TransAtlanticEx:
You are the one who don't understand .
Does Nestle import finished products in the country to resell or import raw materials and produce here?
So why would their prices hike immediately due to forex shortage?
Inflation reflects immediately on imported finished goods while locally manufactured goods get inflated afterwards,even though cost of imported raw materials have increased.
Of what essence is getting dollars at 380 but you don't get enough when you can always go to your nearest aboki for unlimited supply at higher prices?
If companies all wait for dollars at 380 in these periods,they will close shop.
Get that into your head.
And why would you use fuel as an example when NNPC is a dollar earning company and is the one importing the fuel?
Abi you expect them to lack forex too?jeez!!

how can aboki have unlimited supply more than the cbn ....they participate in less than 10 percent of the markets......

TotoNaRubber:
The amount of Naira chasing dollar will always be excess.

This is also wrong. Please always say only things you know. How much do you think system liquidity is as we speak? perhaps just 800bn or less, that's just about $2bn meaning that even if the CBN offered just $2.5bn for spot sales today, it won't be able to sell it all. The vast trillions are locked in stocks, bonds, commercial papers and CBN bills, and as a holder of such instrument, you can only offer them up for sale, there's no guarantee you'll get ready buyers, and even in cases where you get, the net impact on system liquidity is still zero. I sell 1m units of NESTLE stocks and 1,200 a unit. That will give me 1.2bn in fresh liquidity, but at the same time, it drains 1.2bn of liquidity off the buyer so the net position of the banking system liquidity remains flat.

awesomeJ:


This is also wrong. Please always say only things you know. How much do you think system liquidity is as we speak? perhaps just 800bn or less, that's just about $2bn meaning that even if the CBN offered just $2.5bn for spot sales today, it won't be able to sell it all. The vast trillions are locked in stocks, bonds, commercial papers and CBN bills, and as a holder of such instrument, you can only offer them up for sale, there's no guarantee you'll get ready buyers, and even in cases where you get, the net impact on system liquidity is still zero. I sell 1m units of NESTLE stocks and 1,200 a unit. That will give me 1.2bn in fresh liquidity, but at the same time, it drains 1.2bn of liquidity off the buyer so the net position of the banking system liquidity remains flat.

I agree with you on this.

Rate didn't crash to N4000/ $ in 2016 because CBN didn't honor the transactions due just like now, they have adopted delay tactics and now the FGN is adding borrowing tactics too, it is doom waiting to happen.

Buying dollar at high rate and speculating is not a good thing but i'd rather have $1 million cash in the US than have N500 million in Nigeria with what is happening now.

awesomeJ:


So in your opinion 5bn from 36bn would crash rate to 1200? Why did rate not crash to 4000 in 2016? because there was $4bn backlog on $30bn reserves. If someone had followed your analysis to buy at 530 then, 4 years later had he broken even?

awesomeJ:


This is also wrong. Please always say only things you know. How much do you think system liquidity is as we speak? perhaps just 800bn or less, that's just about $2bn meaning that even if the CBN offered just $2.5bn for spot sales today, it won't be able to sell it all. The vast trillions are locked in stocks, bonds, commercial papers and CBN bills, and as a holder of such instrument, you can only offer them up for sale, there's no guarantee you'll get ready buyers, and even in cases where you get, the net impact on system liquidity is still zero. I sell 1m units of NESTLE stocks and 1,200 a unit. That will give me 1.2bn in fresh liquidity, but at the same time, it drains 1.2bn of liquidity off the buyer so the net position of the banking system liquidity remains flat.

clear articulate points......i suspect say u be cbn staff .........enough data ..

ahiboilandgas:
how can aboki have unlimited supply more than the cbn ....they participate in less than 10 percent of the markets......

They smuggle currencies across countries that have endless supplies.
They have money mules that go to every nook and cranny to smuggle currency,that's why theirs is expensive.
You seem to think abokis get forex only from broke,$1k carrying tourist abi travellers
Multiply these kind of practices by the total number of BDCs littered nationwide and you will see why I said they can supply every demand of yours

TotoNaRubber:
Rate didn't crash to N4000/ $ in 2016 because CBN didn't honor the transactions due just like now, they have adopted delay tactics and now the FGN is adding borrowing tactics too, it is doom waiting to happen.

Buying dollar at high rate and speculating is not a good thing but i'd rather have $1 million cash in the US than have N500 million in Nigeria with what is happening now.

that mean u have to move to the us cos if u are in Nigeria the infrastructures to remit money into Nigeria is control by cbn so your profits will be spend here after conversation at the real demand rate out those false greed driven black market rates....

TransAtlanticEx:
They smuggle currencies across countries that have endless supplies.
They have money mules that go to every nook and cranny to smuggle currency,that's why theirs is expensive.
You seem to think abokis get forex only from broke,$1k carrying tourist abi travellers
Multiply these kind of practices by the total number of BDCs littered nationwide and you will see why I said they can supply every demand of yours

the bdc are just 5000 they are not infinite. Many can hardly bid 100k dollars weekly's ....so what are u saying ? Carry 200k dollars from congo to Nigeria through several broader

TransAtlanticEx:
You are the one who don't understand .
Does Nestle import finished products in the country to resell or import raw materials and produce here?
So why would their prices hike immediately due to forex shortage?
Inflation reflects immediately on imported finished goods while locally manufactured goods get inflated afterwards,even though cost of imported raw materials have increased.
Of what essence is getting dollars at 380 but you don't get enough when you can always go to your nearest aboki for unlimited supply at higher prices?
If companies all wait for dollars at 380 in these periods,they will close shop.
Get that into your head.
And why would you use fuel as an example when NNPC is a dollar earning company and is the one importing the fuel?
Abi you expect them to lack forex too?jeez!!

Appears you just like long talk. Say they buy cocoa beans at $2000 per tonne. Their landing cost was 720,000 per tonne when they bought at 360. Now it's 760,000 because they're buying at 380, and it's so hard for you to comprehend that mild price adjustments are necessary?

Now in March, Diesel was probably selling at 2$ a gallon. exchange rate for fuel impprt was 306, landing cost would be about N612 per gallon. Today oil prices have recovered, diesel probably sells for $2.5 a gallon and exchange rate is now 380, the same quantity of diesel now cost N950 per gallon. What do you think happens to cost of transporting finished goods for most of these manufacturers? Would they not have to have mild price adjustments to compensate their higher operating cost?

Except you just want to argue baselessly, the points are quite comprehensible.

Multiply the $5 billion due for repatraiation by N475/ $ and remove it from the economy and see if naira will trade at anything less than N1000 per dollar.
In Q2 of 2020, no foreign investor invested in certain fixed income securities due to negative interest rates, it is not a bad thing per say but that gives you an idea what foreign investors are currently doing (they are looking for exit options).

At some point Nigerian govt will only owe it's citizens with the look of things, Venezuela will start looking good in our eyes.

awesomeJ:


This is also wrong. Please always say only things you know. How much do you think system liquidity is as we speak? perhaps just 800bn or less, that's just about $2bn meaning that even if the CBN offered just $2.5bn for spot sales today, it won't be able to sell it all. The vast trillions are locked in stocks, bonds, commercial papers and CBN bills, and as a holder of such instrument, you can only offer them up for sale, there's no guarantee you'll get ready buyers, and even in cases where you get, the net impact on system liquidity is still zero. I sell 1m units of NESTLE stocks and 1,200 a unit. That will give me 1.2bn in fresh liquidity, but at the same time, it drains 1.2bn of liquidity off the buyer so the net position of the banking system liquidity remains flat.

ahiboilandgas:
the bdc are just 5000 they are not infinite. Many can hardly bid 100k dollars weekly's ....so what are u saying ? Carry 200k dollars from congo to Nigeria through several broader

Bdc are just 5000?
Do you really do business or get most of your data online?
REGISTERED BDC can be 5000 but unregistered ones that don't even give a shìt about your rubbish bidding nko?
You have a lot to learn.

NL1960:


Look for any of the migrating birds from Nigeria to the country of the offshore bank and tie the bag of $$$ to the bird and tell the offshore bank to go to their nesting place for pickup.

what if someone else gets there before my offshore bankers and thinks he's got a windfall? What happens to my sweet $$$�

chigo4u:

Lol.. you can’t even remember what you said a little over a year ago and you are back with new theories lol

Don't lol anything. I don't remember cos I never said it. you claim to read it from me, so it only makes sense that you present your proof. Otherwise admit that you've said wrongly and move on

TransAtlanticEx:
Bdc are just 5000?
Do you really do business or get most of your data online?
REGISTERED BDC can be 5000 but unregistered ones that don't even give a shìt about your rubbish bidding nko?
You have a lot to learn.

bush man cbn /abcon says they have 5000 registered bdc so u sitting in one shop in markets says noooooooo they are 100,000 as an educated man who should i agree with ?the once that cbn/abcon registered with 35m naira capital and 35m deposit and cac certificates or u that like clowning up and down...

chigo4u:

Lol.. you can’t even remember what you said a little over a year ago and you are back with new theories lol

Don't lol anything.

I don't remember cos I never said it.

You claim to read it from me, so it only makes sense that you present your proof, otherwise, admit that you've wrongly said, and move on.

awesomeJ:

Appears you just like long talk. Say they buy cocoa beans at $2000 per tonne. Their landing cost was 720,000 per tonne when they bought at 360. Now it's 760,000 because they're buying at 380, and it's so hard for you to comprehend that mild prove adjustments are necessary?

Now in March, Diesel was probably selling at 2$ a gallon. exchange rate for fuel impprt was 306, landing cost would be about N612 per gallon. Today oil prices have recovered, diesel probably sells for $2.5 a gallon and exchange rate is now 380, the same quantity of diesel now cost N950 per gallon. What do you think happens to cost of transporting finished goods for most of these manufacturers? Would they not have to have mild price adjustments to compensate their higher operating cost?

Except you just want to argue baselessly, the points are quite comprehensible.

Stop giving oil and gas examples,its a very stupid example to make because they are subsidised and the organisation importing it is a dollar earning one.
Companies don't just increase pricing(they have competitors and customers to keep their loyalty),especially when they have ways to mitigate it and running a factory locally is one way to hedge against forex hike(because they pay labour in naira,run factory in naira and have some materials they purchase locally).
Nestle will absorb the extra 40k per ton increase and remove it from its profits,unless it becomes unbearable in the long run.
All these textbook gobbling children sef.
Go to the supermarket and tell me whether maggi,Knorr and co have increase price.
Also in that same supermarket,check the price of moet and chandon nectar imperial.
Tell me which increased and which didn't,mugu.

TransAtlanticEx:
Bdc are just 5000?
Do you really do business or get most of your data online?
REGISTERED BDC can be 5000 but unregistered ones that don't even give a shìt about your rubbish bidding nko?
You have a lot to learn.

The Central Bank of Nigeria issued new operational licences to 366 Bureau De Change operators between January 2018 and May 31, 2018, a new report by the apex bank indicated.

The report on the ‘Functions, operational guidelines and compliance for BDC operations in Nigeria’ was prepared by the Other Financial Institutions Supervision Department of the CBN.

With the newly licensed operators, it said the number of registered BDCs had thus risen from 3,740 to 4,106.

ahiboilandgas:
clear articulate points......i suspect say u be cbn staff .........enough data ..

I work in their prayer department to control things that are beyond them. Moving oil prices from $15 for instance.

ahiboilandgas:
bush man cbn /abcon says they have 5000 registered bdc so u sitting in one shop in markets says noooooooo they are 100,000 as an educated man who should i agree with ?the once that cbn/abcon registered with 35m naira capital and 35m deposit and cac certificates or u that like clowning up and down...

smh...
Go out and do business and drop your cheap phone for once,you'll learn a lot of things.
And I don't run a shop either
If you want to buy $1m now like this and you have the money,come make I show you people that change money that don't belong to any nonsense abcon that can supply you immediately as we speak.
BDC kor...

TotoNaRubber:
Multiply the $5 billion due for repatraiation by N475/ $ and remove it from the economy and see if naira will trade at anything less than N1000 per dollar.
In Q2 of 2020, no foreign investor invested in certain fixed income securities due to negative interest rates, it is not a bad thing per say but that gives you an idea what foreign investors are currently doing (they are looking for exit options).

At some point Nigerian govt will only owe it's citizens with the look of things, Venezuela will start looking good in our eyes.

You don't understand the situation we'll enough.

The $5b are currently in naira assets and cash. So they bought it in at 360, and it was 1.8 trn. They've earned perhaps 13-17% interests, and the total value of their holdings is now about at about 2.1trn.

So Their choice is to either sell this at 380 and get $5.53bn representing a 10% gain. and there is actually a market big enough to meet their demand, or they choose to sell at 475 like you're suggesting, and they only get back $4.42bn representing about 12% in losses, and abokis in their wildest dreams won't be able to meet their demand. 2.1trn spread across 5000BDCs is about N400m. How many abokis have 400m?

Mompha had an issue in court some months back for running a BDC without license.
Do you think mompha BDC was included in that 5000 BDCs nationwide?
Do you know how many thousand black market players are like mompha who aren't in the limelight?
I hope we all saw the numbers mompha was arrested for?
Then one delusionist here is saying BDCs can't even bid $100k weekly lol.
If you are willing to pay the price,these guys can fund the entire Nigeria fx need till kingdom come,even if it means crossing the desert to Egypt to smuggle funds to supply you,but then they arent cheap.
That's why when your fada christmas(cbn) runs out of supply,be ready to buy at 500.

Some interesting discussions going on here...


Maybe I should just keep reading and keep my perspective to myself

Kudos to the contributors
Una dey try

awesomeJ:


You don't understand the situation we'll enough.

The $5b are currently in naira assets and cash. So they bought it in at 360, and it was 1.8 trn. They've earned perhaps 13-17% interests, and the total value of their holdings is now about at about 2.1trn.

So Their choice is to either sell this at 380 and get $5.53bn representing a 10% gain. and there is actually a market big enough to meet their demand, or they choose to sell at 475 like you're suggesting, and they only get back $4.42bn representing about 12% in losses, and abokis in their wildest dreams won't be able to meet their demand. 2.1trn spread across 5000BDCs is about N400m. How many abokis have 400m?

lol another clown,bring the demand first and be ready to pay the price,you'll see for yourself how many notherners(not entirely northerners anyways,igbo guys are the ones smuggling in the fx,northerners do the peddling part in the streets under hot sun) have money

TransAtlanticEx:
Stop giving oil and gas examples,its a very stupid example to make because they are subsidised and the organisation importing it is a dollar earning one.
Companies don't just increase pricing(they have they pay labour in naira,run factory in naira and have some materials they purchase localcompetitors and customers to keep their loyalty),especially when they have ways to mitigate it and running a factory locally is one way to hedge against forex hike(becausely).
Nestle will absorb the extra 40k per ton increase and remove it from its profits,unless it becomes unbearable in the long run.
All these textbook gobbling children sef.
Go to the supermarket and tell me whether maggi,Knorr and co have increase price.
Also in that same supermarket,check the price of moet and chandon nectar imperial.
Tell me which increased and which didn't,mugu.

You're on your own o.

You said you couldn't comprehend why prices were on the increase despite form M..We helped you, and instead of humbly educating your ignorance, you're choosing to be angry.

Now when you ask why knorr prices and all haven't increased, are you not contradicting yourself? Were you not the one saying Form M wasn't real as prices were increasing? Now we explained to you why, you're ranting nnpc is forex earning. LANDING COST OF FUEL IS HIGHER WHEN EXCHANGE RATE IS 380 THAN WHEN IT WAS 306, BECAUSE THE PRODUCTS ARE BOUGHT WITH DOLLARS. perhaps the caps will help you understand now.

TransAtlanticEx:
lol another clown,bring the demand first and be ready to pay the price,you'll see for yourself how many notherners(not entirely northerners anyways,igbo guys are the ones smuggling in the fx,northerners do the peddling part in the streets under hot sun) have money

Tell me how many of your igbo boys and northerners have 400m in liquid cash to trade dollars with.

There are times that to buy just 5m worth of dollars, the aboki would have to meet 3-4 others to raise just 5m.

There are definitely thos who have the 400m or even more. Buy you'll be totally wrong think they are anywhere near 5000.

awesomeJ:


You're on your own o.

You said you couldn't comprehend why prices were on the increase despite form M..We helped you, and instead of humbly educating your ignorance, you're choosing to be angry.

Now when you ask why knorr prices and all haven't increased, are you not contradicting yourself? Were you not the one saying Form M wasn't real as prices were increasing? Now we explained to you why, you're ranting nnpc is forex earning. LANDING COST OF FUEL IS HIGHER WHEN EXCHANGE RATE IS 380 THAN WHEN IT WAS 306, BECAUSE THE PRODUCTS ARE BOUGHT WITH DOLLARS. perhaps the caps will help you understand now.

It seems you are very slow in the head.
I said why are prices of imported,finished items that arent in the CBN or custom ban list increasing despite form M.
It is to tell you that they are finding it difficult to get dollars from the same CBN and are now patronising aboki,ode.
Why should knorr and maggi prices increase,are they imported?
Your brain is dead,no offense.

awesomeJ:


Tell me how many of your igbo boys and northerners have 400m in liquid cash to trade dollars with.

There are times that to buy just 5m worth of dollars, the aboki would have to meet 3-4 others to raise just 5m.

There are definitely thos who have the 400m or even more. Buy you'll be totally wrong think they are anywhere near 5000.

shhh...don't make noise,bring the demand first.
Who sold most of the forex being kept in dorm accounts or in foreign stashes taken out of Nigeria to Switzerland and some islands?
No use yourself judge other people pocket.

Well it is better to live in the US compared to Nigeria right now even though the US economy is not doing good at this time, Investors in the US market are pulling out too but that is a discussion for another day.

The fact is that if i"m in the US and send goods to Nigeria worth $100,000, after the exposure risks and selling in Nigeria, if i want my cash within a week back in USD, it is most likely to get $85,000 to $90,000, losing $10/15k dollars instantly. Now the fact that you dont see yourself living in the US doesn"t mean you shouldn"t calculate this way, in hind sight Nigerians are losing billions daily from instability in the economy, this is why it is better i keep my $1m in a more stable economy and this is why foreign investors are leaving.

ahiboilandgas:
that mean u have to move to the us cos if u are in Nigeria the infrastructures to remit money into Nigeria is control by cbn so your profits will be spend here after conversation at the real demand rate out those false greed driven black market rates....

TransAtlanticEx:
It seems you are very slow in the head.
I said why are prices of imported,finished items that arent in the CBN or custom ban list increasing despite form M.
It is to tell you that they are finding it difficult to get dollars from the same CBN and are now patronising aboki,ode.
Why should knorr and maggi prices increase,are they imported?
Your brain is dead,no offense.

It's not me you should be angry with when you're not able to comprehend simple maths. And I don't think it's as much about your inability to comprehend as it is about your choice not to.

Because even my nephew in JSS3 is smart enough to realize that for an " imported,finished items that arent in the CBN or custom ban" that costs $100, The Price was 36,000 and now that forms M are funded at 380, it would naturally have to go up to 38,000.

Now as simple as this explanation is that I didn't even have to make it, you will still confuse yourself. I think you should save yourself the embarrassment. People are reading these posts now, and more will do in the future. You really don't wanna portray yourself as being terribly dumb do you?

ahiboilandgas:
clear articulate points......i suspect say u be cbn staff .........enough data ..

The guy is too much. Iam impressed with the analysis of awesomeJ.

Btw, i support that your theory of DOM accounts by individuals to be closed down. Of recent, somebody told me that a guy in his office is opening DOM accounts for himself, wife and kids. Meanwhile, this guy is a salary earner in Naira, spends Naira and does not travel out and his kids are all schooling in Nigeria. So what is he doing with $$$ in DOM accounts?. He collects his salary in Naira and go and buy $$$ to deposit into the DOM accounts. Just imagine.

awesomeJ:


It's not me you should be angry with when you're not able to comprehend simple maths. And I don't think it's as much about your inability to comprehend as it is about your choice not to.

Because even my nephew in JSS3 is smart enough to realize that for an " imported,finished items that arent in the CBN or custom ban" costs $100, The Price was 36,000 and now that forms M are funded at 380, it would naturally have to go up to 38,000.

Now as simple as this explanation is that I didn't even have to make it, you will still confuse yourself. I think you should save yourself the embarrassment. People are reading these posts now, and more will do in the future. You really don't wanna portray yourself as being terribly dumb do you?

But they are not 38,000.
They are heading for 50,000 as we speak
Moet hennessy increased their prices by 19.35% about 3 weeks ago,but naira(form M price) was devalued how many percent again?just 5.5% increase.
So where is the extra money going to?
Doesn't this tell you these people aren't funded enough by the CBN and make up for the extra from aboki?

NL1960:


The guy is too much. Iam impressed with the analysis of awesomeJ.

Btw, i support that your theory of DOM accounts by individuals to be closed down. Of recent, somebody told me that a guy in his office is opening DOM accounts for himself, wife and kids. Meanwhile, this guy is a salary earner in Naira, spends Naira and does not travel out and his kids are all schooling in Nigeria. So what is he doing with $$$ in DOM accounts?. He collects his salary in Naira and go and buy $$$ to deposit into the DOM accounts. Just imagine.

am also impressed very much ....