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Nairaland Forum / Nairaland / General / Business / CBN Adopts Flexible Exchange Rate Policy (39447 Views)
Exchange Rate As Of Today / Forex: CBN Throws Naira Into Open Market, Nullifies N197/$ Exchange Rate / Today's Naira Exchange Rate (2) (3) (4)
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Re: CBN Adopts Flexible Exchange Rate Policy by beejaay: 6:32am On May 25, 2016 |
franciskaine:devaluation would av been the short time best solution while the administration of PMB will tighten the belt on the neck of the looters...it will give pmb enough time to bring about his economy restructuring and policies of diversification, the masses wouldnt av suffered but now its a little too late |
Re: CBN Adopts Flexible Exchange Rate Policy by beejaay: 6:36am On May 25, 2016 |
Deen77: its already too late, it cant work again...it will now work agains the government....its PMB i pity in all of this cos those fuc.kers around him will simply start singing a new song very soon
1 Like |
Re: CBN Adopts Flexible Exchange Rate Policy by millhouse: 6:44am On May 25, 2016 |
egbonnla:no vex for them Bros... It was zombieism in action. 1 Like |
Re: CBN Adopts Flexible Exchange Rate Policy by Nobody: 8:13am On May 25, 2016 |
beejaay:sweet in the mouth, devaluation without mass production is zero. Pls ask Zimbabwe how far. 1 Like |
Re: CBN Adopts Flexible Exchange Rate Policy by youngalex(m): 8:42am On May 25, 2016 |
the flexible exchange rate adopted yesterday was because the oil importers refused to source for forex from the parallel market, they wanted CBN to facilitate forex transaction for them @ #198 (after increasing fuel price to accommodate black market exchange differential) CBN bluntly refused thereby creating an alternative window for them... THIS APC GOVT IS MORE CAPITALIST INCLINED AT THE DETRIMENT OF THE MASSES 1 Like |
Re: CBN Adopts Flexible Exchange Rate Policy by ideylaff: 9:17am On May 25, 2016 |
007Gbenga: At all everyone seems to be missing the point. This is simply Politicians creating an avenue to make money and raise funds through rent seeking ways, the left the FX policy wide for over a year to make them round trippers and powerful contributors to 2019 make money while they did as if they were not aware. Even a secondary school Economics student know the FX policy was open to abuse, CBN and the powers that be left that window open to make money for the rent seekers and opportunists who in turn will look after them. It's just too glaring These people are very very very wicked, just like they are using the fuel price increase to take money of the common man to pay the marketers. Don't be fooled my people they knew what they were doing all the while. Do you know what Dangote, Danjuma and the so called big guns have been doing with cheap FX bought at Bank Rates for the last 1 year. Just calculate the profit made and you will weep for this country . See how they quietly introduced this in quote devaluation even after they, Vp and FG denied it a few weeks ago and even the smallest blog on line reported devaluation was on the cards. May GOD punish these POLITHIEFCIANS steering the rudderless ship called Nigeria. Their generations will suffer for this in Jesus name . Amen WICKED LOT THEY ARE BOTH APC AND PDP 4 Likes |
Re: CBN Adopts Flexible Exchange Rate Policy by 989900B: 9:52am On May 25, 2016 |
We have a developing situation without direction, facts nor figures, yet everyone's has something to say already. Even the newspapers and distinguished economists are mum waiting for further tangibles to work with, but NL economic pundits know what's up already. This country and some other largely mono economies, especially those who didn't save for famine, are in deep sh!t already! And the sad reality is, there is no quick/easy fix! Every scenario is marred with unpredictability of multiple variables. Have you ever been broke and laden with debts and tons of other problems, but know what to do, but don't have the funds to do it, and have everyone look at you like you're a f00l of the first order? God bless y'all. |
Re: CBN Adopts Flexible Exchange Rate Policy by efficiencie(m): 10:23am On May 25, 2016 |
Apparently some on this forum have opinions on what could be done to stem the crisis while the less educated lot spout name calling and gibberish just to be heard...To the bright minded, i suggest it is not enough to air opinions on nairaland rather it is pertinent to; get facts, construct your opinions into a formal theory, validate them with verifiable facts, sum up your efforts in a research paper and submit it to the CBN's Journal of Applied Statistics (JAS). That way it goes on the record that you lent your voice as an unsolicited adviser! This is the era when we need to justify the BSc, MSc and PhD's that we claim we have and make our universities worthy of existence! Now is the time for the educated to think Nigeria out of the doldrums and not just give in to ignoble yet rambunctious rants often displayed on this forum by those who claim to be educated! 2 Likes |
Re: CBN Adopts Flexible Exchange Rate Policy by Babacele: 10:28am On May 25, 2016 |
989900B:Agribiz is the alternative quick fix to oil money but yam eaters should be kept far away from the garden by whatever any means if not it would be a deeper shiiiit! ain't we lucky to have a disciplined manager? Just imagine if were the clueless n thieving team? 1 Like |
Re: CBN Adopts Flexible Exchange Rate Policy by 007Gbenga: 1:11pm On May 25, 2016 |
ideylaff: Dangote is FG's adopted son! He gets tax rebates, cheap forex, monopoly to do businesses and more while the politicians look the other way and get their bank accounts filled. Ask yourselves who own these fuel marketing companies, oil blocks and oil business if they are not linked to politicians in power, so why wont they implement killer to enrich themselves? They dont know the hardship, tax payers money gets averything for them. |
Re: CBN Adopts Flexible Exchange Rate Policy by ideylaff: 6:44pm On May 25, 2016 |
007Gbenga: Spot on and well said in a nut shell 1 Like |
Re: CBN Adopts Flexible Exchange Rate Policy by plaetton: 10:29pm On May 25, 2016 |
GeneralShepherd: ![]() ![]() |
Re: CBN Adopts Flexible Exchange Rate Policy by plaetton: 10:51pm On May 25, 2016 |
989900B: At a time that bank of Japan, the European Central Bank, China, the US federal reserve were desperately pumping liquidity in their deflationary economies through their banks, Buhari came in and did the unthinkable opposite of draining N3 trillion out of the banking system, at once. The TSA implementation was the equivalence of a nuclear bomb on the Nigerian economy. This was the equivalence of draining your rickety car ofvengine oil in order to save yourself some change. But It's not too late. They can still return the N3 trillion back to the economy via the banking system. Money in commercial banks is what they leverage to create and expand credit in the economy,,. Which in turn , fuels Commerce and employment. Any amateur computer programmer can write software and algorithms to help the FG keep abreast all their accounts with commercial banks in REAL TIME, irrespective of how many there or how far they are spread. The FG should swallow their pride, or in Buhari's words, swallow their own vomit, and release the TSA funds right back to the economy. N3 trillion, N10 trillion or N100 trillion are just figures, useless figures, if they cannot add liquidity , credit , employment and GDP to an already ailling economy. 2 Likes |
Re: CBN Adopts Flexible Exchange Rate Policy by 989900B: 4:19am On May 26, 2016 |
plaetton: The above is so wrong on many levels, I don't even know where to start. Should we start from the billions in leakages, to ghost workers, and heads of depts, or pure brazen theft in connivance with the banks? Or, the fact that an institution like NNPC does not even know how many accounts it has? Or, the fact that banks in Nigeria are just lazy and brainless siphons for cheap and illegal monies. Or, the fact that we even have a faulty monetary policy template in place that guarantees the banks make N600b every year thru the CBN for virtually nothing, in the name of mopping up excess liquidity, created by the CBN in the first place? Or, the fact that about 14 banks are still owing the CBN about $7b (dollars) from 2006 in bailout funds? Our banks don't even fund the real sector that needs the funds the most. At over 20% interest rates, most of the loans can only go to oil racketeers. In all those countries you mentioned, they work for their own profit by smart investments, not solely dependent on funds from government like our own banks. Japan for example, is one of the countries with the most debt in the world, but they are not doing a 'Greece', because most of their debts are internal (borrowed from their own banks). You think we can keep on surviving on such faulty framework and not pay for it one day? There is no short cut to hard work and smart ideas. "Good thinking -- Good product". Not the lazy slime a$$ glorified piggy banks we have for banks. The TSA is enshrined in our constitution (it is not PMB's brainchild), OBJ didn't do much about it, GEJ brought it to the front burner with the switch off, PMB only summoned the stugotz to switch on the burner. That said, a good chunk of the monies still return to the banks, albeit via better accountability. That way, it makes it easy for the government to keep a manager's eye on things, pay across board accordingly, identify projects/entrepreneurs that need loans, and make them available at special single digits rate -- that is how you properly pump money into the hands of those who truly need it and grow the economy, in lieu of fat false cash sitting idly in the wrong accounts. |
Re: CBN Adopts Flexible Exchange Rate Policy by plaetton: 5:24am On May 26, 2016 |
989900B: You got it all wrong Sir. It's important you understand what you are arguing against before you make your argument. All the reasons you listed above were legitimate reasons for the implementation of the TSA, all things being equal. The idea of streamlining government accounts for better control and accountable is a proper idea. But in a complex and dynamic economy facing strong headwinds from declining oil prices, there could have been a hundred different ways of streamlining, monitoring and controlling all hundreds or thousands of FG accounts in REAL TIME. The technologies exist for that. Only a fool will cut his nose to spite his face. You want to prevent a leak by taking measures that unleash a flood ? This is the Nigerian military mentality. Everything we do is to punish someone or some group, irrespective of how it affects our economy and the 180m people within it. ![]() My friend, if you understand economics, global economics, monetary systems,money, liquidity and how it works, you will see that only an Insane person or really really DUMB person would drain the equivalence of about 3% of GDP from the banking system, from the economy, in one swoop for the very inane and asinine reasons of administrative efficiency,..More so , at a period of great economic uncertainty due to the declining revenues from our Chief export. In that same month that Buhari drained 3% of our GDP value out of the economy, the BOJ and the ECB were literally throwing uncountable billions into their banking systems just to stimulate lackluster economic growth. This has been a continuous quarterly exercise for global central banks since the economic crisis of 2008. A tale of two different universes , huh ![]() Pls consider again, that back in 2008, the biggest , most robust and most dynamic economy in the world, the US, had to inject about $800b, which is about 5% of its GDP value, into their banking system to stave off what would have been an inevitable catastrophic implosion of both the US and the entire global economy. Think about it. If the US could panickly inject 5% of its GDP value to its bsnks to rescue its and the entire global economy from total collapse, then consider the sheer INSANITY, the sheer Stuuuupidity of a third rate , monoproduct, generator economy like Nigeria's, having 3% of its GDP value sucked out all at once. ![]() Again, if you understand simple economics, this is the equivalence of throwing a nuclear bomb on an already bazooka-ed economy. Jonathan and his economic advisers became aware of this possible unintended consequences of hurriedly implementing the TSA. Hence, they shelved it to explore other NON ECONOMICALLY DISRUPTIVE options. But the new sheriff in town, satiated with newly acquired powers over life and death, conceited with falsely constructed narratives , impervious to economic common sense, went ahead and released the deadly weapon on an already weakening economy. The rest, they say, is history. A history whose final chapters will tell tales of much much strife. May the Toothfairy help us. ![]() 5 Likes 2 Shares |
Re: CBN Adopts Flexible Exchange Rate Policy by Nobody: 7:10pm On May 26, 2016 |
lashout1: You sound as if Uv just been jilted by a Warri babe...or one of those trading with robots The naija foreign reserve is in its all time low and you r here blabbing oopps that govt shud not fund critical trxns at official rate....mtttyheeew,if I handle u eenn,? ![]() ![]() |
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