At Last, Central Bank to Introduce Flexible Exchange Rate Regime | THISDAYLIVE
Joe Attueyi
Totally foreseeable and totally avoidable
Issoraight o!
Joe
http://www.thisdaylive.com/index.php/2016/05/25/at-last-central-bank-to-introduce-flexible-exchange-rate-regime/
Sent from my iPhone
John Ebohon
The analysis below by SteveK (Compound fool), simplistic as it may be, captures the essence of the arguments against devaluation. As said, it only benefits if the country has a diversified export base, otherwise, the country will be transferring real resources it could use itself to other countries.
As rightly pointed out, oil is the main thing we export that fetches the bulk of the foreign exchange we rely for development. Oil prices and quantity are fixed by OPEC and for what purpose do we devalue the Naira – to allow foreign firms, in the guise of Foreign Direct Investment (FDI) come and asset strip Nigeria? Referring to cassava that has been raised – this is another adverse effects of devaluation that I mentioned earlier on in one of my responses to this issue that has been largely ignored. The price of cassava is now beyond the reach of the average Nigerian, as it is mainly produced and sold abroad for ‘hard currencies’ that exporters hardly repatriate back to the country, resulting in a lose-lose, as opposed to a win-win situation; locals are denied their staple food, and the foreign currencies obtained from the export of such commodities do not return back to Nigeria.
If industrialisation is the strategy, it makes sense not to devalue and source the industrial equipment for industrialisation. However, added point raised by SteveK regarding the quality of industrial products is a double edge sword. Critics would argue that pursuing industrialisation is a futile exercise if industrial outputs would be considered inferior to locally produced goods, and given local tastes for imported goods and services, these industries, no matter how protected under the ‘infant industry’ protection strategy, may never be able to compete with imports.
A counter argument would be that many products from Nigeria – tomato puree, toothpastes, soaps, etc etc sell very well at home and consume by more than 80% of Nigerians who can afford it. In other words, the imports that get sucked in that cost us huge foreign exchange allocation are to satisfy the taste and preferences of about 20% of Nigerians. One can also point to the fact that Nigerians in the Diaspora massively consume these products – Guinness, Gulder, Star, Fanta, Maltex etc etc; body lotion and cream of all sorts. The difference is that these items are imported in wholesale sizes and packaged in the Europe and America – something that is rapidly gaining ground now in Nigeria. If we devalue, the packaging machines, papers, and other complimentary inputs would become unaffordable.
To cut the story short, here is a man that has been elected into office on the promise that he would do things differently. Four years is like yesterday, indeed, a year is almost gone – so, he should be allowed to pursue his policies as he deem fit. If at the end of the day, he fails, he will be the one that carries the consequences. No doubt some or many would suffer along the way, so long as this pain and suffering are equally shared, it should easily be internalised or accommodated.
OJ
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Subject: [NIgerianWorldForum] Re: ||NaijaObserver|| At Last, Central Bank to Introduce Flexible Exchange Rate Regime | THISDAYLIVE
Imperial,
Let me start out by making clear that I don't know any high-faluting economic or monetary theories; just commonsensical observation from history.
Devaluation does not benefit the importer. It benefits the exporter. This is because it is profitable to you if, for the same cost you produce an item, the importer has devalued its currency to pay more your product at constant cost.
The importer, it just spends more to get less. And if devaluation goes far enough - like in Zimbabwe - the importer cannot afford much anymore and it begins to hurt the exporter. It is at this point that the exporter, itself, begins to fight against devaluation to keep the importer from zero consumption.
It is a simple game.
That is why the only remedy against a declining currency - as the Naira is - is not devaluation but increase in exportation for Nigeria.
But exportation of what?
Currently, the only export Nigeria can bank on is oil. Even so, hardly any importer is waiting in line to import Nigerian oil.
Going by a recent report, and the only things Nigerians have to export is cassava (just read that from a Calabar farm), probably, only to West African countries and, possibly, to Latin America where they use in loco manioc or yucca (a related species to West African cassava).
Nigerian manufactured products, generally, are mere inferior local substitutes. The local substitutes - that others are extolling - are substitutes because of their inferior quality and have value only in Nigeria. So, how do you propose that they are exported? Exported to those who already make the superior quality of the same product that will sell cheaper in their societies than the inferior Nigeria equivalent?
That's why Nigerians prefer imported products. Therefore, Nigerian substitutes, which Nigerians will be stuck with if importation is banned or severely limited with be mere punishment without long term value.
Some of those who favor devaluation (not littleboy and his ilk) mean well, but I think that they have unintentionally or deliberately avoided considering this important link in the chain.
No one will buy Nigerian products until they are improved. And if Nigeria is not exporting in a meaningful way, the Naira will continue to go the Zimbabwean way, i.e., interminable devaluations.
So, the solution is not to devalue but to improve the quality of existing products for export and increase exportation significantly, even if the only thing we are exporting is the likes of Jonathan to the Ivory Coast!
That's how the Chinese did it under Mao Zedong when they cut themselves from the world for 30 years.
No, what Pres. Buhari is doing is not even a partial answer; just caving in out of desperation to be hated less. China would be in Nigeria's position if Mao Zedong acted to be hated less because he, too, was really hated early in his time.
Stevek
Mitchellville, Maryland
The most dangerous trend in the world today is the growing awareness of the common man - Zbigniew Brzezinsky 1978
A wise man proportions his beliefs with evidence - David Hume
From: "Imperial
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Sent: Wednesday, May 25, 2016 11:51 AM
Subject: Re: ||NaijaObserver|| At Last, Central Bank to Introduce Flexible Exchange Rate Regime | THISDAYLIVE
Partial ok answer .
Sent from my iPhone
On 25 May 2016, at 3:45 PM, C15201947
c152...@aol.com [NaijaObserver] <NaijaO...@yahoogroups.com> wrote:
The solution is not the draconian devaluation of naira.
What will change the perpetual exercise in futility is investments in Nigerian economy
and citizens. Quality education, good roads, steady electricity, clean drinking water,
quality hospitals, tight security...are what will spur citizens to produce and boost GDP.
But first thing first, political stability; for naira to have value, Nigerians must have control of their government and be able to elect who leads them in a free and fair elections. Until then any intervention in the downward draft of naira and economy is a waste of time.
Sent from my iPad
On May 25, 2016, at 12:14 AM, Little Boy thinkl...@gmail.com [NaijaObserver] <NaijaO...@yahoogroups.com> wrote:
WE PREDICTED IT THAT THE GOVERNMENT WOULD EVENTUALLY SMELL THE COFFEE AND DO THE RIGHT THING THOUGH OUR 'ECONOMIST' FRIENDS ABUSED US AND SAID MR PRESIDENT WAS RIGHT TO RULE OUT DEVALUATION IN AN ATMOSPHERE OF LOW FOREIGN RESERVES, LOW SUPPLY AND HEIGHTENED DEMAND FOR FX.
WE'VE BEEN VINDICATED.
NOW, IFTHE GOVERNMENT/CBN COULD DO THIS ALL THIS WHILE, WHY WAIT UNTIL THE VISIBLY AND EXTREMELY WRONG CURRENCY POLICY BROUGHT THE ECONOMY TO ITS KNEES AND TOOK US INTO RECESSION? WE'RE NOW DEVALUING THE NAIRA BEYOND WHERE IT WOULD HAVE SETTLED HAD WE TAKEN THE RIGHT STEPS OF CONTROLLED DEVALUATION AT THE RIGHT TIME.
THE CBN IS BLAMING THE DELAYED 2016 BUDGET FOR THE DISMAL SITUATION WHERE OUR ECONOMY CONTRACTED FOR THE FIRST TIME IN 25 YEARS. IF THAT TRULY IS THE REASON, THE GOVERNMENT, THE OWNER OF THE BUDGET PROCESS, CAN NOT ESCAPE BLAME FOR THE DELAYED BUDGET. BUT AS IMPERIAL AND SOME OF OUR FRIENDS ARGUED, THIS WAS NOT THE FIRST TIME A BUDGET WAS SO DELAYED IN OUR HISTORY. WHY IS THIS CASE DIFFERENT TO HAVE CAUSED US THE FIRST GDP CONTRACTION IN 25 YEARS? IT WAS LARGELY THE WRONG CURRENCY POLICY THAT BROUGHT THE INDUSTRIES AND PRODUCTIVE SECTORS TO THEIR KNEES EXCEPT FOR SOME PRIVILEGED FEW IN THOSE SECTORS.
IT WAS INEVITABLE AND ONLY A MATTER OF TIME FOR SOMETHING TO GIVE, AND NOW THE GOVERNMENT HAS BOWED TO PRESSURE AND OFFICIALLY DEVALUED THE NAIRA BUT STILL LEAVING A WINDOW FOR SUBSIDISED FX FOR "CRITICAL IMPORTS" IN A SECTION OF THE FX MARKET. MOST INFORMED NIGERIANS WOULD BE INTERESTED TO KNOW WHAT CONSTITUTES THE "CRITICAL IMPORTS" AND WHO GETS WHAT UNDER THAT DEFINITION.
WHAT WE KNOW IS THAT A MARKET SITUATION WHICH ALLOWS FOR ARBITRAGE IN THE SAME MARKET IS ALWAYS AN AVENUE FOR RENT AND CORRUPTION AND ALWAYS SUBJECT TO ABUSE. WE ALL REMEMVER THE RECENT CONTROVERSIAL ADVERTISEMENTS BY BUA GROUP THAT DANGOTE WAS BEING FAVOURED OVER THEM IN SUBSIDISED FX ALLOCATION. SOON AFTERWARDS, THE NOISE DIED DOWN AND MANY PEOPLE SAID BUA WAS APPEASED WITH PRIOTISED FX ALLOCATION TOO. WE DON'T KNOW THE EXACT DETAILS OF WHAT TRANSPIRED BUT ARBITRAGE WOULD ALWAYS BRING SUCH ISSUES AND SUSPICIONS.
WE HOPE WE DO THE RIGHT THING BY MERGING THE TWO WINDOWS EVENTUALLY.
Sent from my BlackBerry 10 smartphone.
From: Joe Attueyi topc...@yahoo.com [NaijaObserver]
Sent: Wednesday, 25 May 2016 06:40
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Subject: ||NaijaObserver|| At Last, Central Bank to Introduce Flexible Exchange Rate Regime | THISDAYLIVE
Wharf Snake
Agwo emeghi nke o jiri buru agwo,umuaka achiri ya hie nku
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John Ebohon
“A tax on those items could be 100% of their values to discourage it. Those buying these items are mostly public servants or their cronies” – SteveK
Look, this will simply make customs and immigration men and women billionaires. Benin Port would boom again. Also, there is the concept of efficient tax. If the cost of policing and collect an imposed tax exceed the revenue that may accrue, it becomes inefficient and counterproductive.
Regarding public disclosure, have tried purchasing land in Abuja? You would find the original owner to be Mr Ifeanyi Ojukwu, Festac Town Lagos OR Mr Ogusote, Oshodin, Lagos. Finally, you be surprised to find that many of the so-called billionaires or trillionnaires in Nigeria are mere fronts to those that have been or are still in government. This is the current move not to disvalue and the removal of subsidy is as transparent as one can get.
OJ
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Sent: 25 May 2016 19:16
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Subject: Re: {Yan Arewa} Re: [AfricanWorldForum] Re: ||NaijaObserver|| At Last, Central Bank to Introduce Flexible Exchange Rate Regime | THISDAYLIVE
Imperial
All these anomalies identified by you are sickness that could be controlled without punishing the masses with controlled forex. The govt has many machinery to control this including Cadillac tax on these imported executive items. A tax
on those items could be 100% of their values to discourage it. Those buying these items are mostly public servants or their cronies. The govt has the machinery to block by instituting annual public financial disclosure of all executive level officers from
level 10. Along with their wives and children under age 18 or 21 as the culture permits.
On Wednesday, May 25, 2016, Imperial imperi...@yahoo.com [YanArewa] <YanA...@yahoogroups.com> wrote:
SteveK,
I got your message . Even if we cant export high class goods, let's stop importing almost a everything by embarking on the import substitution strategy .
Until Buhari came to power do you know that we were the second largest importer of champagne after the United States ?
Do you know that we have more Mercedes G Wagon here in Lagos than many western capitals, including may be, Los Angeles, London and New York ? Private jet nko ? Lol .
Sent from my iPhone
I wonder what the 'economic patriots' now think? We have burnt through our reserves 'defending the Naira' and gained a contracting economy heading to recession in return
--Pronto!!!
Idowu
"Rebellion to tyrants is obedience to God." --Thomas Jefferson
"There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest." -- Elie Wiesel
__._,_.___
__,_._,___
Joe Attueyi
Stevek,
If the US Federal Reserve pegs the exchange rate of the US dollar to the pound sterling as 2:4, what do you think would happen to a public currency exchange business which openly exchanges the US dollar to the pound sterling at 50:4 - thinking that market place supports this different rate?
On 25 May 2016, at 11:21 PM, Stevek stev...@yahoo.com [NIgerianWorldForum] <NIgerianW...@yahoogroups.com> wrote:
Regal Serpent of the wharf variety,Stock exchanges are, legally, radically different from Bureau de Changes or other individual currency exchangers, in that stock exchanges are auctions (best offer) and the other is quid pro quo.I have a question.If the US Federal Reserve pegs the exchange rate of the US dollar to the pound sterling as 2:4, what do you think would happen to a public currency exchange business which openly exchanges the US dollar to the pound sterling at 50:4 - thinking that market place supports this different rate?The government will 1) arrest and prosecute the company for Profiteering and shut down the business or 2) change the official rate to 50:4?Easy question.The search for your answer will show clearly that the root of all the problems in Nigeria is a simple matter of the lack of the Rule of Law and Law and Order.
StevekMitchellville, MarylandThe most dangerous trend in the world today is the growing awareness of the common man - Zbigniew Brzezinsky 1978A wise man proportions his beliefs with evidence - David Hume
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Sent: Wednesday, May 25, 2016 2:18 PM
Subject: Re: [africanworldforum] RE: [NIgerianWorldForum] Re: ||NaijaObserver|| At Last, Central Bank to Introduce Flexible Exchange Rate Regime | THISDAYLIVE
From: "Imperial imperi...@yahoo.com [NaijaObserver]" <NaijaO...@yahoogroups.com>
To: NaijaO...@yahoogroups.com
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Sent: Wednesday, May 25, 2016 11:51 AM
Subject: Re: ||NaijaObserver|| At Last, Central Bank to Introduce Flexible Exchange Rate Regime | THISDAYLIVE
Partial ok answer .
Sent from my iPhone
On 25 May 2016, at 3:45 PM, C15201947 mailto:c152...@aol.com [NaijaObserver] <NaijaO...@yahoogroups.com> wrote:
The solution is not the draconian devaluation of naira.What will change the perpetual exercise in futility is investments in Nigerian economyand citizens. Quality education, good roads, steady electricity, clean drinking water,quality hospitals, tight security...are what will spur citizens to produce and boost GDP.But first thing first, political stability; for naira to have value, Nigerians must have control of their government and be able to elect who leads them in a free and fair elections. Until then any intervention in the downward draft of naira and economy is a waste of time.
Sent from my iPad
On May 25, 2016, at 12:14 AM, Little Boy mailto:thinkl...@gmail.com [NaijaObserver] <NaijaO...@yahoogroups.com> wrote:
WE PREDICTED IT THAT THE GOVERNMENT WOULD EVENTUALLY SMELL THE COFFEE AND DO THE RIGHT THING THOUGH OUR 'ECONOMIST' FRIENDS ABUSED US AND SAID MR PRESIDENT WAS RIGHT TO RULE OUT DEVALUATION IN AN ATMOSPHERE OF LOW FOREIGN RESERVES, LOW SUPPLY AND HEIGHTENED DEMAND FOR FX.WE'VE BEEN VINDICATED.NOW, IFTHE GOVERNMENT/CBN COULD DO THIS ALL THIS WHILE, WHY WAIT UNTIL THE VISIBLY AND EXTREMELY WRONG CURRENCY POLICY BROUGHT THE ECONOMY TO ITS KNEES AND TOOK US INTO RECESSION? WE'RE NOW DEVALUING THE NAIRA BEYOND WHERE IT WOULD HAVE SETTLED HAD WE TAKEN THE RIGHT STEPS OF CONTROLLED DEVALUATION AT THE RIGHT TIME.THE CBN IS BLAMING THE DELAYED 2016 BUDGET FOR THE DISMAL SITUATION WHERE OUR ECONOMY CONTRACTED FOR THE FIRST TIME IN 25 YEARS. IF THAT TRULY IS THE REASON, THE GOVERNMENT, THE OWNER OF THE BUDGET PROCESS, CAN NOT ESCAPE BLAME FOR THE DELAYED BUDGET. BUT AS IMPERIAL AND SOME OF OUR FRIENDS ARGUED, THIS WAS NOT THE FIRST TIME A BUDGET WAS SO DELAYED IN OUR HISTORY. WHY IS THIS CASE DIFFERENT TO HAVE CAUSED US THE FIRST GDP CONTRACTION IN 25 YEARS? IT WAS LARGELY THE WRONG CURRENCY POLICY THAT BROUGHT THE INDUSTRIES AND PRODUCTIVE SECTORS TO THEIR KNEES EXCEPT FOR SOME PRIVILEGED FEW IN THOSE SECTORS.IT WAS INEVITABLE AND ONLY A MATTER OF TIME FOR SOMETHING TO GIVE, AND NOW THE GOVERNMENT HAS BOWED TO PRESSURE AND OFFICIALLY DEVALUED THE NAIRA BUT STILL LEAVING A WINDOW FOR SUBSIDISED FX FOR "CRITICAL IMPORTS" IN A SECTION OF THE FX MARKET. MOST INFORMED NIGERIANS WOULD BE INTERESTED TO KNOW WHAT CONSTITUTES THE "CRITICAL IMPORTS" AND WHO GETS WHAT UNDER THAT DEFINITION.WHAT WE KNOW IS THAT A MARKET SITUATION WHICH ALLOWS FOR ARBITRAGE IN THE SAME MARKET IS ALWAYS AN AVENUE FOR RENT AND CORRUPTION AND ALWAYS SUBJECT TO ABUSE. WE ALL REMEMVER THE RECENT CONTROVERSIAL ADVERTISEMENTS BY BUA GROUP THAT DANGOTE WAS BEING FAVOURED OVER THEM IN SUBSIDISED FX ALLOCATION. SOON AFTERWARDS, THE NOISE DIED DOWN AND MANY PEOPLE SAID BUA WAS APPEASED WITH PRIOTISED FX ALLOCATION TOO. WE DON'T KNOW THE EXACT DETAILS OF WHAT TRANSPIRED BUT ARBITRAGE WOULD ALWAYS BRING SUCH ISSUES AND SUSPICIONS.WE HOPE WE DO THE RIGHT THING BY MERGING THE TWO WINDOWS EVENTUALLY.Sent from my BlackBerry 10 smartphone.
I wonder what the 'economic patriots' now think? We have burnt through our reserves 'defending the Naira' and gained a contracting economy heading to recession in return
Totally foreseeable and totally avoidable
Issoraight o!
Joe
http://www.thisdaylive.com/index.php/2016/05/25/at-last-central-bank-to-introduce-flexible-exchange-rate-regime/
Sent from my iPhone
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Sent from my iPhone
On 26 May 2016, at 1:36 AM, Stevek stev...@yahoo.com [NIgerianWorldForum] <NIgerianW...@yahoogroups.com> wrote:
"I got your message . Even if we cant export high class goods, let's stop importing almost a everything by embarking on the import substitution strategy." - Imperial
I agree.At least, that would be a mild form of Mao's isolation policy that brought China where it is today instead of mindless perpetual devaluation.But there should be a complementary policy/program of product development, especially in the agricultural sector.This was done in the past when competent people, not unscrupulous and incompetent thieves, headed government agencies. This resulted in the gift of a superior oil palm plant to Indonesia which is today the bane of that country's economy.People really need to stop taking Joe Attueyi, Pronto!!!, littleboy and their ilk seriously. These are just promoters of looting and looters of the Nigerian nation.StevekMitchellville, Maryland
The most dangerous trend in the world today is the growing awareness of the common man- Zbigniew Brzezinsky 1978
A wise man proportions his beliefs with evidence - David Hume
Sent from Yahoo Mail on Android
SteveK,I got your message . Even if we cant export high class goods, let's stop importing almost a everything by embarking on the import substitution strategy .Until Buhari came to power do you know that we were the second largest importer of champagne after the United States ?
Do you know that we have more Mercedes G Wagon here in Lagos than many western capitals, including may be, Los Angeles, London and New York ? Private jet nko ? Lol .
Sent from my iPhone
On 25 May 2016, at 5:43 PM, Stevek stev...@yahoo.com [AfricanWorldForum] <AfricanW...@yahoogroups.com> wrote:
Imperial,Let me start out by making clear that I don't know any high-faluting economic or monetary theories; just commonsensical observation from history.Devaluation does not benefit the importer. It benefits the exporter. This is because it is profitable to you if, for the same cost you produce an item, the importer has devalued its currency to pay more your product at constant cost.The importer, it just spends more to get less. And if devaluation goes far enough - like in Zimbabwe - the importer cannot afford much anymore and it begins to hurt the exporter. It is at this point that the exporter, itself, begins to fight against devaluation to keep the importer from zero consumption.It is a simple game.That is why the only remedy against a declining currency - as the Naira is - is not devaluation but increase in exportation for Nigeria.But exportation of what?Currently, the only export Nigeria can bank on is oil. Even so, hardly any importer is waiting in line to import Nigerian oil.Going by a recent report, and the only things Nigerians have to export is cassava (just read that from a Calabar farm), probably, only to West African countries and, possibly, to Latin America where they use in loco manioc or yucca (a related species to West African cassava).Nigerian manufactured products, generally, are mere inferior local substitutes. The local substitutes - that others are extolling - are substitutes because of their inferior quality and have value only in Nigeria. So, how do you propose that they are exported? Exported to those who already make the superior quality of the same product that will sell cheaper in their societies than the inferior Nigeria equivalent?That's why Nigerians prefer imported products. Therefore, Nigerian substitutes, which Nigerians will be stuck with if importation is banned or severely limited with be mere punishment without long term value.Some of those who favor devaluation (not littleboy and his ilk) mean well, but I think that they have unintentionally or deliberately avoided considering this important link in the chain.No one will buy Nigerian products until they are improved. And if Nigeria is not exporting in a meaningful way, the Naira will continue to go the Zimbabwean way, i.e., interminable devaluations.So, the solution is not to devalue but to improve the quality of existing products for export and increase exportation significantly, even if the only thing we are exporting is the likes of Jonathan to the Ivory Coast!That's how the Chinese did it under Mao Zedong when they cut themselves from the world for 30 years.No, what Pres. Buhari is doing is not even a partial answer; just caving in out of desperation to be hated less. China would be in Nigeria's position if Mao Zedong acted to be hated less because he, too, was really hated early in his time.StevekMitchellville, MarylandThe most dangerous trend in the world today is the growing awareness of the common man - Zbigniew Brzezinsky 1978A wise man proportions his beliefs with evidence - David Hume
From: "Imperial imperi...@yahoo.com [NaijaObserver]" <NaijaO...@yahoogroups.com>
To: NaijaO...@yahoogroups.com
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Sent: Wednesday, May 25, 2016 11:51 AM
Subject: Re: ||NaijaObserver|| At Last, Central Bank to Introduce Flexible Exchange Rate Regime | THISDAYLIVE
Partial ok answer .
Sent from my iPhone
On 25 May 2016, at 3:45 PM, C15201947 c152...@aol.com [NaijaObserver] <NaijaO...@yahoogroups.com> wrote:
The solution is not the draconian devaluation of naira.What will change the perpetual exercise in futility is investments in Nigerian economyand citizens. Quality education, good roads, steady electricity, clean drinking water,quality hospitals, tight security...are what will spur citizens to produce and boost GDP.But first thing first, political stability; for naira to have value, Nigerians must have control of their government and be able to elect who leads them in a free and fair elections. Until then any intervention in the downward draft of naira and economy is a waste of time.
Sent from my iPad
On May 25, 2016, at 12:14 AM, Little Boy thinkl...@gmail.com [NaijaObserver] <NaijaO...@yahoogroups.com> wrote:
WE PREDICTED IT THAT THE GOVERNMENT WOULD EVENTUALLY SMELL THE COFFEE AND DO THE RIGHT THING THOUGH OUR 'ECONOMIST' FRIENDS ABUSED US AND SAID MR PRESIDENT WAS RIGHT TO RULE OUT DEVALUATION IN AN ATMOSPHERE OF LOW FOREIGN RESERVES, LOW SUPPLY AND HEIGHTENED DEMAND FOR FX.WE'VE BEEN VINDICATED.NOW, IFTHE GOVERNMENT/CBN COULD DO THIS ALL THIS WHILE, WHY WAIT UNTIL THE VISIBLY AND EXTREMELY WRONG CURRENCY POLICY BROUGHT THE ECONOMY TO ITS KNEES AND TOOK US INTO RECESSION? WE'RE NOW DEVALUING THE NAIRA BEYOND WHERE IT WOULD HAVE SETTLED HAD WE TAKEN THE RIGHT STEPS OF CONTROLLED DEVALUATION AT THE RIGHT TIME.THE CBN IS BLAMING THE DELAYED 2016 BUDGET FOR THE DISMAL SITUATION WHERE OUR ECONOMY CONTRACTED FOR THE FIRST TIME IN 25 YEARS. IF THAT TRULY IS THE REASON, THE GOVERNMENT, THE OWNER OF THE BUDGET PROCESS, CAN NOT ESCAPE BLAME FOR THE DELAYED BUDGET. BUT AS IMPERIAL AND SOME OF OUR FRIENDS ARGUED, THIS WAS NOT THE FIRST TIME A BUDGET WAS SO DELAYED IN OUR HISTORY. WHY IS THIS CASE DIFFERENT TO HAVE CAUSED US THE FIRST GDP CONTRACTION IN 25 YEARS? IT WAS LARGELY THE WRONG CURRENCY POLICY THAT BROUGHT THE INDUSTRIES AND PRODUCTIVE SECTORS TO THEIR KNEES EXCEPT FOR SOME PRIVILEGED FEW IN THOSE SECTORS.IT WAS INEVITABLE AND ONLY A MATTER OF TIME FOR SOMETHING TO GIVE, AND NOW THE GOVERNMENT HAS BOWED TO PRESSURE AND OFFICIALLY DEVALUED THE NAIRA BUT STILL LEAVING A WINDOW FOR SUBSIDISED FX FOR "CRITICAL IMPORTS" IN A SECTION OF THE FX MARKET. MOST INFORMED NIGERIANS WOULD BE INTERESTED TO KNOW WHAT CONSTITUTES THE "CRITICAL IMPORTS" AND WHO GETS WHAT UNDER THAT DEFINITION.WHAT WE KNOW IS THAT A MARKET SITUATION WHICH ALLOWS FOR ARBITRAGE IN THE SAME MARKET IS ALWAYS AN AVENUE FOR RENT AND CORRUPTION AND ALWAYS SUBJECT TO ABUSE. WE ALL REMEMVER THE RECENT CONTROVERSIAL ADVERTISEMENTS BY BUA GROUP THAT DANGOTE WAS BEING FAVOURED OVER THEM IN SUBSIDISED FX ALLOCATION. SOON AFTERWARDS, THE NOISE DIED DOWN AND MANY PEOPLE SAID BUA WAS APPEASED WITH PRIOTISED FX ALLOCATION TOO. WE DON'T KNOW THE EXACT DETAILS OF WHAT TRANSPIRED BUT ARBITRAGE WOULD ALWAYS BRING SUCH ISSUES AND SUSPICIONS.WE HOPE WE DO THE RIGHT THING BY MERGING THE TWO WINDOWS EVENTUALLY.Sent from my BlackBerry 10 smartphone.
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Ezeana Igirigi Achusim
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Ezeana Igirigi Achusim
On May 25, 2016, at 4:14 PM, Imperial imperi...@yahoo.com [NaijaObserver] <NaijaO...@yahoogroups.com> wrote:
Idowu,Let's ban champagne which is very popular among the "Yahoo boys" here after they "hammer" . LolA bottle of Don Perignon goes for over 120,000 naira at Lagos and Abuja night clubs and crystal champagne sells for about 200,000 naira a bottle .Sent from my iPad
On 25 May 2016, at 19:15, Idowu Awosika idow...@gmail.com [NaijaObserver] <NaijaO...@yahoogroups.com> wrote:
Imperial
All these anomalies identified by you are sickness that could be controlled without punishing the masses with controlled forex. The govt has many machinery to control this including Cadillac tax on these imported executive items. A tax on those items could be 100% of their values to discourage it. Those buying these items are mostly public servants or their cronies. The govt has the machinery to block by instituting annual public financial disclosure of all executive level officers from level 10. Along with their wives and children under age 18 or 21 as the culture permits.
On Wednesday, May 25, 2016, Imperial imperi...@yahoo.com [YanArewa] <YanA...@yahoogroups.com> wrote:
--Pronto!!!
Idowu
"Rebellion to tyrants is obedience to God." --Thomas Jefferson
"There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest." -- Elie Wiesel
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Joe Attueyi
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Ezeana Igirigi Achusim
On May 26, 2016, at 6:39 AM, Stevek stev...@yahoo.com [NaijaPolitics] <NaijaP...@yahoogroups.com> wrote:
Joe,
Devaluation doesn't just make imports more expensive but makes everything expensive. It drops the quality of life like a stone, enrich the citizens of the exporting nations, and repeat itself every few years.Real economists target their goals. And real economists would rather restrict foreign imports by law and punish severely those who break the law, as successful governments, like the US, do to transgressors of the law.Only shysters in Ajegunle pretending to be whast they gave no training for whatsoever, like you, think that cutting off the head to cure a headache - when you just take panadol - is evidence of being smart!Okonjo-Iweala messed up the economy the same way when he came to Nigeria to claim that she was a Harvard-trained economist when all she had is a MIT Ph.D for Urban Planning!Joe, where does a marginally educated Ajegunle man like you get the balls from to call your far superiors slow, or even drunk?
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Wharf Snake
Agwo emeghi nke o jiri buru agwo,umuaka achiri ya hie nku
