I noticed this since three days ago, when I did sone little transactions in two consecutive days. However, Naira gaining value over dollar is good but let's see the impact on the goods and services carried in the country, because it is a big manipulation if only Naria is gaining value and the cost of goods are still increasing frequently. Imagine the festive season is around the corner, but the cost of goods is now twice the previous.
E de ironic say naira de gain appreciation but di prices of goods in the market still de skyrocket, if di trend still continue like dis, e go show say na manipulation. Normally if our currency de gain strength, di effect suppose to be reduction in the prices of commodities in di market, if e no happen like dat na scam. If dis EFEMS na short term palliative wey dem wan to take praise demsef, e no go last and naira go finally begin to nose dive again, so make we de watch and see wetin go happen. I believe say no be dis EFEMS be di solution to kill inflation for di country, make dem tackle di problem of naira depreciation from the root cause. 
Topic: EFEMS, the cause of the recent naira big gain (Read 206 times)
Imagine the festive season is around the corner, but the cost of goods is now twice the previous.
It happens every festive periods, it's not like we are seeing something differently now.
I don't think the current Naira dominant has anything to do with the newly implemented EFEMS, it's a simple reason - those Nigerians abroad coming home for Xmas are pumping more FX into the country, changing dollar to Naira and causing Naira scarcity. It's temporary and sooner Naira will return back to its former rate. It happens every Christmas time.
Just as you rightly said, the naira has already started depreciating just after four days you made this comment. I also observed that it has become a kind of traditional for the naira to gain strength during yuletide seasons like this so we shouldn't be surprised when we see the naira gaining strength because we all know that it doesn't last for a long time before it crashes again.
Since the price of things doesn't reduce whenever the naira appreciates, what anyone earning in dollars should do is to convert to USDT and HOLD then when the naira crashes again you can now sell your USDT at higher price. That is why it is good to keep money in Naira and in dollars. Whichever crashes you take advantage of the other.
We're likely going to see another sharp drop by 31st of this month when the old Naira will not longer be accepted, the Naira in circulation will reduced and the demand of Naira will rise causing a rise in value.
Is the news you read this of recent or the one that was found not true in October? CBN already said it is not true and speculated it is only meant to only disrupt the country’s payment system. Maybe you read the false news and not read the update which CBN said it is false. Meh our mainstream needs to be moderated why are bloggers and even national TV allowed to pad fake news concerning government financial decisions that could cause a lot of problem allowed without any consequences. Read about t on Arise TV few months ago. I'm only reading this new development now.
We're likely going to see another sharp drop by 31st of this month when the old Naira will not longer be accepted, the Naira in circulation will reduced and the demand of Naira will rise causing a rise in value.
Is the news you read this of recent or the one that was found not true in October? CBN already said it is not true and speculated it is only meant to only disrupt the country’s payment system. Maybe you read the false news and not read the update which CBN said it is false. The Central Bank of Nigeria has clarified that the old series of N200, N500, and N1,000 banknotes will remain valid indefinitely, refuting claims that the notes would cease to be legal tender by December 31, 2024.
In a statement released on Thursday by The acting Director of Corporate Communications, Sidi Hakama, the CBN emphasised that such reports are false and intended to disrupt the nation’s payment system.
The statement read, “The attention of the Central Bank of Nigeria has been drawn to discussions at different fora suggesting that the old series of the N200, N500, and N1,000 banknotes shall cease to be legal tender on December 31, 2024. We wish to state categorically that such claims are false and calculated to disrupt the country’s payment system.
In a statement released on Thursday by The acting Director of Corporate Communications, Sidi Hakama, the CBN emphasised that such reports are false and intended to disrupt the nation’s payment system.
The statement read, “The attention of the Central Bank of Nigeria has been drawn to discussions at different fora suggesting that the old series of the N200, N500, and N1,000 banknotes shall cease to be legal tender on December 31, 2024. We wish to state categorically that such claims are false and calculated to disrupt the country’s payment system.
Old 200, 500 and 1000 naira will only be like the old 100 naira that was removed from circulation in a way that everyone can spend the old $100 naira until it was no more in circulation.
I don't think the current Naira dominant has anything to do with the newly implemented EFEMS, it's a simple reason - those Nigerians abroad coming home for Xmas are pumping more FX into the country, changing dollar to Naira and causing Naira scarcity. It's temporary and sooner Naira will return back to its former rate. It happens every Christmas time.
I have made research before posting this. After EFEMS replaced I&E, there was an abrupt drop in USD price to naira as naira increased in price. It happened so fast.I saw a post similar to yours on Nairaland. It is possible that naira may appreciate a little during Christmas time but the increase was so abrupt just immediately after EFEMS replaced I&E which would be the main reason. I do not think the sharp drop is coincidental.
We're likely going to see another sharp drop by 31st of this month when the old Naira will not longer be accepted, the Naira in circulation will reduced and the demand of Naira will rise causing a rise in value.
I don't think the current Naira dominant has anything to do with the newly implemented EFEMS, it's a simple reason - those Nigerians abroad coming home for Xmas are pumping more FX into the country, changing dollar to Naira and causing Naira scarcity. It's temporary and sooner Naira will return back to its former rate. It happens every Christmas time.
I have made research before posting this. After EFEMS replaced I&E, there was an abrupt drop in USD price to naira as naira increased in price. It happened so fast.I saw a post similar to yours on Nairaland. It is possible that naira may appreciate a little during Christmas time but the increase was so abrupt just immediately after EFEMS replaced I&E which would be the main reason. I do not think the sharp drop is coincidental.
Gradually, the price will go back to normal, because this body does not have the capacity to continue with the manipulation for long. Seems like they're trying to prove to the government that they are capable to bring back the value of Naira when the major problem of Naira devaluation hasn't been tackled.
However, Naira gaining value over dollar is good but let's see the impact on the goods and services carried in the country, because it is a big manipulation if only Naria is gaining value and the cost of goods are still increasing frequently. Imagine the festive season is around the corner, but the cost of goods is now twice the previous.
You also posted that the price of goods and services, including local goods and services are increasing. I do not think it is good when such things are happening. Everything supoosed to be proportionate to one another and not the way around as it is in this present government. What is happening to Nigeria this time is different from what happened in the past. But as for the naira price gain, I think it would be temporary just like other people posted. Let us see what will happen in long term.The brief increase of Naira over the dollar we saw recently is ephemeral in my own opinion because the EFEMS system isn't just enough to bring Naira back to life. Naira can only see a slight value over dollar but the devaluation of Naira is one factor that requires a long lasting solution which also have to be realistic enough.
Like you've observed, the Naira cannot regain its strength when inflation still looms the country's economy. We've been suffering from a weaken purchasing power since the present government came about with the two heavy policies of removing fuel subsidy and floating the Naira and the government wasn't able to set up effective price control mechanisms to make life easy for people.
At this festive period, a proactive government would have been bringing into effect strong action plans towards subsidizing price of items in the commodity market while also improving on the reduce of fuel pump price across the country. We should have a feel and breathe of a new year coming shortly after. So it will still be too early to start celebrating the effect of the EFEMS when due diligence isn't applied to other branches of the economic system to bring succor to the crisis we're faced with today.
I don't think the current Naira dominant has anything to do with the newly implemented EFEMS, it's a simple reason - those Nigerians abroad coming home for Xmas are pumping more FX into the country, changing dollar to Naira and causing Naira scarcity. It's temporary and sooner Naira will return back to its former rate. It happens every Christmas time.
I have made research before posting this. After EFEMS replaced I&E, there was an abrupt drop in USD price to naira as naira increased in price. It happened so fast.I saw a post similar to yours on Nairaland. It is possible that naira may appreciate a little during Christmas time but the increase was so abrupt just immediately after EFEMS replaced I&E which would be the main reason. I do not think the sharp drop is coincidental.
Do you noticed that naira appreciate against United States dollar recently? It is caused as a result of the newly introduced Enhanced Foreign Exchange Market System (EFEMS) by the CBN. The price was controlled by the CBN before Tinubu become the president, but it was replaced by Investors and Exporters (I&E). Now EFEMS is replacing I&E.
I think sentiment is the reason for the naira price gain as supply became more than the demand recently as it was changed from I&E to EFEMS.
I think sentiment is the reason for the naira price gain as supply became more than the demand recently as it was changed from I&E to EFEMS.
I don't think the current Naira dominant has anything to do with the newly implemented EFEMS, it's a simple reason - those Nigerians abroad coming home for Xmas are pumping more FX into the country, changing dollar to Naira and causing Naira scarcity. It's temporary and sooner Naira will return back to its former rate. It happens every Christmas time.
I am not against any measure taken by the government for the appreciation of the Naira but what am very much interested in is for things that aids human livelihood to reduce in price as well because as the naira falls and the price of things is still high in the country, it becomes a disadvantage for those who are earning in dollars. Hope they can also introduce a body that will checkmate price hike of things in the markets and also reduce the price of petroleum products so that we will see that every method they have employ to make the country better is favorable to all and not only to some set of people in the country.
This kind of post is exactly what I quoted above. I do not mean you do anything wrong but I mean your view about the discussion. That it is good how dollar decreased in price but not good how goods and services are increasing in price. What makes the goods and services increase in price result to naira price declination. Also dollar is a product that we can buy and it has price like other products. If there is naira declination, it supposed to have effect on all goods and services, including dollar and all foreign currencies and products, including the local products also. So it is not good how naira price increases if local products continue to increase in price. It may affect those that are importing and selling also unless they increase the price of what they imported which supposed not to be and there is competition which can make the price remain as it should be. Although, this is just market reaction and not what to be worried about.I am not against any measure taken by the government for the appreciation of the Naira but what am very much interested in is for things that aids human livelihood to reduce in price as well because as the naira falls and the price of things is still high in the country, it becomes a disadvantage for those who are earning in dollars. Hope they can also introduce a body that will checkmate price hike of things in the markets and also reduce the price of petroleum products so that we will see that every method they have employ to make the country better is favorable to all and not only to some set of people in the country.
This kind of post is exactly what I quoted above. I do not mean you do anything wrong but I mean your view about the discussion. That it is good how dollar decreased in price but not good how goods and services are increasing in price. What makes the goods and services increase in price result to naira price declination. Also dollar is a product that we can buy and it has price like other products. If there is naira declination, it supposed to have effect on all goods and services, including dollar and all foreign currencies and products, including the local products also. So it is not good how naira price increases if local products continue to increase in price. It may affect those that are importing and selling also unless they increase the price of what they imported which supposed not to be and there is competition which can make the price remain as it should be. Although, this is just market reaction and not what to be worried about. 
I am not against any measure taken by the government for the appreciation of the Naira but what am very much interested in is for things that aids human livelihood to reduce in price as well because as the naira falls and the price of things is still high in the country, it becomes a disadvantage for those who are earning in dollars. Hope they can also introduce a body that will checkmate price hike of things in the markets and also reduce the price of petroleum products so that we will see that every method they have employ to make the country better is favorable to all and not only to some set of people in the country.
This could be just another temporal attempts, i barely accept the sudden movement in the Naira appreciating over the Dollar, with the same government in power they only can amend a new arm but deep within still evolving around same entity. Just what you said, the movement was quick and sudden, if it lasts for some time would their be any aroused gain in determining a reduction in the price of goods? i do not think so because we one time experienced same like this when we went down to $1 = 1000Naira and yet the prices of everything never lessened.
It's indeed another temporary fix that won't last for long. I didn't notice there was new development before you pointed me to this thread, which earlier today I was a bit confused about what was triggering the price drop and Naira gaining some value over the dollar. Just as I started in my now-deleted thread, this sudden action won't lead anywhere. The price of goods and commodities is as high as it can get, and all marketers are blaming the high increase of the dollar. Now that rates have been dropped, will prices be slashed? I doubt it. I know it's not something immediate, but believe me, things will even get more expensive instead of this control lacking price control protection, and it's troubling.
I noticed this since three days ago, when I did sone little transactions in two consecutive days. However, Naira gaining value over dollar is good but let's see the impact on the goods and services carried in the country, because it is a big manipulation if only Naria is gaining value and the cost of goods are still increasing frequently. Imagine the festive season is around the corner, but the cost of goods is now twice the previous.
This is the end of the year and asides from the factors that you’ve all mentioned to be the cause of the Naira gain against dollar, I also feel a lot of people holding on to dollar will want to sell them for use in fiat as the festive period is approaching. But after seeing the OP’s reasons for the Naira gain, I didn’t hold my point as much of the reason for the gain. When price of goods are rising even when Naira is gaining the required value, it becomes very less of interest to people as it’ll immediately be said to have something to do with manipulation. Also, people now know that Naira are manipulated from time to time by the Government, so many are not even panicking as they know the value of dollar will be regained again after the festive period.
However, Naira gaining value over dollar is good but let's see the impact on the goods and services carried in the country, because it is a big manipulation if only Naria is gaining value and the cost of goods are still increasing frequently. Imagine the festive season is around the corner, but the cost of goods is now twice the previous.
You also posted that the price of goods and services, including local goods and services are increasing. I do not think it is good when such things are happening. Everything supoosed to be proportionate to one another and not the way around as it is in this present government. What is happening to Nigeria this time is different from what happened in the past. But as for the naira price gain, I think it would be temporary just like other people posted. Let us see what will happen in long term.Just as Charles said, CBN is working behind close doors to make sure that the naira exchange rate is stabilize to somewhere around 1500 naira at highest, so seeing exchange rate above 1700 is somewhat a big slap for them and that is why you see this recent efforts to stabilize the exchange rates, this doesn't have anything to do with the country internal inflation crisis and high cost of basic goods in the market.
However, Naira gaining value over dollar is good but let's see the impact on the goods and services carried in the country, because it is a big manipulation if only Naria is gaining value and the cost of goods are still increasing frequently. Imagine the festive season is around the corner, but the cost of goods is now twice the previous.
You also posted that the price of goods and services, including local goods and services are increasing. I do not think it is good when such things are happening. Everything supoosed to be proportionate to one another and not the way around as it is in this present government. What is happening to Nigeria this time is different from what happened in the past. But as for the naira price gain, I think it would be temporary just like other people posted. Let us see what will happen in long term. 
I noticed this since three days ago, when I did sone little transactions in two consecutive days. However, Naira gaining value over dollar is good but let's see the impact on the goods and services carried in the country, because it is a big manipulation if only Naria is gaining value and the cost of goods are still increasing frequently. Imagine the festive season is around the corner, but the cost of goods is now twice the previous.
i still see this gain as one that is being manipulated by some people for some reasons best known to them and not a long-term gain because obviously their is no visible parameter to show that the naira is gaining over the dollar.after announcing the full operation of the port Harcourt refineries and then less than few days after, the refineries were restored to factory setting, i don't see anything too exciting about most of these things that can't even stand the test of time. either it is price sentiment or EFEMS that is responsible for the naira gain, if there is no tangible plan in place that will give a lasting gain of our currency, we might just be heading from 1400 to 2000 naira after they have achieved what they want to.
I noticed this since three days ago, when I did sone little transactions in two consecutive days. However, Naira gaining value over dollar is good but let's see the impact on the goods and services carried in the country, because it is a big manipulation if only Naria is gaining value and the cost of goods are still increasing frequently. Imagine the festive season is around the corner, but the cost of goods is now twice the previous.
This could be just another temporal attempts, i barely accept the sudden movement in the Naira appreciating over the Dollar, with the same government in power they only can amend a new arm but deep within still evolving around same entity. Just what you said, the movement was quick and sudden, if it lasts for some time would their be any aroused gain in determining a reduction in the price of goods? i do not think so because we one time experienced same like this when we went down to $1 = 1000Naira and yet the prices of everything never lessened. 
Do you noticed that naira appreciate against United States dollar recently? It is caused as a result of the newly introduced Enhanced Foreign Exchange Market System (EFEMS) by the CBN. The price was controlled by the CBN before Tinubu become the president, but it was replaced by Investors and Exporters (I&E). Now EFEMS is replacing I&E.
I think sentiment is the reason for the naira price gain as supply became more than the demand recently.
I think sentiment is the reason for the naira price gain as supply became more than the demand recently.
The issue with this is on how the market is going to be sustained, this is more of market manipulation to me as long as it's not a long term effect in stabilizing the market price, all we could discover is the strengthening of naira today and the devaluation of naira tomorrow, if they really want to engage on any implementation, then the economy have to be balanced at first, they have to increase their productivities, GDP, international independences as well as less importations of foreign made products, then we may now think on how we could boost the economy for the benefits of naira value as against the USD, but the kind approach the government are using is like cutting a tree from the head, when it rains, it will still sprout out, we solve problems starting from the grassroots and this will make it a long and lasting solution.
I noticed this since three days ago, when I did sone little transactions in two consecutive days. However, Naira gaining value over dollar is good but let's see the impact on the goods and services carried in the country, because it is a big manipulation if only Naria is gaining value and the cost of goods are still increasing frequently. Imagine the festive season is around the corner, but the cost of goods is now twice the previous.
Do you noticed that naira appreciate against United States dollar recently? It is caused as a result of the newly introduced Enhanced Foreign Exchange Market System (EFEMS) by the CBN. The price was controlled by the CBN before Tinubu become the president, but it was replaced by Investors and Exporters (I&E). Now EFEMS is replacing I&E.
I think sentiment is the reason for the naira price gain as supply became more than the demand recently as it was changed from I&E to EFEMS.
I think sentiment is the reason for the naira price gain as supply became more than the demand recently as it was changed from I&E to EFEMS.
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