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Nairaland Forum / Nairaland / General / Business / Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs (14654 Views)
CBN formalises dollar sales to BDCs as naira improves / Naira Falls After CBN Stops Forex Sales To BDCs / $46.7b Foreign Reserves Keep Naira Stable (2) (3) (4)
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Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Ken4Christ: 6:55am On Mar 02 |
This government should please hide their head in shame. Just find a way to survive without this government. It's not their fault. The church is sleeping. 1 Like |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Konquest: 6:58am On Mar 02 |
J3susFr3ak:The Mixed Economic model that you stated here is a FACT in most countries including China. I also emphasized on this same fact about mixed economic models when some posters on this Website ignorantly stated that Nigeria and the U. S. are free market economies or capitalist ecomomies just to justify the hike in the high cost of goods and services. |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by WithFact: 7:30am On Mar 02 |
When is food price going to be stable? |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Kukutenla: 7:35am On Mar 02 |
Nuzo1: Your last line is word on marble. Though I also agree there's price gorging going on. The root cause is more speculative than real. From your analogy, what most traders in Nigeria are doing is to set price against a worse case scenario. They don't wait for it to happen. They just hedge against it. This is one of the vagaries of free market as touted by Western agencies I usually rail against. Based on my study, there's really nothing like free market. Maybe free trade but no free market. It is abhorrent to nature for something to exist without control or order. The result is what we're seeing in Nigeria. Everyone starts to think of how to beat the worst case and that's what triggers the gorging. The true and fair price of most goods is far below what is being offered now. But the uncertainty around the currency value is what makes everyone want to hedge against its loss. I think Tinubu and his team have also come to realise that which is why they're now putting measures in place to control things. All over the world, nothing like free market. Something or someone must be in control. It's just unfortunate Nigerians we're the Guinea pigs used before Tinubu and his crew could realise that. 1 Like |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by dvkot(m): 8:16am On Mar 02 |
HayTerran:are you ok? Dollar went from #700 to 1800 in one year and now back to 1500 and you expect a price reduction? 1 Like |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by franudi: 8:20am On Mar 02 |
Until naira goes down to 200 per dollar Tinubu is not working. 1 Like |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by MetalJigsaw(m): 8:34am On Mar 02 |
mightyhazel:Ah you are a wise man. Don't tell anyone o |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by emorse(m): 8:56am On Mar 02 |
StormpyBee:Please how is the true value of a country known. Is there a formula that is used to calculate it? |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Elvictor: 9:05am On Mar 02 |
MetalJigsaw: Because those who voted for him the first time didn't listen to the voices telling them not to ![]() ![]() |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Putindbutt: 9:33am On Mar 02 |
Obinoscopy:Which money was borrowed?, you don't understand monetary conditions, you dey here dey cap nonsense and this one was once a moderator, smh |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Just4000: 10:29am On Mar 02 |
This method is not a lasting solution, as it is not sustainable. Naira will still come crashing. The CBN should deployed better means of stabilizing the naira, rather that this method that I call the backdoor approach. You promised them $20k weekly only to end up giving them $10k for this week. The advantage with this method is that it is a corny approach, so may not be easily predictive but that's only for a short while. The easy way most government stabilizes their local currency against the dollar is buying out their currency. They make dollars available and their currency will naturally appreciate. This is simple law of demand and supply. Scarcity breeds price increase, 'so by using the dollars from your export to buy the naira', the naira increases in value when fewer naira are chasing the dollar |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by waveman2: 10:58am On Mar 02 |
You can sell at the rate you bought you goods but don't form a union on price.let everyone sell at their own price.That is the problem Scientheosopher: |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by waveman2: 11:01am On Mar 02 |
When there is artificial demand supply can't meet up you just have to deal with that first to know your actually demand before you face the supply aspect. Just4000: |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Nuzo1(m): 11:15am On Mar 02 |
J3susFr3ak: Sir, you are a smart man. But this model you are proposing has not turned out fine for countries that have evolved into large shopping centers owned by one person or a group of people. It has made USA loose so many local businesses and created a huge income disparity among Americans in recent times. Small businesses are folding up. Now, china’s pattern is a good way to go now. Not too different from what we are practicing here. Nobody regulates any retailer. The government is only concerned with the quality of the products supplied to their local market (they don’t care about quality of products for export). How do you even regulate millions of traders selling Maggi cubes all over the country? The ONLY way out is to stabilize the local currency which will boost traders confidence and thereby stabilize prices of goods. Nothing too wrong with our type of economy. We just need to boost production so we can have enough to make price drop and earn in dollars to stabilize goods that we import. 1 Like |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Just4000: 11:33am On Mar 02 |
The thing you should understand here is that the Government has already made it porous, leading to disbelieve in the system. Otherwise why will people want to shore up dollars when it is not gold nor precious stone, not even a land. why will there be artificial demand when if there are tendencies that it may fall. This is simply because people have seen it that it will rather raise than fall against the naira. Their method is a short term, and every economics knows that and simply waiting for dollars to come a little lower, and they will rush to buy, pushing the price higher again. To curb this, the government need to keep feeding the naira with her dollars reserve consistently for at least 6 month, and then create a rugged policy that no dollar should lie in an account for more than six months. Meaning that any dollar in an account must traded with or converted into naira in a 6 months cycle, thereby frustrating the effort of those who have the means and intention to hoard for a longer period. Then, we must go cashless especially with the naira and other currencies otherwise a lot of loopholes will be created. waveman2: 2 Likes |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Nuzo1(m): 11:58am On Mar 02 |
Just4000: Don’t be carried away, the so called dollar people are “hoarding” in their accounts is not enough to solve the dollar scarcity. This your method is not bad but it can’t do much to relieve the naira in the long run. Massive Local production for local sales and export. No other way out! 1 Like |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Holaomoakin(m): 12:12pm On Mar 02 |
Nothing has ever been stable about NAIRA for the past 20yrs! Dey play o |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Dsimmer: 12:44pm On Mar 02 |
Good. But BDC should be totally banned. Didn't people see the number of useless BDC which Emefiele and his goons made to siphon Nigeria fund? |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Just4000: 12:55pm On Mar 02 |
Your option is great, we all advocate for a producing nation, but it is not feasible at the moment, as we still have a long way to go. Nuzo1: 2 Likes |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by millionboi2: 1:01pm On Mar 02 |
Hezzyluv:tell them to open border |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by 77up(m): 1:01pm On Mar 02 |
mactoni91:Enemy within, it is well . May Nigeria disappoint you all by becoming great . 1 Like |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Obinoscopy(m): 1:56pm On Mar 02 |
Putindbutt:If you didn't know that the Government borrows money to stabilize the naira you are on a long thing. https://www.thecable.ng/breaking-nnpc-secures-3bn-loan-to-stabilise-the-naira |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Putindbutt: 2:44pm On Mar 02 |
Obinoscopy:Cash for crude loan! No matter the school you went to, if you can't use the brain, you'd still sound like an illiterate. From the link, who borrowed money, NNPCL or CBN?, does it say CBN borrowed money to stabilize naira?. if NNPCL who is the sole importer of fuel and who needs billions of dollars monthly to import fuel deemed it fit to borrow money for its purposes rather than scramble for scarce dollars in the system help reduce dollar demand and stabilize FX, is there anything wrong in that?. when refineries start working and there's no more need to demand dollars to bring in fuel, would CBN not have enough dollars to improve the economy?. I thought you would provide a source where Cardoso was borrowing to defend the naira. Anyways na your problem be dat, ignorance is bliss. |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Obinoscopy(m): 3:00pm On Mar 02 |
Putindbutt:You can certainly engage in conversation without insults, can you? If you can't, I'm sorry I can't help you with that. To the topic, I never mentioned CBN or Cardoso. I said "government". CBN, Cardoso, NNPCL, Ministry of Finance, etc are all part of the government. None of them are vestiges, they are all very crucial part of the executive arm of this government and any action they take is an executive action on behalf of the government of the Federal Republic of Nigeria. See link below as well: https://www.vanguardngr.com/2024/01/fg-in-talks-with-world-bank-for-1-5bn-fresh-loan/ |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Birniwa(m): 3:27pm On Mar 02 |
I hate to say this but the reality of things is that we are going back to square one. The naira will record another all-time low rate (1900+) in near time once the injected dollars by the CBN get hoarded again by unpatriotic citizens. Saner countries strengthen their currencies by importing less, producing more, and encouraging local production. Until the FG starts lending listening ears to experts' advice and acting on them, we will continue to record one step forward and two others backward. |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Putindbutt: 5:11pm On Mar 02 |
Obinoscopy:Your problem is either English or limited understanding. Let me break it down for you like pry sch kid. We have FX scarcity which is affecting naira-dollar rate. Instead of going to CBN to demand for dollars, NNPCL decided to approach Afrexim for dollar, Ministry of Finance also decided to go to World bank for dollars so that there would be relief on the pressure of dollar on CBN. Nobody is borrowing to defend the naira. Hope you learnt something new. 1 Like |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Vision101(m): 6:34pm On Mar 02 |
Procashtips:Pegging how? Can anyone peg the parallel rate? There is official floating. The good evidence is that the spread between the official and parallel rates are thinning out. The attraction for speculators are reduced. The government through the CBN fixed rates arbitrarily before now. Many people became overnight millionaires without production through round tripping. Major gain for Nigeria: no more round tripping. |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Obinoscopy(m): 7:04pm On Mar 02 |
Putindbutt:lol...I see what you are doing. You just want to troll. You are hereby ignored. |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Putindbutt: 7:29pm On Mar 02 |
Obinoscopy:I have concluded that you're an iliterate, an illiterate that thinks NNPC or Ministry of Finance are responsible for monetary stability. shiorr |
Re: Naira Stable At ₦1550 - ₦1580 In Parallel Market After CBN’s $7.85M Sale To BDCs by Nuzo1(m): 8:34pm On Mar 06 |
Just4000: It is sir. The Singaporeans and South Koreans did it in the 60s. The Chinese did it in the 70s. Why can’t we? 1. Declare a state of emergency of emergency on electricity! Get 100 Barth Nnaji (3 for each state. 5 or 6 for bigger states). Fund 30% of their plant and let it be government share in the company. Invest heavily on transmission lines. Invest in companies that produce prepaid meters. 2. Declare all secondary schools technical schools. Award scholarships to all science students. We don’t even have a good number of semi skilled workers to power our factories should production begin. 3. Massive importation of machines for different types of modern manufacturing including farming. No import duties. I’ve lived in China and Hong Kong for some years, almost every family have a mini factory in certain regions of the country. 4. Hire security machineries to subdue terrorism and banditry. Shoot at sight. No hostage!!! Not even one! 5. Attack corruption with all your might. Don’t even allow your mother or wife stand in the way. If they do, send them to jail as an example of how deadly you can be to even someone you don’t know. That was Lee Kuan Yew’s style. 6. Again, attack corruption to a standstill. 7. More and more… but I no get time. |
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