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Nairaland Forum / Nairaland / General / Business / Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg (36229 Views)
CBN Did Not Devalue The Naira! / CBN May Devalue Naira Steeply After 2023 Elections - Bloomberg / Naira Likely To Weaken Further - Zainab Ahmed (Finance Minister) (2) (3) (4)
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Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by Mizwisdom(f): 7:36pm On Mar 21, 2020 |
SIRTee15: So you agreed that America is a scam? If it wasn't for the dollar being a defacto currency, it would have been almost valueless by now so why Lord it over others to devalue when we all use their currency? they predict doom and gloom for others because they simply go and print more and more dollars to help them stay afloat. Allow others to extend some level of independence and stop this gloomy tales, nobody holy pass. 1 Like |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by SIRTee15: 7:44pm On Mar 21, 2020 |
Mizwisdom: Yea I agree, but global economy don't operate on sentiment..... After preaching equity and fairness, every country does what's best for its economic interest and survival.... Nigeria at the moment can't afford to support the naira..... It will be too expensive and an eventual futile effort.... The global economy will enter recession this year and that will definitely affect the price of oil..... Except Nigerians also reduce their appetite for foreign good.... I don't see how the naira will come out of this unscathed.... 3 Likes |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by vioment: 7:54pm On Mar 21, 2020 |
meavox: You finish talk here. Clear view opinion. |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by Proffdada: 7:58pm On Mar 21, 2020 |
iamJ:it's the communism that favor China. No selfish interests |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by Nobody: 7:59pm On Mar 21, 2020 |
PHijo:Still struggling with your point, Nigeria Govt cannot pay salary under this present circumstances, meaning with current value it is difficult for govt to pay salaries. Then with devalue naira by say 50% according to you, govt will spend double, i am still strugling with that. The only point i will agree with is removal of subsidy. But this present govt are not proactive enough to prepare structure for subsidy removal 1 Like |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by SIRTee15: 8:03pm On Mar 21, 2020 |
Mizwisdom: I wouldn't agree America is a scam... American economy is the reason globalisation is successful.... No country in the world can have such alarming trade deficit and still remain stable..... America's ability to sustain huge negative account balance, means emerging economy can embark on export oriented economy..... These emerging economies have been able to build a solid industrial economy n a growing middle class courtesy American strong import apetite..... In return, the whole world has to use the dollar has the global currency.... This means Americans can continue to afford cheap goods from other parts of the world on Amazon or Wal-Mart shelf.... Now if u want America to give up his dollar privilege status.... U had better find another country with a huge import apetite and a middle class with strong consumer spending.... And good luck with that..... The possible scenario is a repeat of the 1930s depression.... When every country wanted to export, but no one wanted to import.... 4 Likes 2 Shares |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by Mizwisdom(f): 8:09pm On Mar 21, 2020 |
SIRTee15: By reducing the retail price of oil significantly thereby increasing the purchasing power of people to buy goods, massive support for Agriculture, exploration of other valuable mineral resources, supporting businesses by tax cuts, improving infrastructure, borrowing from Nigerians to also increase govt spending things will stabilize. |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by TrebleChamp(m): 8:12pm On Mar 21, 2020 |
Govt should do what's best for the country abeg... |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by byinks(f): 8:18pm On Mar 21, 2020 |
Most central banks around the world are running out of dollars. Nigeria is no exception. |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by Mizwisdom(f): 8:20pm On Mar 21, 2020 |
SIRTee15: There's no harm in trying something new, America shouldn't have the monopoly in determining other nation's prosperity. I think China has a better deal for us and should be given a chance. Yes they flood markets with their products but we get them at a much cheaper rate than America offers. In short every country no matter how good their intentions may seem, will always look out for it's own interests. We know how ferocious America's appetite was for Arab oil before it discovered it's own large reserves. No country is holy, It's time for world economy to have a new leader especially one that lives and let's others live. Even if the naira is eventually devalued, there's no need for this outcry. How does this even affect them? |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by Oritsewhandey(m): 8:21pm On Mar 21, 2020 |
iamJ:........................ You wrote as if Nigeria is as PRODUCTIVE as China! Point to arms we produce! Point to automobiles (FULLY) we produce! Point to Ships we produce! Point to essential goods we produce! Point to family daily goods we produce at continental scale as China does! Point to technologies we export or interexchange with other nations! Point to human resources we export at global scale as China does! Point to Nigeria's HUAWEI's version, WHOLLY & FULLY built by Nigerians! Point to any mini-silicon valley which China has pockets of it that we have! Point to any technology to WHOLLY build refineries that Nigeria has, as China does and also did in South Sudan and around! Largest continent is ASIA. China saturates that market. Has Nigeria saturated Africa? All aforementioned are TRILLIONS OF DOLLARS generating enterprises that could salvage a nation from eternal poverty! Nigeria haven't yet. Except incursed archaic feudal system of COWS adoration over humans! China is bigger for any major stock index rating institutions to occupy. Brookings, Goldman Sachs, Standard & Poor are all pro-Dow Jones of Wall Street. China won't and isn't stupid to allow them! Have you ever heard of FACEBOOK Chinese version? Hell nah! Until the North invests in human resources and capitals, they won't let Nigeria GO ANYWHERE FORWARD! 2 Likes 2 Shares |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by Oritsewhandey(m): 8:23pm On Mar 21, 2020 |
iamJ:........................ You wrote as if Nigeria is as PRODUCTIVE as China! Point to arms we produce! Point to automobiles (FULLY) we produce! Point to Ships we produce! Point to essential goods we produce! Point to family daily goods we produce at continental scale as China does! Point to technologies we export or interexchange with other nations! Point to human resources we export at global scale as China does! Point to Nigeria's HUAWEI's version, WHOLLY & FULLY built by Nigerians! Point to any mini-silicon valley which China has pockets of it that we have! Point to any technology to WHOLLY build refineries that Nigeria has, as China does and also did in South Sudan and around! Largest continent is ASIA. China saturates that market. Has Nigeria saturated Africa? All aforementioned are TRILLIONS OF DOLLARS generating enterprises that could salvage a nation from eternal poverty! Nigeria haven't yet. Except incursed archaic feudal system of COWS adoration over humans! China is bigger for any major stock index rating institutions to occupy. Brookings, Goldman Sachs, Standard & Poor are all pro-Dow Jones of Wall Street. China won't and isn't stupid to allow them! Have you ever heard of FACEBOOK Chinese version? Hell nah! Until the North invests in human resources and capitals, they won't let Nigeria GO ANYWHERE FORWARD. 2 Likes |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by Sarah20A(f): 8:23pm On Mar 21, 2020 |
iamJ:comparing Nigeria with China is like comparing light with darkness |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by PHijo(m): 8:25pm On Mar 21, 2020 |
uncle005: Let me try to explain it. You have $100. With current exchange rate it is 380. A month ago you used to have $200. Then exchange rate to Naira was 300 Naira. Meaning your $200 will fetch you 60,000 Naira. If exchange rate falls by 50 percent it means you will get 60,000 for $100. Let's assume you had a cleaner and cook, both are being paid 60,000 Naira per month. When you had $200 you could conveniently pay them. Now you have $100 you can only pay half of their income with the current rate, borrow to pay or hope the exchange rate changes. In the case of the government it is different, they can influence demand or supply of the Naira. With that, 30,000 minimum wage can be paid despite the fact Nigeria's net US dollar earnings has dropped. What this means is that Nigeria can earn 1 dollar but decide to treat it like 300, 600, 900, 1,500 or any other amount they wish to treat it as. Often what people look at when 'subsidy payments ' are made is the subsidy component. We tend to forget that the commodity is paid for in USD. In essence we deplete our reserves the moment we import and we further deplete it through subsidy payments. In a bid not to deplete the reserves rapidly our government 'devalues' the Naira to pay petroleum marketing companies. Those companies know that and always find a way to pass that cost to the Nigerian customers. 2 Likes 1 Share |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by Nobody: 8:31pm On Mar 21, 2020 |
Pardon my curiosity but your first and second paragraph, is that not a recipe for inflation? PHijo: 2 Likes |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by ShenTeh(m): 8:36pm On Mar 21, 2020 |
plaetton: Than brand us all foolish, at least you would have referred to yours sincerely alone and spared the innocent citizens of a 'sinking' country. |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by quisera(m): 8:38pm On Mar 21, 2020 |
If naira depreciates against dollars again nai bsay yahoo boys no go let person hear word again... Who pick $2k don turn millionaire bdat |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by beejay85: 8:55pm On Mar 21, 2020 |
quisera:Lol...I reserve my comment |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by rottennaija(m): 9:01pm On Mar 21, 2020 |
ZombiePUNISHER: Taken unawares? When Trump said it was a scam? You guys can believe anything you set your mind on. Smh |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by VolvoS60(m): 9:04pm On Mar 21, 2020 |
festacman: ^^^ Speak plainly. I genuinely wish to learn. I have pointed out just one of the ways in which the Buhari administration is getting it wrong - with multiple exchange rates - rates set by administrative fiat. With the fall in forex earnings and our low forex reserves, a devaluation is inevitable. And you know what that means. This is your opportunity to set the record straight - if you can. Say here and now what campaign promises this administration and the ruling party have actually fulfilled after 5 years. 2 Likes |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by sulaak(m): 9:05pm On Mar 21, 2020 |
iamJ: Typical Nigerian, ignored the real elephant in the room to attack the messenger. The Elephant in the room: The reason -- Nigeria’s import dependent economy [/b]has seen inflation accelerate to a 22-month high in February and could rise even faster if the currency weakens. [b]Despite being oil rich, the West African nation imports almost 100% of its gasoline due to mismanagement of its domestic refineries. The fuel is then sold at subsidized prices to Nigerians. A weaker naira would raise the cost of those subsidies, which already consumes a chunk of government revenues at almost $2 billion a year The Nigeria government still t place high duties on the importation of machinery and spare parts required to operate manufacturing plants. The four refineries are still not working despite Buhari being the Petroleum Minister. 3 Likes |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by PHijo(m): 9:07pm On Mar 21, 2020 |
alexistaiwo: Yes, it is! It is a recipe for inflation but you can minimize the impact of inflation if the right fiscal and monetary policies are implemented. Hoping the price of crude oil will rise like Nigeria did in 2016/2017 is a recipe for failure. America and China used to be the world's largest importers of crude oil 15 years ago. That has changed! What areas does Nigeria have comparative advantage? Which sectors can start yielding the desired results in 12 to 24 months? Apart from the import of petroleum products what are the top ten imports? Out of these ten can we produce 5 to 7 here? What time range will be required to go about that? What Is our overall strategy? Can PDP/ APC and all the ethnic nation help develop the plan so that any government who comes in sticks to it? Other than that, there will be no discipline to follow through. Sometimes we have choose between growth with inflation and inflation without growth! What we currently have is 12 percent inflation with barely any growth! In the past we've had single digit inflation with high growth. For me high growth is 7 percent and above. If we remove fuel subsidy inflation will drop significantly. Much of our inflation is imported. 1 Like 1 Share |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by festacman(m): 9:34pm On Mar 21, 2020 |
VolvoS60: On the exchange rate strategy, the fact is that there is no almighty formular in Economics. CBN team, Finance ministry and other economic advisors are no dunces to wilfully lead the country into a 'ditch' by choosing the multiple exchange rates option for now as opposed to outright devaluation. I am sure they must have weighed all options. There is no short cut when we have less export and more import regimes. It is a lot more difficult situation than you are making it seem because some impact could deal a mortal blow on the economy if care is not taken. On the accomplishments of Buhari presidency since 2015, if you are insisting that he has done nothing then none of what I will say would change your mind. And I don't have energy for argument. |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by saniby: 9:50pm On Mar 21, 2020 |
Those speculators of doom on Nigeria's economy will fail. Economics is a science but the west use media and propaganda to deceive semi-literates into believing sword has only one edge. How much rise in inflation has occurred in the UK and US due to Corona Virus? Or is their economy immune from supplies from other countries? Why is panic not driving them pay more for less? The Naira you've earned as Nigerian, why should you part with it for exchange of less US dollars? It's foolishness to create panic and use that to drive $$ prices up. $$$ is not a commodity, so CBN as a should insist it's exchange at approved rates only. Anything on the contrary is economic sabotage. How do you expect Nigerians to now subsidise to foreigners by given them more Naira for less $$$? Compare the size of our economy viz-aviz our imports, which one is higher? We Africans need to learn some sense from the Chinese. |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by Anneka101(f): 9:57pm On Mar 21, 2020 |
ositadima1: Thank you so much, you made some point up there and I'm really impressed. The nigerian govt closed border yday. Announced same day they are devaluing the naira. 30 days ago, there was exchange of dollar at a reduced exchange rate. Now with the devaluation, they will make twice the amount. That’s round tripping. 1 Like |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by saajus: 10:08pm On Mar 21, 2020 |
We are going into recession. Things will be really messy, but let's hope that Mr President team can salvage the situation. Remember, COVID-19 is here too. Nations with great healthcare systems are struggling, then what's going to happen to a country like Nigeria. I pray we don't have widespread of this virus o. |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by VolvoS60(m): 10:14pm On Mar 21, 2020 |
festacman: ^^^^ Your almost childlike faith in the sincerity of purpose and the competence of Nigerian policy makers is touching. Unfortunately, I live in the real world where hard nosed pragmatism, doubt and scepticism are far more useful and effective in holding these people accountable. There is no room for wishful thinking here. The Buhari administration got things terribly wrong. And it continues to do so. It has stubbornly insisted on multiple exchange rates for years - a policy that simply encourages rent seeking and has made some people very rich through currency round tripping. The administration also stubbornly insists on defending the Naira - even when it is clear that the reserves to do this successfully do not exist. If the Russians and other big oil exporters took their bitter medicine during the last oil price shock - and devalued their currencies, did you really think Nigeria would escape? We are back there again. festacman: ^^^ Ok. festacman: ^^^ No sir. I am not stirring up arguments for their own sake. I am keeping an open mind - and I am performing my civic duty by holding the administration accountable. I am simply asking that the administration be held to its word - to what extent have its campaign promises of 2015 and 2019 been kept? These are fair and legitimate questions, don't you think? 1 Like |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by GreyLaw(m): 10:22pm On Mar 21, 2020 |
NaijaMutant: Lol... don't mind that guy. He is hypocrite-in-chief. Ask him clear questions and he'll start telling you how preceeding governments were devils, but this present one a sains. I told him that he'd never escape when the time of reckoning comes. I believe he is either a paid agent, or a direct/indirect beneficiary of this government. Mark those of them who seem to be immovable on their stance on this failed government: they are not to be trusted. |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by Niggsrdumb: 10:24pm On Mar 21, 2020 |
What many don't understand is that whilst Nigeria is full of unproductive copy copy people (substance rather than form) the global financial system is corrupt. Until you understand how the pyramid works the cycle of underdevelopment cannot be broken . Your financial education was brought to you by those who put you at the bottom of the pyramid. China understands the pyramid , so does Russia and Iran. To break out , stop copying the wrong things look critically at the global system and take what works. 1 Like |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by festacman(m): 10:41pm On Mar 21, 2020 |
VolvoS60: Far from "childlike faith", in any country and at any particular time, a set of people are trusted with making vital policy decisions in the best interest of that country. No matter how you throw tantrums about multiple exchange rates, the current appointed policy makers will have their ways. You can only trust their judgement and hold them responsible if things go wrong. For Buhari's accomplishments, I take it that no president anywhere lacks a fair share of unrepentant critics like you. It is your right to hold your opinion just I am in the clear to hold mine. That's beauty of democracy. |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by PHijo(m): 12:31am On Mar 22, 2020 |
Mizwisdom: Nobody stops Nigeria from prospering! Nigeria failed to prosper because it is at war with itself. Bigotry makes people promote people they hope will advance their ethnic, religious or regional interests. These factors also play a much greater role in the government's decision making process. The South seems to be in favour of reforms that will reduce government participation in the economy. The last 20 years, the two occasions Northerners took over there were deliberate attempts to whittle down those reforms or wipe off the gains. 1 Like |
Re: Nigeria’s Refusal To Devalue Naira Likely To Fail, Again - Bloomberg by Niggsrdumb: 12:47am On Mar 22, 2020 |
PHijo:
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