With the current gains by the Naira after Ifeanyi Ubah' statement got me thinking.

I have come to a conclusion that just maybe the Govt delibrately manipulated the forex in other to partly fund the 2016 budget. I will explain this with the anology below....

"Let's say the Govt needs N400 million to fund the budget, as salaries and contracts are mostly Naira transactions, and it can only afford $1 million = N200 million.

With the official exchange rate at about N200 to $1 and the FG through the CBN have restricted the issuance of Dollar to the CBN alone, who goes ahead to instigate forex panic by banning more dollar required item which ultimately push the price of Dollar to N400 in the parallel market.

At the parallel market where Dollar is now sold for N400, CBN using its agents will smuggle the FG's $1million to be sold at the black market rate invariably making N400 million.

While the official rate remains N200, the FG would have made their money, thereafter systematically takes the Naira back N200 whilst they have solved the problem of making N400 million."

I may not be an expert in economics, but what would we attribute the current gains of the Naira to? Something fishy is going on and I think the FG is part of it....#ChimasTake

This makes 50% sense. i prefer it when people think like this. A weak naira whilst bad for Nigerians is very good for the FG.

Naira bounced back because PMB stood his ground by not letting enemies of Nigeria dictate or direct our future..

That's crafty...

U get sense small shaa

Put $1million in the black market and the exchange rate did not crash to 160 naira per dollar. Well. No comment

aresa:
Naira bounced back because PMB stood his ground by not letting enemies of Nigeria dictate or direct our future..

you will agree with me that was not the first time PMB held his grounds. Why did we not see any forex excitment after previous stands?

9jatriot:
Put $1million in the black market and the exchange rate did not crash to 160 naira per dollar. Well. No comment

if the forex was to be manipulated, it will be stupid to dump it ones. Remember there was right restriction and BDCs have not been in the picture but yet there was Dollar in circulation.

9jatriot:
Put $1million in the black market and the exchange rate did not crash to 160 naira per dollar. Well. No comment

$1 million dollar will not do anything. I know of a company that will gulp that on its importation in one week and the company is not even known that much.

Federal government does not change dollar earnings into naira in the parallel market so, this your conspiracy theory is wrong. CBN manages and forex earnings of the federation and they do so by strictly using the official rate.

If you want to know the reason behind the current rebound, then you should find out the reason for the initial astronomical fall in the N/$ exchange rate and that is, speculation. Speculators created an extreme artificial scarcity with the hope that the president will yield to pressure to devalue the Naira. After waiting for so long without success, they have to dump the dollars they are hoarding and hence, the rise in Naira value.

aresa:
Naira bounced back because PMB stood his ground by not letting enemies of Nigeria dictate or direct our future..

This is more sensible than the entire op . case dismissed.

snipesdam:
U get sense small shaa

He has zero sense.

How much can the FG possibly gain from that exercise considering the equivalent Naira would need to be sourced from the banks which effectively will cause a great shock to the financial system.
You don't just withdraw billions from the commercial banks without consequences

What about inherent risk involved in moving large currency about?

ALTERNATEID:
Federal government does not change dollar earnings into naira in the parallel market so, this your conspiracy theory is wrong. CBN manages and forex earnings of the federation and they do so by strictly using the official rate.

If you want to know the reason behind the current rebound, then you should find out the reason for the initial astronomical fall in the N/$ exchange rate and that is, speculation. Speculators created an extreme artificial scarcity with the hope that the president will yield to pressure to devalue the Naira. After waiting for so long without success, they have to dump the dollars they are hoarding and hence, the rise in Naira value.

I think the Op is trying to say the FG 'round-tripped' its own funds in order to illegally raise revenue from Nigerians desperate for forex.

Oh boy, are you serious? Na $1million dollars I talk o?
Money de this country like that?

emzila:

$1 million dollar will not do anything. I know of a company that will gulp that on its importation in one week and the company is not even known that much.

Very possible
It seems very true

9jatriot:
Oh boy, are you serious? Na $1million dollars I talk o?
Money de this country like that?

I am serious and like I said, you won't even recognize the company among major companies that import.

I'm sorry but this is just plain nonsense. If the FG needs more Naira, it will print more.

I hope the company will in the near future be able to get alternative materials in the local market

emzila:

I am serious and like I said, you won't even recognize the company among major companies that import.

Wow, I like this Analogy

Oga lai mohamed...anytin 2say?

ALTERNATEID:
Federal government does not change dollar earnings into naira in the parallel market so, this your conspiracy theory is wrong. CBN manages and forex earnings of the federation and they do so by strictly using the official rate.

If you want to know the reason behind the current rebound, then you should find out the reason for the initial astronomical fall in the N/$ exchange rate and that is, speculation. Speculators created an extreme artificial scarcity with the hope that the president will yield to pressure to devalue the Naira. After waiting for so long without success, they have to dump the dollars they are hoarding and hence, the rise in Naira value.

Govts all over the world are manipulative, they control the physical and monetry policy.

If you had taking time to read my post you would have noticed I made it clear about CBN probably using their agents in the parallel market to manipulate the forex and never meant otherwise.

Amazing how people think Ubah is responsible for Naira Appreciation

CCT.
lalasticlala obynoscopy ishilove myd44

dlox147:
With the current gains by the Naira after Ifeanyi Ubah' statement got me thinking.

I have come to a conclusion that just maybe the Govt delibrately manipulated the forex in other to partly fund the 2016 budget. I will explain this with the anology below....

"Let's say the Govt needs N400 million to fund the budget, as salaries and contracts are mostly Naira transactions, and it can only afford $1 million = N200 million.

With the official exchange rate at about N200 to $1 and the FG through the CBN have restricted the issuance of Dollar to the CBN alone, who goes ahead to instigate forex panic by banning more dollar required item which ultimately push the price of Dollar to N400 in the parallel market.

At the parallel market where Dollar is now sold for N400, CBN using its agents will smuggle the FG's $1million to be sold at the black market rate invariably making N400 million.

While the official rate remains N200, the FG would have made their money, thereafter systematically takes the Naira back N200 whilst they have solved the problem of making N400 million."

I may not be an expert in economics, but what would we attribute the current gains of the Naira to? Something fishy is going on and I think the FG is part of it....#ChimasTake

Exactly what spring to my mind this morning. You see this finance minister lady she know how to take from masses pocket to fund project. I remember vividly Home Owner project Ogun state introduced in late 2014 during that time most states have not been able to pay salary while Ogun state was bubbling.what will surprise me now is that the bailout received by Ogun states will be use for PMB estate project flag off during 40th anniversary. My imagination thou. This Lady will continue taking back from pocket of the masses and give back to Government to keep the country economy running.

AZeD1:
I'm sorry but this is just plain nonsense. If the FG needs more Naira, it will print more.

u think printing will solve the problem?

hahahahahhahahaha op u nailed it dis is one of d reasons i laugh at pipul who tink buari is a man of intergrity. dat man na crook. totally kworopt.

lalasticlala come see somtin hia.

Adminisher:
This makes 50% sense. i prefer it when people think like this. A weak naira whilst bad for Nigerians is very good for the FG.

chei n u tink wat d govt did is good did u know how many innocent nigerians had to suffer especially students kicked out of skool abroad because of buari's currency manipulation n crookery

AZeD1:
I'm sorry but this is just plain nonsense. If the FG needs more Naira, it will print more.

Guess you don't know how complex the issue of printing money.

And printing more money to inject in a countries economy will seriously affect the inflation rates.

dlox147:
Guess you don't know how complex the issue of printing money.

And printing more money to inject in a countries economy will seriously affect the inflation rates.

The money shared by the 3 tiers of government is printed money (newly printed).

You say printing more money will cause inflation which is partly true but then you believe the CBN is the cause of the dollar hike because they want to raise money?

Seriously?