Nigeria’s central bank adjusted its exchange rate peg to N196.95 to the dollar from the 197 it set in February after the currency’s value was eroded by the fall in oil prices, data on its website showed yesterday. The bank adjusted the rate at which it sold hard currency this week, dealers said, noting that the change was too small to be considered a revaluation for the naira, particularly in the face of dwindling foreign reserves.
Dealers said the central bank had been selling dollars to the inter-bank market at its adjusted rate. The naira was trading at 198.95 to the dollar on the inter-bank market and between 215 to 218 in the parallel market.
“By lowering the central bank rate offered to banks albeit very moderately, the central bank is adding to pressures on FX reserves … equivalent to around 4.9 months of imports,” Angus Downie, head of research at Ecobank said.
Nigeria’s foreign reserves fell to $29.4 billion by June 2, down 20.1 percent from a year ago as the central bank burns cash to defend the local currency. The bank merged its bi-weekly currency auctions market with the interbank market in February and fixed the exchange rate, a move that amounted to a de facto devaluation of the currency of Africa’s biggest economy.
The regulator had also banned commercial lenders from re-selling central bank dollars among themselves, which was an attempt to curb speculation on the naira. The naira Non-Deliverable Forwards – currency derivatives traded offshore – pointed to the local currency being priced at 221-225 to the greenback in six month’s time.
“Small changes in the rate could possibly allow the central bank to gauge the changes in demand and supply dynamics which would inform decisions on when and how best to start lifting forex restrictions,” Cobus de Hart of South Africa’s NKC Independent Economists aid.
- See more at: http://www.vanguardngr.com/2015/06/cbn-adjusts-forex-rate-to-n196-95-per-dollar/#sthash.v6SCMMof.dpuf

Is this devaluation or what
cc lalasticlala ishilove

My Aboki still dey sell am for me for 220-225 oh
On a serious note,please why do we allow our notes to be sold by every Dick and Harry rather than banks?
Serious contribution only
Cc Jarus, Barcanista

The good things with coming of Baba Buhari is begining to manifest now.

What will be the outcome of this?

Hmm nice one but ...



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tessylove2:
Hmm nice one but ...



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Adjusting our dollar to have more value

Omooba77:
My Aboki still dey sell am for me for 220-225 oh
On a serious note,please why do we allow our notes to be sold by every Dick and Harry rather than banks?
Serious contribution only
Cc Jarus, Barcanista

Change that Abo.ki of yours.The Dollar today is 216 @ 313BDC Wuse 2 Abuja.

The volume of forex sold by the Mallams is not up to 5% of Nigeria's total forex market. None of the big multinationals and serious business houses goes to buy dollar in the black-market. Only those in shady businesses and travellers who are not ready to fill forms and disclose the transaction they want to do go to the Mallams. Will it therefore be reasonable to use the Mallam's rate as the real value of the Naira?

Omooba77:

Adjusting our dollar to have more value

Lol

Omooba77:

Adjusting our dollar to have more value

Stability of exchange rate is more important than it's exchange rate. Fluctuations in exchange rate distorts the market. If President Buhari can keep the exchange rate at N200.00 to $1.00 and rate of inflation steady at less than 5% for the next 4yrs, the market will adjust to that rate and this stability will ensure that people makes money.

Ymodulus:

Stability of exchange rate is more important than it's exchange rate. Fluctuations in exchange rate distorts the market. If President Buhari can keep the exchange rate at N200.00 to $1.00 and rate of inflation steady at less than 5% for the next 4yrs, the market will adjust to that rate and this stability will ensure that people makes money.

The major factor in Nigeria is oil price. It dictates our economy. Also importation of raw material

Omooba77:
Is this devaluation or what
cc lalasticlala ishilove

This is "revaluation" and not real valuation. I hope you understand

Ymodulus:

Stability of exchange rate is more important than it's exchange rate. Fluctuations in exchange rate distorts the market. If President Buhari can keep the exchange rate at N200.00 to $1.00 and rate of inflation steady at less than 5% for the next 4yrs, the market will adjust to that rate and this stability will ensure that people makes money.

Bro, this our traditional monetary policy of "defending" the Naira is one of our problems. Why don't well allow for the real value of the naira, so as to determine the real strength of the naira, at same time work on our economy? How long are we going to continue with this?

barcanista:
Bro, this our traditional monetary policy of "defending" the Naira is one of our problems. Why don't well allow for the real value of the naira, so as to determine the real strength of the naira, at same time work on our economy? How long are we going to continue with this?

Hey bro!

And how do you suggest we do this? Dont you think if we actually need to do this, then its required we do a complete forced revaluation of the naira? So we can then allow the naira to float to its desired value?

But even at that, putting into consideration that we are an import-dependent nation, i think allow the naira to float will be bad at this stage without government intervention or support

Didn't expect dis






Ogbeni PMB come into action n stop hiding in the dark....




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Still waiting for N1=$1 as promised by TDD

barcanista:
This is "revaluation" and not real valuation. I hope you understand

Well understood;we should allow supply and demand controlled economy not regulated

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ok

the hurricane of change blowing everywhere

We are doing it.

1 Naira = 1 Dollar here we come

Buhari is on his way to making it 1 naira to 1 dollar

haters will be put to shame

Matttthew:
Didn't expect dis

For once be optimistic in your life bro

wilson

.
It will take time before we return to that N150 for $1, in fact I doubt it will ever get back there

But PMB said he will do N1 to $1, which is not impossible, but that still wouldn't mean in the international market Naira will have the same value as the Dollar, similar to how our Neighbours in Ghana made 2 Cedis to $1.

We just need to invest massively & maximise output on our petroleum and its other related entities ; power generation, natural gas, fuel... this will surely boost our Naira value.

Still waiting till it gets to a better deserved price....
Meanwhile Thank God for adding another year to my age today. Am Grateful Lord... [b][/b]HAPPY BIRTHDAY TO ME!

Ok

Omooba77:

The major factor in Nigeria is oil price. It dictates our economy. Also importation of raw material

On oil price, i think that can be handled in a quick space of time and fast enough. But on the importation of raw materials or finished goods, we still have a long way to go in doing that. I feel that we can raise the value of the Naira even with we been an import-dependent country. Take a look at United King don, Dubai and even Kuwait. what are these country producing? Nothing. But what is the value of their currency?

1 Great Britain Pounds equals N308,
1 Kuwaiti Dinar equals N657.94 Nigerian Naira.

While from the above listed countries, you might say Kuwait is an oil producing country, i will agree. But what excuse do we have when it comes to Great Britain?

Ymodulus:

Hey bro!

And how do you suggest we do this? Dont you think if we actually need to do this, then its required we do a complete forced revaluation of the naira? So we can then allow the naira to float to its desired value?

But even at that, putting into consideration that we are an import-dependent nation, i think allow the naira to float will be bad at this stage without government intervention or support

That's why I mentioned that we need to work on our economy and face the "temporal" hard times that we will face by allowing the naira to float. The system of revaluation is mitigating our economic growth. Why can't our fiscal and monetary policies be centered on growth in productivity and economic stability? Why do we always like "the cheap" way out that has no long term benefit? Thank God that we have steady political system. We just need to take the bull by the horn

Ohammadike:
Still waiting for N1=$1 as promised by TDD

Is your problem to see the naira at par with the dollar? If yes it can be done quickly through revaluation. The government can mint a new naira notes and tell every Nigerian to change to the new notes within a three months window. For anyone to get N1.00 of the new note, you have to bring N200.00 of the old note. At the end of the exercise, N1.00 will be equal to about $1.11.

Please we discussing the economy here and not politics. Take a look and see this is business section not politics section.

All i see you doing here is trying to show that the failed policies of the PDP for the last 16yrs is worth the effort they put into it. Because i see you are very afraid that these new ideas of APC and President Buhari will rubbish the PDP and ensure that Nigerians never votes for them ever again. So you just jump into senseless argument and a frenzy each time you see the deft moves of the any institution in the new Government

Th

Any step in the right direction is welcome. BTW, it is good to educate yourself no matter who you are as this post talks about - http://thenakedconvos.com/educated-okada-rider-broaden-scope-learning/