Bollinger:


I wouldn't go that far. Hopefully it is true, but Nigeria still has a billion other problems to contend with.

tbaba1234:


It is currently at 257.. Let's see how the day ends... There is pent-up demand so it could end around 280 today... But it will still stabilize at around 250..

tbaba1234:
257.75/$

Current rate

TippyTop:
Expect the euphoria to be gone in a few weeks, Adeosun has no real economic blueprint to lure back investors.

PassingShot:
Happy days are ahead of us.

With the news, the worst of our economic woes are behind us.

Kudos to the government for floating the Naira rather than devaluing it. A first in the history of Nigeria.

*Modified*

Some ignorant mourning wailers are saying floating the naira is same as devaluing it. Hell NO!

If you devalue the Naira, you fix an official exchange rate to it. E.g N250 to a dollar. With that approach, the black market rate will jump to beyond N400 to a dollar.

But with floating, many traders with high volume of dollars come in and trade dollars based on demand. In this approach, there is no official dollar rate set by the government. The rate is purely determined by how much dollars are demanded and how much dollars are available. This way, the Naira finds its true value.

Boss13:


I think the spike is due to demand surge and backlog transactions.

MuhdG:
Does this mean that even black market is at 253 cc passingshot

PassingShot:

Now I know you're very ignorant about this issue.

Just help yourself by reading the press release of Emefiele to understand the structure. The govt will not pump any dollars to prevent scarcity since there will be many big players including foreign licenced traders. The role of govt will be if there is scarcity not to prevent it.

I'm not here to teach you further.

tbaba1234:
Rate is currently 257.50 to a dollar

neocortex:


The question remains if I can easily get the dollar at 257.75 ?
Your guess is as good as mine.

tbaba1234:
Nigeria's naira was quoted at 253 against the U.S. dollar as a new interbank market opened on Monday but no trades were yet to be agreed, dealers said.

Nigeria's central bank said last week it would scrap its fixed exchange system which has seen the currency pegged at 197 to the U.S. dollar for the past 16 months. (Reporting by Chijioke Ohuocha; Writing by Joe Brock; Editing by Andrew Heavens)

http://www.reuters.com/article/nigeria-currency-quote-idUSL8N19C13U?feedType=RSS&feedname=usDollarRpt

PassingShot:
Happy days are ahead of us.

With the news, the worst of our economic woes are behind us.

Kudos to the government for floating the Naira rather than devaluing it. A first in the history of Nigeria.

*Modified*

Some ignorant mourning wailers are saying floating the naira is same as devaluing it. Hell NO!

If you devalue the Naira, you fix an official exchange rate to it. E.g N250 to a dollar. With that approach, the black market rate will jump to beyond N400 to a dollar.

But with floating, many traders with high volume of dollars come in and trade dollars based on demand. In this approach, there is no official dollar rate set by the government. The rate is purely determined by how much dollars are demanded and how much dollars are available. This way, the Naira finds its true value.

AtlanticBreeze:

you people are just mischievous. A novel idea and you already believe it will work? What are the indices? Even top economists I have spoken to criticized this move by CBN. I'm talking professors here

tritt:


There is no quote yet...so calm down.

AtlanticBreeze:

You are just totally clueless about the system. You just want to quickly bask in euphoria to decieve your zombies. What is the structure Emefiele gave.. Abeg stop mentioning me and infecting me with your cluelessness.

tbaba1234:


Why not? It is free market now..

shyling:

Must you? I expect youths like you to posses critical reasoning skills and not just screaming in support of politicians without having an inkling of what is being discussed...

neocortex:


It is far from free, there are many restrictions placed
on the interbank market which are not present in the
black market.

As of 10 am this morning, dollar is sold at 340 naira in
the black market.

BlackMerchant:


You are just too incoherent for comfort! Lol!

Dude, the idea is novel because it has never been tried in Nigeria before. Kabish.

tbaba1234:


That gap will reduce significantly as the day progresses.... The interbank market has been given more freedom to trade so people who do online transactions or businesses will get it at the interbank rate as opposed to what the banks were offering.