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Nairaland Forum / Nairaland / General / Business / CBN Targets N200/$ Parallel Market Rate (32825 Views)
Naira Gains, Dollar Crashes At Parallel Market / Naira Strengthens Further Against Dollar On Parallel Market / Dr. Ifeanyi Ubah's N200/$ Claim: A Possibility? (2) (3) (4)
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Re: CBN Targets N200/$ Parallel Market Rate by Raypawer(m): 11:15pm On Feb 26, 2016 |
God forbid Anticabal: |
Re: CBN Targets N200/$ Parallel Market Rate by musicwriter(m): 11:20pm On Feb 26, 2016 |
omonnakoda: I think you should be giving that advise to the Federal government of Nigeria. And yes, the US dollar is a global legal tender, like it or not. That's the way it is for now. Besides being the main currency of the United States, the American dollar is used as the standard unit of currency in international markets for commodities such as gold and petroleum (the latter, sometimes called petrocurrency, is the source of the term petrodollar). Some non-U.S. companies dealing in globalized markets, such as Airbus, list their prices in dollars. Source: Wikipedia https://en.wikipedia.org/wiki/International_use_of_the_U.S._dollar |
Re: CBN Targets N200/$ Parallel Market Rate by omolola15(m): 11:24pm On Feb 26, 2016 |
UncleJudax: Yeah I know it's Canadian. |
Re: CBN Targets N200/$ Parallel Market Rate by freetowns: 11:32pm On Feb 26, 2016 |
Sanchase:How the hell do u think borrowing to finance ur fx is sustainable? If he borrows from so called countries and the exchange rate falls to say N200 is he going to continue borrowing till Jesus comes? He can borrow and it wuld only last us for about a month before dollar becomes scarce again and a worst upsurge materializes. Or u think they wuld keep lending money to our dear country as if we are the US? Our credit rating ain't Dat fantastic u shuld know, so watever is borrowed to u comes at a higher interest rate. The only way his travels can make sense is if he is doing so to canvass buyers for our crude oil at a better price. However, this is not d case as d countries he's been going to are those who buy better alternatives or are rather oil producing countries too!!! This pendulum swinging dollar/Naira rate has come to stay since we decided Oil is our A to Z. Only thing Dat could be done is to hack into the mind of speculators cos they are the major players here. 1 Like |
Re: CBN Targets N200/$ Parallel Market Rate by snaiper: 11:34pm On Feb 26, 2016 |
I think the retracement is exhausted..even a dead cat will bounce if it falls from a high altitude,looking for opportunity to go short heavily on naira against dollar! This time,it must get to 600naira per buck. 1 Like |
Re: CBN Targets N200/$ Parallel Market Rate by omonnakoda: 11:35pm On Feb 26, 2016 |
musicwriter:If you read what you quoted I already mentioned that commodities are denominated in dollars that does not mean you must acquire dollars to buy those things. We do not use dollars to trade in West Africa . Any you seem to use terrminology carelessly and interchangeably First you say it is OFFICIAL international legal tender then you say global legal tender. The dollar has very widespread acceptance but that does not mean the same thing. There is nothing like official international legal tender. The term LEGAL TENDER has a meaning check it out |
Re: CBN Targets N200/$ Parallel Market Rate by snaiper: 11:36pm On Feb 26, 2016 |
Raypawer:my first target be 600 bro..just a little while before it gets there.. |
Re: CBN Targets N200/$ Parallel Market Rate by musicwriter(m): 11:56pm On Feb 26, 2016 |
omonnakoda: One question for you. Does Nigeria agree to sell its oil in dollar?. Yes or No. |
Re: CBN Targets N200/$ Parallel Market Rate by omonnakoda: 12:01am On Feb 27, 2016 |
musicwriter:That is irrelevant. Argue as if there is some order in your mind |
Re: CBN Targets N200/$ Parallel Market Rate by bookface: 12:02am On Feb 27, 2016 |
omonnakoda: The CBN should raise interest rates? really ? Yes Are you saying they don't know what the are doing ? Possibly. I wouldn't be too surprised if they are just winging it. From the looks of things, it feels like they are. The leadership of the CBN has displayed some truly shocking levels of incompetency that nothing else might surprise me again. First they banned banks from accepting forex savings// continued to sell limited foreign reserves to folks who simply round tripped it // Removed bans from forex savings in banks//then banning those folks that should have been banned in the first place. I do not see anything coherent in the strategy being employed by the CBN. It seems to be that the CBN is simply hoping that oil prices will rise in the short term and all these bad stuffs will simply melt away - A central banker that employs hope as a strategy is without doubt incompetent. By the way do you know what the interests rates actually are and what they were when this government came to power? Benchamark interest rates hovered around 12% before Buhari came into power - it increased briefly and officially now is at 11% Where does the threat of inflation come from ? Imported inflation mostly. Foreign exchange has depreciated, cost of production is higher, price levels are higher. Simple. If you are referring to price rises as a result of exchange rate changes how will interest rates affect that If forward exchange rates are an unbiased predictor of future spot exchange rates, then the value of exchange rate is directly related to interest rates. The higher the interest rates, the higher the value of home currency. But leaving normative theory asides. Higher interest rates in Nigeria will attract savings from the rest of the world, which increases foreign portfolio flows and increases the value of home currency. so how does interest rate slow consumption and why anyway do we want to slow consumption when we are trying to grow the economy? The goal is not to grow the economy. The goal is to stabilize the economy. You cannot grow the economy if you don't achieve at least some stability in prices. For example, it wouldn't make sense for the CBN to print 100 trillion Naira and dash it out to everyone in order to grow the economy. We would simply end up as the next Zimbabwe - or the next Germany (after world war two). Stabilizing prices should be the central goal of the CBN - and it is nonsense to talk of stimulatory measures such as lowering exchange rate - while trying to stem off a depreciation of the Naira. We need to be real with ourselves. This is not the time to party. It is not the time to give out cheap loans. Even though there is already a little bit of fiscal consolidation being forced on us due to low energy prices - i do not think a reasonable way to offset that is stimulatory monetary policies. |
Re: CBN Targets N200/$ Parallel Market Rate by musicwriter(m): 12:03am On Feb 27, 2016 |
omonnakoda: If you think it's irrelevant then this discussion don't worth it. Later. |
Re: CBN Targets N200/$ Parallel Market Rate by omonnakoda: 12:04am On Feb 27, 2016 |
musicwriter:You need to work on your grammar. It is not possible to think at a high level when your language acquisition is rudimentary.FACT!! |
Re: CBN Targets N200/$ Parallel Market Rate by Johnrake69: 12:13am On Feb 27, 2016 |
They should be better not use tax payers money to go defend the naira. Still wondering how this govt intends using monetary policy in isolation to drive the economy. |
Re: CBN Targets N200/$ Parallel Market Rate by kennethchidi(m): 12:21am On Feb 27, 2016 |
Ok. Noted. The coming days will tell |
Re: CBN Targets N200/$ Parallel Market Rate by omonnakoda: 12:25am On Feb 27, 2016 |
bookface: I wiill tell you something for free .You are very opinionated but you lack knowledge you really do not know what you are talking about. Quite how you can suggest raising interest rates as a panacea to imported inflation is a mystery to me. It is like an oil importer raising interest rates to push down the cost of petrol. Bizarre How many Nigerians have access to credit or borrow to consume? Let us talk about the mechanics of interests rates.How does it work in practice in Nigeria ? What is the relationship between the rate at which the CBN lends to the banks and the rate at which banks lend to the economy. In Nigeria there is no connection.CBN does not tell banks what rates to use but sets the tone by the rates at which IT borrows 91 day or 364 day paper and also the rate at which it lends to the banks for daily operations We have rates over 10% and you are suggesting further rises to "stabilize " the economy where has this been done before. It is naive to believe high interest rates attract money.High interest rates are a measure of RISK PERCEPTION. Rates have been low for years in the US,virtually Negative ditto for the Eurozone and the Pound and that is where the money flows to. Why is the dollar getting stronger against the Naira. This is a measure of the perception of political stability,security rule of law and the strength of the Banking sector as well as international clout. In economics we are talking about people not electrons ,hadrons and mesons. |
Re: CBN Targets N200/$ Parallel Market Rate by azzima(m): 2:55am On Feb 27, 2016 |
drss:Biafrans!!!! Nigeria's official number 1 enemy. Always having heart attacks whenever there is ANY good news emanating from Nigeria. Boko Haram EVEN likes Nigeria more than them . People shine your eyes well well, all their noise is not because they love Nigeria, it's because they want to watch the country sink, so can all have a laugh. They will surely be disappointed! ! 2 Likes |
Re: CBN Targets N200/$ Parallel Market Rate by Taich(m): 5:28am On Feb 27, 2016 |
[. 1$= N3000 by next year. [/quote] Haabaa, that's mean. Don't u want us to survive? |
Re: CBN Targets N200/$ Parallel Market Rate by plaetton: 5:38am On Feb 27, 2016 |
NavierStokes: Bingo! I mean, the article itself is a Hodge podge of meaningless conjectures and fantasies. No substance whatsoever. Unlike China or Russia, we don't have an unlimited reservoir of foreign reserves with which to defend the Naira. Ad-hoc measures only digs a deeper hole for the Naira and the general economy. Infact, I can say the main reason we still have a dual exchange rate since the Babangida years is because of ad-hocism in the management of monetary policy. And where has it gotten us? A 4000% depreciation of the Naira. Let's continue with ad-hoc measures and the miracle and wonders it would do the Naira and our economy. 1 Like |
Re: CBN Targets N200/$ Parallel Market Rate by 989900: 6:10am On Feb 27, 2016 |
omonnakoda: Leave him alone -- one day he will realize his folly. I borrow from my banks outside the country between 4% - 8%. Car loans at 2% (spread over 4-5 years)! In my own country: Nigeria, where I have invested over 75% of my sweat, I am asked to come and borrow at over 20% (with my 'blood sample' -- pun intended); just cause the CBN/gov't 'technically' borrows back its own money from the banks in the name of mopping up 'excess liquidity' (money it DOES NOT NEED)@ 13-16%, and because some oil subsidy fraudsters in conjunction with the banks and other gov't cronies can borrow @ over 20%. We already have a recipe for disaster! So just leave that dude alone. "I believe that banking institutions are more dangerous to our liberties than standing armies... if the American people ever allow private banks to control the issue of currency...the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent that their fathers conquered." - Thomas Jefferson The above Jefferson's quote is even worse in our scenario! |
Re: CBN Targets N200/$ Parallel Market Rate by emmydollars4life(m): 6:13am On Feb 27, 2016 |
Acjohn:I am not impressed with CBN because as long as I am concerned all credit goes to Ifeanyi Uba who make the comment on early this week since that time, naira has been gaining value and he set a target of 200/$ why is CBN saying the same thing why we have been suffering from this since, I take they silence as lack of idea |
Re: CBN Targets N200/$ Parallel Market Rate by GreatEngineer(m): 7:20am On Feb 27, 2016 |
You don't use psychological talk to control currency regulation, rather you use sound policies as monetary control measures. Psychological talks are use in football, wrestling, boxing etc... So CBN should please stop talking and do something. |
Re: CBN Targets N200/$ Parallel Market Rate by Bevista: 7:29am On Feb 27, 2016 |
omonnakoda:But even if we needed to make payments in RMB instead of dollars, do we have enough RMB to sell to importers? Will there still not be an imbalance in supply/demand sending the RMB/NGN exchange rate higher? |
Re: CBN Targets N200/$ Parallel Market Rate by erico2k2(m): 7:42am On Feb 27, 2016 |
musicwriter:Well look what happened to Greece. Can't we learn from them |
Re: CBN Targets N200/$ Parallel Market Rate by erico2k2(m): 7:47am On Feb 27, 2016 |
azzima:This is what happens wen kids get hold of an internet enabled phone and buy 1 gig airtime. |
Re: CBN Targets N200/$ Parallel Market Rate by otitokoroleti: 7:54am On Feb 27, 2016 |
erico2k2:1gig you say? lmao, the boy u quote uses only 10mb mtn dashed him upon 100naira recharge. its unfortunate that this forum now has large percentage of kids as members |
Re: CBN Targets N200/$ Parallel Market Rate by MCMXCVIII(m): 7:55am On Feb 27, 2016 |
LesbianBoy:and you yearn for progress in the Nigerian community? |
Re: CBN Targets N200/$ Parallel Market Rate by NavierStokes(m): 7:58am On Feb 27, 2016 |
omonnakoda: Managing the exchange rate requires a careful combination of fiscal and monetary tools, so In this case it will be either we lack them at this point or we are clueless on what to do. |
Re: CBN Targets N200/$ Parallel Market Rate by 2sex(m): 8:04am On Feb 27, 2016 |
snaiper:GTB is already selling at 199 to dollar as at yesterday. May your wish never come to pass. |
Re: CBN Targets N200/$ Parallel Market Rate by reallest(f): 8:05am On Feb 27, 2016 |
[s] Anticabal:[/s] See my people's thinking |
Re: CBN Targets N200/$ Parallel Market Rate by asha80(m): 8:18am On Feb 27, 2016 |
2sex:what were the selling last two weeks or before the appreciation of the naira? 1 Like |
Re: CBN Targets N200/$ Parallel Market Rate by grandstar(m): 8:24am On Feb 27, 2016 |
The government will run down the reserves to achieve this fantasy |
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