This lady attended the best schools in the world

It does not make sense that 500 or 1000 African Currency could be one US dollar or British pound. Yet our African educated economists trained by London School of Economist, Oxford and Harvard justify it.

From 4.10


https://www.youtube.com/watch?v=AfnruW7yERA

This is one of our biggest problem in Africa. I don't understand why this doesn't get the necessary attention and debate it deserves. This is a fundamental problem responsible for Africa's economic woes; the reason why poverty levels continue to increase. Every time an economy devalue its currency: we have massive job losses, poor economic growth, closure of manufacturing facilities and other regressive economic issues. Currency issues is a big problem in Africa. As Africans, the time is now to combat this menace with necessary awareness, debate, strategy and policy formulation.

On Economic relationship with the West. Here is President of Ghana at Harvard.

Relationship between raw materials and finished products that has been getting worse for 50 years.

From 15:05


https://www.youtube.com/watch?v=httBKRFpXsY

Who cares about country?

This is about Africa. Did you say that to Nkrumah when he was fighting for Africa?

nototribalist:


We don't know him, take your bulshit to Ghanaland.com

There are worser valued currencies in Asia. Yet, those countries are better than most in Africa. Keep blaming others for your ineptitude.

So, Africa should take it and enjoy the rape. They are not alone.

You do not understand that poverty breeds crabs pulling one another down the barrel.

Adelaide2:
There are worser valued currencies in Asia. Yet, those countries are better than most in Africa. Keep blaming others for your ineptitude.

Here is India crying:


https://www.youtube.com/watch?v=_S955fkSZd8&list=PLosaC3gb0kGDhmBVm6M47jcU8BbEhTnlP&index=7&t=0s

googi:
Who cares about country?

This is about Africa. Did you say that to Nkrumah when he was fighting for Africa?

fight for who? We had people who fought for Africa too. Awolowo, Azikiwe and co.

As I said take your bulshit somewhere else we don't need you hateful people here

googi:
This lady attended the best schools in the world

It does not make sense that 500 or 1000 African Currency could be one US dollar or British pound. Yet our African educated economists trained by London School of Economist, Oxford and Harvard justify it.

From 4.10


https://www.youtube.com/watch?v=AfnruW7yERA

Meanwhile, APCheat continues to devalue the Naira in the spirit of dullardism.

Mr. Notorious Tribalist,

Your problem is deeper than this. The anger is somewhere else. Meet me there.

Here is a place for the well informed and patriotic Africans that are well educated. By well educated, I do not mean those that school went through and crammed their masters notes and voices. Only to regurgitate it as classical economics to Africa.

See you at the right place.

nototribalist:
fight for who? We had people who fought for Africa too. Awolowo, Azikiwe and co.

As I said take your bulshit somewhere else we don't need you hateful people here

Now next! Immho.

This not about APC or PDP or Buhari. We had Jonathan PhD, better qualified than Ghana head of states. Yet he did not pass through school, school pass through him.

We thought he was God sent but even if he was, people like you led him astray. The island he bought in Europe or America where he was going to relocate you all did not materialize: all the money you all stole vanished. The only problem is that he left poor Niger Deltans that played by the rules hoping and hanging in the air. While the thugs became billionaires employing a few of those that played by the rules and studied hard as told.

So you gave us Buhari, anybody but Jonathan. Not again. Even if Jonathan got another opportunity, believe me, he would not touch you with Ruga.

immhotep:

Meanwhile, APCheat continues to devalue the Naira in the spirit of dullardism.

googi:
Mr. Notorious Tribalist,


This not about APC or PDP or Buhari. We had Jonathan PhD, better qualified than Ghana head of states. Yet he did not pass through school, school pass through him.

Guy abeg call a spade a spade.

APCheat is a colossal disaster:
1. Economy - 0%.
2. Corruption - 900%
3. Security - 0%
4. Education - 0%
5. Border Control -0%
6. Health - 0%
7. Infrastructure - 0%


cc sarrki gaskiyamagana yarimo deomelo olawalesmarter0 juliusmalema madridguy gandollar lzaa metaphysical afamed mayorofloagos amatarasha

Nothing was rigged to keep Africa poor !!! Africa is poor because the mindset of it's people is very poor . Was it the west that rigged your mind to also vote in a destructive character like Buhari. Y'all need to stop pretending that you hate the way Africa is because you don't , if you did we won't have a single person going to vote a failed character like Buhari

Here we go again.

This was supposed to be a brain storming thread for well informed folks to contribute. They have managed to turn it to another Buhari topic.

This much I will say. Your fake statistics are not new. You have many on your contributions, wealth, population inside and outside your rat holes. Yet, you have never achieved anything in your history as a people. In case I miss one, please let me know. Promises of El Dorado will not cut it.

As for blame, ineptitude and failures, there is no difference between you and Buhari where your focus is. I do not give a heck about him. AtikuHausa, OkoroHausa or Buhari, not different as far as I care.

My disappointment is Jonathan. Our first highly educated politician that came from an area denied and deprived not only at home but by international corporations.

It was the best opportunity Deltans (no, Nigerians) had in a lifetime. By magomago or abrakata, he was dispossessed. In my neck of the hood, we call him AKOTILETA. Let someone translate. I nor know book.

He went further, he turned Dansuki into father Xmas. De tin wey pain me pass be say, the foolish Santa nor knock my door.

But seriously, when did we turn on one another? You cannot trust anyone from messager to oga patapata with any allocated fund anymore. Salary was sacred, they will not even deliver money to orphans. Nobody dared steal in his local area. Now funds are diverted.

There is this Igbo saying that if you put sugar in baby's mouth, he won't spit it out. We were reduced to hustlers in a barrel trying to get out. Oyinbo see us struggling and gave us a helping hand.

But before, oyinbo help us, we have to be "civilized" to become good Christians and Muslims. So oyinbo give babies sugar water. Babies love it. He gave us mirrors, babies love it and exchange it with gold, diamond, oil or uranium.

Oyinbo give you pretty printed papers as currency with rigid stipulations that you can only buy from him, babies love it.

He recruited some of us to Oxford and Harvard to justify Structural Adjustment, mumu love it. He gave you Devaluations, your educated fools justify it.

Now, some of you are catching up to their chicanery but the educated fools are still enjoying their forex and want more because in twenty years, oyinbo will be proven right.

Mumu, they have been saying that for sixty years, you are still in their market buying vanities. Instead of you to see reason, you cut yourselves into pieces and play the blame game.

BTW, Developers are Developers. RAGU and You are both developers.

But Africans, they see you as one and the same, wake up!

immhotep:

Guy abeg call a spade a spade.

APCheat is a colossal disaster:
1. Economy - 0%.
2. Corruption - 900%
3. Security - 0%
4. Education - 0%
5. Border Control -0%
6. Health - 0%
7. Infrastructure - 0%


cc sarrki gaskiyamagana yarimo deomelo olawalesmarter0 juliusmalema madridguy gandollar lzaa metaphysical afamed mayorofloagos amatarasha

googi:
So, Africa should take it and enjoy the rape. They are not alone.

You do not understand that poverty breeds crabs pulling one another down the barrel.



Here is India crying:


https://www.youtube.com/watch?v=_S955fkSZd8&list=PLosaC3gb0kGDhmBVm6M47jcU8BbEhTnlP&index=7&t=0s

Japanese Yen is 107 vs USD. Yet, Japan is as good as the US in overall development. It's not about the exchange rate.

googi:
So, Africa should take it and enjoy the rape. They are not alone.

You do not understand that poverty breeds crabs pulling one another down the barrel.



Here is India crying:


https://www.youtube.com/watch?v=_S955fkSZd8&list=PLosaC3gb0kGDhmBVm6M47jcU8BbEhTnlP&index=7&t=0s

Indian Ruppe is 69 vs 1 USD. Japanese Yen is 107 vs 1 USD. Yet, Japan is as good as the US in overall development, while India is still struggling. It's not ALWAYS about the exchange rate.

Iranian Rial 42105 v USD 1. Iran is better than most African countries with stronger currency.

courage89:
This is one of our biggest problem in Africa. I don't understand why this doesn't get the necessary attention and debate it deserves. This is a fundamental problem responsible for Africa's economic woes; the reason why poverty levels continue to increase. Every time an economy devalue its currency: we have massive job losses, poor economic growth, closure of manufacturing facilities and other regressive economic issues. Currency issues is a big problem in Africa. As Africans, the time is now to combat this menace with necessary awareness, debate, strategy and policy formulation.

what are you producing and exporting apart from crude oil God put inside the ground for us,you don't 've light ,you don't 've good roads, you don't 've refinery, you don't 've water transport system ,you don't 've security, you don't 've good public school,you don't 've mechanized farming, you don't 've national carrier ,you don't produce car or engines you don't even 've clean naira or coins for business transactions,still you want your dirty naira to be the same with dollar or Euro

Adelaide2:


Japanese Yen is 107 vs USD. Yet, Japan is as good as the US in overall development. It's not about the exchange rate.

They have solid infrastructure development. Enough power generation and transmission for manufacturing industries to thrive at a very cheap rate in comparison with Nigerian system. The cost of fund is less than 5% in comparison to 28% in Nigeria. All their roads are high standard road where they can transport goods effectively, efficiently and cheaply. What do we have in Nigeria?

Every time Nigeria devalues its currency, it just compounds its economic woes. The cost of manufacturing and selling products skyrockets, because the infrastructure for development remains the same and more expensive. Also, people's paychecks remain the same, hence reasons for continuous high inflation. By keeping high naira value, imported raw materials will be cheaper, hence reduced price of selling goods.

Comparing Asian economies with African economies on the basis of cheap currency is wrong.

Our poverty and low values of our currencies is directly attributable to the way we run our economies. during Obasanjo's presidency, the naira appreciated from 144 to about 125 to the dollar, and in the early years of Yaradua's presidency, the naira further appreciated to 116 before the global recession hit nigeria, so the naira fell to about 130 to the dollar.

What changed you may ask? The increase in minimum wage from 7,500 to 19,500 by the Goodluck Jonathan administration.

Wait a minute, let me explain. Any increase in monetary supply is always inflationary and is especially bad when not combined with a increase in productivity or a reduction in the cost of production. Improved efficiency equals reduced cost which leads to decreased prices due to competition. This is deflationary in nature so it discourages investment. An increase in money supply in the economy will force people to still produce even though things are getting cheaper. e.g. the 2009 U.S. recession which led to quantitative easing (printing dollars) was accompanied by the social media revolution and the gig economy (UBER, AIRBNB, FIVERR, ETC). you may ask what role the government played in establishing these businesses. quality public education.

if the increase in minimum wage was combined with CHEAPER more reliable electricity for instance, the naira wouldn't have fallen.

if the government had increased taxes on the rich on imported items such as cars and building materials to pay for the increased minimum wage thereby not necessarily increasing the money supply, so the naira would not have fallen.

if taxes on imported goods was used for public education and healthcare, the currency will actually appreciate as more middle income workers would be employed.

to compound our woes, this present government seems to dislike knowledge and prefers to look to God for solutions to humanly solvable problems.

1. SELL NNPC and other non-money generating, money generating agencies.

2. REDUCE all non-essential government MDA'S.

3. INCREASE TAXATION on IMPORTED goods (not Tariffs. yearly taxes on properties with much higher rates on houses built with foreign materials) .

4. INVEST heavily in PUBLIC BASIC EDUCATION.

5. Gradually phase out FUEL SUBSIDIES and all other subsidies be it dollars for pilgrims or agricultural subsidies.

these simple policies would lead a stronger naira, a more egalitarian society and a richer nation in general.

That's the outcomes when you allowed a stranger to dictate on how to rule your house

China has a very devalued currency yet their economy is growing in leaps and bounds.

Don't blame the African leaders that siphon billions of dollars into Swiss bank accounts every year. Stop coming up with excuses that do not exist

This is my intention for this topic. Intellectual discussions before it was hijacked.

Reasonable people have stepped forward and we may now continue the discussion. People bring in their perspectives and we may even agree to disagree. This is what intellectuals do.

Cheap currency has its economic value despite my indignation for it in Africa. China has used it so effectively, competitors were crying.

This is because China has cheap labor, heavy government manipulation and market control. China cannot be intimidated by Nuclear robbers. None of these is present in African countries.

Yes, Nyerere tried in Tanzania, Lumumba tried it in Congo and even Nkrumah tried cocoa embargo worldwide. This was before successful Arabs oil embargo. Each of these failed. If you think each of these were economic failures, I have a piece of real estate to sell you at Ajaokuta Steel.

We have to be careful with just talking about exchange in numerical terms. Some countries cut zeros from their currencies. Another way of saying the same thing is Kobo to Dollar is not the same as naira to Dollar.

We have good ideas here. Tax on luxury goods and services, increase in minimum wage offset by cut in ourageous salaries in a poor economy as ours to discourage inflammation.

Nevertheless, no country in the world allow open market especially to foreign goods and services. Yet this was a major concession by African countries when those countries that forced us into it protected their own markets.

Take Enron for example. Developing countries got suspicious well before the collapse. President Clinton threatened each country from Asia to Africa of impeding American multi corporations.

France demanded it's African colonies even after Independence to have reserve in it's bank to back French economy and to invest as they wish. Gold was in world reserve bank in England. During the World War and German division, some of the gold were moved to USA.

This was the logic and gold was the standard for any solid currency. But Ghana was the Gold Coast. As much as I understand how difficult it is to reverse all these, Africans must not play dead and roll over anymore. We are already poor, hungry and dying anyway.

We know what is going on. It is not all about economic logic but highly political racist policies backed by Nuclear robbers. We will bombed the hell out of you.

Wait for another 20 years! Hell no.

courage89:


They have solid infrastructure development. Enough power generation and transmission for manufacturing industries to thrive at a very cheap rate in comparison with Nigerian system. The cost of fund is less than 5% in comparison to 28% in Nigeria. All their roads are high standard road where they can transport goods effectively, efficiently and cheaply. What do we have in Nigeria?

Every time Nigeria devalues its currency, it just compounds its economic woes. The cost of manufacturing and selling products skyrockets, because the infrastructure for development remains the same and more expensive. Also, people's paychecks remain the same, hence reasons for continuous high inflation. By keeping high naira value, imported raw materials will be cheaper, hence reduced price of selling goods.

Comparing Asian economies with African economies on the basis of cheap currency is wrong.

Nigeria doesn't devalue its currency
Demand and puppy does
You produce nothing yet consume every
What do you expect will happen

Miko,

Supply and demand is the law of classical economics. We learned that from secondary school days.

But I agree with Courage point if you read it carefully. He may even agree with you about supply and demand.

We forget one thing though. That law does not work in Nigeria. You see, we are not only poor desperate to climb up the barrel, we are also greedy. We have more GREED problems in Nigeria than ethnic problems.

Nigeria is a country where when goods become popular and demand is high, it becomes more expensive. Normally you would expect the factory to produce more, hire more workers, work two or three shifts. The more people buy, the price goes down, the cheaper.

In my dear country, price goes up. Distributors hoard goods until people pay the price they want. If you remember when Dangote and Ibeto promised to flood the market with cement. One of the distributors in Akure, I think, decided to sell his cement for N1500.00.

Other distributors were ready to lynch him. He closed his shop and ran. We thought bread would become cheaper when cassava content was implemented. Come to think of it, bakers were using cassava anyway before the implementation. As soon as paper implementation took effect, people refused to eat the cassava bread they were eating for a long time. It created bread shortage and bread prices has yet to come down.

So devaluation is not a matter of supply and demand alone though you are right that we consume and produce nothing.

Please if I may digress a little, with the indulgence of the readers. We were exporting less when our pound and naira was strong but we had restrictions on importation. Even after the war, we kept most of the restrictions.

Gowon even boasted that money was not our problem but how to spend it. We lost our heads, all this time we had one to one pound or one naira to one and a half US dollar.

We then went into argument or discussion on "liberalized" market. The poor man wanted to import everything including used clothes, food and other goods and services. This was supposed to increase our market share in the world.

Manufacturers hailed liberalized market because they want to produce, employ more workers and factory equipment. They even threatened to lay off workers and they did to drive their points. All they wanted wanted was to stash forex abroad.

Makers of sugar and water threatened. Bear and cocoa makers threatened. Cement importers threatened. To make good on their threats, they laid off workers. Bear in mind that all these factories depend on local materials of water, sugar, cocoa, coconuts and very little imports.

Our currency value has been going down since then i.e after liberalized market.

Who won? Forex billionaires!

MIKOLOWISKA:
Nigeria doesn't devalue its currency
Demand and puppy does
You produce nothing yet consume every
What do you expect will happen

immhotep:

Guy abeg call a spade a spade.

APCheat is a colossal disaster:
1. Economy - 0%.
2. Corruption - 900%
3. Security - 0%
4. Education - 0%
5. Border Control -0%
6. Health - 0%
7. Infrastructure - 0%


cc sarrki gaskiyamagana yarimo deomelo olawalesmarter0 juliusmalema madridguy gandollar lzaa metaphysical afamed mayorofloagos amatarasha

That is what your fathers in PDP , the political plagues give us for 16yrs. Its a pity that that bunch of fools like you will still be condemning rescue mission of present administration.

gaskiyamagana:

That is what your fathers in PDP , the political plagues give us for 16yrs. Its a pity that that bunch of fools like you will still be condemning rescue mission of present administration.

Receive sense.

courage89:
This is one of our biggest problem in Africa. I don't understand why this doesn't get the necessary attention and debate it deserves. This is a fundamental problem responsible for Africa's economic woes; the reason why poverty levels continue to increase. Every time an economy devalue its currency: we have massive job losses, poor economic growth, closure of manufacturing facilities and other regressive economic issues. Currency issues is a big problem in Africa. As Africans, the time is now to combat this menace with necessary awareness, debate, strategy and policy formulation.

This is a big lie....China and Japan currently keep their currencies low because it enables export. The reason why Africa is poor is because we are not productive.
Take a look at Nigeria, we export crude to import the refined products...how would you make progress like that?

With all respect sir, Africans are the most productive people on earth, no matter where we are. You should wonder how we still survived.

Starting from Nigeria, most of the poor people work from dusk to dawn making meager profit. You can even say that is what you mean. The rich and the fortunate ones go outside Nigeria to open factories in the middle of the jungle with zero enabling environment and still make a profit but not as much as the do in Nigeria, the profit capital of the world.

The same is true in the so called green pastures. Africans become productive by tulasi working against all odds without tapping into the enabling environment they complained about at home.

I still remember the day I carried phone books in the middle of a major street because I lied that I had a car. I had to get a friend to drop the phones books at different blocks so that I could deliver them from one office to another. African must wack nah, plus the fact that I had school fees to pay in September, a couple of months away. We all laugh and tell stories now but in those days, it was do or die!

Would I do that in Nigeria? For wia?

Greed makes us import refine and finished products like oil and export crude. Since that is where demand is.

Japan gained entry into world market after bombing the heck out of them to rehabilitate them. Chinese gain entry to spite Russia. No single African country is a member of the world trade. Check it out.

AZeD1:

This is a big lie....China and Japan currently keep their currencies low because it enables export. The reason why Africa is poor is because we are not productive.
Take a look at Nigeria, we export crude to import the refined products...how would you make progress like that?

googi:
With all respect sir, Africans are the most productive people on earth, no matter where we are. You should wonder how we still survived.

Starting from Nigeria, most of the poor people work from dusk to dawn making meager profit. You can even say that is what you mean. The rich and the fortunate ones go outside Nigeria to open factories in the middle of the jungle with zero enabling environment and still make a profit but not as much as the do in Nigeria, the profit capital of the world.

The same is true in the so called green pastures. Africans become productive by tulasi working against all odds without tapping into the enabling environment they complained about at home.

I still remember the day I carried phone books in the middle of a major street because I lied that I had a car. I had to get a friend to drop the phones books at different blocks so that I could deliver them from one office to another. African must wack nah, plus the fact that I had school fees to pay in September, a couple of months away. We all laugh and tell stories now but in those days, it was do or die!

Would I do that in Nigeria? For wia?

Greed makes us import refine and finished products like oil and export crude. Since that is where demand is.

Japan gained entry into world market after bombing the heck out of them to rehabilitate them. Chinese gain entry to spite Russia. No single African country is a member of the world trade. Check it out.

You can be hard working and still not be productive.

AZeD1:

You can be hard working and still not be productive.

I knew you were going to say that. Check my reply again

poor people work from dusk to dawn making meager profit. You can even say that is what you mean

Some people even say Nigerians work harder on unproductive endeavors like crime and how to beat the system. If they apply the same energy on legitimate pursuits, they could make more money. So productive depend on the evaluation of your boss. You may consider yourself productive but your boss might think otherwise.

AMINU GWADABE: No Country will Allow Its Currency to be Determined by Demand and Supply

In the wake of Nigeria’s ailing economy, the calls for currency devaluation, allegations against the bureau de change segment of the foreign exchange market for fanning the ember of volatility in the market, President, Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, speaks with Adedayo Adejobi on misconceptions, contributions of BDCs to Nigeria’s economic growth
Prior to 2019 elections, you set a N250/$1 exchange rate agenda for President Muhammadu Buhari. Five months down the line, nothing has changed. Was this a bid to score political points?
The target setting is achievable and this was in form of a suggestion. We have achieved stability in the last 27 months, and based on that, we felt the need to see the naira appreciate instead of instability. We want to see the naira appreciate when the factors are favourable. Liquidity is there. Just recently we have been seeing lots of opportunities. The tension in the gulf, war between America and China, the instrument of the European Union in trying to circumvent the American banking system because of the policies and sanctions the American government are coming up with- all these will improve our buffers. The next thing to do is to move from stability to currency appreciation.

There are industries to be developed. We’ve been too dependent on oil. The raw materials, machineries and equipments are still imported. We believe that if there is a shift in exchange rate, the economy would be buoyant; a lot of things would become much easier.
Another area we believe could be harnessed is giving our services in the area of Diaspora remittances. We have over $40 billion coming into Nigeria, four times the size of oil receipts, which is not more than $11billion annually. But what we receive officially is not up to 10per cent. We only account for $4billion instead of $40bn and out of this $40billion that comes into the country annually, it’s only one million Nigerians in Diaspora that has been harnessed. And we have about 15-20 million Nigerians in Diaspora. In a way, there should be a policy to cater for Diasporans.

I heard the Diaspora commission is channelling a policy on Diaspora remittances. It’s a good development and we are already partnering with them, because we remain the most effective monitoring tool in terms of foreign exchange management of the Central Bank of Nigeria. Considering our membership with over 5,000 members and retail end business, we have helped the regulator and government ensure there is calmness. We have also ensured liquidity in the system.

In India, the Bureau De Change trades over $30billon annually. In Diaspora remittances. In Lebanon, the Bureau De Change operators are the wheel of that economy. Same with United Arab Emirates, the cash need of the banking system is provided by the Bureau De Change as a result of their involvement in Diaspora remittances. So, why can’t we do same in Nigeria? We’ve always concentrated our energy and demand on price, we haven’t looked at how to widen our supply. The Diaspora remittance is cheaper, stable and available. On our part as an association, we are on a vigorous automation of our members, whereby they will averagely meet the requirements of the transactions. It borders down on know- your –customers (KYC), appearance and automation of our internal operations. I believe private sector- driven entrepreneurs will help the government achieve it. The political will need to be there, whilst the bureau de change needs to be empowered. We have been pushing the demand for the Agency of International money transfer operators and we are still working to realise the dream. I can assure you that would be the destination.

Analysts have questioned the business model for the Bureau De Change. Is it okay for you? Why are you not collecting moneys from visitors, Western Union and tourists? Why is the Nigerian Bureau De Change model different?
We, as operators are tired because it’s a limited model. It’s not empowering us at all. But there must always be a beginning and each country has its peculiarity. The defence of each country’s currency is an act of the Central Bank and one of its major mandates is to defend the strength and value of the currency. We are thinking and proactive. If the BDC operators were given the mandate to trade over $40billion Diaspora remittance in the country, what would the rate of dollar, compared to the present regimented model.

What are the solutions?
Open the window for BDC agency to participate in Diaspora remittances. Give them the agency. The inflows are there. It’s stable, transparent and can be captured as official proceeds. It can grow other sectors, boost employment and healthcare, and contribute to the Gross Domestic Product of the country.

The regulator should support the automation of our association so that we can build capacity; enhance appearance, and global best practice. We are not like conventional banks, we operate round the clock. Our services are unique and we are not competing. We are only complementing our services with the banking industry. There is the need to continue stakeholder engagement. The Central Bank of Nigeria interacts with us and they have advised us to build capacity. And we are building capacity to best international standards.
Now, majority of our members render their reports from the comfort of their offices using could technology. We are transforming our internal protocol and process electronically. Automation is what we are doing to enhance capacity, appearance and global best practice.
The dollar- naira exchange rate used to be 1-1. For me, it is a shame. I’ve been going to Saudi Arabia since 1991, Dhiram and Dollar has been between 3.5 and 3.5. till date, it hasn’t changed, well over 30 years. Sometimes it’s not the rate that matters, its stability. We are blessed in Nigeria. A lot of windows of opportunity, We are however working with the Central Bank of Nigeria and the Diaspora commission to see how we can achieve this quantum leap. We all have to work to see that we are there, and we are preparing our members for doors and the challenges ahead.

Analysts have accused BDCs as part of those causing volatility of the foreign exchange. What’s your take on this ?
It’s unfortunate, anytime there is a crisis, we become the easy target and people say we are the cause. There is a misconception. It’s a misnomer. It’s not true, it’s not correct. There are different foreign exchange operators in the system. The unparalleled, unregistered markets are part of it. Sometimes, journalists don’t seem to get the difference between the licensed and unlicensed operators. It gives us concern. We need to make this distinctions always so that we can appreciate the role registered operators are playing in this economy. We remain the most potent exchange rate management tool of the Central Bank of Nigeria.

In the 80s, there was structural adjustment programme, import licensing and Dutch auction system. Because of the role the Bureau De Change has played, we have started hearing of windows of supplies opening- Financial Markets Dealers Quotations (FMDQ). We proposed the basis of Financial Markets Dealers Quotations, and today it’s one of the biggest windows that the Central Bank of Nigeria is using to neutralise any volatility in the market. If we had been identified as people that are giving support, I think this notion of saying we are the cause of volatility would not be there. I’m happy regulators and security agencies are beginning to see us as a contributory party.

How have you contributed to the growth of Nigeria’s economy?
We have contributed in the areas on rate conversions. The difference we usually had with inter-bank and the parallel market is no more there. Volatility has been removed completely. We’ve also contributed to stability and liquidity. People now don’t buy and keep dollars again because of fear that the rate would crash or go up. And so, we have given comfort to parents who pay school fees abroad, to manufacturers who need to plan their stocks, whilst we’ve also contributed to the employment chain with over 5,000 registered members. Each bureau de change has a minimum of four directors and three staff. The multiplier effect of that number of the economy can’t be over-emphasised. We are also formalising the informal sector in terms of statistics. The central bank can now follow their dollars unlike before when they didn’t have track records. We render returns of what people buy to the Central Bank of Nigeria. We are proud of our contributions and we’ll continue to do more.
What’s BDCs’ relationship with banks?

The banks are our partners. We cannot do transactions without a clearing house and the banks are our clearing houses. They are our warehouse and custodian. We are not competitors, we are only complementing. We give a turnover of over $300million monthly to the banks in terms of commissions and charges through our transactions.
What we are saying is limit the banks to wholesale foreign exchange transactions and give the bureau de change retail transactions. That is what is done in other climes. The banks should not be engaged in selling $500-$1,000 to travellers. It should be within the purview of Bureau de Change operators. Some analysts have advised on the devaluation of the naira, saying, the process of devaluation would discourage import and boost economic growth.

Do you agree with this recommendation?

There are stages. You cannot control what you don’t own. The currency of import is the dollar which we don’t have. We need to earn more dollars to continue our import. Till date, our industries are in comatose stage, not functioning. We don’t have electricity. We are just improving our food production, and these are primary products. They are not even processed because there is no value chain. We are an import-dependent economy. China can easily devalue its currency, because 95 per cent of what they produce is going to be exported, same with Malaysia which produces animal feeds. Till date we are talking of integration, draft and framework. A case in point is the African Continental free trade agreement (AfCFTA), we are talking of draft of an effective integration model. The infrastructures, transport and electricity are not there. Even our petrol is refined abroad. Anytime the price of crude oil goes up, it puts the government in crisis because the refineries are not working. The integration is not there. America, Europe is now at the last level-currency level. Except if you want to grind the economy to a halt, you may then devalue. If not, lets improve our productive capacity we can then begin to have some exclusiveness. The 42 items have helped in ensuring stability in the system, it’s a good step. So we should continue on such policy trajectory that would enhance productivity in the system. Then we can say we want to devalue our currency. No country will allow its currency to be determined by demand and supply forces. America is strong today not because of weapons, but because of the power of the dollar. That is why other advanced countries want to bring down the power of the dollar, thus neutralising America’s power.

How do you see the AfCFTA panning out, and how it would affect intra-Africa trade?
The percentage of trade within the African region is very minute compared to what we are doing with other continental blocs. It’s a good framework and the first effective integration model with the African economies. There are a lot of talks on it, but without an accompanying political will by various governments because of so many fears. There are a lot of concerns more especially on what will come into the country being a dumping ground. Africa is blessed, we have everything. We have to look at our comparative advantage and the raw materials can we produce to give to other countries. Africa cannot fold its arms, we must encourage integration. There is total lack of effective linkages within and amongst the African countries. Now that they have identified the need for this integration, I think it’s a welcome development. It would integrate factories, development, transportation, industries and electricity. Nigeria has the market and population and we stand to get a lot.
On the advantage for the foreign exchange market, we will develop currency warehouse that would make Nigeria sovereign. Lots of West African countries are dependent on Nigeria’s economy. It would make naira sovereign in West African economies and improve volume of business. Integration would make it transparent. I want to advise that they do not just leave it at the signing level. Concerted efforts should be mobilised to ensure we have achieved all these three levels of the integration. We however need to improve and empower our compliance institutions.

What are the areas the Central Bank of Nigeria needs to improve on in order to increase Nigeria foreign earnings?
Diaspora remittances and the diversification of the economy will improve and increase Nigeria’s foreign earnings. Other sources of earnings asides the oil receipt are not stable. Nigerians are having problems in Italy with regards to sending money to Nigeria. Nigerians in Canada don’t have channels to send money to Nigeria. The opportunity is there. The Diaspora commission, Presidential committee and economic team should look at this. They should reach out to stakeholders so that we can hit the ground running to solve these problems.
As your tenure comes to a close, what legacies are you leaving behind? I’m delighted with two achievements- the automation of our members, changing our appearance, processes and compliance. We have been building capacity of our members. In fact, we are at the final stage of registering our foreign exchange retailer’s institute whereby we’ll continue to ensure capacity building of our members. We’ve also formalised the informal bureau de change sector. We were initially 1,400 members, but now we are 5,000 members and this transcends employment generation and impact the economy positively.

https://www.thisdaylive.com/index.php/2019/07/21/aminu-gwadabe-no-country-will-allow-its-currency-to-be-determined-by-demand-and-supply/

We have over $40 billion coming into Nigeria, four times the size of oil receipts, which is not more than $11billion annually.

All we hear about is oil income, yet Diaspora money is four times more. More important, it has direct benefit on the needy while oil money is shared at the top. The only problem is that as the hard earned Diaspora money comes in, looter neutralize it at the bureau du change, at banks and Central Bank by sending more out. Cursed people.

There are some sensible people still remaining all over Nigeria. Thank God. London School of Economics expert will not let us breathe until Nigeria pafuka!

China can easily devalue its currency, because 95 per cent of what they produce is going to be exported, same with Malaysia which produces animal feeds. Till date we are talking of integration, draft and framework. A case in point is the African Continental free trade agreement (AfCFTA), we are talking of draft of an effective integration model. The infrastructures, transport and electricity are not there. Even our petrol is refined abroad. Anytime the price of crude oil goes up, it puts the government in crisis because the refineries are not working. The integration is not there. America, Europe is now at the last level-currency level. Except if you want to grind the economy to a halt, you may then devalue. If not, lets improve our productive capacity we can then begin to have some exclusiveness. The 42 items have helped in ensuring stability in the system, it’s a good step. So we should continue on such policy trajectory that would enhance productivity in the system. Then we can say we want to devalue our currency. No country will allow its currency to be determined by demand and supply forces. America is strong today not because of weapons, but because of the power of the dollar. That is why other advanced countries want to bring down the power of the dollar, thus neutralising America’s power.