As long as the BDC/parallel market exists where proceeds of corruption can be laundered to purchase FX at any price, the Naira will never truly find it's value. There is no sensible economic theory that guides the BDC market and these people have billions to bet against the Naira to purchase FX. Either scrap it or automate their operations and make it impossible to operate without records.
You cannot scrap a black market. You can only make it unfavourable to patronize using such, or you dry up the source of funds to the black market (impossible as long as you have politicians stockpiling dollars for party conventions and primaries). Look around...which sector does not have a black market? Even sex which is supposed to be within marriage has numerous black market sources...hookups, runs girls, etc, etc, etc.
The real forex market in Nigeria is Aboki. They're governed entirely by the market forces of demand and supply. The so called official market is a scam governed by corruption
Supply side is unstable . The demand is higher than supply, so the Naira will remain what it is. Why is the demand higher than supply? It's because of inflation. The Naira has lost so much value, so people are keeping their money in USD. And fundamentally, we have REFUSED to do the needful which is reducing importation and boosting local production. The CBN Can't effectively manage the value of the Naira. It is economic activities that do that. We are in a recession due to low purchasing power and low productivity. Make we dey play.
As long as Nigeria produces nothing and imports everything, the Naira will always fall against the dollar and other currencies. Nigeria is still importing food, PMS and pharmacy drugs.
I think the way forward remains domestic production that reduces the pressure on demand for forex. Every other strategies would not help the street where millions of MSMEs SMEs play around
As far as there is parallel and official market the exchange rate will always suffer.. if cnb can just make this market one ..any country with more than one exchange market will always have problem of market speculator
Oga Ugo, I like you, but the official market is not the real market for the Naira, it has never been in the last 40+ years, that's forex 101. The so called official market is just a socialist arrangement by Nigeria's government to subsidize dollars for banks and others with the right connections. You also seem to adopt the government's refusal to acknowledge that Nigerians in the diaspora are the second if not the highest source of forex inflows into Nigeria despite the evidence. Dollars from diasporans has more impact on the exchange rate than these things you're mentioning.
The license for the system is $2500 per month and the minimum purchase in the market is $100,000 which a lot of BDC cannot sustain. Their operations by nature rely on informal activities that are usually not recorded
The highest demand of the dollar in Nigeria is the importer of petroleum after the politicians. So Dangote refinery coming on board cut it dawn to 50% joining with remittance from our people abroad for Xmas. So it has nothing to do with any expect of government. If there is anyone to thank it is Dangote,
Dollar is clearly heading to 2000NGN. It will hit that resistance of 2000 then we will see what happens. I think CBN is lying to say they will not interven. If it doesn't Naira will pass 2000. I think the best analysis I have head which makes sense is the one that said Naira appreciated because sellers were waiting to see the Bloomberg rate adoption.
Nigeria needs vibrant EXPORT industries that will generate FOREIGN EXCHANGE revenue for the country, and generate substantial employments through the development and industrialization of Nigeria's diverse natural resources. This is the only way create to rescue the economy from dangerous dependence on oil, diversify the economy, earn foreign exchange revenue, RAISE the VALUE of the LOCAL CURRENCY, and rescue the people from economic hardship that cause crime, insecurity and chaos. Nigeria does not even have the basic requirements for industrialization, such as stable and uninterrupted power supply. The countries to which Nigeria supplies Natural Gas for power generation have more stable power supply than Nigeria. Instead of investing to generate FOREIGN EXCHANGE REVENUE, State and Federal government are transferring scarce funds abroad, with the excuse of building road and infrastructure. Tinubu poured more than $13 Billion Dollars into Lagos-Calabar Coastal highway!!!!
Abeg . The people governing the country plus cbn and black market regulations are the problem. Nothing will change. International students like us we have seen it all enough of naira shit.. infact that lady u re beautiful
Once there is too much explanation to a simple situation, just know that is cock and bull story. All the countries I have lived and worked in do not have dual market scenario. Nonsense
Leave the Naira alone at this point you are creating a bigger problem, making forex available to the much richer companies or individuals will create another double market. Round tripping will start again. That mean naira could be heading to 3000 soon. Only production can help naira
Why can't you people say the truth when they call you on a show. Dangote refinery opening sale cut off 50,% of dollar demand nothing more nothing less. Importation of petroleum consume more than 50% of our dollar earnings,
Which “one is another gist I heard”? I watched you guys thinking you have good sources of information but instead ur twitter warriors as well with a mic, abeg rest unto better channels
The voice today is clear and penetrates the innermost part of the ear. Sharp analysis.
As long as the BDC/parallel market exists where proceeds of corruption can be laundered to purchase FX at any price, the Naira will never truly find it's value. There is no sensible economic theory that guides the BDC market and these people have billions to bet against the Naira to purchase FX. Either scrap it or automate their operations and make it impossible to operate without records.
You cannot scrap a black market. You can only make it unfavourable to patronize using such, or you dry up the source of funds to the black market (impossible as long as you have politicians stockpiling dollars for party conventions and primaries). Look around...which sector does not have a black market? Even sex which is supposed to be within marriage has numerous black market sources...hookups, runs girls, etc, etc, etc.
The real forex market in Nigeria is Aboki. They're governed entirely by the market forces of demand and supply. The so called official market is a scam governed by corruption
or increase your oil revenue like every first world country does instead of chasing shadow
The black or free market rate is the true value of the naira
Gbam
Supply side is unstable .
The demand is higher than supply, so the Naira will remain what it is.
Why is the demand higher than supply? It's because of inflation.
The Naira has lost so much value, so people are keeping their money in USD.
And fundamentally, we have REFUSED to do the needful which is reducing importation and boosting local production.
The CBN Can't effectively manage the value of the Naira. It is economic activities that do that.
We are in a recession due to low purchasing power and low productivity.
Make we dey play.
Accurate!!
Nigeria's economy needs to move from consumption to production to stabilize the Naira. Any other process is a temporary fix.
As long as Nigeria produces nothing and imports everything, the Naira will always fall against the dollar and other currencies. Nigeria is still importing food, PMS and pharmacy drugs.
So Informative and educative
Every1 is confused. Even the speaker is clearly confused. Nigeria happened to the naira😂 u go explain tire 😂
😂😂😂😂 I swear
A parallel market should never be allowed to determine value of a currency in a sane society.
I think the way forward remains domestic production that reduces the pressure on demand for forex. Every other strategies would not help the street where millions of MSMEs SMEs play around
Which other country, apart from Nigeria, in the world has multiple exchange rates for its currency?
As I will always say in Nigeria time is the greatest judge
The free or black market rate is the true value of the naira.
As far as there is parallel and official market the exchange rate will always suffer.. if cnb can just make this market one ..any country with more than one exchange market will always have problem of market speculator
The parallel market indicates true naira value
😀😀🤣🤣🤣
This drama is good
If we dont crash the parallel market
Round tripping is the order of the day - back to square 1
More guessing.
Why don't folks just say: I don't know.
Nigeria defies textbook economics.
Nigeria happened to the Naira 😂
What did I tell you in my response to the last video on the "appreciation?"
Oga Ugo, I like you, but the official market is not the real market for the Naira, it has never been in the last 40+ years, that's forex 101.
The so called official market is just a socialist arrangement by Nigeria's government to subsidize dollars for banks and others with the right connections.
You also seem to adopt the government's
refusal to acknowledge that Nigerians in the diaspora are the second if not the highest source of forex inflows into Nigeria despite the evidence. Dollars from diasporans has more impact on the exchange rate than these things you're mentioning.
Why can’t CBN just instruct BDCs to use quotes on Bloomberg terminal EFEMS for transactions.
Cabals run the BDCs and most of them are in power! Naija is messed up.
The license for the system is $2500 per month and the minimum purchase in the market is $100,000 which a lot of BDC cannot sustain. Their operations by nature rely on informal activities that are usually not recorded
The knee jerk reactions were totally ridiculous and irrationally exuberant.
The highest demand of the dollar in Nigeria is the importer of petroleum after the politicians. So Dangote refinery coming on board cut it dawn to 50% joining with remittance from our people abroad for Xmas. So it has nothing to do with any expect of government. If there is anyone to thank it is Dangote,
Dollar is clearly heading to 2000NGN. It will hit that resistance of 2000 then we will see what happens. I think CBN is lying to say they will not interven. If it doesn't Naira will pass 2000.
I think the best analysis I have head which makes sense is the one that said Naira appreciated because sellers were waiting to see the Bloomberg rate adoption.
you go explain tire
Nigeria needs vibrant EXPORT industries that will generate FOREIGN EXCHANGE revenue for the country, and generate substantial employments through the development and industrialization of Nigeria's diverse natural resources. This is the only way create to rescue the economy from dangerous dependence on oil, diversify the economy, earn foreign exchange revenue, RAISE the VALUE of the LOCAL CURRENCY, and rescue the people from economic hardship that cause crime, insecurity and chaos. Nigeria does not even have the basic requirements for industrialization, such as stable and uninterrupted power supply. The countries to which Nigeria supplies Natural Gas for power generation have more stable power supply than Nigeria. Instead of investing to generate FOREIGN EXCHANGE REVENUE, State and Federal government are transferring scarce funds abroad, with the excuse of building road and infrastructure. Tinubu poured more than $13 Billion Dollars into Lagos-Calabar Coastal highway!!!!
So naira gaining now what’s the reason you go explain tire
Abeg . The people governing the country plus cbn and black market regulations are the problem. Nothing will change. International students like us we have seen it all enough of naira shit.. infact that lady u re beautiful
Once there is too much explanation to a simple situation, just know that is cock and bull story. All the countries I have lived and worked in do not have dual market scenario. Nonsense
I already called out the BS reason given in the last video so pls nothing till a price is steady for 7-9 months
And I send €2000 on Monday for €1 to 1550 naira, now it’s €1 to 1750 naira, lost 500k for this nonsense unstable currency
Leave the Naira alone at this point you are creating a bigger problem, making forex available to the much richer companies or individuals will create another double market. Round tripping will start again. That mean naira could be heading to 3000 soon. Only production can help naira
cbn intervened last week as usual
You go attempt dey explain Nigeria? 🤣🤣... You go explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain explain tire.
No evidence 🤣🤣🤣🤣😂😂😂
Why can't you people say the truth when they call you on a show. Dangote refinery opening sale cut off 50,% of dollar demand nothing more nothing less. Importation of petroleum consume more than 50% of our dollar earnings,
Which “one is another gist I heard”? I watched you guys thinking you have good sources of information but instead ur twitter warriors as well with a mic, abeg rest unto better channels
Una go use grammar dey deceive una selves, once the country is not productive any rise of naira na big fake
You guys seem confused