But those who just want to see the negative in everything he does, would argue otherwise. And those who have been making a fortune from the slow death of our economy will keep fueling their myopic narratives.

How can a country have a street exchange rate that is double the official rate? That is simply economic genocide as it keeps increasing the demand for foreign currency because of those who are profiting from the gap through black market sales.

With this regularisation, I believe the rate will drop in time, due to lower demand (drop in round tripping, black marketeering and local oil refinement).

Tinubu is indeed economically savvy and knows the right decisions needed to steer Nigeria back to the right path.

Sensible arguments welcome.

Escapist:
But those who just want to see the negative in everything he does, would argue otherwise. And those who have been making a fortune from the slow death of our economy will keep fueling their myopic narratives.

How can a country have a street exchange rate that is double the official rate? That is simply economic genocide as it keeps increasing the demand for foreign currency because of those who are profiting from the gap through black market sales.

With this regularisation, I believe the rate will drop in time, due to lower demand (drop in round tripping, black marketeering and local oil refinement).

Tinubu is indeed economically savvy and knows the right decisions needed to steer Nigeria back to the right path.

Sensible arguments welcome.

This decision is the most senseless economic policy.
Tinubu has succeeded in killing the naira, wait and see what happens in few months.

No country totally floats it's currency including the USA.
Some of you are saying market forces will determine exchange rate but you should be asking yourselves is what constitutes "market forces" in Nigeria

I agree too.

Only prostitute who are addicted to Brazilian hair and ipjones will see this as a good call.

It means the forex rates have been collapsed into one window unlike before when production related imports enjoyed lower rates and luxurious goods suffered in the black market.

shortgun:

This decision is the most senseless economic policy.
Tinubu has succeeded in killing the naira, wait and see what happens in few months.

No country totally floats it's currency including the USA.
Some of you are saying market forces will determine exchange rate but you should be asking yourselves is what constitutes "market forces" in Nigeria

The floating of Naira means some of those currency exchangers would be out of business cos it would be more available at bank and cheaper.

There is nothing like scarcity of dollars but instead hoarding. If the hoarding is no longer there, the rate can be fixed whether from bank or from Mallam exchanger

helinues:


The floating of Naira means some of those currency exchangers would be out of business cos it would be more available at bank and cheaper.

There is nothing like scarcity of dollars but instead hoarding. If the hoarding is no longer there, the rate can be fixed whether from bank or from Mallam exchanger

See the way you typed like you know what you are saying 😂😂

Let me give you a little assignment, what will happen to an economy suffering high inflation that adopts floating exchange?

shortgun:

This decision is the most senseless economic policy.
Tinubu has succeeded in killing the naira, wait and see what happens in few months.

No country totally floats it's currency including the USA.
Some of you are saying market forces will determine exchange rate but you should be asking yourselves is what constitutes "market forces" in Nigeria

Tell me countries that have official rate that differs from the rates on the streets.

CodeTemplar:
Only prostitute who are addicted to Brazilian hair and ipjones will see this as a good call.

It means the forex rates have been collapsed into one window unlike before when production related imports enjoyed lower rates and luxurious goods suffered in the black market.

How many producers, especially small scale ones, do you think were able to access forex at official rates in reality? Many manufacturers often had to resort to obtaining forex at black market rate. Only well connected big players could boast of getting CBB rates and not even consistently.

The float makes business easier for SMEs as black market rates will eventually drop.

Escapist:
But those who just want to see the negative in everything he does, would argue otherwise. And those who have been making a fortune from the slow death of our economy will keep fueling their myopic narratives.

How can a country have a street exchange rate that is double the official rate? That is simply economic genocide as it keeps increasing the demand for foreign currency because of those who are profiting from the gap through black market sales.

With this regularisation, I believe the rate will drop in time, due to lower demand (drop in round tripping, black marketeering and local oil refinement).

Tinubu is indeed economically savvy and knows the right decisions needed to steer Nigeria back to the right path.

Sensible arguments welcome.

Tinubu didn't float the naira, you don't float something you fixed, he fixed naira at 635 or there about, so where is the floating?

Escapist:


How many producers, especially small scale ones, do you think were able to access forex at official rates in reality? Many manufacturers often had to resort to obtaining forex at black market rate. Only well connected big players could boast of getting CBB rates and not even consistently.

The float makes business easier for SMEs as black market rates will eventually drop.

So because your oga at the top was clueless about how to check sharp practices by corrupt officials and big men, he made everybody suffer.

Saintinoo:


Tinubu didn't float the naira, you don't float something you fixed, he fixed naira at 635 or there about, so where is the floating?

he floated it oga. That's where itmis for now, when market equilibriums change, it will adjust accordingly.

Escapist:


Tell me countries that have official rate that differs from the rates on the streets.

Japan, India, Mexico, USA, China. I can go on and on

Floating the naira is a very wrong move.

We do not have sufficient fx to float the naira. So-called market forces will drive exchange rate to 1000naira per USD

CBN will play catch up with speculators and banks if the naira is truly floated

Good call yes. That doesn't change the fact that he's a Mandate thief who will soon be booted out for the rightful winner 🥇 😎

Escapist:


Tell me countries that have official rate that differs from the rates on the streets.

Every country does!
Even with the Naira floating.
There will still be two different rates, the only difference being the margin between the two.

CodeTemplar:
Only prostitute who are addicted to Brazilian hair and ipjones will see this as a good call.

It means the forex rates have been collapsed into one window unlike before when production related imports enjoyed lower rates and luxurious goods suffered in the black market.

Producers my foot.
Can you list the industries where these producers enjoy lower rates and how
such rates reflect in their prices by resisting inflation?

ivolt:

Producers my foot.
Can you list the industries where these producers enjoy lower rates and how
such rates reflect in their prices by resisting inflation?

production related imports. Example is petrol. NNPCL used the I&E window to import it otherwise it would have been around N780 when it was deregulated late last month. That petrol is what short distance wholesalers use to move foods. Farmers too power water pumps with it.

Does Nigeria print foreign currencies or fake currencies enough to supply the demand of Nigerians for foreign currencies?

Nobody can justify two rates. One for the well connected and another for average Nigerians that need it for various reasons.

No country in the world float its currency without control. In the USA, Canada, Britain etc various banks have slightly different rates, even retailer money exchange rates at their airports.

USA Federal Reserve manipulates rate the same way Nigeria Central Bank does through buying, selling and political accusation of other countries. China does not listen to them and manipulates its rate.

But USA print enough dollars to satisfy buyers around the world including Chinese and Nigerians. Who buys Naira around the world to float it like Zimbabwe dollars? Stop fooling people as if there is an economic skill to make Naira stronger. Since Naira has been going down, has it ever gone up?

Black markets existed in Nigeria even when it was illegal. The problem of round tripping is so serious in Nigeria without consequences that even the Governor of Central Bank has his own shops.

No country, I repeat, no country allow its currency to float aimlessly without control. If you know any African country that has recovered from floating, tell us.

Escapist:
But those who just want to see the negative in everything he does, would argue otherwise. And those who have been making a fortune from the slow death of our economy will keep fueling their myopic narratives.

How can a country have a street exchange rate that is double the official rate? That is simply economic genocide as it keeps increasing the demand for foreign currency because of those who are profiting from the gap through black market sales.

With this regularisation, I believe the rate will drop in time, due to lower demand (drop in round tripping, black marketeering and local oil refinement).

Tinubu is indeed economically savvy and knows the right decisions needed to steer Nigeria back to the right path.

Sensible arguments welcome.

Someone like me is not an economist. If you like call me a pessimist. I can only celebrate if the result comes good on a long run. Its good he is doing something differently. Let's wait and see

shortgun:

This decision is the most senseless economic policy.
Tinubu has succeeded in killing the naira, wait and see what happens in few months.

No country totally floats it's currency including the USA.
Some of you are saying market forces will determine exchange rate but you should be asking yourselves is what constitutes "market forces" in Nigeria

Do you even know the parallel market is the true reflection of economic reality of any country
Do you even know dual exchange rates provoke distortions by manipulating relative prices in the economy and open opportunities for rent-seeking behavior for those who have access to preferential rates. therefore eliminating dual exchange rates would lead to a more efficient application of market-driven relative prices to allocate resources in the economy.

Can we even fool ourselves that CBN Fx at the official rate, are duly alloted or served. just few people ripping the country off, Mr A who needs $30 collect $100 cos of influence, sells $70 at black market makes ridiculous gain at the detriment of the economy & people, that as being our reality for years. the true of test of any economy theory or policy is the effect on the economy over a reasonable time frame, using 4yrs does the reality of the economic reflect postive or growth. Tell me what i don't know

Escapist:
But those who just want to see the negative in everything he does, would argue otherwise. And those who have been making a fortune from the slow death of our economy will keep fueling their myopic narratives.

How can a country have a street exchange rate that is double the official rate? That is simply economic genocide as it keeps increasing the demand for foreign currency because of those who are profiting from the gap through black market sales.

With this regularisation, I believe the rate will drop in time, due to lower demand (drop in round tripping, black marketeering and local oil refinement).

Tinubu is indeed economically savvy and knows the right decisions needed to steer Nigeria back to the right path.

Sensible arguments welcome.

Are you ready to but petrol for 800 ? If yes then sure

shortgun:

This decision is the most senseless economic policy.
Tinubu has succeeded in killing the naira, wait and see what happens in few months.

No country totally floats it's currency including the USA.
Some of you are saying market forces will determine exchange rate but you should be asking yourselves is what constitutes "market forces" in Nigeria

So what do you advice? Pls,when you criticize someone's position on an issue,always come up with a solution. Dont be like a nagging wife.

CodeTemplar:
he floated it oga. That's where itmis for now, when market equilibriums change, it will adjust accordingly.

You don't know what you are talking about.

ivolt:

Every country does!
Even with the Naira floating.
There will still be two different rates, the only difference being the margin between the two.

I am referring to those with significant differences please.

shortgun:

Japan, India, Mexico, USA, China. I can go on and on

I am referring to those with significant differences please.

chidiokay:



Do you even know the parallel market is the true reflection of economic reality of any country
Do you even know dual exchange rates provoke distortions by manipulating relative prices in the economy and open opportunities for rent-seeking behavior for those who have access to preferential rates. therefore eliminating dual exchange rates would lead to a more efficient application of market-driven relative prices to allocate resources in the economy.

Can we even fool ourselves that CBN Fx at the official rate, are duly alloted or served. just few people ripping the country off, Mr A who needs $30 collect $100 cos of influence, sells $70 at black market makes ridiculous gain at the detriment of the economy & people, that as being our reality for years. the true of test of any economy theory or policy is the effect on the economy over a reasonable time frame, using 4yrs does the reality of the economic reflect postive or growth. Tell me what i don't know

Gbam!

Obi-dundi followers are always bitter...like why?





Fools who failed economics in school coming to tell us how this policy is bad

CodeTemplar:
Only prostitute who are addicted to Brazilian hair and ipjones will see this as a good call.

It means the forex rates have been collapsed into one window unlike before when production related imports enjoyed lower rates and luxurious goods suffered in the black market.

How many raw materials importers got dollars at the official rate?
MAN has been crying its voice hoarse at this inability.

Surround Yourself With;
People Who Make You Happy.
People Who Make You Laugh
People Who Help You When You're In Need
People Who Would Never Take Advantage Of You
People Who Genuinely Care

They Are The Ones Worth Keeping In Your Life. Everyone Else Is Just Passing Through.

Good Morning To You... Yes You !

...and do have a blissful and weekend.

Don't waste your time explaining arithmetic to obidafts, they don't have the mind to comprehend it.

This was the stock market response to floating of the Naira.

Svoboda:


How many raw materials importers got dollars at the official rate?
MAN has been crying its voice hoarse at this inability.

The solution would have been to address the forex roundtrip practice and not just collapsing rates. Collapsing rates itself isn't that bad but I think the luxurious goods should be heavily taxed when coming in to discourage patronizers of luxurious foreign goods. Tobacco, wines, hair extension, toothpick and brushes, iPhone, bleaching cream, perfume etc should attract a demand crippling tax in addition to single exchange rates being effected. This will drive demand of forex down as prices of these luxurious foreign goods discourage local demand naturally leaving industries and producers to go for forex.