Stats: 3,186,927 members, 7,931,212 topics. Date: Sunday, 25 August 2024 at 07:08 PM |
Nairaland Forum / Nairaland / General / Business / FOREX : Dealers Unable To Pick $100m Offered By CBN (27207 Views)
Boeing Gives $100m To Help 737 Max Crash Families / Yuan Sale By CBN Excites Traders / Development Bank Of Nigeria Granted Operational Licence By CBN (2) (3) (4)
(1) (2) (3) (4) (5) (Reply) (Go Down)
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by Truth234(m): 10:46am On Mar 25, 2017 |
modath: It's hard to explain to people outside the industry how this work. I already stated that surge in US production is disrupting OPEC strategy. Hence, plunged in global oil prices and the reason they are meeting in Kuwait tomorrow. Let me ask you why did US producers stop production when oil plunged to its lowest last year? Listen there is limit to how low they can go, and they came on board because of Trump tax advantage and OPEC successful consensus. I spoke extensive on Trump policy and you said that was the only thing I picked. Listen Keystone project was blocked by Obama because of its impact on climate, Trump approved because he has repeatedly stated he doesn't believe in it. Again, I don't even know why this is now an issue when it still needs two different approvals (Nebraska Public Service Commission and local landowners) before they will even start the project that will take years. My question is how does that impact current economic approach? 1 Like 1 Share |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by aribisala0(m): 11:01am On Mar 25, 2017 |
I think some responses are a bit emotional and bombastic. For an economy the size of our putting $100 million into the market in one week is not what I would call "pumping". What is striking to me is the size of the impact that such a small move is having on the rate. Clearly there is a significant part of our economy that choose to hold their savings or idle capital in US $ for a range of reasons and that has a significant impact on the exchange rate. Exchange rates of themselves are not economic goals and mean little in abstraction. The fact remains that in the short to medium term our economy is very dependent on USD denominated imports and inputs and so the rising exchange rate,for us, would mean marked inflation which is a problem. However I think there are several classes on "savers" who store their wealth in USD. Let us broadly call them the Strategic and the FollowFollow. The fact that people are allowed to have domiciliary accounts has encouraged the FollowFollow to save their money in USD as a hedge against uncertainty. The problem for the FollowFollow is they are relatively new entrants meaning they are likelly to have bought @ over 400 and are more likely to sell in panic. The Strategic are those who entered a long time ago and bought @ under 200 so for them they will not be moved and may even continue to buy dollars. I think the CBN has no option but to sell dollars . THEY CANNOT SELL ZERO DOLLARS A WEEK AND MUST SELL SOMETHING. The question is how much they can sell and @ what rate. At what point then does it amount to "pumping" or defending the naira etc. We need to eschew alarmist and emotional rhetoric and face reality. The foreign reserves essentially are the property of every person holding a naira note which is just a promise of value by the CBN. If it becomes clear that the CBN does not have and will not have any dollars to sell for the forseeable future the naira would crash just like the Zimbabwe dollar. So I have no problem with putting $100 million into the market in a week.It is almost definitely inadequate. However the spin that this is some kind of naira defense strategy is dishonest. If there was a true run on the naira $100 million won't do a lot. Rougher times lie ahead though because oil price recovery which appears to be Buhari's strategy is not a strategy it is wishful thinking 3 Likes |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by musicwriter(m): 11:08am On Mar 25, 2017 |
donbenie: It's a pity when people resort to calling facts they don't understand conspiracy theory. A well researched documentary with dates, facts and figures you call conspiracy theory? OK, since you believe so much in these economic theories; let me ask you a question. What do you think would happen, if the US federal Reserve decides to tighten dollar supply globally? Would artificial scarcity be created in Nigeria or not? Would the exchange rate change for better or worse? |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by aribisala0(m): 11:12am On Mar 25, 2017 |
Truth234: |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by iaatmguy(m): 11:19am On Mar 25, 2017 |
Badgers14:some of your points are facts, but to say the US import most of their products is a very ignorant statement,, machineries equipments nko? The money can pumps out are taken by manufactures, students, patients seeking treatment, and taken abroad. |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by groovie(m): 11:23am On Mar 25, 2017 |
For me i think if we cut down on refined product imports then we cut down up to 40% of our import in dollars automatically. So one way out is for the government to support the refineries currently been built to speed up completion. Then we attend to importation of foods and this issue of dollar as a legal tender in the country. If the governmentcan face these 3 issues nobody will have to defend the naira. The naira will defend itself. But alas corruption no go gree government cover these issues And for those saying US imports ![]() |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by Badgers14: 11:24am On Mar 25, 2017 |
iaatmguy: Do you live in the U.S? Have you heard about companies sending jobs to Overseas, China, Mexico et al. Don't forget U.S does import Fuel/ gas. Most electronics , cars, sold in the U.S are built in Mexico.. And assembled in the U.S. Some are built outright over seas amd imported example some Samsung and LG electronics are built in South Korea.. Also Kia and Hyundai are mostly manufactured in SK |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by Badgers14: 12:45pm On Mar 25, 2017 |
chris81964: Check the tag on the banana or plantains at your local grocery store and tell which country it came from. This was the specific examples on my inital quote, LG and Samsung "mostly" are manufactured in SK. Those companies you listed, where does their parts come from? My argument was that U.S is very dependent on importation as well as Nigeria but if you live in the U.S like you claim, you can agree with me that it is very rare to see a company transacting business in any currency other than the USD. But anyways.. Na you get your mouth, you fit use am chop $hit |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by BlackMbakara1(m): 1:11pm On Mar 25, 2017 |
hobermener: All you just said is what they are doing, same time meeting up other demands. Tks for your input... 1 Like |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by donbenie(m): 3:44pm On Mar 25, 2017 |
musicwriter:Certainly I don't discountenance the fact that there are bodies out there working for their own selfish agendas, but we're talking specifics here which is the current World crude oil price slump.. As a Nigerian with a stake in the economy,I've read, listen or watched issues concerning Crude Oil Prices and its effects on our economy; We're a crude oil dependent economy,fact.. Crude oil prices has been crashing since a high of $114 in 2014 to a low of $28 in 2016,fact.. These crash has been as a result of glut in supply of crude oil occasioned by massive outputs in US Oilfields, fact.. OPEC initially tried to fight back by maintaining the glut due to a better economy of production,fact.. Having achieved THAT to an extent,they then institute a cut in Oil production to shore up the price,fact.. Our economy and the availability of dollars in the market over the last 3 years has mirrored the fortune of Crude Oil Price in the World.. Cold hard facts are incontrovertible and that's what am interested in,the dollar is a means of exchange and tightening it's supply has NEVER had any direct effect on the price of Crude and therefore no direct effect on our economy.. My question is,why do you think Oil Prices usually spike whenever a major producer is in crises/war.. |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by musicwriter(m): 4:27pm On Mar 25, 2017 |
donbenie: Yes, crude oil price may be a major factor, but it's not the only factor. Even though the world Bank and IMF are not a member of OPEC, but they run the world's economy and they can decide the value of crude oil simply by tweaking the availability of the dollar. The west do this all the time to be able to buy oil at cheap price. Most times they do this through a network- the capitalist network that control the world's economy. And, no, artificial dollar scarcity would be created, if and whenever dollar supply is short from the US federal Reserve. Remember, the dollar itself is also a commodity and as such obeys the economic law of supply and demand that you believe so much!!. As a matter fact, they do that all the time to rescue the US economy or destroy the economy of a target country. Even ordinary report by the IMF or world Bank would send investors away and have the economy of that target nation spiral downwards overnight. In fact, now that the Nigerian Naira is seeing some recovery, they'll soon release a damning report on the Nigerian economy in the coming weeks, and I bet you the Naira value would crash once again when that is done. See the capitalist network that control the world's economy http://www.africason.com/2015/05/the-capitalist-network-that-control.html |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by bakila: 5:19pm On Mar 25, 2017 |
hobermener:With which money will they keep stockpiling the dollars? I will check your post and see how fair you were before I comment on pessimism.$$$$$$$ Modified "I just pity Christians in the north that voted in this govt cos they're obviously the most stupid set of humans to ever walk the earth. Some blood thirsty youths murdered a woman in kano and walked round the city with her beheaded head in their hands, they were apprehended by the police and went scot free, even threatening to do worse if given another opportunity, yet audu is being arrested over and over again for posting incitive comments on Facebook, by a governor whose incitive comments are littered over cyberspace!! So much for northern hegemony!!" What you said above on the 13th March confirmed you are not a pessimist. You are a bigot who does not want anything good for Nigeria because a Muslim Northerner is the president. I will now begin to educate you, to purge your dislike for anything good for Nigeria at the moment. |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by aribisala0(m): 5:30pm On Mar 25, 2017 |
musicwriter: The IMF and World Bank DO NOT run the World Economy ,that is nonsense. The dollar is not a commodity it is a currency they are not in any way similar. The VALUE of crude oil has no connection to the availability of USD it is PRICED in USD and there is a fundamental difference. This is a reference only and factors in fluctuations in dollar value. Commodities after all have a relative value and impact on each other . The price of crude oil ultimately depends on production costs as well as supply/demand and not the USD. |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by Badgers14: 5:34pm On Mar 25, 2017 |
chris81964: Don't flaunt your single figure IQ in public in bid to sound intelligent.. If you are hungry go get a meatloaf from Chris Christie. |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by bakila: 5:37pm On Mar 25, 2017 |
hobermener:How much have you invested in Agricultural? The present government has invested so much in Agriculture that there is surplus of fertilizers for dry season farming of Rice. Poor Nigerians will not suffer from huge difference in price of rice between the surplus and normal lean period. The government is now making it easier for those who need dollars to go to the banks and buy, as well as those who buy through the culturally entrenched "b;ack market". We cannot have mass production of capital goods in one year, the dollar issue has made more producers to look inwards. Looking to produce locally means more jobs. The pains you mentioned is to create jobs and that is what the government is going. |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by musicwriter(m): 6:18pm On Mar 25, 2017 |
aribisala0: I was holding a good discussion with a more knowledged person on this topic and don't need your parochial input. If you don't know how the world bank and IMF control the world's economy, then it suffice to say you're still a suckling baby and should better concentrate on your free milk. I've provided documentaries and links to understand how they do that. The dollar in the hands of the supplier; like the CBN in Nigeria, is a commodity, in the hands of a bureau de change is a commodity also, and indeed their supply of dollar to the Nigerian economy fluctuates the rate of the Naira- showing clearly the laws of supply and demand working!. 1 Like |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by aribisala0(m): 6:33pm On Mar 25, 2017 |
musicwriter:There is a definition for "commodity" the dollar is not a commodity. Please stop talking rubbish |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by musicwriter(m): 6:50pm On Mar 25, 2017 |
aribisala0: Commodity = anything that could be bought and sold. Anything that could be traded. During slavery HUMAN BEINGS were also considered a commodity. When an Aboki man is selling dollar to you, the dollar itself becomes a commodity, as far as he's concerned. |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by hobermener: 6:57pm On Mar 25, 2017 |
![]() bakila: I just hope you're not one of the social media propagandists from the infamous bmc ![]() Going back to my archives to bring out a post where i condemned double standards in governance and administering justice by the present administration portrays me as no pessimist. Im just some one who says things the way they are, regardless of whose ox is gored!!! You talk about investment in agriculture, yet food prices are sky rocketing ![]() ![]() I repeat, producers who need forex do not get them, the select few who do are involved in criminal acts like round tripping, ultimately leading to a higher price of the dollar in the parallel market. This administration met the dollar at 216, but their reckless and poorly thought out policies lead to a precipitous increase in the value of the dollar within a very short period of time!! For the very first time we've had zero budgeting, where the impact is not being felt by any one, even some at the corridors of power, no accountability whatsoever, no details how revenue from the budget was expended, but continuous application for loans from the world bank, despite claims of billions being achieved from the proceeds of the anti corruption war. No serious government who wants diversification sinks taxpayers money prospecting for oil in an arable land, for whatever reason!!! There's a lot to be said, which is pretty obvious to all, but I'll say you advise you pay masters to fix the economy or at least return it to the state they met it before the elections. If critizing the present government means hating on the north, so be it!!! Our mouths will not be gagged, we'll speak out whenever we want to, Nigeria belongs to us all!!! Nuff said!!! 1 Like |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by iaatmguy(m): 9:34pm On Mar 25, 2017 |
Badgers14:The US produces 9 million barrels of SHALE OIL per day. Of recent the US is now a net exporter of oil, like I said you are correct on some point BUT what of chemicals, phones, agricultural products agro allied products, machineries, steel. Their import can never outweigh what they produce |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by Badgers14: 3:46am On Mar 26, 2017 |
iaatmguy: My brother my Sister. We are on the same page sort of. Recall, my argument was that U.S imports lots of things just like Nigeria does. I don't have any official report per se about Import Vs Export in the U.S. But the striking difference between the two countries is, You can never use any other currency as a legal tender in the U.S. even at international airport.. Dew outlets "might" accept "some" foreign currency at the airport. In comparison to Nigeria, some law firms charge their client in USD. Some schools etc accept only USD as a form of payment. Lots of govt officials and contractors are paid in USD. To me this is the big issue in Nigeria. Recall those businesses that uses dollar turns around and pay their employees, NEPA bill, buy fuel for Gen all in Naira. |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by iaatmguy(m): 10:59am On Mar 26, 2017 |
Badgers14:ok I get your point |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by Badgers14: 2:18pm On Mar 26, 2017 |
1 Like
|
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by jpphilips(m): 11:54am On Mar 28, 2017 |
wristbangle: Every contract that requires a foreign input is bifurcated into $$ and Naira components. |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by jpphilips(m): 12:08pm On Mar 28, 2017 |
musicwriter: What is the connection between the world bank, Imf and crude price? 1 Like |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by jpphilips(m): 1:57pm On Mar 28, 2017 |
Badgers14: The USD is a local currency for the USA and fortunately for them it is a global currency, America does not balance her trade with currency variations but trade volume, in other words, once a Nigerian buys a made in China toothpick, the CBN will worry next about balance of trade, in the US, when Americans buy made in China toothpick, they worry about loss of jobs accrued to the manufacturing process. America wants more containers of finished goods shipped out of the US more than the containers of finished goods that arrive from China not because it affects their currency but because they want to maintain a production capacity that guarantees Government revenue through taxes and employment. Nigeria isn't quintessential to the US in terms of forex dispositions. damn! you guys 2 Likes |
Re: FOREX : Dealers Unable To Pick $100m Offered By CBN by musicwriter(m): 2:15pm On Mar 28, 2017 |
jpphilips: The world is being ran by the capitalist network that control the world's economy, and at the top of the chain is the world Bank and the IMF. Every other organization, including OPEC, even the UN is in their pocket. See the capitalist network that control the world's economy http://www.africason.com/2015/05/the-capitalist-network-that-control.html |
₦69.4 Billion Debt: AMCON Takes Over Jimoh Ibrahim’s Assets / CBN Reiterates Stance On FX Access, ‘status Quo Remains On 43 Non-eligible items / Goodie Minabo Ibru Wanted By EFCC (Photo)
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 135 |