simply the ratio of demand for the dollars to demand for the Naira .

SmartPolician:
@LoveGifted

Think of it this way.

Nigerian government may decide to print plenty of naira so that all Nigerians can become rich and spend money the way they like. This sounds good, right?

Well, the implication is that plenty of naira will be chasing few commodities on the market and mounting pressure on the few commodities. In the end, people won't be willing to work anymore because we all have money to throw around now. This leads to inflation - the prices of goods go up because plenty of naira are chasing few commodities.

Coming to dollars, every country needs to invest in some form of economic activity that attracts foreign exchange (foreign currency, dollar in this case). Unfortunately, the major thing we export that brings us dollars is crude oil and gas.

Bad enough, Nigeria is a country of 200 million people. We don't have the enabling infrastructure to support production. What this means is that it is cheaper to import many things from foreign countries than have those things produced locally.

For instance, the cost of manufacturing goods and moving them into Nigeria is by far cheaper than producing them in Nigeria because China has cheap labour, electricity, right government policies, etc. that support production.

As a result, more and more Nigerians are going for the USD so they can import things and sell to Nigerians. As the pressure mounts on the naira, it means that demand is higher than supply (that mainly comes through petrodollars). Just like what happens in the commodities above, the exchange rate will go up.

PS: There are other factors that affect it: Some Nigerians saving their money in dollars due to endless depreciation of naira, many Nigerians looking for dollars because they want to leave the country, others want to pay for school fees abroad and medical tourism, etc.


I hope this helps....

Politicians are moping dollars

Venezuela economy style will hit Nigeria soon.

So people who are shouting Jagaban should climb tall building and shout it well.

A man who openly said I don’t care about exchange rate because your salary will be paid in Naira. And you are shouting Jagaban

Na so we see am ooo

And Bat say exchange rate no matter

The dollar has gained value against the euro as well.

Some global economic dynamics at play such that, if every other factor is held constant, the value of dollar continues to rise.

Haven't had time to study the economic jargons in details though.

Consumption without production.

When you are always visiting someones house and they dont visit you, your value reduces.

That is what Peter Obi is coming to fix.

From my economy knowledge, it is basically caused by deficient balance of trade.

At the international level, nations trade among themselves and your purchasing power is most likely determined by the commodity ylu are bringing to the fore

Nigeria as we know is an importing nation, so most of the time we take from our reserves to balance trades which in turn has adverse effect on our economy, plus we run a lackadaisical kind of government which provides room various leakages

Solution, we need to export more to balance up our trade

Government needs to stay responsible enough to drive local economy to produce more internally

We also need to create wealth among our citizens to create a huge purchasing power

I hope with this few points of mine, I've been able to say something tangible on this.

LoveGifted:
Please 1 Dollar is now 730 Naira.

I am not a good economist or political analyst but I need a good person to help me explain what makes dollar rise in Nigeria.

I can't really understand what's happening.

Roughly speaking, we are not earning enough dollars to buffer the naira because

1.We do not export manufactured goods....which means all we can export is things like oil and cocoa...whose prices are set in London , Paris and New York, and most of the time, the prices are at levels that cannot sustain us.

If we exported manufactured goods, we can set the price, and earn enough dollars..ideally.

2.We also import and import. That means any dollars we earn gets wasted on imports.

3.We subsidize fuel and power. Subsidy is what we pay to keep prices of fuel low. As at now, fuel should cost N600 more than it acutally costs at N175 at the pump.

Subsidy goes to cover the loss that results from the petroleum sector selling fuel at a price below its cost of production. And because the price of oil has risen from 60 dollars per barrel last year to nearly 120 dollars a few months ago....the price of refining one liter of fuel has gone up, as has its landing cost....and thus the cost of subsidy.

That eats a lot of dollars

4.Corruption and stealing and waste at all levels of government, and public life.

5.Debt...because oil prices are never at a level that can sustain us, we take loans, and these loans have to be paid back


All the above means low dollar revenue, meaning we have a rising level of the naira.

Every African country south of the sahel, and in the sahel, with the exception of South Africa, has this issue. Even SA is slowly slipping up.

I think the Euro got weakened against the Dollar and should also weakeen against the Naira. The Euro came down to Dollar not the Dollar move up to meet the Euro. I don't know if you get it. Naira shouldn't lose value because of that.

OkCornel:
The dollar has gained value against the euro as well.

Some global economic dynamics at play such that, if every other factor is held constant, the value of dollar continues to rise.

Haven't had time to study the economic jargons in details though.

Masterito:
I think the Euro got weakened against the Dollar and should also weakeen against the Naira. The Euro came down to Dollar not the Dollar move up to meet the Euro. I don't know if you get it. Naira shouldn't lose value because of that.

Gotcha...I'll study the details when I'm chanced

famouscargo4u:
Huge imports, increased demand of dollar, low export to receive dollars, poor remittance of dollars into Nigeria from abroad in terms of investments or otherwise.

Are you saying that imports volume just increased. As as far as I’m concern, I’m aware that some importers have long stop importation due to the scarcity of forex. And oil price is reasonable high now

famouscargo4u:
Huge imports, increased demand of dollar, low export to receive dollars, poor remittance of dollars into Nigeria from abroad in terms of investments or otherwise.

CBN stopped funding importers but has excess money to fund study abroad rich people , medical tourism in the turn of $10b. why won't naira crash. let CBN fund importers with excess of 10b dollars yearly let's see if naira won't come down.

It's majorly because of the political and economic situation in Nigeria. Insecurity has a lot to do with it. Foreign investors are trying to recoup their losses. The country is very unstable. Plus the mad policies CBN keeps bringing out. I honestly don't know where that Governor got his own econ degree from. Demand for dollar keeps increasing and there's no supply of it.

They've successfully emptied Excess Crude account.. something that could've been used to help the naira

EMEKAodogwu1:

Are you saying that imports volume just increased. As as far as I’m concern, I’m aware that some importers have long stop importation due to the scarcity of forex. And oil price is reasonable high now

He only asked for indices that leads to depreciation of Naira.