Topic: the impact of the border reopening and the unified exchange rate on the naira (Read 148 times)

Yet the government devalue di naira to do dollar what an irony to start up an administration. Now dat e dey hot na di best time to raise di naira against di dollar and after now  im Bula Tinubu e no go fit do am again.

Did di president really think we'll before embarking on the policy. Because any leader who inflict pain to im citizens a bad leader. U don't just remove fuel subsidy without alternative plan to do pipo. Now fuel dat was sold 97 naira in Goodluck tenure was sold in 197 naira in Buhari tenure now Tinubu who never even spend one month in office don increase am to 550 naira to 800 in some places. Is that a good plan?  Now where are alternative ways to cube di mata?

Nobody should deceive me in this Nigeria any more. Which boarders are we talking about. Buhari closed all the Western Eastern and Southern Boarders and Open all the Northern Boarders. Now Tinubu has come again, Open all the BOARDERS AT THE WESTERN PART and the Eastern and Southern Boarders are still in tight close yet the ignorant youths in these places are happy that Tinubu has open boarders. Port Harcourt and Bayelsa Boarders are in tight close. From my distance look at things, even the present present is not for good for the East and South but for the West and North. If im mean work let im open all the BOARDERS in Nigeria.

I have said this in the first sentence. And add to it. I'd dollar dey rise cryptocurrency traders and investors go make money from dollar but go still loss when dem go change it to Naira. And the only benefit you go get as a cryptocurrency holder, it is only when the naira go against di dollar very well because at that you can use small money buy plenty things.

Well, to be sincere , I am simply sitting into be offence when it comes to what the value of the dollar is likely to be in naira going forward, being someone who constantly exchange dollar for naira, I would be more happy if the new government could get the price of dollar to naira to stabilize at this current rate, this is because I believe we all know the kind of country we live in, what ever goes up never comes down, if the dollar depreciate against the naira, there is no guarantee of any kind that such development will have any positive impact on the current cost of living, you discover that, you as a dollar trader will exchange your dollars to naira at a significant decrease in the amount, and you still end up buying the stuffs you used to buy at the same normal high price you used to buy them, what then is the essence of the dollar depreciation against the naira?.

I no go lie oh, but the decisions wey this new administration don take thus far dey make sense wella, na very hard decisions wey go affect Nigerians for the short term, but the benefits choke for the long term. When we been get official rate and parallel market rate, the 'big' men dey use am chop, dem go get their connection for commercial banks or the CBN, buy dollar at official rate, come go sell am for black market, this pattern of arbitraging no help the nation at all.

Unified exchange rate go make sense if the government also work hard on other sectors of the economy and on local production, na all of these go attract investors and ensure say we maintain a free market, if e happen like that our banks go dey get enough reserve of dollars in order to maintain the unity of the exchange rate with the black market, because if scarcity go dey for banks, then black market traders go hike their price as scarcity dey.

Baba make I clear you something,  Nigeria government dey pay subsidy for dollar indirectly and the constantly there is massive money printing just to provide liqudities to burn in other the sustained the official dollar v naira exchange rate, that is the primary reason why we have multiple exchange rate,  which os one of the thing the new administration is trying to fight by calling for unified exchange rate. 

So the thing is not that the dollars subsidy os a new thing,  rather the government want to remove that and allow the naira vs dollars to have a free flow and market forces determine the value of the currency.

I believe say in the next couple of weeks to months ahead the price of things is going fo crash further just as there are beginning to wake up to the reality on the ground and by so doing there is high market competition e.g the recent crash is the price of cooking gas,  Kerosine and other petroleum product who's subsidy were removed around 2021-2022 wherein the price then skyrocketed.

But right now that sector is beginning to witness competition and the price is already crashing same will happen with PMs when independent marketer will start importing petroleum into the country.

I no support this subsidy for dollar mata abi the government never learn from past mistakes. Imagine if we been commot fuel subsidy since when expert been dey advise the past government dem to commot am. By now we fit dun dey use to the market value and enough competition for dun dey to drive the price down. If we start this dollar subsidy that one go be another wahala. Make the government just allow the market decide the price. Things dey wey the government go fit do to help the Naira and na to better the economy of the country be the main point.

Because immediately the economy start dey do well, e go attract foreign investors and na dollars dem dey carry come so which go introduced enough dollars into the market to help dollar dey easily available to buy and sell. Thank God Dangote dun launch him refinery, now we no go dey export our crude again but make the government allow Dangote get competition if not we go die for him hand. Him go turn the sector to him own playhouse as him do cement and salt (sugar self) and since no competitive, him go get the final say how the market go be which will be very bad. I know say politicians get stake for this him refinery but I hope tinubu no go allow them spoil him government.

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I greet una special, although I just want to clear some air here, just like I mentioned in the thread this is just a rumour but there is a high possibility of this happening since the president have constantly mentioned that there will be no multiple exchange rate in the nigeria stock market and also a unified exchange rate will never leave naira at it current state and price there will definitely be adjustment in the value of the naira against the dollars since the government is paying high subsidies to keep naira at it current official price.

We in the cryptocurrency industry already know the differences and we are constantly in contact with the price USTD vs Naira since either ways we have to exchange your bitcoin or other coins into naira using the united state dollars as the exchange rate determination and since we already know how much we sell at the black market which is some where as high as ₦750+.

I disregard what I read on social media and other unverifiable news outlets, they are mainly there for the money and often sell propaganda whether it's right or wrong. Their motive is to be one of the first outlets to propagate the news which is not always giving the right information.

What I know about this unification of the exchange rate is that it's still a proposal, it can't be done immediately because a president wants or says it. It's outside Tinubu's jurisdiction, and he could only force the CBN governor politically if their views are not aligning.

For the avoidance of doubt, have you checked the official exchange rate on external websites online to confirm whether Emefiele is telling lies or not? I did on 7 websites and the average remains N461 per $1 as before.

This is an intelligent move towards making Nigerian economy to take a good shape so that money being allocated for subsidy can be diverted to some sections in order to provide more empowerment and equip our hospitals and schools.
 
Although I am yet to see any legit news source publish this news, but I have two different thoughts about this boarder reopening.
1. It will improve our dollar rate if our citizens are trading their home made goods abroad.
2. I am a bit concern about famers who's farm products has getting value due to the boarder closure, if the boarder is open, some of our citizens will prefer importing some of these goods which will devalue our home made foods.

The unified exchange rate will be the possible solution because the price can easily be controlled, but if the price differs, it will be difficult to control and our naira will keep devaluing even though CBN are denying it.

The less a country rely on imported goods, the more its currency likely to have more value to dollar, and this bold moved taken by our new president by removing fuel subsidy hence licencing local producers and private individuals to venture into the sell of petroleum products is a very good move that we will all benefits in time. While the opening of border is another smart move taken by this new administration, as it will enable people now import goods in and out of the country without relying on monopoly which always causes the price of goods to increase since he has no competitors.


In regards to this, I think that was a rumor which the CBN went on it's official Twitter handle to announce to the public that it never devalued the naira, but still maintains its official rate of #465 per $1

The boarder has already been opened since the administration of the immediate past president PMB, the issue there was that it was a partial reopening and they never allow the importation of many items despite it had been declared opened, i also read through a news feed that the recent and trending news concerning the Lagos boarder reopening was nothing but what has already been made and no more news, now we don't know what is ahead and which we should believe not until the people begin to feel the impact of this on the economy through price reduction.

I have seen this news in almost all the social media platforms today but I haven’t seen any official announcement of it in any newspapers or news channel, maybe if there’s any you’ve seen, you can send here and update the thread.


This is something unarguable that the naira has devalued furthermore against dollar. But what still baffles me is that the CBN Governor, Godwin Emefiele is still denying this fact and keeps claiming that the value is still the same as ₦464 till date.



For those that exchange their assets to naira in this period they’ll definitely inquire a lot of gain than the previous ones. Some people have been waiting for this period in order to cash out lots of money but the real fact is that devaluing of naira against dollar will only make life more difficult for the common man.


I pray so, there’re many things that still needs to be done before we can achieve that but I hope and pray that with time the FG will be able to make it unified. If that happens, the naira value in the global market will be much appreciated.

As the new administration of President Bola Tinubu kicks off properly, the ground has been hit ruined and the government is taking steps to help revitalize the economy and also taking steps to strengthen the naira against the United States dollar which is the major exchange currency in the international stock market.

Major breakthrough by the new government:

1: one of the significant moves this government made was the president's inaugural speech where he declared that fuel subsidy is gone since then we have seen the impact of that speech on the petroleum product PMs pump price, but with its long-term gain on the economy as the government now gives licenses to independent markets and private individuals to import petroleum and sell at market price, that means more competition that will eventually lead to price case.

2: border reopening,  this have been a speculation around the social media that the president have have reopened the Nigerian border which has been closed by the past administration all throughout the 8 years tenure, and this will open up the Nigerian economy to the international marketplace where. Exchange of goods and services will take place.

What impact does all of this have on the value of the naira against the dollars?
My analysis of the term:
The naira has been devalued furthermore by the Central Bank of Nigeria from the official price of ₦‎464 to $1 to around ₦‎645 as a unified exchange price according to the new government, well we all know that the dollar's official price has always been under subsidy too, since at the black market all of us who are into cryptocurrency already used to the black market price of ₦‎700+ for the past one year or also so we are more enlightened that other members of the public on how much the government pay as dollars subsidy just to keep the exchange rate at that so-called official price of ₦‎464.

So at this point what can we make out of this situation and at the same time what are the advantage that awaits traders most especially cryptocurrency traders and those that exchange their USTD, Bitcoin and other digital assets into the Nigeria naira in this period?

Do you think the unified exchange rate will stabilize the naira value?