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Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg - Business (2) - Nairaland

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Naira Exchanges At Record-low, N510 A Dollar / Naira Sinks To Record Low At N420 Against Dollar / Speculators Get Burnt As Naira Gains Value (2) (3) (4)

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Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by sirfemoz(m): 7:08am On Jun 22, 2016
All these grammar is to confuse us the more. My question is, how much is dollar now? Buying goods from EBay, how much will the exchange rate be? I have been hearing this grammar since the days of NOI.
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by biz9ja(m): 7:08am On Jun 22, 2016
NePro:

Nawaoo space booking in action


What is this one saying?
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by KingsleyTMTTM(m): 7:08am On Jun 22, 2016
when will bank start selling
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by jtjohn(m): 7:08am On Jun 22, 2016
sexxydiva:
Go back to school.
you should be the one to go back to school.......
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by prinsam30: 7:09am On Jun 22, 2016
my question be say..... When N1 will be equal to $1

simple

1 Like

Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by eph12(m): 7:11am On Jun 22, 2016
TheGoodJoe:


“It’s our estimate” that the bulk of the backlog of orders has been met, Okorafor said by phone from Abuja, the capital. “We’re very optimistic that liquidity in the FX market will improve. Whether we decide to intervene again depends on the dynamics.”

The currency of Africa’s biggest economy strengthened 0.4 percent to 281.5 per dollar by 6:33 p.m. in Lagos, the commercial capital, after declining as much as 1.4 percent earlier to a record 286.5. A currency peg of 197-199 had been in place since March 2015.

The bolded is the most important point.

Due to the floating of the currency, demand and Supply for Dollars determine the price. At the moment, Dollars is scarce and the demand is high. This caused the dollar price compared to the naira to go down. CBN intervened by making dollars available. CBN sold dollars and drove the price of the naira compared to the dollars down.

CBN believes with time, Dollars will be available and they will not have to sell dollars from our reserves to keep the price of the naira low.
CBN should also note that dollars will be available in abundance only and only if we find a way to attract dollars I mean by being an export country.

2 Likes

Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by TheGoodJoe(m): 7:12am On Jun 22, 2016
sirfemoz:
All these grammar is to confuse us the more. My question is, how much is dollar now? Buying goods from EBay, how much will the exchange rate be? I have been hearing this grammar since the days of NOI.


The Policy implementation kicked off on Monday. It will take time for Dollars to spread and drive Black Market prices down. For now, you still have to trade on high black market rates or wait for the price to stabilize at a low price.
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by Ritzy92(f): 7:14am On Jun 22, 2016
Watching as things unfold
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by TheGoodJoe(m): 7:14am On Jun 22, 2016
eph12:

CBN should also note that dollars will be available in abundance only and only if we find a way to attract dollars I mean by being an export country.


Definitely. Investors are also coming in. The Stock Market is going up. This is due to Foreign investment coming in. The Floating Policy means a more stable market for Foreign investors.

This will also bring in more dollars into the system.

2 Likes

Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by Xberryz(m): 7:16am On Jun 22, 2016
seyema:
You are a fool
a big one.
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by Nobody: 7:16am On Jun 22, 2016
NePro:

Nawaoo space booking in action

Go and check again, I don build on top. grin

2 Likes

Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by Xberryz(m): 7:18am On Jun 22, 2016
sexxydiva:
Go back to school.
you need to grow up...
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by TheGoodJoe(m): 7:18am On Jun 22, 2016
KingsleyTMTTM:
when will bank start selling

Very good point. That is not clarified. The Banks are also doing this to make money and there are demands from importers. These importers buy in large quantities and they will be first to get their hands on the dollars.

Especially, our beer people who spend a lot on importation.

It will take time. I do not know how long.

2 Likes

Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by InvertedHammer: 7:18am On Jun 22, 2016
It is an open season.DXY (US dollar index) has been trending down and that's why naira and most currencies appreciated against the dollar. Otherwise, the amount CBN used in intervention is inconsequential in the scheme of things. If the down trend in DXY continues, naira will appreciate as well. It has nothing to do with the magical wand of Emefiele or PMB. It is the market forces at play.
\

6 Likes

Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by vascey(m): 7:19am On Jun 22, 2016
In a free market, the value of our currency is dependent on our market and economic fundamentals- balance of trade, manufacturing, export, jobs etc. there is no policy or guideline that can sidestep these issues.

I think we maybe setting ourselves up with these futures. Futures of 3.4 billion USD was traded yesterday alone. Assuming these are 1 year futures maturing in July 2017 and we maintain this level of daily transaction for a month, it would mean futures of over 100 billion USD would be payable by the market in a year's time. Are we guaranteed that level of inflow? Perhaps the regulators should introduce a cap on these futures.

2 Likes

Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by sirfemoz(m): 7:21am On Jun 22, 2016
TheGoodJoe:



The Policy implementation kicked off on Monday. It will take time for Dollars to spread and drive Black Market prices down. For now, you still have to trade on high black market rates or wait for the price to stabilize at a low price.

Then, they should stop confusing us with grammar. Let us wait and testify when the price gets low. I'm not interested in the epistle of rise and fall of naira. I'm only interested on how much the dollar eventually sells.
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by olaasiwaju: 7:22am On Jun 22, 2016
May Allah continue to assists you all, that Change must come to Reality by Allah graces.
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by Chuksemi(m): 7:23am On Jun 22, 2016
I need to re visit my economics textbooks. Somehow, I am begining to think this isn't the best move. People who have dollars now would probably hoard it due to the fact that they bought the currency at an expensive rate and wouldn't want to sell yet.

Some would hoard, expecting the Naira to fall further before they sell. I think an official devaluation would help now.

Like someone pointed out, the CBN cannot keep intervening for months on end. We don't even have enough forex to do that for a year.

1 Like

Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by Consiglier: 7:23am On Jun 22, 2016
TheGoodJoe:



CBN believes with time , Dollars will be available and they will not have to sell dollars from our reserves to keep the price of the naira low[/color].

That time, will be long in coming.
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by mcgaius: 7:24am On Jun 22, 2016
If after all these drama 1USD is not = to #1,work done is equal to zero.

2 Likes

Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by TheGoodJoe(m): 7:25am On Jun 22, 2016
sirfemoz:


Then, they should stop confusing us with grammar. Let us wait and testify when the price gets low. I'm not interested in the epistle of rise and fall of naira. I'm only interested on how much the dollar eventually sells.


The news is not only for consumers but also investors and importers. It also helps in letting people know what to expect.

You might not need the news at this stage but people like Bankers and international business men require this news to make sound investments.
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by 4stylz: 7:26am On Jun 22, 2016
sexxydihva:
Go back to school.


Your foolish is certified
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by SirAweezy(m): 7:26am On Jun 22, 2016
utytill:
A government that lost control of her currency and price of petroleum products leaving them to market forces to determine is a failure.I see people hoarding dollars waiting for the confused CBN to finish with what they have,the hoarders will then determine the real value of naira.My question is when and where did CBN sees dollars to intervened because they told us that there was no dollar.

There was $26billion in the foreign reserve to play around with according to CBN
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by vascey(m): 7:28am On Jun 22, 2016
TheGoodJoe:



The Policy implementation kicked off on Monday. It will take time for Dollars to spread and drive Black Market prices down. For now, you still have to trade on high black market rates or wait for the price to stabilize at a low price.

My brother you don't have dollars anywhere waiting to spread o. We have to attract those dollars by making our country conducive for business and foreign investment.

I'm afraid the naira will keep depreciating because as was said in the article, the CBN's intervention is not sustainable.
Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by TheGoodJoe(m): 7:28am On Jun 22, 2016
Consiglier:


That time, will be long in coming.


It would not be too long because the Black Market dealers are watching the market. As Dollars get available at the banks, the Black Market dealers will lose money.

So the Black Market dealers will drop their price soon.

That is what the Policy is about. Supply and Demand. The Dollars is circulating and price will fall.

If any have dollars, it is best to sell. Even if the Price goes up when CBN stops intervening, it will not take long for the price to go down.

2 Likes

Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by Nobody: 7:30am On Jun 22, 2016
TheGoodJoe:


“It’s our estimate” that the bulk of the backlog of orders has been met, Okorafor said by phone from Abuja, the capital. “We’re very optimistic that liquidity in the FX market will improve. Whether we decide to intervene again depends on the dynamics.”

The currency of Africa’s biggest economy strengthened 0.4 percent to 281.5 per dollar by 6:33 p.m. in Lagos, the commercial capital, after declining as much as 1.4 percent earlier to a record 286.5. A currency peg of 197-199 had been in place since March 2015.

The bolded is the most important point.

Due to the floating of the currency, demand and Supply for Dollars determine the price. At the moment, Dollars is scarce and the demand is high. This caused the dollar price compared to the naira to go down. CBN intervened by making dollars available. CBN sold dollars and drove the price of the naira compared to the dollars down.

CBN believes with time, Dollars will be available and they will not have to sell dollars from our reserves to keep the price of the naira low.

Okk Bro if I understand you clearly, whatchu sayin now is that dollars will be available in the banks now with this latest development which means people can now get dollars in banks again? E.g people can now get dollars sent thru Western Union transactions in banks now instead of gettin it in naira like it's been for some time now?

1 Like

Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by TheGoodJoe(m): 7:30am On Jun 22, 2016
vascey:


My brother you don't have dollars anywhere waiting to spread o. We have to attract those dollars by making our country conducive for business and foreign investment.

I'm afraid the naira will keep depreciating because as was said in the article, the CBN's intervention is not sustainable.

The one we are waiting for is the one CBN is selling. Also, we expect more investors coming in too.

This is the first phase. With more investors coming in, Dollars will be more available.

2 Likes

Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by holyeye1989(m): 7:31am On Jun 22, 2016
MEHN DEM STILL DEY FOR COCK & BULL STORY

2 Likes

Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by TheGoodJoe(m): 7:33am On Jun 22, 2016
jideniceguy:


Okk Bro if I understand you clearly, whatchu sayin now is that dollars will be available in the banks now with this latest development which means people can now get dollars in banks again? E.g people can now get dollars sent thru Western Union transactions in banks now instead of gettin it in naira like it's been for some time now?


Exactly but it is not available now. The money is still circulating. If you buy now, you will get at the Black Market rates. When the dollars CBN is selling circulates, you will get the dollars at a cheaper rate like with your cards and bank transfers etc.

The Banks are buying to sell.

3 Likes

Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by Blessed2252: 7:33am On Jun 22, 2016
It is obvious that dollar scarcity is artificial just to generate money for the government to meet up with their budget deficit. They're injecting dollars, they will still be the ones to mop it up and peg it at 300 naira. Do you have any idea how much money has been made from the dollar scarcity?

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Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by legendsilver(m): 7:34am On Jun 22, 2016
Sai Baba

1 Like

Re: Nigerian Cenbank Sells $100m As Naira Pulls Back From Record Low - Bloomberg by Harwoyeez(m): 7:34am On Jun 22, 2016
NePro:
Abeg the economist here should come and explain this for us.. All this saying,,how much person fit buy dollar for mallam people hand ?? Or how much dem dey sell for airport..all this interbank cbn rate don tire me
interbank rate is the rate at which banks trade BTW each other which according to the report fell from 286 to 281. However,this is not the rate on the black market or mallams rate. Due to liquidity problem,CBN intervened by providing liquidity in the market which helps to bring d fx rate down to 281 because dollar inflow in the d country is scarce or low. In the long run when inflow increases due to investors coming back or export increasing or crude oil price increase and even remittances from Nigerians abroad, CBN may not need to intervene again because there won't be liquid problem of dollars again.

3 Likes

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