ElsonMorali:


Lol. My dear, I have a day job that pays OK. I don't need to kiss any politician's ass for any reason.

Besides I despise that class with a passion. They are all the same.

People who forget the past are doomed to make the same mistakes.

Our problems as a nation is rooted in our collective past and whatever we do now will just be tantamount to cutting the branches of the tree of corruption instead of uprooting it.

You can't serve justice to current corrupt politicians when people like Obasanjo, Babangida, Atiku, Igbinedion, Akala, Goodluck Jonathan, Dame Patience, Saraki, Stella Oduah and Tinubu amongst many many others are walking around majestically, forming elder statesmen.

Gather all of them, lock them up in a room and nuke that area.

I see you focused on only Jonathan's government? Besides, which court has labeled these individuals corrupt?

Why didn't you mention, Abacha, Babangida, and Co?

Pidgin2:


I see you focused on only Jonathan's government? Besides, which court has labeled these individuals corrupt?

Why didn't you mention, Abacha, Babangida, and Co?

I see that you actually didn't read what I wrote up there. Please, go back and read it.

Abacha? Are you for real? If there's a way we can drag his spirit to come and answer for his crimes, I'm game.

So the problem was not PDP guys hoarding dollars after all!

DLuciano:
what will come out after all the investigation? efcc is just barking, it can't bite

well, their work is to bark and possibly pull the cloth of the suspected thief with their teeth.
its d job of the judiciary to bite and d job of the senators to remove the gag on the judiciary's mouth by approving capital punishment.
so u see, d mess is bigger Dan dem.

From the intial move by the President of Nigeria, we have seen rapid devaluation of Naira. The policies the CBN put in place by the instructions of the President saw that there was vast decrease in availability of Dollar thus increasing the amount for Naira to Dollar exchange.

When V.P of Nigeria was the acting president, a new policy was set in play which saw a considerale increase in Naira value but was halted when the President took over power.

Of recent, we saw the exchange to be 1USD = 365 Naira, but this was fleeting as CBN pegged 360Naira to 1USD.

There was a very sharp drop of 10Naira within 6hours of trading time on Wednesday which as at this time Naira is traded for 380Naira To 1Dollar


In brief, the truth to be seen is that the CBN is comfortable when the exchange rate is high.
With this new peg by the CBN, I don't see the Dollar falling to Naira as it was before the peg was enacted.

CBN should allow the exchange rate free not constrained by several wrong policies that they are making since this President resumed office.

tweetsme:
foolishness at it peak. In even Recession, Nigeria still consumes products from other nations leaving their own behind. You guys are slave to the Dollar. The dollar controls your economy. You expect your currency to be stable when you are a consuming nation. Shame on You. Go and learn more on Economics not Religion....

Oga Professor, all countries consume products from other nations.....Let me school you a bit (because you are feeling proud like person wey sabi something).

Currency strength is dependent on balance of trade. Now our main export commodity has been crude oil and it provided 90% of our balance in trade and thus controlled the value of our currency. And it is from the foreign exchange earnings of this trade, that dollar required for importation of good is sourced.

Since our major export lost its value (that is started trading at a low cost), the options in getting more foreign exchange to balance our trade
-Increase crude output (unfortunately not possible because our output is dependent on Opec/stability in the niger delta region
-increase crude cost (not possible because cost is bench marked by OPEC and macro economics of demand and supply)
-Increase production of other foreign earners (that is a long term process which has kicked off)
-Reduce importation of foreign goods (A ban was placed, but smuggling increased. This will only finally work if the infrastructure for quality locally made goods is set in place. this is also a long term process, which has gradually kicked off)

However note that all this is still about, reducing pressure on currency demand and balance of trade.

CBN putting up dollar into the system is not something new, this is the way it has always worked....Foreign goods/services have always been purchased/paid for in dollars.....and that dollar is sourced internally from FDI, remittances and foreign exchange earnings. Crash in value of our currency was due to too much Naira chasing too few Dollars

CBN is only ensuring that its available for the various uses, by making it available, scarcity will be eliminated and the naira will take up its true value and they are only more apt to do that now, because crude oil prices have gone up and production has gone up......They need to stabilize the market to reduce the current inflation and attract investors back. Once this is done, they can then continue with the long term plans of further improving our balance of trade by encouraging local production and export of other goods...I would have had an issue if the dollar being pumped into the economy was borrowed from IMF or World bank

khalids:


Oga Professor, all countries consume products from other nations.....Let me school you a bit (because you are feeling proud like person wey sabi something).

Currency strength is dependent on balance of trade. Now our main export commodity has been crude oil and it provided 90% of our balance in trade and thus controlled the value of our currency. And it was from the profits of this trade the import ed good are purchased.

Since our major export lost its value (that is started trading at a low cost), the options in getting more foreign exchange to balance our trade
-Increase crude output (unfortunately not possible because our output is dependent on Opec/stability in the niger delta region
-increase crude cost (not possible because cost is bench marked by OPEC and macro economics of demand and supply)
-Increase production of other foreign earners (that is a long term process which has kicked off)
-Reduce importation of foreign goods (A ban was placed, but smuggling increased. This will only finally work if the infrastructure for quality locally made goods is set in place. this is also a long term process, which has gradually kicked off)

However not that all this is still about, reducing pressure on currency demand and balance of trade.

CBN putting up dollar into the system is not something new, this is the way it has always worked....Foreign goods/services have always been purchased/paid for in dollars.....

CBN is only ensuring that its available for the various uses, and they are only more apt to do that now, because crude oil prices have gone up and production has gone up......They need to stabilize the market to reduce the current inflation and attar ct investors back. Once this is done, they can then continue with the long term plans of further improving our balance of trade by encouraging local production and export of other goods...

we are still saying the same thing my friend. Naira issue is as result of Nigeria over dependent on crude oil as the main source of income.

tweetsme:
we are still saying the same thing my friend. Naira issue is as result of Nigeria over dependent on crude oil as the main source of income.

The issue is your saying that CBN intervention is wrong.
I don't agree with that. In everything you have to have short term plans and long term plans.
Yes we import a lot of foreign goods but that is because there are either no local alternatives or the cost of producing them here is too high or the quality is poor. To over come these issues, a lot of investment needs to go into infrastructure to support cheap, quality production of goods and services, and that is a long term plan.

However in the short term we cannot just pull the plug and say ban everything, inflation will hit the roof and the economy will just collapse...
So we need a gradually whining of our old habits and gradual infusing of made in Nigeria for Nigeria philosophy...

But then we need to tackle corruption/nepotism first, because these are the things that will not let our system work...the CBN is doing what they need to do to keep our economy running

dre11:







http://punchng.com/forex-manipulation-efcc-invites-more-senior-cbn-officials/

About time, these are the real thieves holding the nation to randsom

Teewhy2:
What is the update on the naira-yuan swap deal, assuming that is working demand for dollars will reduce as 30-40% of our products and raw materials come from China.

That was DEAD ON ARRIVAL.Only fools believed in it