MrPresident1 post=45944598]The Naira has been freely floated, its value is now subject to market forces. Nigeria does not export, she majorly imports, so balance of trade is not in her favour, undefended against the dollar, or 'flexible exchange rate policy' as the CBN's says, its value will drop relative to the dollar. Dollar will become stronger, Naira will become weaker, Nigerians will be punished harder.

Buhari is our end time president.



But those that do know their God shall be strong and do exploits.

sportskid:
Well I think this is good, because it will mean more people exchanging the dollar, there will be a healthy competition and thus it will lead to the reduction of the dollar rate against the naira.Well on paper it is workable I guess

Competition fire.

Those are done in a place where there are strict law and order.

Since the FGN can not regulate these markets.

The marketers will just form a secret union and fix the prices to suit them so as to make soo much profit and the govt can do nothing about it.

Quakertellicus1:


Not exactly.....the fact is we do not have enough forex to buffer the naira....and meanwhile keeping the brake on the exchange rate, while a good idea to stop the naira from depreciating at a faster rate....eventually had to go because not enough dollars are coming in.

If GEJ was in charge...the same thing would have happened. After all....Emefiele is his appointee.

And no....I am not being partisan....the cold fact is that Nigeria has been dependent on oil for too long. Eventually, we are going to make the hard choice of diversificaiton....which means a longer period of hardship.

If gej were in charge, emefiele will have been one memeber of an economic team of experts. And gej will not have been so adamant on devaluation defying all advice from notable financial institutions. That singular act of defiance by buhari scared foreign investors out of the country resulting in USD scarcity. Whatever happened to the shadow chasing buhari went to do in china

isn't this the height of cluelessness? you just throw the dollar into the market,no fixed price...reason?u"ve run out of ideas.
quite pathetic!

We brought this on our self's soon dollars will be 600 naira

Thank God I don pay my last tuition.......wicked people

can someone summarize dis and explain how its gonna affect nigeria positively

The policy will see more investors cashing in to bring in their money to salvage the economy. If u have family abroad, it's time to ask them to send u some dollar since it would be determined by market forces. It's too little too late though....
The avengers contributed to this.

Nelkoko:
Me i NO understnd anyting 4 here.

Ah dey tell u. If this is news for Nigerians, why can't they explain in layman's language? I haven't been communicated.

apc how market? ?

ibedun:


The fat puff puff face, Jonathan that dumb brought us here. I pity people with children, Kai they will suffer chai.

I guess you are talking about GEJ's failure to save.

Yes...he should have saved. But that would have meant we would be facing this problem later this year.

If GEJ saved like a miser....we would have had possibly $100bn in our accounts by this time last year. That is the amount of money Saudi Arabia spent in one year buffering their currency when oil prices started dropping.(Saudis now have less than $600BN in their accounts...down from $724 bn in July 2014.)

Our real problem is resource dependency.

TechRev:
"Special window" there is your corruption for the fantastically corrupt nation. What is special window and what qualifies special window transactions and what rate will the special window get?

Special window is for his favored few. And they are looking for corruption.

windows for people like dangote and co

ijija:

If gej were in charge, emefiele will have been one memeber of an economic team of experts. And gej will not have been so adamant on devaluation defying all advice from notable financial institutions. That singular act of defiance by buhari scared foreign investors out of the country resulting in USD scarcity. Whatever happened to the shadow chasing buhari went to do in china

Well.....we have USD scarcity because we are no longer earning enough from oil. Simples.

(Note that every oil producer has the same problem. The Saudis in particular are giving themselves until 2018 to start making cuts if oil prices stay low).

And when you do not have enough USD....you cannot pay foreign investors...who stay out.

We were there once....in 1982...when the oil crash happened (2 years before Buhari took over).

It is called Dutch disease.

jodeci:
1$ will eventually exchange for 700 NGN before year end ssince the rate will be determined by market forces.

The most confused clueless CBN governor president ever there is.

I bet you are one of those praising Buhari for resisting pressure,
now that he has bulged you blame CBN governor instead of Buhari.

Lighthouseman:
The policy will see more investors cashing in to bring in their money to salvage the economy. If u have family abroad, it's time to ask them to send u some dollar since it would be determined by market forces. It's too little too late though....
The avengers contributed to this.

Not exactly....it would make things easier for a while....but as long as oil prices stay low...it would just be a temporary indian summer.

Special window for the favored few.

Chai...Fellow countrymen how did we get here?

ikukuhero:
I think the current CBN Governor should be urgently replaced.

Not just him but the entire economic team!

I think the current CBN Governor should be urgently replaced.

My madams business is severely affected , as of yesterday pound sterling is 473 to 1. Business is coming to a grinding halt

Quakertellicus1:


Well...I guess they did not devalue then because it would have made things worse....oil prices were low...and we did not have forex coming in...and we were still on subsidy.

Now...we have removed the subsidy, and some more forex is coming in...so CBN feels more confident to devalue....more room to maneuver so to speak.

Since the avengers strucked, FG has been loosing @least $36 million dollars daily from sale of crude. So there is no extra fX coming in, they are even @ loss.




Imagine when all fX dealers come together and fix a price for the trade, what do u think will happen? Buying will still buy because they had no choice, na the common masses/final consumers go still suffer am(via normal chains of production).

Well, dis isn't new. Like OBJ said Economics aint one of PMB strengths but at least he should drop his pride and invite capable hands not dis Trial n Error thingy. If this persists, I fear d worst for this country. Ghana dey backyard sha

https://www.nairaland.com/3118620/bri-gen-dongoyaros-speech-overthrow

This is the worst policy ever. For those who doesn't know, it means if I have the dollars, I can sell at any amount that I want. It's either u take it or leave it. The importers will have no choice than to buy the dollars like that even if I want to sell it at $1=#500. If u don't want to buy, look elsewhere.
Buhari should swallow his stupid pride and invited GEJ and other past individuals who are known to get the job done to help advice/take control on critical sectors even if the person na PDP oo. GEJ I knw always have the interest of this country at heart and will more than wilingly come to help out. To those anti-GEJ sycophants, your country is sinking and you don't know it. We r heading towards Zimbabwe type of economic crash.
I don say my own

Despite all the posturing that this put up like he isn't a puppet - he finally showed his true colours.

Anyway, deal did he get in return for succumbing to pressure from the West? Don't tell me he allowed a whole country to be shagged in the arse for superficial anti-corruption drive, to return stolen loot western countries would benefit more from than Naij.

This guy is a clown lol. Triple dip recession and hyperinflation on the horizon lol.

so the chinese yuan swap deal could not help again. the real fools here is not buhari, but the so called educated people that supports any useless policy he initiates. this the same people they praised him for fixing the exchange rate claiming that allowing market forces to dictate the price will spell doom for the common man. Now dat the devaluation is done, wat now happens to the common. Emiefele should resign i beg

Quakertellicus1:


Not exactly.....the fact is we do not have enough forex to buffer the naira....and meanwhile keeping the brake on the exchange rate, while a good idea to stop the naira from depreciating at a faster rate....eventually had to go because not enough dollars are coming in.

If GEJ was in charge...the same thing would have happened. After all....Emefiele is his appointee.

And no....I am not being partisan....the cold fact is that Nigeria has been dependent on oil for too long. Eventually, we are going to make the hard choice of diversificaiton....which means a longer period of hardship.

So why the stance against devaluation when this is a clear case of devaluation but coated with a different name, given the present economic condition we are in?

Nelkoko:
Me i NO understnd anyting 4 here.

It's in English, bro.

When we say a government is confused, then we are talking about this government..... They are not sure about result, they are just test running everything.

segalex:
I support PMB most times but I honestly think he needs to gather Nigerians who are versed in economic matters and constitute a real economy team which will give this administration the necessary directives on how to run the economy.
The issue of making Osinbajo who is a lawyer the leader of your economy team doesn't make sense, if there's one area that this administration is seriously struggling, I think it's the area of economy and this needs to be corrected before it gets out of hand

If you ask to make proffer a solution, what will be your professional advice and why?

basingstoke:
so the chinese yuan swap deal could not help again. the real fools here is not buhari, but the so called educated people that supports any useless policy he initiates. this the same people they praised him for fixing the exchange rate claiming that allowing market forces to dictate the price will spell doom for the common man. Now dat the devaluation is done, wat now happens to the common. Emiefele should resign i beg

To even think that some fools were calling fayose anti government and all sorts of name.

Turns out the man @ state level knew better than those @ the federal level, but would dey had listened to him? NO, after all, he is PDP(opposition).

jodeci:
1$ will eventually exchange for 700 NGN before year end ssince the rate will be determined by market forces.

The most confused clueless CBN governor ever there is.

U have a point buddy, but I'll try Nd look deeper.

Is it a crime for the naira to equal the dollar. Imf is just another weapon of modern day slavery on africans. They will not never want to devalue when face with currency difficulties but will rather stand on the official rate. Some african countries are so gullible to be used by the western nations to impoverish them. They will buy a lot form your country with a little thousands dollar compared to africans paying a lot for their goods. I hate imf.

Exactly.... In Nigeria, economics application won't work because this part of the world is strange. This new policies will give banks and bdc opportunity to explore the flaw and go back to their crude ways creating artificial price way up. We should ask our self,why is stock market prices getting positive turn around for months now despite economic hardship. To me, bubu would have held on a bit, make peace with nd people instead of using forces,so that oil revenue inflows can improve since crude oil prices are picking up. I don't know why God created Africans, we are just wicked and opportunist. When these people are looting without looking back, no one can challenge them. Look at all Caribbean, all our stolen money are used to develop those areas. All there unborn children have foreign nationality of their choice. If you steal and invest back to the country, the money will be enough to create many things back home. It's just unfortunate we found our self in this evil leadership mess. If to say we get our Independence same time as SA, Nigeria will be better than many European countries . so so unfortunate. Buhari can't do much as at this time.the are just helpless. So who will still suffer it?

donbrowser:

You and I know this won't go down well. It surely won't if you under the reason why $1 was ₦400 few months ago.

l suggested implementation of market determined exchange rate at the beginning of this year. Finally they accepted my suggestion.