Hmmmm!
How do we get the Naira outta this mess? Which BV is hoarding dollars? Who thinks they have a solution?
Friday, November 10, 2023
Naira High And Naira Low Brouhaha
What is going on with the Naira flunctuating? it is like some Nigerians do not want the Naira to appreicate because they have dollars that they are hoarding and waiting for the increase so that they can quickly change and buy again when it is low to resell......
Hmmmm!
How do we get the Naira outta this mess? Which BV is hoarding dollars? Who thinks they have a solution?
Hmmmm!
How do we get the Naira outta this mess? Which BV is hoarding dollars? Who thinks they have a solution?
36 comments:
Disclaimer: Comments And Opinions On Any Part Of This Website Are Opinions Of The Blog Commenters Or Anonymous Persons And They Do Not Represent The Opinion Of StellaDimokoKorkus.com
Pictures and culled stories posted on this site are given credit and if a story is yours but credited to the wrong source,Please contact Stelladimokokorkus.com and corrections will be made..
If you have a complaint or a story,Please Contact StellaDimokoKorkus.com Via
Sdimokokorkus@gmail.com
Mobile Phone +4915210724141
Subscribe to:
Post Comments (Atom)
Interesting much
ReplyDeleteSome are even happy and hoping that the naira depreciate in value the more
That’s so sad. I don’t know how someone will be so mean and claim it’s business.
DeleteOnce Nigeria is not producing anything to export and get dollars and our non calculative Leaders are still borrowing, dolllars will not go down anytime sooner
Delete@Milkshakes, it has nothing to do with wishing, or wishing bad luck, wishes are not horses..
DeleteMy dear you shouldn’t blame them. I’m one of them. It’s easier to sort problems at home with small money since my parents ain’t even earning anyway. Even though I love my country and wish things were better but in all honesty I want naira to keep depreciating.
DeleteNa top top people for this country naim dey do this thing I swear . Mostly politicians na them especially no want make the thing go down . Awon billionaire and millionaire isonu
ReplyDeleteMamannukusdkblogceleb
My sister the matter tire person. That is why they can’t be innovative and smart enough to establish businesses that can rollover the funds. They know that their wicked acts will stand as posterity in their face.
DeleteGod please help us 🙏
11:08,
DeletePlease be informed that the racketeers are people like you and I. 7 out of 10 of the people doing this are not politicians.
People are cleaning out, and NO, they are not politicians.
The average Nigerian is more concerned with "self" and how much richer they can be than their neighbours, church/mosque members, village cronies etc etc.
They don't Mind that they are hurting us all, and even themselves in the long run.
Anon 12:23, while I don’t dispute your statement, I want to reply this part: The average Nigerian is more concerned with "self" and how much richer they can be than their neighbours, church/mosque members, village cronies etc etc.
DeleteMay I ask what is wrong with this? So you think of your village before thinking of the problems in your own house? The countries we admire all operate like this. It’s capitalism, plain and simple.
The challenge is preventing abuse, and instituting STRONG SYSTEMS AND CONTOLS AND LAWS that guide the operations of the individuals/corporates to ensure all that play, play fair (or as fair as possible).
That is where we have failed; though you are correct individuals take advantage of the arbitrage in Nigeria’s Fx regime, there would be nothing to take advantage of if Nigeria did the right thing abinitio - I.e, never subsidising the FX. Never ever.
Next thing is though individuals are involved, the people really moving the rates abysmally are those with capacity to manipulate the demand side (via hoarding forex) and the supply side (via pressing buttons to get Fx allocations from the CBN under false guises). The roundtrippers are the major issue we have, aside the ill advised subsidy and paucity of FX earnings. And the volume needed to cause this problem is largely driven by people entrusted with responsibility for running Nigeria in diverse capacities - either as corrupt CBN and bank officials or corrupt businessmen with corrupt political connections in high places.
So in a very simplistic sense, mamannukwu is correct - na the top top people dey screw us over for this country.
Mystic
So after all Nigerians have received from the government free or subsidized: education, healthcare, road, electricity etc, it is still government that will establish businesses for you? Which one do you want to do gangan?
Delete8 out of ten Nigerians will live and die without filing a dime in taxes and you still want government to be your God after leaving you to enjoy all of your income?
Without the needed funds, you can't fund a welfare State unless you borrow yourself into penury as we have been doing for decades. Please let us understand where responsibilities lie.
It's the hoardings of dollars. In the name of trading. Very greedy lots.
ReplyDeleteI wish this act can just stop
ReplyDeleteNot helping our economy at all
That was why they kept Tinubu as their president so that this up going dollar thing will not stop.
ReplyDeleteThe people hoarding dollar and the ones that receive $ from abroad from time to time won't want the naira to appreciate. They totally forgot its negative effect on the economy.
ReplyDeleteNigerians are the ones destroying the economy but then, let's blame Tinubu.
ReplyDeleteYou make a lot of sense. For your mind.
DeleteYou have a point cause some peeps are trying to be more foreign than the foreigners themselves by patronizing everything they churn out whilst ignoring them local ones
DeleteThey are hoarding the Naira and calling it business. Mtcheeew
ReplyDeleteYes. It is absolutely the fault of mere Nigerians hoarding billions of dollars in the bullion vans parked in their driveways. Infact it is a normal sight now. 🚶🏽♀️🚶🏽♀️🚶🏽♀️
ReplyDeleteHmmmmmm
ReplyDeleteE tire me abeg
Laziness pure and simple. Instead of strategically position and establish businesses, most of our so called elite simply engage in hoarding forex and currency round tripping. That's the major source of money of Dangote and indeed most of these so called rich men.
ReplyDeleteThey will do every to frustrate government. It doesn't matter how many billions of dollars the CBN pumps into the economy. These people will find a way to mop it up.
When former CBN governor came out and openly accused Dangote of making billions through buying and selling of dollars no one took him serious. This matter is not ending any time soon.
Thank you, thank you and thank you.
DeleteMystic
Thank you.
DeleteThe former CBN governor was a real piece of work and the major enabler of Dangote, his former and actual boss, to hoard dollars. The CBN governor was one of those who, as a thank you, facilitated the making available of dollars at a subsidized rate for Dangote to finance his private company and the refinery that is it's major business in the name of "biggest in Africa" as if that would benefit the average man. Of course, he would delay to make up the profit in the black market and that's where we are now. It's the same thing with those who obtained discounted forex to stock their supermarkets with non essential imports to kill manufacturing jobs here. Human tendencies should be planned into policy because those complaining the loudest may actually be the greatest contributors to the situation in question.
DeleteIts not hoarding
ReplyDeleteThey are not hoarding enough to create this situation
Our exports are way down and we need to tackle that scenario
We didn’t have good refinery when tinubu removed the . That also put pressure on the economy
God bless you. How does it even make sense to insinuate it is mere individuals doing it? Do we know the basics of economics at all?
DeleteThank you. Shame wan catch me reading comments. As if economics is no longer a subject in school. They think people's wishes have economic influence? How many Nigerians even get dollar? Abi the pitiful sums of dollars few citizens get from their siblings abroad? Mtschew. We know the problem jare. It's not rocket science to figure out😏
Delete@13:21, I’ll just say this, when prices fluctuate widely within a short period of time, it’s no longer explainable by economic theories alone.
DeleteEconomic theories almost always have a lag in the market response. The main factor causing these spurious movements is the activities of ‘speculators’. And the more volume controlled by speculators, the worse and more unpredictable the price movements.
The only way govt can counter the speculation is have more than enough dollars to flood the market and make it unprofitable for these hoarders to keep hoarding. This has to be done and sustained for a while, not just one week. But can Nigeria afford that? No. We don’t have the funds.
So the little we have which is at the mercy of corrupt govt officials and their cronies, will be wasted on round tripping.
You really have to know how deep this rot goes. Doesn’t matter what reforms are done, the CBN and the banks (especially their Heads of Treasury) are a big part of our problems.
Also, Tinubu should have never removed subsidies from both FX and fuel at the same time. That’s was a poor policy choice, cos the downstream impacts of both are massive.
Last last, Nigeria must go through a belt tightening period if ever it will get better. Just wish we had more sincere and trustworthy people steering this ship.
Mystic
Thanks for your comments Mystic, that's what I want to read, intelligently crafted and thought out response. Not those who think it's by wishing. So what if they wish? There will always be people who will wish and profit on the highs and lows of the economy. Some companies profited from covid (masks, hand sanitizer, pharma) and some lost (tourism, entertainment industries). Restaurants profit from your hunger, funeral homes profit from death. Smart investors buy the dip in the stock market and so on. As long as life remains, profit and loss will go round. Man is capitalist in nature. It is the duty of the government to strike a balance in mixed economics like Nigeria. Our problem is the government always makes rash decisions, instead of careful thought out decisions. Do they have economic forecasters at all? Abi whatever comes to mind, they do. Well, they are trying to flood dollars already, seeing that remittance is now in dollars. But I think they are trying so many policies at the same time.
DeleteSecondly, as far as I'm concerned, we need a strong opposition for democracy to thrive. APC is in power. It is very necessary for other 2 top parties to criticize their every move and keep them on their toes. Let such conversations be welcome.
Hnmmm it is well.
ReplyDeleteWhat is happening today is a situation any economic thinking mind saw years ago. Unless we move from consumption to production, the naira is doomed to fall. It is basic economics 101. Now I understand why Obi ran on that mantra. It is critical for Nigeria to produce and to export. If not, oyo is our case oh.. he who has brain, let him think.
ReplyDeleteThank you. And the best time to do this was years ago. The next best time is now. You can’t get results immediately, those new businesses have to grow and be profitable and sustained for Nigeria to see the impact. It is not immediate and delay is costly.
DeleteAll other approaches are just costly bandaids.
Mystic
It's CBN's fault. They made trading in forex (foreign exchange) to be very lucrative.
ReplyDeleteSolution to this: Increase interest rates (not advisable as a developing economy) but that is the best step to take.
The result: Forex speculators will switch from investing in foreign exchange to investing in the money market.
It has little or nothing to do with CBN or Tinubu now. There is a guage for naira performance. I don't want to share it because Nigerians love to abuse opportunities. All of you go gather go spoil it for all man.
ReplyDeleteThey do not teach economics again in Nigerian schools. Forty years ago we did it in 7th grade. It’s basic demand and supply. Everything from grocery to flowers to Swiss lace to fridge to furniture to clothes to cars to building materials is imported, bought with $. People boast with luxury purses of $45k, $10k, tourism travels with first class tickets, destinations on IG have to be abroad to be posted, etc. All these are in $, the currency of international trade. At some point India banned importation of ALL non essentials and from president to cleaner used their own brand called “Ambassador” over 35 years ago, until they became a manufacturing power house. If you don’t manufacture and export, where is $ coming from that all that Naira is chasing? It’s not just the speculators or racketeering folks though they would have been arrested in saner climes but total lack of good governance and policy making including population control and ban on unnecessary imports. Imagine using $ to import used clothing from Salvation Army! Or Grocery or Owambe lace! It starts from purposeful leadership to patriotic follower ship. Even america that manufactures high tech still use “buy American” to market things by appealing to the sense of patriotism of 🇺🇸! Yes Nigerians abroad remit about $21bn annually, next to oil money, but local manufacture is a matter of urgency. That Prado nonsense was insensitive.
ReplyDeleteStart manufacturing, chase out the Chinese from your gold and mineral deposits with the kings, obas and looter collaborators so that the money doesn’t end up in China & private pockets, stop this obsession with imported goods.
Lastly population policy is needed though our appetite for polygamy in a misogynistic society will scuttle it. UAE had less than a million population in 1990, Nigeria had 90m. 2023 UAE is about 8mkikn and very developed, Nigeria is about 250 million with 71 million of the poorest people on earth! Yet it’s always relationship & sex talk by the youths and even some policy advisers. Religion is used to justify pedophilia and polygamy whereas Saudi Arabia the home of Islam has less than 5% adult men practicing polygamy! Yes, polygamy is not common in Islamic world outside Africa. Indonesia has the largest Muslim population but its Africans that love that section of their religious doctrine. Credible opposition to put government on its toes is needed. Not everyone should be bribed or co-opted into silence. It breeds dictatorship. “Critics are the unpaid guardians of our souls”. All this obsession with sex talk is idolatry. It’s Baal worship.May God deliver Nigeria from itself.
👏 👏 👏
Delete