Stopping FX to BDCs was the right thing to do. However, not being able to provide enough supply to meet demand is the main issue.
In the real play of things, CBN allocation is a small part of what BDCs operate with, it is just they get creamy spreads of over 100 naira.
While we must point to governments that they are wrong, we must not employ sentiments and bias.
If you can look deeply enough, you will be able to decipher that the parallel markets are being gamed and manipulated. It is such behaviour that makes floating impractical in Nigeria.
There is currently no basis for the dollar rate to be so high as;
*Reserves are rising
*Oil Price is high and we are getting our cargoes sold
*CBN has greatly increased supply to I&E window
*Bonds worth over $4 Billion have just been sold
The foregoing makes it clear that market is being gamed and manipulated. Sadly, lots of Nigeria are being emotional about this and would rather have CBN surrender to BDCs. We must stay this course. With what I know about Nigerian markets now, I cannot even suggest floating as we will just see fx rates rising for no reason.
Meffy is clueless. Maybe he can start with the laws of demand and supply and ask himself the simple question; what is the demand size (hopefully he is truly in charge of the economy)? Next is, where is the supply?...what is the portion of total fx supply that CBN is contributing? Yet Meffy thinks he can control the market??? What a dumpster...just like his boss, his baba Buhari.
Stopping FX to BDCs was the right thing to do. However, not being able to provide enough supply to meet demand is the main issue.
In the real play of things, CBN allocation is a small part of what BDCs operate with, it is just they get creamy spreads of over 100 naira.
While we must point to governments that they are wrong, we must not employ sentiments and bias.
If you can look deeply enough, you will be able to decipher that the parallel markets are being gamed and manipulated. It is such behaviour that makes floating impractical in Nigeria.
There is currently no basis for the dollar rate to be so high as;
*Reserves are rising
*Oil Price is high and we are getting our cargoes sold
*CBN has greatly increased supply to I&E window
*Bonds worth over $4 Billion have just been sold
The foregoing makes it clear that market is being gamed and manipulated. Sadly, lots of Nigeria are being emotional about this and would rather have CBN surrender to BDCs. We must stay this course. With what I know about Nigerian markets now, I cannot even suggest floating as we will just see fx rates rising for no reason.
Calm down and remain objective.
Press meffy’s neck! Ashiere ni bobo yen
Yes please, let’s read something light. Nigeria’s woes are too heavy
I have to admit that I like, no, love this writing style. I couldn't help but chuckle at some neck pressing.
Let's see the Enoch article ,meffy can't kill me.
A Wednesday article!! For meffy i have no words.
Good read and bring on Enoch's profile
Meffy is clueless. Maybe he can start with the laws of demand and supply and ask himself the simple question; what is the demand size (hopefully he is truly in charge of the economy)? Next is, where is the supply?...what is the portion of total fx supply that CBN is contributing? Yet Meffy thinks he can control the market??? What a dumpster...just like his boss, his baba Buhari.
Love how you have your knees on Meffy’s neck. Also Can’t wait for Enoch’s profile!
Love this so much.
Keep going bro. We would love to see it!
I do not know how many comments you have yet, but I would gladly do it a million times over just to read your Enoch profile. Great Job!
Yup! Do something different and let Meffy breathe small xx
Yes, please do a profile on Enoch, please.
Yes to the Enoch profile please.
Yes! To Enoch Adegoke’s profile. God save Nigeria.