Nice one

Ayo2004:
Abeg....make person explain in lay man terms for us science students

People like Bill Gates don't use the excuse of being science students because they're science students.
I laugh when some science students say they aren't good in English simply because they're 'science students.'
Only Nigerian science students

SenecaTheYonger:
TIme for Naira to free fall to 1000

If you had 360k in savings, which was $1000, now your money is only worth $700.

And it keeps falling until your money is worth less than $500.

Just in case you don’t understand how this is affecting you

Bro say what you know and stop giving people advice on the things you do not understand.

The new policy will actually help naira in terms of exchange rate versus other foreign currencies.

One of the reasons a dollar exchanges for about 500 naira at the black market while exchanging for below 400 naira at the bank is because the bank wouldn't give you dollars to go and exchange at the black market.
It somehow contributed to scarcity of dollars at the black market.
But now when the dollars starts flowing to the black market through People who cashed their diaspora remittances, they will have more dollars, and that might contribute to exchange rate fall of the dollars and increase of the naira at the black market. ( Due to the selling of dollars and the buying of naira by diaspora beneficiaries exchanging their dollars for naira).

ikorodureporta:
Dollar go begin scarce for bank...

How? or Dollar go plenty even for street, we go dey pick dollar for ground.

ikorodureporta:
Dollar go begin scarce for bank...

It Seems this is to favour the looters.

Rates will rise

SenecaTheYonger:
TIme for Naira to free fall to 1000

If you had 360k in savings, which was $1000, now your money is only worth $700.

And it keeps falling until your money is worth less than $500.

Just in case you don’t understand how this is affecting you

Nonsense analysis.

We dont use dollars in Nigeria

And most people dont care about dollar rate.

Inflation rate is what matters the most in a local economy

banom:


Bro say what you know and stop giving people advice on the things you do not understand.

The new policy will actually help naira in terms of exchange rate versus other foreign currencies.

One of the reasons a dollar exchanges for about 500 naira at the black market while exchanging for below 400 naira at the bank is because the bank wouldn't give you dollars to go and exchange at the black market.
It somehow contributed to scarcity of dollars at the black market.
But now when the dollars starts flowing to the black market through People who cashed their diaspora remittances, they will have more dollars, and that might contribute to exchange rate fall of the dollars and increase of the naira at the black market. ( Due to the selling of dollars and the buying of naira by diaspora beneficiaries exchanging their dollars for naira).

$1 is now #500. My post is explaining how the devaluation of naira affects your saving.

This will actually help the government alot, going to flood black market with dollars, it will bring the dollar down, smart.

FrankLampard:



How? or Dollar go plenty even for street, we go dey pick dollar for ground.

people are stupid in this country, they can't see that this is positive news.

iamJ:
This will actually help the government alot, going to flood black market with dollars, it will bring the dollar down, smart.

I think it's the other way round

Hoarding of dollar will increase because of the recession

This will give a much-needed psychological boost which will reduce the rate; $1/N500 is just silly... but it's a basic truth of our situation: we import almost everything we use and are dependent on the price of oil (and foreign remittances)

Economics 101: what happens when there is more money chasing a fixed amount of goods? Inflation, price of the goods go up.

What happens when there are more dollars chasing a fixed amount of naira? Same thing, price of naira should go up. But this being Nigeria, we're going to hear of dollar hoarding, so I won't be surprised to see it hit N550 or more this December.

Why does CBN like to flip flop on basic policy all the time? It's like they didn't pay attention in Econs and are using us as their practicals?

iamJ:
This will actually help the government alot, going to flood black market with dollars, it will bring the dollar down, smart.

That is if people are actually sending dollars to Nigeria

samsard:
People like Bill Gates don't use the excuse of being science students because they're science students.
I laugh when some science students say they aren't good in English simply because they're 'science students.'
Only Nigerian science students

I think he meant the other type of "science student"

SenecaTheYonger:


$1 is now #500. My post is explaining how the devaluation of naira affects your saving.

That is black market rate.

Dollar isnt actually 500 naira to a dollar in the black market.

You actually hassle the price and also it depends on the quantity of dollars you are bringing before they can even give you 500 naira for your doĺlar

samsard:
People like Bill Gates don't use the excuse of being science students because they're science students.
I laugh when some science students say they aren't good in English simply because they're 'science students.'
Only Nigerian science students

Oga,can u explain if the naira will increase value or not?if not,abeg,don't quote me again...do you think an average Nigerian without knowledge in that area will understand the impact of that action by CBN?as rich as Bill Gates,he can't understand everything,he might not have experienced legal knowledge,that's why he will consult his lawyer for legal advice,una go just come here dey form oversabi

thebosstrevor1:


That is if people are actually sending dollars to Nigeria

Depends on where the money is coming from but most are paid in dollars, that influx of forex should make the naira stronger but cbn messed up, if they can enforce this policy and force banks to follow it, dollars will crash, hoarders will have to sell, I hope its enforced, if you want to understand how absurd this math is, check the price of an egg in Nigeria vs America, then compare the price difference to dollar vs naira, a few people encouraged dollar scarcity to inflate their wealth vs the naira, if this is enforced, naira will rise.

banom:


Bro say what you know and stop giving people advice on the things you do not understand.

The new policy will actually help naira in terms of exchange rate versus other foreign currencies.

One of the reasons a dollar exchanges for about 500 naira at the black market while exchanging for below 400 naira at the bank is because the bank wouldn't give you dollars to go and exchange at the black market.
It somehow contributed to scarcity of dollars at the black market.
But now when the dollars starts flowing to the black market through People who cashed their diaspora remittances, they will have more dollars, and that might contribute to exchange rate fall of the dollars and increase of the naira at the black market. ( Due to the selling of dollars and the buying of naira by diaspora beneficiaries exchanging their dollars for naira).

Thank u jare...your head correct,unlike some people

banom:


Bro say what you know and stop giving people advice on the things you do not understand.

The new policy will actually help naira in terms of exchange rate versus other foreign currencies.

One of the reasons a dollar exchanges for about 500 naira at the black market while exchanging for below 400 naira at the bank is because the bank wouldn't give you dollars to go and exchange at the black market.
It somehow contributed to scarcity of dollars at the black market.
But now when the dollars starts flowing to the black market through People who cashed their diaspora remittances, they will have more dollars, and that might contribute to exchange rate fall of the dollars and increase of the naira at the black market. ( Due to the selling of dollars and the buying of naira by diaspora beneficiaries exchanging their dollars for naira).

No mind the guy, science student no mean say you no go dey read to understand.

Emiefele..... And buhari.... Has fried this country.
Domicilary u should be able to withdraw in dollar... This is how it was....before .....Now that the dollar is scarce. They now Remite it.

iamJ:
Depends on where the money is coming from but most are paid in dollars, that influx of forex should make the naira stronger but cbn messed up, if they can enforce this policy and force banks to follow it, dollars will crash, hoarders will have to sell, I hope its enforced, if you want to understand how absurd this math is, check the price of an egg in Nigeria, then compare the price difference to dollar and naira, a few people encouraged dollar scarcity to inflate their wealth vs the naira, if this is enforced, naira will rise.

Similar policies like this have been done before and it yielded no results, it lead to the dollarisation of the economy.

People stop accepting naira bills then cbn had to bring a circular in 2015 to make it a legal offense if you don't take naira notes

I’m in banking so nah the guy you quoted is not being kiddish .

The tight squeeze on USD access by CBN even at a time when global economies are contracting due to COVID and Naija being an import dependent economy was always laughable.


Most times the constant policy summersaults make me wonder if these guys just read an economics textbook and immediately apply it without asking themselves why they (economists) actually advocate local solutions to local problems.

Additionally, l I’m an APC supporter but still CANNOT understand why they (govt ) are still keeping our borders shut shut

ILoveDemMANNA:

What do kids know

If we have more funds come in as remittances, our foreign reserves go up, and when that happens, the confidence in the Nigerian economy will go up

PHIPEX:
It's not available because people moved their dollars to black market and Aboki kiosks. Where will the banks get it from?

A banker spotted. He is already making an excuse for why they cannot pay out in Dollar.

This policy is a mirage.

thebosstrevor1:


Nonsense analysis.

We dont use dollars in Nigeria

And most people dont care about dollar rate.

Inflation rate is what matters the most in a local economy

God bless you bro. I explained everything to him, but he is still arguing ignorantly.

Nice one... I once received $10,000 It was changed to naira without my consent

thebosstrevor1:



Similar policies like this have been done before and it yielded no results, it lead to the dollarisation of the economy.

People stop accepting naira bills then cbn had to bring a circular in 2015 to make it a legal offense if you don't take naira notes

I don't think this exact policy has been tried before, some schools and businesses and land owners insist on being paid in dollars, such practices have been banned, the idea is to increase demand for naira against dollar.

Please, who can help me get references to open a dormiciliary account...I don't have the references this bank people dey ask.

Thanks.

iamJ:
Not possible, I don't think this exact policy has been tried before, some schools and businesses and land owners insist on being paid in dollars, such practices have been banned, the idea is to increase demand for naira against dollar.

This is the policy CBN has been using.

Before, you can withdraw your dollars from your domiciliary account and go change it in the black market.

It was a normal thing to do before people started rejecting naira

Nigeria economy does not respect any known Economic Principle/Practice.
We have witch economy.
Apply a principle that works in every country's economy to Nigeria economy, it will still not work.
Make we just manage the economy as we see am.

Coldie:
Nice one... I once received $10,000 It was changed to naira without my consent

Without your consent.

Are you bigger than CBN that implemented the policy

This is absurd... Nigeria is sinking

FrankLampard:


How? or Dollar go plenty even for street, we go dey pick dollar for ground.

Welcome back to GEJ era!

thebosstrevor1:


Nonsense analysis.

We dont use dollars in Nigeria

And most people dont care about dollar rate.

Inflation rate is what matters the most in a local economy

We are an import based country. More than half the country are biz men and women into importation. They have to source for dollar from their savings to import goods. When they witness how expensive the dollar is, they’ll also raise the price of their goods to meet up. It’s pretty simple really