jedisco:


What people don't understand that fixing an exchange rate is easy. Defending it is the hard part. If it was all about the CBN deciding what the exchange rate would be, every country will fix their exchange rate and go to sleep. Those folks you mentioned were able to sustain the rate they fixed by deploying foriegn reserves and earnings and made whatever rate they fixed largely available for all. Not allow a way to create billions out of thin air. Personally, I don't believe using scarce forex to continuously defend a currency is ideal, but you can do that when you have the reserves or inflow. You could read Sanusi's interview with the Financial times on this matter.

Hope you know that most of our imported petrol is based on crude oil swaps and not bought outrightly?
We're not the first to introduce some of these measures. . Lebanon did exactly same thing. Their central bank even created an exchange portal and promised huge interests for those who sent forex in.. We know how that ended

Talking about sound minds in our economic team...lol... Look around you and see the result. If not that IMF insisted, Our sound minds were ready to take a dollar loan that would have been wasted on subsidizing thesame dollar.

No need going back and forth... They should keep giving folks 20% discount on the dollar. Indigenous companies that struggled to make profit are now guaranteed 20% in days if they know who to bribe. More and more people are learning ways around it and some are already making a killing. Soon enough, we'd see where it leads

Ok sir,I watched sanusi on TV on this matter.Ask sanusi why didn't he do that during his tenure.Or was the present different from his time.The only difference we had more reserve and crude price was better

Biafran4life:
Ok sir,I watched sanusi on TV on this matter.Ask sanusi why didn't he do that during his tenure.Or was the present different from his time.The only difference we had more reserve and crude price was better

You're getting me wrong. It isn't about comparing the past and the present. But then, when Sanusi was there, we has a pretty much even rate.


I'm not necessarily against CBN fixing an exchange rate. I believe every central bank (more so of developing nations) should have good control over their currency. This can be achieved via multiple means. CBN can say 1 naira to a dollar... No problem...but they should defend it. They should not use the commonwealth of the whole nation to subsidize forex for a few people. The effects of devaluation are felt by all Nigerians so I don't see why a select group of people have access to subsidized forex.

My point is that all Nigerians should access forex at same rate (whether 1 or 1000) because we all bear the effect of devaluation. If the government wants to support a group, there are multiple ways to achieve that.

skydiver01:
Lets hope the madness (multiple divergent fx rates) ends very soon

We hope... Like someone said, Nigeria is a country that keeps repeating same mistakes knowing very well it would cause same problems...

The early ones with access are buying houses anyhow. Just like subsidy of 2012, by the time what's going underneath is out in the open, people will be shocked.

I do not think we have ever had one exchange rate in recent memory, even during Abacha's time when he pegged his exchange rate at 22 naira, the black market was around 77-80 naira, the major difference between then and now was the lust for imported goods.

jedisco:


You're getting me wrong. It isn't about comparing the past and the present. But then, when Sanusi was there, we has a pretty much even rate.


I'm not necessarily against CBN fixing an exchange rate. I believe every central bank (more so of developing nations) should have good control over their currency. This can be achieved via multiple means. CBN can say 1 naira to a dollar... No problem...but they should defend it. They should not use the commonwealth of the whole nation to subsidize forex for a few people. The effects of devaluation are felt by all Nigerians so I don't see why a select group of people have access to subsidized forex.

My point is that all Nigerians should access forex at same rate (whether 1 or 1000) because we all bear the effect of devaluation. If the government wants to support a group, there are multiple ways to achieve that.

ojesymsym:
I do not think we have ever had one exchange rate in recent memory, even during Abacha's time when he pegged his exchange rate at 22 naira, the black market was around 77-80 naira, the major difference between then and now was the lust for imported goods.

No need blaming the average Nigerian. Though from 2015, this link does justice to your statement.
https://qz.com/africa/564513/a-not-so-brief-history-of-the-fall-and-fall-of-the-nigerian-naira/

Two quotes from it I find quite succinct there are:

"The naira was trading as high as 88 naira to $1 while the official rate remained 22 naira. Many banking fortunes that remain till this day were made then."

And..

"The moment oil prices crash, businesses and transactions that were perfectly legal suddenly become ‘unpatriotic’."

Don't get me wrong, lots of folks even on this thread have made a killing from it. Much of that wealth may even persist to future generations. It's a dog eat dog world.

jedisco:


You're getting me wrong. It isn't about comparing the past and the present. But then, when Sanusi was there, we has a pretty much even rate.


I'm not necessarily against CBN fixing an exchange rate. I believe every central bank (more so of developing nations) should have good control over their currency. This can be achieved via multiple means. CBN can say 1 naira to a dollar... No problem...but they should defend it. They should not use the commonwealth of the whole nation to subsidize forex for a few people. The effects of devaluation are felt by all Nigerians so I don't see why a select group of people have access to subsidized forex.

My point is that all Nigerians should access forex at same rate (whether 1 or 1000) because we all bear the effect of devaluation. If the government wants to support a group, there are multiple ways to achieve that.

You are confusing me.I dislike this government like mad because of other things.Nevetheless,I don't see what they are doing different when it comes to cbn..How many exchange rate do we have.i can't agree that those 41 items on the cbn list should access dollars at government rate . Defending the naira is the same thing as subsidizing it.If you qualify for it they give tyou hrough government windows that I know.Do you remember during abacha ,he placed dollars at #22.and things wr still ok.The problem is the madness to import even water.And the demand for everything abroad from services to products even when we can create local alternative.Personally I don't care about the black market price of dollars if you can afford it.God be your helper

When is the next outing for Treasury Bill investors in the primary market?

emmanuelewumi:
When is the next outing for Treasury Bill investors in the primary market?

tomoro

cmoney22222:
tomoro

Thank you.

jedisco:


I usually don't trade derivatives.
My bank allows me purchase spot in app (not physical) and given my knowledge of market structure, I find that easier to use.

That said, it's not something I do regularly as I find the market slow moving and more of a hedge than an investment. Picked up some after the covid crash and sold after a while.

What do think about copper? Has strong bullish thesis based on EV and renewables.

Biafran4life:
You are confusing me.I dislike this government like mad because of other things.Nevetheless,I don't see what they are doing different when it comes to cbn..How many exchange rate do we have.i can't agree that those 41 items on the cbn list should access dollars at government rate . Defending the naira is the same thing as subsidizing it.If you qualify for it they give tyou hrough government windows that I know.Do you remember during abacha ,he placed dollars at #22.and things wr still ok.The problem is the madness to import even water.And the demand for everything abroad from services to products even when we can create local alternative.Personally I don't care about the black market price of dollars if you can afford it.God be your helper

What you call a "madness to import" is simply the effective collapse of the SME sector.

Yes

afroxyz:


What do think about copper? Has strong bullish thesis based on EV and renewables.

emmanuelewumi:
Inflation is about 10% per annum.


@ 20% inflation rate , rent of N120 in 1983 should be about N125,000 in 2021

Hmm. Though you have the figures im still trying to get my head around the fact that N100 rent in 1983 beats inflation

jedisco:


You're getting me wrong. It isn't about comparing the past and the present. But then, when Sanusi was there, we has a pretty much even rate.


I'm not necessarily against CBN fixing an exchange rate. I believe every central bank (more so of developing nations) should have good control over their currency. This can be achieved via multiple means. CBN can say 1 naira to a dollar... No problem...but they should defend it. They should not use the commonwealth of the whole nation to subsidize forex for a few people. The effects of devaluation are felt by all Nigerians so I don't see why a select group of people have access to subsidized forex.

My point is that all Nigerians should access forex at same rate (whether 1 or 1000) because we all bear the effect of devaluation. If the government wants to support a group, there are multiple ways to achieve that.

At the bolded, well said, and agreed.
The problem with Nigeria's corrupt government is that there is always either stupidity or corrupt self-interest or both involved in all these policies, so no-one is taking the country's interest into account. And fixing an exchange rate is fine as long as you have an economy to support it, which Nigeria patently does not have. The recent naira for dollar gimmick shows clearly what we've all known all along, that the pressure on the naira and its continued defence are unsustainable.

emmanuelewumi:
When is the next outing for Treasury Bill investors in the primary market?

Oga Emma, are you about to shift to TBs?.

NL1960:


Oga Emma, are you about to shift to TBs?.

I think Oga Emma is just trying to steer the direction of discussions back to investments

Lazyyouth4u:


I think Oga Emma is just trying to steer the direction of discussions back to investments

It is just like Emefiele trying to impose an exchange rate on the dollar

cmoney22222:
tomoro

Please how do I track this next TB that will be out tomorrow? And buy if interested

afroxyz:


Hmm. Though you have the figures im still trying to get my head around the fact that N100 rent in 1983 beats inflation

I always tell people to invest in income generating and capital appreciating assets, with inflation and currency devaluation at the end of the day on the long run when assets are repriced you will still come out fine

Make sure you don't over pay for such assets sha

Go to the bank today before 4 and fill the form for ToMoro auctions

Opzyyy:


Please how do I track this next TB that will be out tomorrow? And buy if interested

NL1960:


Oga Emma, are you about to shift to TBs?.

I monitor fixed income and Treasury Bill space and use it to guide me as per the stock market Investments.

ASI should come down to 35,000 by June 2021

emmanuelewumi:


I monitor fixed income and Treasury Bill space and use it to guide me as per the stock market Investments.

ASI should come down to 35,000 by June 2021

What about the CBN and Buhari’s exchange rate and economic policies? Do they not guide stock market investments?

Lazyyouth4u:


What about the CBN and Buhari’s exchange rate and economic policies? Do they not guide stock market investments?

They do. On the long run, assets and well managed businesses will be repriced

Check my signature if you need a loan

emmanuelewumi:


I monitor fixed income and Treasury Bill space and use it to guide me as per the stock market Investments.

ASI should come down to 35,000 by June 2021

Is that the best time to buy on NSE?

LauraClasikVibe:
Is that the best time to buy on NSE?

I buy regularly, you can't time the market.

Sold 95% of my UBA shares and First Bank shares today, the fund will be invested in money market fund while hunting for bargains.

Zenith Bank, United Capital and APR dividends that will be paid this month will also go to money market funds.

Hopefully we should get a 10% or more pull back in ASI by June 2021 and then come in to buy stocks with juicy dividend yields

cmoney22222:
Go to the bank today before 4 and fill the form for ToMoro auctions

Pls help...i went to d Bank and was told to include my rate. Don't know the rate to put so woh do i do

cutedharmee:

Pls help...i went to d Bank and was told to include my rate. Don't know the rate to put so woh do i do

Always safer to go with the bank's rate

emmasoft:


Always safer to go with the bank's rate

Good thing to do but what if the bank doesn't trade? Let him stay between 5%-7%

E non go pass fidelity bank?

cutedharmee:

Pls help...i went to d Bank and was told to include my rate. Don't know the rate to put so woh do i do

Sorry just getting this now. The bank will bid for you if you don’t meet their monetary value threshold for personal rate. on

cutedharmee:

Pls help...i went to d Bank and was told to include my rate. Don't know the rate to put so woh do i do

afroxyz:


What do think about copper? Has strong bullish thesis based on EV and renewables.

Not much... Unsure how it's market moves. Haven't traded it before... My hands are rather full now. Trying to limit myself to stuff that have yeilded positively for me