Naira vs. Sterling/Dollar Exchange Rate for the Diaspora

[ayemco]

Hi folks,

I have been watching with interest the fall of the Sterling/Dollar (Must especially the Sterling) to the naira of recent. The sterling is now down to about 176 naira from about a high of 250 - 256 naira a couple of months ago. Does this create an opportunity for the Diaspora to repartriate the naira back to the UK/US to pay off part of the good old mortagage? Or should we be waiting till it kind of gets to 100 naira to the sterling?

Well thought I'll just start this discussion as different possibilities can emerge in the near future.

[tonidol]

Originally Posted by ayemco

Hi folks,

I have been watching with interest the fall of the Sterling/Dollar (Must especially the Sterling) to the naira of recent. The sterling is now down to about 176 naira from about a high of 250 - 256 naira a couple of months ago. Does this create an opoortunity for the Diaspora to repartriate the naira back to the UK/US to pay off part of the good old mortagage? Or should we be waiting till it kind of gets to 100 naira to the sterling?

Weel thought I'll just start this discussion as a possibilities can emerge in the near future.

U dey there. The way the sterling is going down by the day is making diaspora living unattractive o.

Well, Jesus is on the throne and we wait for His signals before taking a decision.

Going down to N100 to the pound or climbing up back to N260, who knows? Na divine instruction fit help at this time

[ayemco]

Originally Posted by tonidol

U dey there. The way the sterling is going down by the day is making diaspora living unattractive o.

Well, Jesus is on the throne and we wait for His signals before taking a decision.

Going down to N100 to the pound or climbing up back to N260, who knows? Na divine instruction fit help at this time

Na true my brother na prayers. Anyway the Tory party in the UK have predicted a crash in the Sterling... May be if at all that happens then like they say in Yoruba Omo setan, Omo rele. (Son of Man has finished his journey here, Now its time to go home). Who go buy your house that time? This is the problem.

[billions]

Originally Posted by tonidol

U dey there. The way the sterling is going down by the day is making diaspora living unattractive o.

Well, Jesus is on the throne and we wait for His signals before taking a decision.

Going down to N100 to the pound or climbing up back to N260, who knows? Na divine instruction fit help at this time

Some people are praying for the thing to continue to drop....

[tonidol]

Originally Posted by billions

Some people are praying for the thing to continue to drop....

Every man for himself, God for us all. It is good for Nigeria but man must change strategy.

Sending cash will no longer be attractive but sending goods which will command good value when sold in Naija and buying pounds in Naija with the proceeds.

I don dey talk too much sef. PM me if you need further consultancy. Please note l am a VAT registered Consultant o!!!

[ayemco]

Exchange Rates First Bank rates (Bureau de Change) for 19/11/2008
Buying Selling $ 116.70 117.95 £ 205.00 209.50 ¤ 170.00 174.00

Union Bank as at November 19, 2008
Buying Selling 117.50 ? Updated daily $ 118.00 £ 176.59 177.35 ¤ 148.80 149.44

Central Bank of Nigeria (November 19, 2008)
Buying Selling YEN 1.20 1.21 WAUA 169.64 171.10 $ 115.57 116.57 Swiss 96.36 97.19 £ 173.75 175.25 ?EUR 146.06 147.32 CFA 0.21 0.22

Make una see difference between Bank and Bureau De Chnage rate. Chei!! Ojuelegba or Akerele own go better sef!!

[hispy99]

Originally Posted by ayemco

Hi folks,

I have been watching with interest the fall of the Sterling/Dollar (Must especially the Sterling) to the naira of recent. The sterling is now down to about 176 naira from about a high of 250 - 256 naira a couple of months ago. Does this create an opportunity for the Diaspora to repartriate the naira back to the UK/US to pay off part of the good old mortagage? Or should we be waiting till it kind of gets to 100 naira to the sterling?

Well thought I'll just start this discussion as different possibilities can emerge in the near future.

Don't worry, the coming devaluation in the dollar will be more severe. Helicopter Ben in the bid to save the economy has flooded the system with so much money that I doubt if the value of the green back will not be severely basterdized in the months ahead. Maybe it's time for me to move my money into gold?

[waaan5]

Originally Posted by tonidol

U dey there. The way the sterling is going down by the day is making diaspora living unattractive o.

Well, Jesus is on the throne and we wait for His signals before taking a decision.

Going down to N100 to the pound or climbing up back to N260, who knows? Na divine instruction fit help at this time

For economic immigrants, maybe. But I reckon there are other reasons people chose to live abroad. As far as I am concern, there is a sliver lining for UK residents - at least one can surmount courage to refuse frivolous requests for handouts from Naija. People use to outdo each other in trying to appear needy. Not anymore when bankers for instance in both Naija and diaspora are earning similar pays in quantitative terms. Also as mentioned, it is a good time to actually buy goods and send instead of cash. UK goods still command their rightful high prices in Naija. And who are in better position to know where the bargains are more than the UK residents?.

[tonidol]

Originally Posted by waaan5

For economic immigrants, maybe. But I reckon there are other reasons people chose to live abroad. As far as I am concern, there is a sliver lining for UK residents - at least one can surmount courage to refuse frivolous requests for handouts from Naija. People use to outdo each other in trying to appear needy. Not anymore when bankers for instance in both Naija and diaspora are earning similar pays in quantitative terms. Also as mentioned, it is a good time to actually buy goods and send instead of cash. UK goods still command their rightful high prices in Naija. And who are in better position to know where the bargains are more than the UK residents?.

Spot on!!! There are other reasons for living outside Naija. I dey chop better Bank money when l decided to leave Naija. The system seems to be working for person wey desire rest of mind. You don't have to steal public funds to have access to the basic needs of life out here. Challenging it may b at times but if you are focused on your goal, water will find its level by His Mighty grace.

[ayemco]

Originally Posted by waaan5

For economic immigrants, maybe. But I reckon there are other reasons people chose to live abroad. As far as I am concern, there is a sliver lining for UK residents - at least one can surmount courage to refuse frivolous requests for handouts from Naija. People use to outdo each other in trying to appear needy. Not anymore when bankers for instance in both Naija and diaspora are earning similar pays in quantitative terms. Also as mentioned, it is a good time to actually buy goods and send instead of cash. UK goods still command their rightful high prices in Naija. And who are in better position to know where the bargains are more than the UK residents?.

I beg I wan go Dalston Market go purchase items for the next transhipment to Lagos Oooo . ishhhh. I go let you know how the market do once I don't sell.

[ayemco]

Naira Crashes against Dollar at Inter-bank Market
•Sheds N1.11 at official market
By Ayodele Aminu, 12.02.2008

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Barely five days after the Nigerian currency, the naira, recorded its first major depreciation (99 kobo) in the last three years at the inter-bank foreign exchange market, it continued its free fall yesterday, losing N7 against the United States dollar.
The naira, which had recorded relative stability over the last three years, also shed N1.11 against the dollar yesterday at the official market - the Wholesale Dutch Auction System (WDAS). It had last Wednesday depreciated by 4 kobo against the dollar.
The inter-bank foreign exchange market is where banks, on behalf of their customers, buy foreign exchange from one another to meet their daily needs, while the WDAS moderated by the Central Bank of Nigeria (CBN) is the official market where foreign exchange end users through their banks bid for foreign exchange.
The WDAS, introduced in February 2006 to bridge the gap between the official and black market, opens for trading twice a week – Mondays and Wednesdays.
The naira, which opened for trading at N117.79: $1 yesterday at the official market, closed at N119.50: $1, because the apex bank could not meet the demand of foreign exchange end users who demanded $1.3 billion out of which the apex bank supplied just $100 million.
This was also the case last Wednesday when banks demanded $1 billion but got $105 million, prompting the inter-bank market, which had opened at N118.51: $1 to depreciate to an all-year low at N120: $1, before retreating to N119.50: $1. This development had compelled the naira to lose 99 kobo against the dollar.
Further depreciation of the naira at the inter-bank market yesterday, according to market operators, was triggered by the development at the official market where the banking watchdog could not meet the demand.
Given these scenario, the naira, which opened for trading at the inter-bank market yesterday at N119.50: $1, depreciated to an all-year low at N126.50: $1, translating to N7 depreciation against the dollar.

[prince dagbolu]

Originally Posted by tonidol

U dey there. The way the sterling is going down by the day is making diaspora living unattractive o.

Well, Jesus is on the throne and we wait for His signals before taking a decision.

Going down to N100 to the pound or climbing up back to N260, who knows? Na divine instruction fit help at this time

It was very thoughtful of Ayemco to start this discussion. Simply put, who would you trust with your last penny? Obama, Gordon Brown, or Yardua.

I trust Obama and Brown to get it right for their respective Countries, because they are serious politicians, with a capable team determined to succeed. Unfortunately, I cannot say this about Yar Adua or any other Nigerian Politician.

Finally, the Americans and Europeans always got it right in the past, so they will get it right again.

You can bet your house on Nigerian Politicians getting it wrong again, therefore, this Naira appreciation will not last beyong 1-2 years.

[ayemco]

Naira loses N10 in one day
Wednesday, 03 December 2008 00:42 BLESSING ANARO
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The challenges facing the economy in the coming year in the face of dwindling oil prices was underscored yesterday as the naira lost 962 kobo to the dollar at the Nigerian Inter-Bank Foreign Exchange Market (NIFEX), the highest single loss in more than three years.
At the spot NIFEX, the offer rate depreciated from N119.9025 on Monday to N129.00 yesterday, a fall of N10.
This huge loss is coming barely a week after the national currency recorded its first major depreciation in the last three years at the inter-bank foreign exchange market.
In what some analysts say be the beginning of a free fall, the trend continued Monday; losing 700 kobo against the United States dollar.

[Michael]

Originally Posted by hispy99

Don't worry, the coming devaluation in the dollar will be more severe. Helicopter Ben in the bid to save the economy has flooded the system with so much money that I doubt if the value of the green back will not be severely basterdized in the months ahead. Maybe it's time for me to move my money into gold?

Hisspy, whats your take on Japanese Yen and swiss francs, there has to be a currency that is not collapsing. Gold has always been a store of value, but I am not sure it will continue to be in the current scheme of things.