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  • Re: Economicwatch Post #277574
    Posted at: 9:33 am, 1st May 2016
    by PETERICHY. SMN . Joined: 16th January 2013. Thanked 51 times.

    pal;277573 wrote:
    This devaluation thing come tire layman like me wey no read book. This morning (as I dey write this) my chemist friend come tell me say because of dollar scarcity a sachet of ampicillin is now N70 instead of N50. Now, does this mean if we devalue the naira, we go have plenty plenty dollars and ampicillin go come crashing down to N30? Or will I be worse off still and my ampicillin will go up up again to N90? Previously I could buy 2 sachets for my family with N100, now I can buy only one.

    The truth of the matter is the present stringent restrictions has made everyone to be hoarding USD which inturn made the greenback to be overvalued.

    In all honesty i'm no longer praying for any Naira devaluation because if it eventually happen dollar rate will crash.

    And alot will be force to bring out their USD even the tasere ones i hid under my pillow must find it way to the market :D

    The last time I checked common ifeanyi Ubah rumour forced the Greenback from N400 down to N300 let alone when the actual devaluation takes place.

    All that been said the Government of day should stop playing politics and do the needful to ameliorate the suffering of the masses. Period!


  • Re: Economicwatch Post #277573
    Posted at: 8:28 am, 1st May 2016
    by pal. SMN . Joined: 18th February 2008. Thanked 16 times.

    This devaluation thing come tire layman like me wey no read book. This morning (as I dey write this) my chemist friend come tell me say because of dollar scarcity a sachet of ampicillin is now N70 instead of N50. Now, does this mean if we devalue the naira, we go have plenty plenty dollars and ampicillin go come crashing down to N30? Or will I be worse off still and my ampicillin will go up up again to N90? Previously I could buy 2 sachets for my family with N100, now I can buy only one.


  • Re: Economicwatch Post #277572
    Posted at: 7:36 am, 1st May 2016
    by PETERICHY. SMN . Joined: 16th January 2013. Thanked 51 times.

    Waves;277571 wrote:
    ".......One month after Egypt sought to end a dollar squeeze with the biggest currency devaluation in 13 years, the country is back to square one. Money changers in North Africa’s biggest economy are selling hard currency at 11.47 Egyptian pounds, a record 29 percent premium to the official rate of 8.8 pounds per dollar, according to a Bloomberg survey on Wednesday of eight dealers who declined to be identified because their prices violate central bank rules. That surpassed the 24 percent gap that existed on the eve of Governor Tarek Amer’s devaluation decision on March 14, but had virtually vanished soon after............." To those that are only good with a hammer, every problem looks like a nail.

    Egypt's Devaluation Euphoria Fades Away - Bloomberg

    The Egyptian economy is yet to recover from the 2011 Arab spring revolt, So their case is totally different from that of Nigeria.


  • Re: Economicwatch Post #277571
    Posted at: 6:15 am, 1st May 2016
    by Waves. SMN . Joined: 12th March 2009. Thanked 249 times.

    PETERICHY;277568 wrote:
    For your info since 15th Jan 2016 till date Naira has been shuttling between N300 and N400 per USD which create big room for round-tripping and now making few richer at the expense of the economy. :)

    Dollars scarcity has lead alot of businesses and manufacturers to close shop which has result in massive job loss and here we are still debating weather to officially devalue what has already been unofficially DEVALUED. :D

    So let's stop deceiving ourselves with this N200 per dollar official crab and face the reality squarely before the Nigeria economy finally go comatose due to politics. :cool:

    China-Bound Nigerian Arrested With 130ATM Cards Hidden In Noodles (pic) - Crime - Nigeria


    ".......One month after Egypt sought to end a dollar squeeze with the biggest currency devaluation in 13 years, the country is back to square one. Money changers in North Africa’s biggest economy are selling hard currency at 11.47 Egyptian pounds, a record 29 percent premium to the official rate of 8.8 pounds per dollar, according to a Bloomberg survey on Wednesday of eight dealers who declined to be identified because their prices violate central bank rules. That surpassed the 24 percent gap that existed on the eve of Governor Tarek Amer’s devaluation decision on March 14, but had virtually vanished soon after............." To those that are only good with a hammer, every problem looks like a nail.

    Egypt's Devaluation Euphoria Fades Away - Bloomberg


  • Re: Economicwatch Post #277570
    Posted at: 5:34 am, 1st May 2016
    by PETERICHY. SMN . Joined: 16th January 2013. Thanked 51 times.

    duduspace;277569 wrote:
    How exactly will devaluing the Naira make the dollar magically less scarce ? Na professor Peller tinz yu dey talk ?

    Well i wont blame you after all you are among those the dicey Forex situation favors :D

    The hometruth is no forex earner still genuinely call for Naira devaluation at this stage.

    Reason: Even if Naira is officially devalued by 50% which i dont think is possible that will amount to N300 per USD.

    Now tell me why will such category still want devaluation when currently they can easily exchange @t the rate of N320 per dollar. :)

    I was in nigeria earlier this year and i can tell you the suffering is real, i think at this junction they should stop playing polictics with the life of the masses.

    APC government should swallow their pride and forget their elusive campaign promise of turning 1dollar to 1naira then do the needful before the economy will totally collapse.

    *ThE OcToPuS*


  • Re: Economicwatch Post #277569
    Posted at: 4:09 am, 1st May 2016
    by duduspace. SMN . Joined: 13th February 2007. Thanked 297 times.

    PETERICHY;277568 wrote:
    For your info since 15th Jan 2016 till date Naira has been shuttling between N300 and N400 per USD which create big room for round-tripping and now making few richer at the expense of the economy. :)

    Dollars scarcity has lead alot of businesses and manufacturers to close shop which has result in massive job loss and here we are still debating weather to officially devalue what has already been unofficially DEVALUED. :D

    How exactly will devaluing the Naira make the dollar magically less scarce ? Na professor Peller tinz yu dey talk ?


  • Re: Economicwatch Post #277568
    Posted at: 2:50 am, 1st May 2016
    by PETERICHY. SMN . Joined: 16th January 2013. Thanked 51 times.

    Waves;277563 wrote:
    What is appropriate $ /N exchange rate for our current level of productivity? Considering that we have devalued the Naira by close to 1,000% over 20 years from N20 under Abacha to N200 now, what exactly is the productivity gain over this period?

    For your info since 15th Jan 2016 till date Naira has been shuttling between N300 and N400 per USD which create big room for round-tripping and now making few richer at the expense of the economy. :)

    Dollars scarcity has lead alot of businesses and manufacturers to close shop which has result in massive job loss and here we are still debating weather to officially devalue what has already been unofficially DEVALUED. :D

    So let's stop deceiving ourselves with this N200 per dollar official crab and face the reality squarely before the Nigeria economy finally go comatose due to politics. :cool:

    China-Bound Nigerian Arrested With 130ATM Cards Hidden In Noodles (pic) - Crime - Nigeria


  • Re: World Politics Post #277567
    Posted at: 2:45 am, 1st May 2016
    by citizen. SMN . Joined: 27th March 2008. Thanked 59 times.


  • Re: State of the Nation Post #277566
    Posted at: 9:53 pm, 30th Apr 2016
    by citizen. SMN . Joined: 27th March 2008. Thanked 59 times.


  • Re: World Politics Post #277565
    Posted at: 9:27 pm, 30th Apr 2016
    by Dicobody. SMN . Joined: 21st September 2009. Thanked 70 times.


  • Re: Economicwatch Post #277564
    Posted at: 8:12 pm, 30th Apr 2016
    by citizen. SMN . Joined: 27th March 2008. Thanked 59 times.

    https://www.stratfor.com/analysis/looking-way-out-venezuelas-crisis?utm_source=freelist-f&utm_medium=email&utm_campaign=saturdaypush160430&_hsenc=p2ANqtz-9fqnTw2bsPtsi6MQeKEBYnjXmZAzPJY37arU0DHR3QUWolXB0B6mh9HreawcZXwkc5EH3nOABsBhNV0x8-BkyUD61BMw&_hsmi=29116692

    It's a tough time to live in Venezuela.

    The country's long decline -- on economic, social and political levels --reached a new inflection point this week, when the government cut public sector employees' work week to a mere two days
    in efforts to cut down electricity use.

    Although rolling blackouts have been a part of life in Venezuela for some time, the situation has grown particularly challenging as a drought has begun to impact hydropower output from the Guri Dam.

    And to top it all off, the country is literally running out of beer.


    Empresas Polar, Venezuela's largest private company, has now shuttered its breweries, saying it is unable to pay for imported grains under the government's strict exchange controls, which govern access to dollars.

    So beer is now being added to a long list of items -- including a variety of foodstuffs -- that are in short supply for Venezuela.


  • Re: Economicwatch Post #277563
    Posted at: 8:11 pm, 30th Apr 2016
    by Waves. SMN . Joined: 12th March 2009. Thanked 249 times.

    dupeodus;277559 wrote:
    Because the level at which the government pegged the naira exchange rate is far above what the level of productivity in Nigeria can support and therefore put Nigeria at a trade disadvantage and consequently harm the productive sector of the economy. The countries that were warned not to devalue have their currency rate at or in many of the cases, below the level that their economic productivity can support. Any further devaluation will give them more trade advantage. Let me try to simplify the naira rate argument. Pegging the naira rate at a level above what the economic productivity can support is like a manufacturer of a product that is the exact quality and customer service with what his competitors produce but insists on charging a higher price than his competitors. Ofcourse, his competitors will eat his lunch while he will end up laying off his workers. That is why there is so much unemployment in Nigeria. Even if the oil price bounced back, Nigeria needs to follow Norway's example of setting aside the oil wealth into a Sovereign Wealth Fund. A lot of people see thus as saving for the rainy day but it's use is more to protect the rest of the economy from the devastating effect of the distortions of the oil wealth

    What is appropriate $ /N exchange rate for our current level of productivity? Considering that we have devalued the Naira by close to 1,000% over 20 years from N20 under Abacha to N200 now, what exactly is the productivity gain over this period?


  • Re: Economicwatch Post #277562
    Posted at: 8:08 pm, 30th Apr 2016
    by citizen. SMN . Joined: 27th March 2008. Thanked 59 times.

    Facing the possibility of renewed social discord, Arias Cardenas' faction is worried about the prospect of gubernatorial elections this year.

    Given the landslide win for the opposition Democratic Unity Roundtable in the December 2015 legislative elections, the governors likely fear a similar outcome in the impending elections.

    Now the question becomes whether they can convince key individuals and constituencies to back a transition away from Maduro. Although Maduro's circle of elite supporters has been shrinking, one of its most important members, Defense Minister Gen. Vladimir Padrino Lopez, has not overtly proposed Maduro's removal. As long as Padrino Lopez, accompanied by a segment of the country's military and political elite, is allied with the president — or at least not actively working against him — Maduro stands a chance of retaining his office until his term ends in 2019.

    If the governors prevail and Maduro is forced to resign before January 2017, the outcome will be quite different. New elections would have to be held within 30 days of his resignation, and the opposition would have a realistic shot at victory. But if Maduro were to resign after January, the presidency would go to the standing vice president until the next presidential vote in 2019.


  • Re: Economicwatch Post #277561
    Posted at: 8:04 pm, 30th Apr 2016
    by citizen. SMN . Joined: 27th March 2008. Thanked 59 times.

    Decreased imports and chronic underinvestment in public services have contributed to accelerating inflation in food prices and increasingly erratic electricity service.

    To make matters worse, a drought is exacerbating the country's water supply problems. Amid a period of sustained low oil prices, and with no real reform measures on the horizon, the social crisis will continue to worsen, posing a greater threat to the government as protests rise across the country. So far, protests have been too small, isolated and disorganized to really affect the state. But that could change.

    Threats to the Ruling Party

    The government faces two major threats as the year progresses. If the state energy firm Petroleos de Venezuela defaults on its roughly $5 billion foreign debt in the fall, its access to overseas capital will likely be restricted further, aggravating the country's economic and social crisis.

    But a second risk could manifest even sooner. If water levels in its reservoir drop to between 244 and 240 meters above sea level, the Guri Dam, responsible for around 60 percent of the country's electrical output, may have to shut down some of its turbines.

    As of April 4, the water level had fallen below 244 meters. Since the rest of the country's electricity sector would likely be unable to compensate for reduced output from the Guri Dam, even a partial shutdown of the dam's generation would cause months of blackouts across large swaths of Venezuela. Extensive blackouts could fuel protests in Venezuela, as a wider section of society would feel the effects of electricity shortages.


  • Re: Economicwatch Post #277560
    Posted at: 8:02 pm, 30th Apr 2016
    by citizen. SMN . Joined: 27th March 2008. Thanked 59 times.

    During the first three years of Nicolas Maduro's presidency, Venezuela's economy deteriorated rapidly, causing the PSUV to split into several factions.

    Of these factions, the ruling clique — represented by Maduro and his wife, Cilia Flores, legislator Diosdado Cabello, and, to a lesser extent, Aragua State Gov. Tareck el Aissami and National Guard Commander Nestor Reverol — is the most resistant to economic reform and political dialogue with the opposition. For them, political change in Venezuela poses an existential threat, and ceding political ground to the opposition is not in their interests.

    In light of ongoing criminal investigations of Cabello and Flores, losing political sway in the country could jeopardize their futures. Similarly, swift economic adjustments — no matter how necessary — could threaten Maduro's presidency, further driving up inflation that already totals around 300 percent annually.

    Consequently, Cabello and Maduro have chosen a path of inaction on the economic front, while continuing to deflect political challenges from the opposition coalition.


  • Re: Economicwatch Post #277559
    Posted at: 4:50 pm, 30th Apr 2016
    by dupeodus. SMN . Joined: 15th November 2012. Thanked 81 times.

    arostuff;277555 wrote:
    then why do they want to force us to devalue our own money
    Because the level at which the government pegged the naira exchange rate is far above what the level of productivity in Nigeria can support and therefore put Nigeria at a trade disadvantage and consequently harm the productive sector of the economy. The countries that were warned not to devalue have their currency rate at or in many of the cases, below the level that their economic productivity can support. Any further devaluation will give them more trade advantage. Let me try to simplify the naira rate argument. Pegging the naira rate at a level above what the economic productivity can support is like a manufacturer of a product that is the exact quality and customer service with what his competitors produce but insists on charging a higher price than his competitors. Ofcourse, his competitors will eat his lunch while he will end up laying off his workers. That is why there is so much unemployment in Nigeria. Even if the oil price bounced back, Nigeria needs to follow Norway's example of setting aside the oil wealth into a Sovereign Wealth Fund. A lot of people see thus as saving for the rainy day but it's use is more to protect the rest of the economy from the devastating effect of the distortions of the oil wealth


  • Re: Economicwatch Post #277558
    Posted at: 3:28 pm, 30th Apr 2016
    by citizen. SMN . Joined: 27th March 2008. Thanked 59 times.


  • Re: Economicwatch Post #277557
    Posted at: 3:24 pm, 30th Apr 2016
    by citizen. SMN . Joined: 27th March 2008. Thanked 59 times.


  • Re: Economicwatch Post #277556
    Posted at: 3:24 pm, 30th Apr 2016
    by citizen. SMN . Joined: 27th March 2008. Thanked 59 times.


  • Re: Economicwatch Post #277555
    Posted at: 6:15 am, 30th Apr 2016
    by arostuff. SMN . Joined: 25th September 2010. Thanked 5 times.


    then why do they want to force us to devalue our own money


  • Re: Eterna oil Post #277554
    Posted at: 4:47 am, 30th Apr 2016
    by wanaj0. SMN . Joined: 9th April 2007. Thanked 361 times.

    mercylicious;277552 wrote:
    25k dividend. Nice one!

    Dry bones shall rise again???


  • Re: Economicwatch Post #277553
    Posted at: 9:27 pm, 29th Apr 2016
    by citizen. SMN . Joined: 27th March 2008. Thanked 59 times.


  • Re: Eterna oil Post #277552
    Posted at: 6:47 pm, 29th Apr 2016
    by mercylicious. SMN . Joined: 30th January 2013. Thanked 22 times.


  • Re: State of the Nation Post #277551
    Posted at: 6:15 pm, 29th Apr 2016
    by Dicobody. SMN . Joined: 21st September 2009. Thanked 70 times.


  • Re: State of the Nation Post #277550
    Posted at: 5:24 pm, 29th Apr 2016
    by Dicobody. SMN . Joined: 21st September 2009. Thanked 70 times.


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