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.

deflover:


let me school you a bit in trading....with the interbank rate at 250 it means the market opened at a gap of 70bp....meaning a spread that huge can signal more bull for the dollar.
now it also means the long standing fixed resistance of 197 has been broken

now market forces will take it higher as the price of crude and other commodities force it on its knees
I am only being nice with 600naira trust me it can go worse..

neocortex:


Is $3000 their current monthly limit ?

PBundles:
Guess you are smarter than the fools on Bloomberg, who say ( and I agree) its a devaluation:

[url] http://www.businessinsider.com/nigerian-naira-crashes-after-government-removes-peg-2016-6[/url]

A drop on 27% in just one day and you are happy, its obvious you have no clue whats going on. So help us since you seem to have such a great understanding of the subject matter. All the foreign companies that had 199 in the books that have to now revalue to 258 (at best) how will they make up the difference.

Also can you please tell us which party traded at 257, so an actual trade NOT A PRICE QUOTE, you do know the difference RIGHT?

Call you bank inquire what the rate is and get back to us, ok?

deflover:


let me school you a bit in trading....with the interbank rate at 250 it means the market opened at a gap of 70bp....meaning a spread that huge can signal more bull for the dollar.
now it also means the long standing fixed resistance of 197 has been broken

now market forces will take it higher as the price of crude and other commodities force it on its knees
I am only being nice with 600naira trust me it can go worse..

tbaba1234:


You have not provided any valid argument.

The demand for crude is not going to change.

Very few were getting it at $197 anyways, so it was already devalued.

There is also pent-up supply which will flow in, in the next few months...

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.

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

deflover:


demand won't change but price would
factor in the capital flight of airlines and all foreign companies who want to buy dollar so as to get it out
factor in fear and greed
and trust me when they say market forces it doesn't imply local market forces alone but the whole chest of the FX market put at a value of $5trillion compared to our reserves of $29billion. ...how long can the CBN hold this supply.

crazymommy:
As expected....about 3 days ago a guy on a thread said he wants to sell his 10000$ Which he said he bought at the rate of 302 but that he wants to wait till it gets to 400naira per dollar,I adviced him that he should better sell it at that moment when it was around 350 because anything can happen on Monday which is today because I believe that the market might possibly fall in between the official price and the last parallel market price and that should be around 250-290.guess what??the guy said I am deceiving myself...that he is very intelligent and he believes that the dollar price will even open higher on Monday which is today....I hope the overconfident ignorant fellow his reading this...the annoying thing about some people on nairaland is that they feel they know it ALL and they are not ready to hear the opinion of any other person especially if it is coming from a woman....smh...

Nsonaso:

Abeg who has bought at that rate?

SirAweezy:


Ehehehehehe you made me laugh that I almost farted... leave them let the blind school one another.... because if you are not careful they will insult you till you go blind too lol

crazymommy:
As expected....about 3 days ago a guy on a thread said he wants to sell his 10000$ Which he said he bought at the rate of 302 but that he wants to wait till it gets to 400naira per dollar,I adviced him that he should better sell it at that moment when it was around 350 because anything can happen on Monday which is today because I believe that the market might possibly fall in between the official price and the last parallel market price and that should be around 250-290.guess what??the guy said I am deceiving myself...that he is very intelligent and he believes that the dollar price will even open higher on Monday which is today....I hope the overconfident ignorant fellow his reading this...the annoying thing about some people on nairaland is that they feel they know it ALL and they are not ready to hear the opinion of any other person especially if it is coming from a woman....smh...

NOETHNICITY:
This is jus the beginning of soooo many good news to come! Wailer should be ready to die of stroke.

crazymommy:
As expected....about 3 days ago a guy on a thread said he wants to sell his 10000$ Which he said he bought at the rate of 302 but that he wants to wait till it gets to 400naira per dollar,I adviced him that he should better sell it at that moment when it was around 350 because anything can happen on Monday which is today because I believe that the market might possibly fall in between the official price and the last parallel market price and that should be around 250-290.guess what??the guy said I am deceiving myself...that he is very intelligent and he believes that the dollar price will even open higher on Monday which is today....I hope the overconfident ignorant fellow his reading this...the annoying thing about some people on nairaland is that they feel they know it ALL and they are not ready to hear the opinion of any other person especially if it is coming from a woman....smh...

yinka2011:
you are not well informed. this naira float is a devaluation of not only the Naira but also our lives, our homes, our investments and indeed the future of our children.


everything is not about wailers this wailers that.


try and understand what just happened. Naira will breach 400 eventually due to market forces. yet people like you will say naira is not devalued.


so from 197 to 253 >>if thats not a devaluation then what is it?

smh

Nsonaso:

Abeg who has bought at that rate?

uncleu:
I think the problem is that a lot of people are so ignorant of how these things work. The amount quoted are not fake. Look at how it works. The banks are bidding on behalf of customers who have already fulfilled certain requirements. This include filling proforma involve and all the rest. The need for the foreign currency must also be for items included in the foreign exchange regimen. Since you haven't gone through that process, the banks are giving you black market rates.
My problem is with the disparity between this rate and the black market rate. We know our immediate problem started with the exclusion of those 14 items from the foreign exchange regimen. They still haven't been included. They still will put undue pressure on the black narket.

Iko5000:
Nigerians always celebrating mediocre stuff.

deflover:


demand won't change but price would
factor in the capital flight of airlines and all foreign companies who want to buy dollar so as to get it out
factor in fear and greed
and trust me when they say market forces it doesn't imply local market forces alone but the whole chest of the FX market put at a value of $5trillion compared to our reserves of $29billion. ...how long can the CBN hold this supply.

crazymommy:
You guys do not understand the banking sector...let me analyze it for you in a way a common man on the street will understand....Iya Bisi bids on 5bags of beans at 12000 Naira per bag,the beans seller which is Iya Basira is the seller of the beans and she and Iya Bisi agreed on that price...Iya Bisi is to collect her 5bags of beans on Monday...now on Monday the general price of a bag of beans is now 11000 Naira,so you expect Iya basira to collect 11000naira per bag after she and Iya basira already agreed on 12000 per bag during the order?agreement is agreement.......so you people were expecting banks in nigeria to just immediately adjust the rate when market has not even close??you people must be joking...

erico2k2:

Bro no point in castigating the guy forex is mkt trending on risk factors and variables.if his permutations where right he gains if wrong then what happens today is the result.people have lost $billions in forex.

Ogetogeo:
Just spoke with my account officer now. She said, I would need to apply to the bank stating the quantity of dollar I want to buy and at what rate am willing to buy, the bank would then call me if my proposed rate meets their rate. That they won't tell me what their rate is, I just quote what am willing to buy.

When i probed futtyershe said today rate at their bank is 319 for $.

What kind of Yeye policy is this? So I would need to keep writing letter like am writing a contract proposal for something I need to pay my cash to buy?

I don't get this kind stree

crazymommy:
You guys do not understand the banking sector...let me analyze it for you in a way a common man on the street will understand....Iya Bisi bids on 5bags of beans at 12000 Naira per bag,the beans seller which is Iya Basira is the seller of the beans and she and Iya Bisi agreed on that price...Iya Bisi is to collect her 5bags of beans on Monday...now on Monday the general price of a bag of beans is now 11000 Naira,so you expect Iya basira to collect 11000naira per bag after she and Iya basira already agreed on 12000 per bag during the order?agreement is agreement.......so you people were expecting banks in nigeria to just immediately adjust the rate when market has not even close??you people must be joking...

crazymommy:
You guys do not understand the banking sector...let me analyze it for you in a way a common man on the street will understand....Iya Bisi bids on 5bags of beans at 12000 Naira per bag,the beans seller which is Iya Basira is the seller of the beans and she and Iya Bisi agreed on that price...Iya Bisi is to collect her 5bags of beans on Monday...now on Monday the general price of a bag of beans is now 11000 Naira,so you expect Iya basira to collect 11000naira per bag after she and Iya basira already agreed on 12000 per bag during the order?agreement is agreement.......so you people were expecting banks in nigeria to just immediately adjust the rate when market has not even close??you people must be joking...