Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / NewStats: 3,201,440 members, 7,978,391 topics. Date: Friday, 18 October 2024 at 07:47 AM |
Nairaland Forum / Nairaland / General / Business / Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years (55572 Views)
Naira Finally Improves At The Interbank Rate / Naira Crashes To 288/dollar At New Official Market / Naira Finally Devalued To N290/$ By Buhari (2) (3) (4)
(1) (2) (3) ... (8) (9) (10) (11) (12) (13) (Reply) (Go Down)
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by ikenna123: 10:08am On Dec 12, 2015 |
murtalaa: Inside your own bank |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by walozanga(m): 10:11am On Dec 12, 2015 |
Papertrail11: you are wrong. high rate unemployment, inflation, less foreign investment, power, lack of security, bad policies, high rate of importation, low export, etc all these things are the major courses |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by skj1377(m): 10:24am On Dec 12, 2015 |
Kenai:Why are you talking funny, are you a teenager or a dependant ? Official rate is still N199 for legitimate business and transaction. N260 is for people that want undocumented dollar or illegal transactions of all sorts. Please support the gov of the day introduce sanity to Nigeria. 1 Like |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by docseun: 10:31am On Dec 12, 2015 |
This is the end result of a mono commodity based economy I.e. oil based economy. The lack of economic diversity makes Nigeria susceptible to drastic global economic changes. There is an economic slow down right now in China so the demand for raw materials for manufacturing including oil has declined moderately. This has put further pressure on the oil price which is already at record lows because of OPEC increasing supply to protect its share against shale oil production from the U.S. So we are getting hit on two fronts: 1) The value of the dollar has increased against all currencies. 2) We are earning less revenue from oil exports because of the crash in the price. That is why a CBN policy to devalue the naira will be useful to increase the spread of the exchange rate . But in the long run if we do not expand and diversify our economy away from oil this is a painful continous cycle that we are doomed to repeat . 1 Like |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Davidifeanyi: 10:36am On Dec 12, 2015 |
[quote author=Raiders post=40918431] GEJ is responsibility for all our economic problem.[/quote I shall probe this your grammer...no joke. |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by dustydee: 10:37am On Dec 12, 2015 |
Firefire:lMaybe not that low, but I think the government should allow the naira to drop to the appropriate level based on market forces as seen on the parallel market rather than defend the naira at N197 to the dollar. Our low reserves will not support the naira at the current rate for long. Nigeria should start diversifying the economy to earn more foreign exchange in the face of low oil prices. |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by wtfCode: 10:51am On Dec 12, 2015 |
...and who doesn't knw division is the only solution to Nigeria problems. I can see the worst coming since this man decides to travel from one kingdom to another. |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Khez: 10:55am On Dec 12, 2015 |
To get us the bureau the chande operators outta of business nua abi? Do you or your government have any other job for us, after you close us down? Whatever happened to small medium enterprises? Don't say that loud again.... How do they give bdcs that they will use in money looting? Ask dasuki if the 2.1billion he stole was from BDCs Smh..... Some people self... Papertrail11: 1 Like |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by jacoik(m): 11:00am On Dec 12, 2015 |
babyfaceafrica:if I land u wicked slap nw ehhh u go find where ur 4 teeth abi na tooth dey |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by osile2012: 11:01am On Dec 12, 2015 |
[size=18pt]HMMMMMM.[/size]
|
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Firefire(m): 11:06am On Dec 12, 2015 |
dustydee: As much as I agreed with your line of thought, I want to ask you, how much more or low will Naira exchange for USD before it is deemed to be at "appropriate level of market forces" ? FG was subsidizing Naira at 155/$ as of Oct. 2014, before the devaluation of about 27% at current rate of 197/$. Yet, Naira keep depreciating, don't you feel the government need to Re-approach her existing monetary policies ? 1 Like |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Papertrail11(m): 11:08am On Dec 12, 2015 |
Khez: shararp there how many jobs do bdc create sef.....? we talkn about the economic sabotage they are causing yu are sayyn trash.....f9 go to school |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Papertrail11(m): 11:11am On Dec 12, 2015 |
walozanga: dot agree mahn soryy |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Papertrail11(m): 11:13am On Dec 12, 2015 |
HAH: One moet chandon for yu this Christmas |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Khez: 11:20am On Dec 12, 2015 |
Papertrail11: Your a foolish fool, this goes to show your stupidity is beyond repair... Don't ask or talk in matters you know nothing about... How many people have you asked and they say bdcs don't at least create two to three jobs in one bdcs? How many did you create? Eh ezi.... Your the one that needs the schooling bro, not me, i already got enough Economic sabotage indeed ..... Mr know all Anuofia 1 Like |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Cutehector(m): 11:26am On Dec 12, 2015 |
MissAssy:thanks |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by dustydee: 11:33am On Dec 12, 2015 |
Firefire:\ The simple answer is I don't know. But I know the slide is temporary and due to current low oil prices and our failure to plan for times like this. China is also devaluing her currency to stay competitive but there is a limit. 1 Like |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Papertrail11(m): 11:36am On Dec 12, 2015 |
Khez: alapoue |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Firefire(m): 11:38am On Dec 12, 2015 |
dustydee: Thank you for your honest opinion. I pray this dangerous trend is address quickly by the government. Enough damage already. |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by noblegrex: 11:39am On Dec 12, 2015 |
Papertrail11:banks buy for 199 but sells for 205. |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by FabioPeter: 11:47am On Dec 12, 2015 |
Bollinger:I can't agree more. Your argument is superior. |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by 4Play(m): 11:57am On Dec 12, 2015 |
Firefire: I have argued this topic ad infinitum in previous posts so will restrict myself to a few comments here. The Govt cannot successfully maintain a fixed rate without sufficient reserves to defend the Naira. The answer to your question is that the Govt has to allow the Naira to fall until such a point that we have the reserves to hold the line. The difficulty with maintaining an official rate, at odds with market rates, as we are doing is that it dissuades investors from bringing in foreign capital into the country. Investors will be wary to bring in money because of restrictions in taking profits out, which restrictions are necessitated by the official rate. Further, if you want to build a factory and the cost of the factory is estimated at 200 billion Naira, you will not want to spend circa $1bn at the official rate when the market value of 200bn Naira is circa $770m. Hence, these CBN exchange rate restrictions become counter-productive and self-reinforcing as you need the inflow of foreign exchange to stabilise the Naira. Like I pointed out before, during Abacha's era, the official rate stayed at 22 Naira whilst the market rate hit 85 Naira to the dollar. Excellent round-tripping opportunity for the highly connected, not so much for the rest of Nigerians. 4 Likes |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Nobody: 11:58am On Dec 12, 2015 |
First of all, I wasn't defending the government and their decision to ban any products so spare me. Almost every comment on this thread is the result of sheer ignorance. You people don't even know the difference between monetary and fiscal policies but you think that you have enough knowledge to assess political and economic decisions. You have the leaders you deserve because you don't even have a basic understanding of macroeconomics and as a result support politicians that are from your tribe instead of making choices based on what they stand for and the reasonability of their intended policies. donJ2: I have never defended the government's decision to cut down import. In fact, I don't consider it a reasonable decision since Nigeria's export rate is much higher than Nigeria's import rate. Like you correctly said, the government should provide an infrastructure and laws that encourage private investment, which creates employment. Before u ban importation of fone, u must have built 3 phone factories or train youths to learn how to manufacture fones. It is not a government's job to build factories. I bet u all these cbn governors still eat imported rice and other food. The encouragement of and investment in local agriculture creates employment. It is also a well-known fact that American and European agricultural subsidies are undercutting African farmers and flooding African economies with their products, which in return leads to the destruction of entire agricultural sectors and to unemployment. 2 Likes |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Khez: 12:13pm On Dec 12, 2015 |
Papertrail11: Afo saa gi |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Myde4naija(m): 12:21pm On Dec 12, 2015 |
HzRF:total ban will be too harsh on nigerians, that's why local production is encourage by the CBN 20billion naira loan for rice farmers, total ban will be impose when local production is sufficient...... I think it make sense |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Bollinger(m): 12:25pm On Dec 12, 2015 |
FabioPeter: It's going to rain burgers and fries today. You. Agree with me? In fact, i'm not going out today. 1 Like |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by datigbogirl: 12:31pm On Dec 12, 2015 |
Papertrail11: And you think any bank in Africa will sell dollar for you at d bank rate? or will they even sell for you at all? them go just redirect you to d BDC. |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by swiffy(f): 12:55pm On Dec 12, 2015 |
We want Woone neiarah eful to woone doular |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Kayflamez(m): 1:13pm On Dec 12, 2015 |
Is this economy really moving or reversing |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Nobody: 1:19pm On Dec 12, 2015 |
Kayflamez: [img]http://www.tradingeconomics.com/charts/og.png?url=/nigeria/gdp-growth[/img] |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by luvprince4real(m): 1:44pm On Dec 12, 2015 |
#bringbackokonjoiweala |
Re: Naira Finally Crashes To 260 Per Dollar, Its Lowest In 42 Years by Firefire(m): 1:48pm On Dec 12, 2015 |
4Play: Thank you for your comment. Your submission shows your deep understanding of the subject matter and your awareness of the trend of events. As you rightly posited, which I somewhat agreed with, that "The Govt has to allow the Naira to fall until such a point that we have the reserves to hold the line", if we continually follow this line of argument while other variables remains constant, don't you feel that is also inimical to the purchasing power of Nigerians? Unless they (Nigerians) will not transacts in USD and got no FX impact in addition to the inflation rate of 9.4 percent. Hence, we would see a big shift between the Nominal Income vs. the Real Income. On the aspect of FDI, the unclear economic direction of the current administration is already putting off potential investors not minding the challenges and FX impact of the official/market rate off USD. South Africa's Tiger Brands cuts off funds to Nigeria's DFM: "Tiger Brands has decided not to provide further financial support with respect to its investment in Tiger Branded Consumer Goods plc of Nigeria," Tiger Brands wrote down the value of DFM twice last year for a total 954 million rand ($66.3 million) as the business suffered from tough competition and a weakening naira currency. http://www.dailymail.co.uk/wires/reuters/article-3320489/South-Africas-Tiger-Brands-cuts-funds-Nigerias-DFM.html Nigeria administrators must come together to address the issue NOW! Shalom! 1 Like |
(1) (2) (3) ... (8) (9) (10) (11) (12) (13) (Reply)
Crypto Ban: FCMB Begins Treating Customers Aged 18-30 As Fraud Suspects / Nwanta Anayoeze Yonaracha Sprays Money At Opening Of Escoba Smith Hotel In Abuja / Enugu Shoprite....my Dope Swagg Pictures There.. Me And My G's.
Viewing this topic: 1 guest(s)
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 78 |