Topic: Naira appreciation against dollar not affecting the price of goods. Why? (Read 160 times)

I don't  think if there had been anytime we the citizens ever knew or said the hike of goods in your country is being pointed at the high rate of the USD instead it was the government who came on their own strategies whinnying and pointing hand on the high rate of the dollar being the caused of the high increase of good in the country and they're still the ones whom had fought earnestly to recover the value of the naira just as you've also said with the value of USD over naira today is a valid rate enough to quench the hike increase or goods but yet nothing seem to change in our markets til date.

Do we really have to say the value of the USD has never been a point towards what we're facing today's? This is questionable and only the government is answerable to that and not any of us as just citizens which they've always looked down on us as it's obvious that all they cares is the wellbeing of themselves and within their circles.
We don't need to be told if they cares about the common man's or not, it's practically obvious that they don't in as much we sees the riches getting richer and the poors are getting poorer without empathy of the government towards the uncalledfulness.
Does it even think the price of goods would even return back to a level we've been enjoying the economy system even when things still seems hard as at then?
Nothing seems impossible but Little bit looking at the nature of our governances of times after times the whole things seems impossible to attain a comfortable stage again in their country for a common man.

First of all, it's important for us to be well aware of propaganda. Currently, the official dollar rate at CBN still remains 1416 while the BDC rate stands at 1319. We manipulate things too much in this country and end up confusing ourselves. I even read somewhere this morning that dollar is trading against naira for as low as 900. Please let be current with legit updates.

Now to answer your question, it's not longer a news that recently the CBN has increased interest rate from 22% to 24.75% which simply means that the manufacturing industries, businesses and firms that are servicing loans in banks have an increase of 2.7% on their loans. This is also applicable to those who are borrowing from banks to import their goods from other countries. Consequently, this will not allow the price of goods to decrease immediately as we are all expecting across the board. In fact, this increment of interest rate may even force some businesses to inflate the price of their goods in order to meet up with the loan rate review of 2% increment. It's just like give and take system where CBN give businesses dollars on a low price and make them to pay loan in excess. It's has literally no impact on the price of goods for now.

We've had these discussion for quite some time now, and for me I will always say that the prices of goods and services will always have this fluctuating price as long as there is no price regulatory agency or board to checkmate some of the excesses of traders, go to the market today and ask some of the traders why are they selling some goods on a high price considering the dollar rate that is low currently against the Naira, they will tell you oh they bought old stock, and they will continue selling high price in the name of buying old stock even after 3-4 month's.

For the local producers or retailers that are selling yam, garri, beans etc, I for one
Wouldn't blame them, it is what their counterparts that are selling most of the goods imported that are doing this and they are only replicating what others are doing.

I agree with you say na di hike in fuel price na hyn start dis whole gbese before dollar kum join bodi. But you suppose know di country wey you dey, say wen price don increase like dis e no dey kum down. Even when dis traders buy their goods at a lesser price, di moment dollar rise, dem go sell di goods dem buy cheaper at di current higher price.

E get some items wey I bin check out for Jumia when naira been dey around N1750, di price also been increase almost by 60%, right now di price still tie wrapper dey where e dey. So both petty traders and merchant traders dey take advantage of situations like dis and I no think say di price of commodities go fall back to where e bin dey before.

For price of goods to reduce in this country, the current supplies needs to be sold out and the new price of goods be reduced from factories first, the price of fuel reduced before our retailers will reduce their prices.
Because price of fuel also affects price of goods due to high cost of transportation.
But most importantly, Nigerians always takes advantages of good situation and bad situation. So it will take awhile to adjust since it might give them losses. Nobody likes to lose.

 Since the price of goods and services are still increasing in the market despite the appreciate of naira to dollar few hours ago, I believe the government need to take an action to go round all the companies, wholesalers and retailers to work on the price of goods and service which is the only way the price of goods and services will reduce in the country shortly.

I noticed something from Nigeria economy, once the price of goods and services increase higher in the country, even though the dollars or fuel price come to normal the price of goods and services will never reduced in the country again, I guess this new administration will find solution to this situation.

Nigeria is one country that is cocooned with divers of problem's arising from paralyzed institutions that have failed on their responsibility vested on them by the constitution itself. And a typical one of many of these cancerous problems is that of individual's that are bigger than institutions in the country.

We have a price regulatory institution that should be in control of prices of goods and services in the country but due to their failure over the years we have been experiencing a lack of uniform pricing for same goods even within same location. The market has turn hegemon that these institutions can't control but rather have turned to puppet because in many cases money has exchanged hands.

 Which is why no matter how the Naira keeps appreciating against the Dollar we don't feel the effect in the price of goods and services because the business tycoons (marketers) have not yet recognized that condition until they amass the profit they so desire, so we the masses are just left at their mercy because we have a barking dog with teeth as government institutions.

Yes many things they actually affect the price of goods aside the dollar rate but mate it was this dollar rate that they used as bait to actually increase the price of commodities. See the thing you said about market not having agencies controlling it is the only thing we are facing at the moment. This case of goods not coming down simply signifies why the government alone is not only our problem but we also have a role to play. You will see market people hurriedly increasing price of goods when the naira depreciates but will not do same when it appreciates and rather their excuse will be till they sold the commodities they bought with high dollar rate before bringing down the price whereas such principles wasn’t applied when it did appreciated.


Selling the FX dollars for a fixed price of 1,250 Naira Is just like subsidizing the rate, when this seized FX dollars finishes how will they inject new money into the market? It is just temporary solution that won’t last definitely. They need to make the naira more demanding Than this

Me self don reason the matter self, because the way Naira dey strengthen against dollar just dey rapid from even almost #2000 to #1200 and something. And the price of goods no dey really drop as expected I come dey wounder how we go take survive am, before if person sell $100 you go almost get #190k but now E go give you $120+ you see how E take reduce. and yet the goods of #190k no drop to 120k+ of the current value. so now who dey lost? Na we wey dey dollar market dey short pass. Omo the thing really affect us because like this person budget don reduce and E dey slow person plan.

A manipulative sham it is OP. Before now, we have seen how the dollar to Naira rate has been in the parallel market and all goods keeps rising because of that. Now that the Naira is appreciating against dollar, we can’t see any changes. The truth of the matter and what I’ve observed about all this is that the Federal Government only manipulated the price to be where it is today. In a parallel market, you don’t manipulate price, it has to be determined by demand and supply. The FG needs to export more than they import, it’ll help stabilize the Naira more. As this is a big manipulation by the government, the effect may not last long and the price can depreciate again. This is not a long lasting solution to the economy, there are better ways to handle this, so they should be for it escalates more.

People are no longer complaining about dollar rate again, what they complain about is the cost of transportation and other things like that. When dollar was high, every body dey complain about dollar, even people wey get goods for store before, them dey add money anyhow, anywhere wey u go dem go dey talk say dollar don go up na y goods dey go up be that now, but now wey dollar dey come down, you no go even hear dem complain about dollar again, and dem no gree reduce prices of things.

Dis country wey don spoil, everybody get part wey him dey play wey dey spoil d country. Na government get the highest role, but even we wey dey d country dey kill each other too, any slight news, you go see say markets go don add money to there goods, even d once wey buy when that thing still dey very cheap dem go add money, but if too say price drop, dem go make sure say dem sell d one wey dem get finish before dem go reduce price.

Even as we know say na manipulate government dey manipulate d market, but atleast things suppose dey reduce small small now, but instead things still dey add money, nobody dey complain say dollar dey go up again, but dey no still reduce price’s of things.

Not that dollar is declining but the naira price is appreciating which make dollar price to look like it is depreciating in price.

You do not understand OP. He said why naira increasing but goods and services are getting expensive?

Op you tried. I wanted to create this thread was not fast enough. And really the naira dey get gain against di dollar dis days and as you said, today I even made some screenshots about di naira appreciation and di dollar declining. This are some of the evidence that the naira dey appreciate against the dollar.

But the appreciation of the naira against the dollar is very slow in movement but before the year will end. It will hit $1 to NGN500 or below. It was today I know why the Naira was depreciating. But that will be an another day discussion.

The federal government are manipulating. They manipulated the parallel market and they won by making the parallel market to be almost of the same price with the CBN rate. Goods and services are still getting more expensive and it was linked to increase in the price of diesel. This is not favouring at all as the federal government are just manipulating the naira price which is not favoring at all. Naira is lesser than the price they manipulated it to right now after they increased it to have enough naira to pay workers and be used for budgets, now they appreciate the naira value back. I have not seen any government that is manipulative as this present government.

As naira dy appreciate to dollar and nothing dy change in price of things no dy surprise me at all because I know the kind country we from, and secondly, naija wey we from,  we no get agencies wey dy control price of goods and services in the country, I say so because the agencies wey dy do all those work, no dy do anything, them just dy there like say Dem dy, but nothing them dy do.

And another thing wey I think say they also affect the price of goods, especially food, na the high cost of our crude product, due to subsidy removal, so I no really think say na only dollars they make things cost for we country.

Though a thread related to this one has been created already Now dollar is #1,400/Naira. Will the prices of food items and commodity reduce? but regardless is it just so bad that our mentality in this country is very low because one of the main reasons why goods and services increases in a country is the devaluation of their currency because at that material time, due to importation of foreign products at high cost and the amount used to settle custom and import duty always leads to hike in the prices of goods and commodities but however, the most unkind growth is also increasing locally produced foods within the country.

The recent appreciation of our currency is a welcome development if only the price of things in the market will also follow suit but our traders and marketers are just so adamant and has blatantly refused to reduce the cost of things which is a very bad reoccurring practice in the country. This country likes to learn things the hard way of which if application of force is not enacted by the government, this traders and marketers will not refrain from this behaviour.

I wanted to address same issue this morning. It's just not fair anymore. For months, we've been complaining about the rising prices of goods due to the weakening of the naira. Now, somehow, the government has managed to strengthen the naira to some extent, but things haven't gone back to normal. The exchange rate is now 1247 naira to a dollar, compared to the previous 1800, but prices haven't come down. For example, water, which used to cost 500 naira per bag, is still expensive, along with many other things. It's frustrating. Why does it seem like our country is cursed? If the government can improve the value of the naira, why can't prices go back to normal?

I believe the root of the problem lies with the people. Everyone wants to make a profit and no one wants to lower prices back to where they were. This greed is allowed to thrive because the government either lacks the ability or the will to control it. They seem more concerned with their own wealth than the well-being of the people. Unfortunately, I don't see prices going back to normal anytime soon.

For the past two days now the Naira has for what we will say been regaining value against the Dollar at a former rate of $1 to #1,500 to currently at around $1 to #1,234.56 as at the time I was putting this note together.

Now the main point of my writing is this. In the market we have been facing a sharp constant increase in the prices of goods and services with marketers and business owners blaming it on the rate of dollar against the Naira which has in turn led to the rise in prices of the goods and services, the baffling aspect is how this has to also affect locally produce goods like garri, yam, beans, corn, and the list is endless.

Right now the Naira is gaining weight in the parallel market for the past two day or more and yet there has not been any drop in the price of goods and services in the country, instead we are continuously experiencing the price increase of goods and services. On a normal circumstance we are supposed to be feeling the effect of the Naira appreciation but reverse is the case.

So what's the significance of the appreciation of Naira at this moment to the Nigeria economy since we are not feeling that effect on the prices of goods and services up till now? Or it's this just a manipulative sham.