DeepSight:


But we have been import dependent forever and the naira didn't zoom this low. That tells you it's not just the import dependence causing what's currently happening. It's bad, horribly bad policy making.

Bad policies, yes.
But the recent slump of the Naira was not only inevitable,but predictable. It is just delayed moment of reckoning.
For 8yrs , Nigeria was ruled, micromanaged by a bloke who was not shy to admit that he didn't understand how the economy works. He borrowed, borrowed and borrowed more for non-productive ventures. We used scare resources to defend the Naira rather than allow it to gradually find its true productive value over time.
The shock we are seeing over the last couple of months simply could have occurred gradually over an 8yr period.

A currency represents the productive capacity of the economy.
The Naira has lost its sovereignty for 3 main reasons.

1. It is neither backed by any Gold reserves nor a productive economy. An economy RUN on imported generators that RUN on imported fuel cannot ever be productive.

2. Nigeria is heavily indebted. Our forex earnings from crude oil are being primarily used for debt servicing.

3. We still run the most expensive, most inefficient and most corrupt political system in the world. A system that neither inspires confidence, patriotism nor investments.

This doesn't change anything. The fact that BDC are so eager to sell any denomination or value of currency to make profits doesn't limit the amount they can sell.

Dollars should be sold directly from the bank in order to avert further fall of the naira, because the system is so porus and can easily be manipulated.


Nevertheless people can still go through different BDC sellers to buy whatever amount they want to purchase. The best way the Naira can gain value against the dollar is to allow the banks make the sale or govt should appoint different or registered body to do that so that selling process can be monitored.

plaetton:

Bad policies, yes.
But the recent slump of the Naira was not only inevitable,but predictable. It is just delayed moment of reckoning.
For 8yrs , Nigeria was ruled, micromanaged by a bloke who was not shy to admit that he didn't understand how the economy works. He borrowed, borrowed and borrowed more for non-productive ventures. We used scare resources to defend the Naira rather than allow it to gradually find its true productive value over time.
The shock we are seeing over the last couple of months simply could have occurred gradually over an 8yr period.

A currency represents the productive capacity of the economy.
The Naira has lost its sovereignty for 3 main reasons.

1. It is neither backed by any Gold reserves nor a productive economy. An economy RUN on imported generators that RUN on imported fuel cannot ever be productive.

2. Nigeria is heavily indebted. Our forex earnings from crude oil are being primarily used for debt servicing.

3. We still run the most expensive, most inefficient and most corrupt political system in the world. A system that neither inspires confidence, patriotism nor investments.

All of this is true but floating the naira is the immediate trigger for this present slump. Very bad timing after the subsidy removal only weeks before.

Black market is full of black dirty things

DeepSight:


All of this is true but floating the naira is the immediate trigger for this present slump. Very bad timing after the subsidy removal only weeks before.

Agreed.

On another topic , fuel subsidy is another fraud we have been committing against ourselves since the Abacha Era. We all knew it was high stakes fraud, but we all looked away.
There is too much fraud embedded in the system. When the day of reckoning comes, then we all feign surprise and shock.

plaetton:

Agreed.

On another topic , fuel subsidy is another fraud we have been committing against ourselves since the Abacha Era. We all knew it was high stakes fraud, but we all looked away.
There is too much fraud embedded in the system. When the day of reckoning comes, then we all feign surprise and shock.

Do you agree with the subsidy removal and how it was done?

DeepSight:


Do you agree with the subsidy removal and how it was done?

The subsidy had to be removed. It was unsustainable. Of course, it was expected to send Shockwaves throughout the system. But I don't know in which way it could have been done without the ripple effects.
On second thought, a one year period within which to get all 3 refineries in full capacity would have been the best option. If we cease importing fuel, then the issue of subsidy goes away.

plaetton:

The subsidy had to be removed. It was unsustainable. Of course is expected to send Shockwaves throughout the system. But I don't know in which way it could have Bern done without the ripple effects.
On second thought, a one yeae period within which to get all 3 refineries in full capacity would have been the best option. If we cease importing fuel, then the issue of subsidy goes away.

I entirely agree with the second thought.

post=128651067:


Blogger's Need Physical Dollar, To Make Different Payments Online, My Dear Brother

Funny.
This is not true.

When you got paid for AdSense or whatever your you are being paid for, was it paid to you physically?

When then Must you need it physically to make your own payment to your vendors for subscription or whatever you pay for.

Why drain the country of it's scarce dollar resources.

Asking for knowledge sake.

theamazonguru:


Funny.
This is not true.

When you got paid for AdSense or whatever your you are being paid for, was it paid to you physically?

When then Must you need it physically to make your own payment to your vendors for subscription or whatever you pay for.

Why drain the country of it's scarce dollar resources.

Asking for knowledge sake.

Cc: Nlfpmod Mynd44 Seun

Professional Blogger's, go to BLACK MARKET and purchase U.S dollar, then credit it to their Dollar Account And use the money and pay for BILLS, Try And Understand How It Works ooo

post=128654249:


Cc: Nlfpmod Mynd44 Seun

Professional Blogger's, go to BLACK MARKET and purchase U.S dollar, then credit it to their Dollar Account And use the money and pay for BILLS, Try And Understand How It Works ooo

Wahala dey be that oh.
I fault that system of payment.

There must be an alternative.

Yes, this is how you have been doing it.
But it doesn't make it the best way.

Cross border payment should be done using any possible e-channel means.
It must not be done compulsorily through just physical deposit to accounts. In this 21st century.

And most importantly, now that the country is grappling with serious dearth of dollar liquidity.
You guys must find an alternative.

theamazonguru:


Wahala dey be that oh.
I fault that system of payment.

There must be an alternative.

Yes, this is how you have been doing it.
But it doesn't make it the best way.

Cross border payment should be done using any possible e-channel means.
It must not be done compulsorily through just physical deposit to accounts. In this 21st century.

And most importantly, now that the country is grappling with serious dearth of dollar liquidity.
You guys must find an alternative.

If All Blogger's go on Strike, Terrible Bad News will Surly happen To Online USER'S ooooo

Because We Blogger's, Make Internet To Be Sweet For Everyone Inside This Country, NAIJA

pandoragirigory:
Anything that will cripple criminals is acceptable

Are Bankers 🏦 not culprits themselves!? When Dollar is meant for citizens they sell it en mass for abokis in higher price , you go there for forex for travelings or business they say it's not available, the inevitable is just making them to speak out now , now acting as if they are ignorant of these challenges , they have their aboki customers they empty dollar to at inflated price for gains.

DryMouth:

And what you ignorant folks don't know about this import business is that the limit an importer can get from CBN is $10,000 and there is a very long queue and bribery going on before it will get to your turn to access the $10,000. The $10,000 is not even enough so import the needed products so importers buy more USD from the black market, pay into their dorm acct and send it to their clients abroad.
And as long as importers can't walk into a bank and buy USD, black market business will continue to flourish

The corrupt and ignorant ones should also realize Dollars are released to banks on frequent basis but corruption within the sector is the cause of artificial scarcity , the dollar is meant for some people unlike local currency that anyone can just walk in and cash out , they sell these currencies out en masse and travelers or business men find it difficult to access what is released to the banks on frequent basis.
The CBN should be more thorough and sincere in regulating selling out of excess dollars to black marketers even if they will increase their limit.

Librason:


The corrupt and ignorant ones should also realize Dollars are released to banks on frequent basis but corruption within the sector is the cause of artificial scarcity , the dollar is meant for some people unlike local currency that anyone can just walk in and cash out , they sell these currencies out en masse and travelers or business men find it difficult to access what is released to the banks on frequent basis.
The CBN should be more thorough and sincere in regulating selling out of excess dollars to black marketers even if they will increase their limit.

Good!
So are you blaming the BDCs or CBN?

Willie2015:


That should be the end point by the CBN...
That means ...enabling NairaCard for international transactions...
I source my dollars from Nigerians abroad...
I visit site that take Naira and convert it to dollars for trading...

Hello Willie2015.

....

mycar:

The system in Nigeria is soo slow that you will miss payment deadly, business opportunities by submitting those documents for vetting as it takes days to be processed. Even the Mastercard and it's like can even be used in making foreign transaction.
This policy will even worsen the situation as it will make it difficult for people to access dollar, hence further increasing the price. what needs to be done is to stop floating the naira, that's where the price is been manipulated. Brokers are the once manipulating the naira just as they are doing to cryptocurrency. the naira devaluation is artificial and that is too dangerous for the economy.

Do some of you read before commenting at all?

Henry Cardoso truly speaking wasn't the man for the job. Add Wale Edun to it.

If the floating of the Naira isn't working, then end it. Period!

post=128654398:


If All Blogger's go on Strike, Terrible Bad News will Surly happen To Online USER'S ooooo

Shebi una get association, abi association no dey ni?
Make Una call strike na, abi which can threat be this one na.

X app don pickup?

DryMouth:

Good!
So are you blaming the BDCs or CBN?

The message was clear enough, CBN should raise the bar of check and balance, because if banks are not messing up , the BDCs will run out of oxygen or relevance.
They are the ones who supply the BDCs indiscriminately.

theamazonguru:


Shebi una get association, abi association no dey ni?
Make Una call strike na, abi which can threat be this one na.

X app don pickup?

Nairaland Is still under BLOGGING BUSINESS

So, My Brother, You guys can't do without BLOGGER'S

post=128656354:


Nairaland Is still under BLOGGING BUSINESS

So, My Brother, You guys can't do without BLOGGER'S

Dey play.
When Nairaland went offline for almost 1 week, did we die ni?
There will always be a coping mechanism activated.
Yes there will be that initial reaction. But we go still cope. Then find an alternative.

No dey too hype yourself.

theamazonguru:


Dey play.
When Nairaland went offline for almost 1 week, did we die ni?
There will always be a coping mechanism activated.
Yes there will be that initial reaction. But we go still cope. Then find an alternative.

No dey too hype yourself.

Even Newspaper are under BLOGGING BUSINESS, so wake up from sleep, my brother.

Without BLOGGER'S, you will be very bored.

9jatriot:
The North are not stupid, they understand politics more than the South and know when someone is doing the right thing versus when someone is doing politics.

Tinubu is also perceived by them to be a strong personality, PO for example would know not have known what to do, and even if he did would not have had the courage non the acceptance to do the right thing.

Tinubu is doing the right thing 👏

Paraman:
Do some of you read before commenting at all?

Do you even know what you are quoting?

grandstar:
Henry Cardoso truly speaking wasn't the man for the job. Add Wale Edun to it.

If the floating of the Naira isn't working, then end it. Period!

The float has nothing to do with the issues afflicting the economy, which is excessive printing of money to disguise the reality that higher interest rates have caused the cost of servicing debt to go up, and no one (other than the hated IMF) is willing to roll over Nigeria's loans at rates they could get from OECD countries. Ending the float would only worsen the government's financial problems, as the money simply isn't there for a peg, but going back to the old multiple-exchange rates scheme would reintroduce incentives for round-tripping while scaring away what few investors might be considering Nigeria as a destination.

Given Nigeria's parlous finances at the end of Buhari's tenure, there was bound to be massive economic pain no matter who took the reins, and no matter the policies they adopted. Where Tinubu is to be faulted is for taking half-measures that will needlessly stretch out that suffering, like slowly peeling off a plaster instead of ripping it off once and for all. Like Erdogan, Tinubu also seems under the deluded belief that negative low interest rates are "good" for the masses, and he is so controlling that he preferred to bring on as CBN governor a man he could be sure would remain firmly under his thumb.

The result of this mindset is Cardoso's ridiculous refusal to hike rates, which is allowing inflation to run rampant and discouraging long-term investment while skewing the economy as people desperately try to hedge their savings by simply taking their money abroad (worsening the FX shortage), or parking it in assets like land instead of in manufacturing or other more productive targets.

Let's be honest, higher interest rates do hurt in the short term, as they bring a halt to a lot of activities which only seem worthwhile in an environment of "free" money, but the government's current policies are turning what might have been a sharp but short contraction followed by an investment boom, into a long, slow decline and (after several years) an equally slow, lackluster recovery.

omohayek:

The float has nothing to do with the issues afflicting the economy, which is excessive printing of money to disguise the reality that higher interest rates have caused the cost of servicing debt to go up, and no one (other than the hated IMF) is willing to roll over Nigeria's loans at rates they could get from OECD countries. Ending the float would only worsen the government's financial problems, as the money simply isn't there for a peg, but going back to the old multiple-exchange rates scheme would reintroduce incentives for round-tripping while scaring away what few investors might be considering Nigeria as a destination.

Given Nigeria's parlous finances at the end of Buhari's tenure, there was bound to be massive economic pain no matter who took the reins, and no matter the policies they adopted. Where Tinubu is to be faulted is for taking half-measures that will needlessly stretch out that suffering, like slowly peeling off a plaster instead of ripping it off once and for all. Like Erdogan, Tinubu also seems under the deluded belief that negative low interest rates are "good" for the masses, and he is so controlling that he preferred to bring on as CBN governor a man he could be sure would remain firmly under his thumb.

The result of this mindset is Cardoso's ridiculous refusal to hike rates, which is allowing inflation to run rampant and discouraging long-term investment while skewing the economy as people desperately try to hedge their savings by simply taking their money abroad (worsening the FX shortage), or parking it in assets like land instead of in manufacturing or other more productive targets.

Let's be honest, higher interest rates do hurt in the short term, as they bring a halt to a lot of activities which only seem worthwhile in an environment of "free" money, but the government's current policies are turning what might have been a sharp but short contraction followed by an investment boom, into a long, slow decline and (after several years) an equally slow, lackluster recovery.

textbook jargons thats impractical in Nigeria. No be only higher interest rates, na interest from above.

mycar:

Contradicting yourself as usual, shebi emefiele don commot , How then can't you use your naira card for dollar transaction? why not blame who is in charge now? shame on you, nonentity.

Use your dead brain for once . No matter how hard you try, you cannot exonerate Emefiele that introduced the stupid policy. Mind you, the person in charge now is reversing some of his policies and making other reforms and you can’t just expect to feel the effect immediately. You can not feed a malnourished child to add weight in one day.

9jatriot:
They won't.

The only people wishing for a coup are PO supporters.

So says a fool. Why would PO supporters wish for coup?? The same PO supporters your people are begging to join you in your protest of hunger?

mycar:

una no dey tire to blame people? during Jonathan time, nobody blamed Sanusi because he was a Muslim, the blame was on Jonathan, after that Buhari and nobody is blaming him but rather CBN governor. Disgusting set of people.

Don't mind the morons. They are the reason that Nigeria remains backwards.

danilho:
Use your dead brain for once . No matter how hard you try, you cannot exonerate Emefiele that introduced the stupid policy. Mind you, the person in charge now is reversing some of his policies and making other reforms and you can’t just expect to feel the effect immediately. You can not feed a malnourished child to add weight in one day.

reversing what if I may ask, he has just devalued the naira to 1300 per usd and decided to sell to bdc guys, what is it he is reversing?
You are too idiotic to converse with

Na una, only how to insult.

Do you have proof of this?

poseidon12:


So says a fool. Why would PO supporters wish for coup?? The same PO supporters your people are begging to join you in your protest of hunger ?