| Can Someone Explain The Unification Of Exchange Rate Market by lorenzobanks(m): 11:40am On May 31, 2023 |
The president and vice president announced during a briefing on their first day in office that they want to eliminate double exchange rate window currently witness in Nigeria where the official price and black market price coexist.
Expert in the house, how do you think federal government would achieve this owning to the fact that this is determine by the availability of dollars. I need your input. |
| Re: Can Someone Explain The Unification Of Exchange Rate Market by Nobody: 11:44am On May 31, 2023 |
Those aboki at zone 4 are the people that determines Nigeria fx mark, they control the CBN fx. |
| Re: Can Someone Explain The Unification Of Exchange Rate Market by Ynix(m): 11:49am On May 31, 2023 |
lorenzobanks:
The president and vice president announced during a briefing on their first day in office that they want to eliminate double exchange rate window currently witness in Nigeria where the official price and black market price coexist.
Expert in the house, how do you think federal government would achieve this owning to the fact that this is determine by the availability of dollars. I need your input. Hmm, I believe that the present Government can do the the following to achieve that. Strengthening the official exchange rate: The government could take measures to strengthen the official exchange rate by increasing the supply of foreign currency, particularly US dollars, through various means. This could include promoting exports, attracting foreign direct investment (FDI), encouraging remittances, and implementing policies to boost foreign currency reserves. Economic reforms: The government could implement structural reforms to improve the overall economic situation, enhance investor confidence, and attract foreign capital. This might involve addressing issues related to infrastructure development, power supply, ease of doing business, and governance. By creating a conducive environment for investment and economic growth, the government can increase the inflow of foreign currency. Foreign exchange market interventions: The central bank may increase its interventions in the foreign exchange market to stabilize the exchange rate. This could involve selling foreign currency reserves, particularly US dollars, to meet the demand and reduce the disparity between the official and parallel market rates. Fiscal discipline and monetary policy: The government can pursue fiscal discipline by managing public finances effectively, reducing budget deficits, and implementing prudent monetary policies. Sound macroeconomic management can help stabilize the economy, control inflation, and attract foreign investment, which, in turn, may improve the availability of foreign currency. Collaboration with international partners: The government can engage with international financial institutions, such as the International Monetary Fund (IMF), to explore potential assistance programs, loans, or financial support aimed at stabilizing the exchange rate and addressing economic challenges. These partnerships can bring expertise and resources to help manage foreign currency liquidity and improve economic stability. Diversification of the economy: Promoting economic diversification away from oil dependency can contribute to reducing the pressure on foreign exchange. By developing other sectors such as agriculture, manufacturing, services, and technology, Nigeria can enhance export earnings and reduce the reliance on imported goods, thereby improving the availability of foreign currency. Curbing capital flight and illicit financial flows: The government can implement measures to combat capital flight and illicit financial flows, which contribute to the scarcity of foreign currency. Strengthening regulations, improving transparency, and enhancing anti-corruption efforts can help retain foreign exchange within the country and reduce the need for multiple exchange rate windows. It's important to note that eliminating the dual exchange rate system would require a comprehensive approach that addresses the underlying economic factors and structural issues contributing to the current situation. Additionally, communication and coordination with relevant stakeholders, including businesses, financial institutions, and citizens, would be crucial to ensure a smooth transition and build confidence in the unified exchange rate system. 3 Likes |
| Re: Can Someone Explain The Unification Of Exchange Rate Market by lorenzobanks(m): 11:56am On May 31, 2023 |
Ynix:
Hmm,
I believe that the present Government can do the the following to achieve that.
Strengthening the official exchange rate: The government could take measures to strengthen the official exchange rate by increasing the supply of foreign currency, particularly US dollars, through various means. This could include promoting exports, attracting foreign direct investment (FDI), encouraging remittances, and implementing policies to boost foreign currency reserves.
Economic reforms: The government could implement structural reforms to improve the overall economic situation, enhance investor confidence, and attract foreign capital. This might involve addressing issues related to infrastructure development, power supply, ease of doing business, and governance. By creating a conducive environment for investment and economic growth, the government can increase the inflow of foreign currency.
Foreign exchange market interventions: The central bank may increase its interventions in the foreign exchange market to stabilize the exchange rate. This could involve selling foreign currency reserves, particularly US dollars, to meet the demand and reduce the disparity between the official and parallel market rates.
Fiscal discipline and monetary policy: The government can pursue fiscal discipline by managing public finances effectively, reducing budget deficits, and implementing prudent monetary policies. Sound macroeconomic management can help stabilize the economy, control inflation, and attract foreign investment, which, in turn, may improve the availability of foreign currency.
Collaboration with international partners: The government can engage with international financial institutions, such as the International Monetary Fund (IMF), to explore potential assistance programs, loans, or financial support aimed at stabilizing the exchange rate and addressing economic challenges. These partnerships can bring expertise and resources to help manage foreign currency liquidity and improve economic stability.
Diversification of the economy: Promoting economic diversification away from oil dependency can contribute to reducing the pressure on foreign exchange. By developing other sectors such as agriculture, manufacturing, services, and technology, Nigeria can enhance export earnings and reduce the reliance on imported goods, thereby improving the availability of foreign currency.
Curbing capital flight and illicit financial flows: The government can implement measures to combat capital flight and illicit financial flows, which contribute to the scarcity of foreign currency. Strengthening regulations, improving transparency, and enhancing anti-corruption efforts can help retain foreign exchange within the country and reduce the need for multiple exchange rate windows.
It's important to note that eliminating the dual exchange rate system would require a comprehensive approach that addresses the underlying economic factors and structural issues contributing to the current situation. Additionally, communication and coordination with relevant stakeholders, including businesses, financial institutions, and citizens, would be crucial to ensure a smooth transition and build confidence in the unified exchange rate system. Thank you for your input. Your analytical breakdown is much appreciated. But would like to ask if this policies can be implemented within 6 months or do you think it would take a long time before the black market exchange stop existing? 1 Like |
| Re: Can Someone Explain The Unification Of Exchange Rate Market by Westerhoffe(m): 12:01pm On May 31, 2023 |
Ynix:
Hmm,
I believe that the present Government can do the the following to achieve that.
Strengthening the official exchange rate: The government could take measures to strengthen the official exchange rate by increasing the supply of foreign currency, particularly US dollars, through various means. This could include promoting exports, attracting foreign direct investment (FDI), encouraging remittances, and implementing policies to boost foreign currency reserves.
Economic reforms: The government could implement structural reforms to improve the overall economic situation, enhance investor confidence, and attract foreign capital. This might involve addressing issues related to infrastructure development, power supply, ease of doing business, and governance. By creating a conducive environment for investment and economic growth, the government can increase the inflow of foreign currency.
Foreign exchange market interventions: The central bank may increase its interventions in the foreign exchange market to stabilize the exchange rate. This could involve selling foreign currency reserves, particularly US dollars, to meet the demand and reduce the disparity between the official and parallel market rates.
Fiscal discipline and monetary policy: The government can pursue fiscal discipline by managing public finances effectively, reducing budget deficits, and implementing prudent monetary policies. Sound macroeconomic management can help stabilize the economy, control inflation, and attract foreign investment, which, in turn, may improve the availability of foreign currency.
Collaboration with international partners: The government can engage with international financial institutions, such as the International Monetary Fund (IMF), to explore potential assistance programs, loans, or financial support aimed at stabilizing the exchange rate and addressing economic challenges. These partnerships can bring expertise and resources to help manage foreign currency liquidity and improve economic stability.
Diversification of the economy: Promoting economic diversification away from oil dependency can contribute to reducing the pressure on foreign exchange. By developing other sectors such as agriculture, manufacturing, services, and technology, Nigeria can enhance export earnings and reduce the reliance on imported goods, thereby improving the availability of foreign currency.
Curbing capital flight and illicit financial flows: The government can implement measures to combat capital flight and illicit financial flows, which contribute to the scarcity of foreign currency. Strengthening regulations, improving transparency, and enhancing anti-corruption efforts can help retain foreign exchange within the country and reduce the need for multiple exchange rate windows.
It's important to note that eliminating the dual exchange rate system would require a comprehensive approach that addresses the underlying economic factors and structural issues contributing to the current situation. Additionally, communication and coordination with relevant stakeholders, including businesses, financial institutions, and citizens, would be crucial to ensure a smooth transition and build confidence in the unified exchange rate system. CHATGPT… I sight thee. 2 Likes |
| Re: Can Someone Explain The Unification Of Exchange Rate Market by ahaz: 12:03pm On May 31, 2023 |
Ynix:
Hmm,
I believe that the present Government can do the the following to achieve that.
Strengthening the official exchange rate: The government could take measures to strengthen the official exchange rate by increasing the supply of foreign currency, particularly US dollars, through various means. This could include promoting exports, attracting foreign direct investment (FDI), encouraging remittances, and implementing policies to boost foreign currency reserves.
Economic reforms: The government could implement structural reforms to improve the overall economic situation, enhance investor confidence, and attract foreign capital. This might involve addressing issues related to infrastructure development, power supply, ease of doing business, and governance. By creating a conducive environment for investment and economic growth, the government can increase the inflow of foreign currency.
Foreign exchange market interventions: The central bank may increase its interventions in the foreign exchange market to stabilize the exchange rate. This could involve selling foreign currency reserves, particularly US dollars, to meet the demand and reduce the disparity between the official and parallel market rates.
Fiscal discipline and monetary policy: The government can pursue fiscal discipline by managing public finances effectively, reducing budget deficits, and implementing prudent monetary policies. Sound macroeconomic management can help stabilize the economy, control inflation, and attract foreign investment, which, in turn, may improve the availability of foreign currency.
Collaboration with international partners: The government can engage with international financial institutions, such as the International Monetary Fund (IMF), to explore potential assistance programs, loans, or financial support aimed at stabilizing the exchange rate and addressing economic challenges. These partnerships can bring expertise and resources to help manage foreign currency liquidity and improve economic stability.
Diversification of the economy: Promoting economic diversification away from oil dependency can contribute to reducing the pressure on foreign exchange. By developing other sectors such as agriculture, manufacturing, services, and technology, Nigeria can enhance export earnings and reduce the reliance on imported goods, thereby improving the availability of foreign currency.
Curbing capital flight and illicit financial flows: The government can implement measures to combat capital flight and illicit financial flows, which contribute to the scarcity of foreign currency. Strengthening regulations, improving transparency, and enhancing anti-corruption efforts can help retain foreign exchange within the country and reduce the need for multiple exchange rate windows.
It's important to note that eliminating the dual exchange rate system would require a comprehensive approach that addresses the underlying economic factors and structural issues contributing to the current situation. Additionally, communication and coordination with relevant stakeholders, including businesses, financial institutions, and citizens, would be crucial to ensure a smooth transition and build confidence in the unified exchange rate system. Your papa money no waste. 1 Like |
| Re: Can Someone Explain The Unification Of Exchange Rate Market by ahaz: 12:10pm On May 31, 2023 |
lorenzobanks:
Thank you for your input. Your analytical breakdown is much appreciated. But would like to ask if this policies can be implemented within 6 months or do you think it would take a long time before the black market exchange stop existing? Well permit me to join in this discuss..From what I gathered from the learnerd gentleman, this policy will take more than six months to met up with it's full Impliementstion but with the right political will and a steady workable frame work, the essence will be felt gradually as one positive reaction will surely lead to another. In the area of structural implementation, you and I know too well that we are having a very high deficit in this area and the need to start putting up modalities to put them in shape in other to stimulate economic growth is not something that will come to full realization in six months. 1 Like |
| Re: Can Someone Explain The Unification Of Exchange Rate Market by lorenzobanks(m): 12:58pm On May 31, 2023 |
ahaz:
Well permit me to join in this discuss..From what I gathered from the learnerd gentleman, this policy will take more than six months to met up with it's full Impliementstion but with the right political will and a steady workable frame work, the essence will be felt gradually as one positive reaction will surely lead to another.
In the area of structural implementation, you and I know too well that we are having a very high deficit in this area and the need to start putting up modalities to put them in shape in other to stimulate economic growth is not something that will come to full realization in six months. Thank you my learned nairalander. It great to have bright minds to engage with on this forum. I hope, BAT takes the bull by the horn to redirect Nigeria to the pathway of progress. I also know that investors are waiting earnestly for the FG create this policies you guys stated. Thank you! |
| Re: Can Someone Explain The Unification Of Exchange Rate Market by tsdarkside(m): 1:03pm On May 31, 2023 |
Ynix:
Hmm,
I believe that the present Government can do the the following to achieve that.
Strengthening the official exchange rate: The government could take measures to strengthen the official exchange rate by increasing the supply of foreign currency, particularly US dollars, through various means. This could include promoting exports, attracting foreign direct investment (FDI), encouraging remittances, and implementing policies to boost foreign currency reserves.
Economic reforms: The government could implement structural reforms to improve the overall economic situation, enhance investor confidence, and attract foreign capital. This might involve addressing issues related to infrastructure development, power supply, ease of doing business, and governance. By creating a conducive environment for investment and economic growth, the government can increase the inflow of foreign currency.
Foreign exchange market interventions: The central bank may increase its interventions in the foreign exchange market to stabilize the exchange rate. This could involve selling foreign currency reserves, particularly US dollars, to meet the demand and reduce the disparity between the official and parallel market rates.
Fiscal discipline and monetary policy: The government can pursue fiscal discipline by managing public finances effectively, reducing budget deficits, and implementing prudent monetary policies. Sound macroeconomic management can help stabilize the economy, control inflation, and attract foreign investment, which, in turn, may improve the availability of foreign currency.
Collaboration with international partners: The government can engage with international financial institutions, such as the International Monetary Fund (IMF), to explore potential assistance programs, loans, or financial support aimed at stabilizing the exchange rate and addressing economic challenges. These partnerships can bring expertise and resources to help manage foreign currency liquidity and improve economic stability.
Diversification of the economy: Promoting economic diversification away from oil dependency can contribute to reducing the pressure on foreign exchange. By developing other sectors such as agriculture, manufacturing, services, and technology, Nigeria can enhance export earnings and reduce the reliance on imported goods, thereby improving the availability of foreign currency.
Curbing capital flight and illicit financial flows: The government can implement measures to combat capital flight and illicit financial flows, which contribute to the scarcity of foreign currency. Strengthening regulations, improving transparency, and enhancing anti-corruption efforts can help retain foreign exchange within the country and reduce the need for multiple exchange rate windows.
It's important to note that eliminating the dual exchange rate system would require a comprehensive approach that addresses the underlying economic factors and structural issues contributing to the current situation. Additionally, communication and coordination with relevant stakeholders, including businesses, financial institutions, and citizens, would be crucial to ensure a smooth transition and build confidence in the unified exchange rate system. bwahaha....as if its the job of federal goverment to provide dollars for you.... the only way is when only cbn is allowed to exchange money....anybody else should be declared criminal.... anything else na balablu.... |
| Re: Can Someone Explain The Unification Of Exchange Rate Market by Ynix(m): 1:33pm On May 31, 2023 |
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| Re: Can Someone Explain The Unification Of Exchange Rate Market by Ynix(m): 1:35pm On May 31, 2023 |
tsdarkside:
bwahaha....as if its the job of federal goverment to provide dollars for you....
the only way is when only cbn is allowed to exchange money....anybody else should be declared criminal....
anything else na balablu.... CBN alone is not in the process |
| Re: Can Someone Explain The Unification Of Exchange Rate Market by Westerhoffe(m): 3:16pm On May 31, 2023 |
Ynix:
Your head is very correct   |
| Re: Can Someone Explain The Unification Of Exchange Rate Market by tonytony208(m): 3:42pm On May 31, 2023 |
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| Re: Can Someone Explain The Unification Of Exchange Rate Market by tsdarkside(m): 3:44pm On May 31, 2023 |
Ynix:
CBN alone is not in the process should be....or only people that cbn appoint to do it in a rate that only cbn approves.... |
