Connect with us

HEADLINES

Lagos Tribunal: Sanwo-Olu, Vivour, Jandor to know fate on Monday
Latest2 hours ago

Lagos Tribunal: Sanwo-Olu, Vivour, Jandor to know fate on Monday

    The Lagos State Governorship Election Petitions Tribunal is set to pass its judgment on Monday, September 25th, regarding...
Five parts of the body you must wash properly to avoid body odour Five parts of the body you must wash properly to avoid body odour
Lifestyle11 hours ago

Five parts of the body you must wash properly to avoid body odour
Ondo lawmakers bribed to impeach Aiyedatiwa, group alleges Ondo lawmakers bribed to impeach Aiyedatiwa, group alleges
Latest11 hours ago

Ondo lawmakers bribed to impeach Aiyedatiwa, group alleges
Advertisement
image
image
SERAP urges Tinubu to probe missing $15bn oil money
Business12 hours ago

SERAP urges Tinubu to probe missing $15bn oil money
CBN’s Caveat on Banks’ Profits: What Implications?
Business1 day ago

CBN’s Caveat on Banks’ Profits: What Implications?
Missing intestines:  Medical group defends colleague
Crime2 days ago

Missing intestines:  Medical group defends colleague
More HEADLINES

Politics

Trade minister, Uzoka-Anite launches NATEP, targets 50 Million jobs for youths Trade minister, Uzoka-Anite launches NATEP, targets 50 Million jobs for youths
Business11 hours ago

Trade minister, Uzoka-Anite launches NATEP, targets 50 Million jobs for youths
Asuen Ighodalo: God Forbid Another Obaseki Asuen Ighodalo: God Forbid Another Obaseki
Comments and Issues1 day ago

Asuen Ighodalo: God forbid another Obaseki
Plateau Tribunal: Gov. Muftwang wins, as APC moves to Appeal Plateau Tribunal: Gov. Muftwang wins, as APC moves to Appeal
Politics2 days ago

Plateau Tribunal: Gov. Muftwang wins, as APC moves to Appeal
Youths rally Kogi support for SDP Gov’ship candidate Youths rally Kogi support for SDP Gov’ship candidate
Featured2 days ago

Kogi Youths rally support for SDP Gov’ship candidate
Ngelale goofed, Tinubu not first African President to ring NASDAQ bell Ngelale goofed, Tinubu not first African President to ring NASDAQ bell
Latest2 days ago

Ngelale goofed, Tinubu not first African President to ring NASDAQ bell
Your desperation to hide varsity records embarrassing Nigerians, Frank tells Tinubu Your desperation to hide varsity records embarrassing Nigerians, Frank tells Tinubu
Latest3 days ago

Your desperation to hide varsity records embarrassing Nigerians, Frank tells Tinubu

Crime

Missing intestines:  Medical group defends colleague Missing intestines:  Medical group defends colleague
Crime2 days ago

Missing intestines:  Medical group defends colleague
Nnamdi Kanu ended sit-at-home in Southeast, not military ---IPOB Nnamdi Kanu ended sit-at-home in Southeast, not military ---IPOB
Crime2 days ago

Nnamdi Kanu ended sit-at-home in Southeast, not military —IPOB
Police caution FCT residents on missing manhood rumour Police caution FCT residents on missing manhood rumour
Crime2 days ago

Police caution FCT residents on missing manhood rumour
Crime2 days ago

Unknown gunmen abduct over 24 FUGUS students at their hostels 
EFCC declares Delta brothers wanted over alleged N330m fraud EFCC declares Delta brothers wanted over alleged N330m fraud
Crime2 days ago

EFCC declares Delta brothers wanted over alleged N330m fraud
Stay away from Imo, Borno, 16 other Nigerian states, U.S warns citizens Stay away from Imo, Borno, 16 other Nigerian states, U.S warns citizens
Crime3 days ago

Stay away from Imo, Borno, 16 other Nigerian states, U.S warns citizens

Business

Zenith Bank, 10 others make N72.723bn from account maintenance charges Zenith Bank, 10 others make N72.723bn from account maintenance charges
Business2 hours ago

Zenith Bank, 10 others make N72.723bn from account maintenance charges
Access Bank leads as nine banks record N90.4trn assets in H1 2023 Access Bank leads as nine banks record N90.4trn assets in H1 2023
Business3 hours ago

Access Bank leads as nine banks record N90.4trn assets in H1 2023
Stamp duty is revenue stamp, not postage stamp--LIRS Stamp duty is revenue stamp, not postage stamp--LIRS
Business3 hours ago

Stamp duty is revenue stamp, not postage stamp–LIRS
Court orders trial of GTBank MD, Olusanya for contempt of court Court orders trial of GTBank MD, Olusanya for contempt of court
Business11 hours ago

Court orders trial of GTBank MD, Olusanya for contempt of court
SERAP urges Tinubu to probe missing $15bn oil money SERAP urges Tinubu to probe missing $15bn oil money
Business12 hours ago

SERAP urges Tinubu to probe missing $15bn oil money
CRITICAL POINT IN NIGERIA’s FX MANAGEMENT: By Victor Ogiemwonyi This week has finally pushed the Naira / Dollar exchange rate closer to N1000 to the Dollar. Most people who spoke to me this week all seemed understandably scared, they fear we are going to run into a currency crisis. I have always been a long term advocate of letting the Naira find its value in the market and I have not changed my mind.There are all sorts of problems with allowing market forces work to find the true value of the Naira; but we have to get to a point where the cost of buying Dollars will change our economy for good. That is how the laws of economics work.lt will be worse before it gets better. We are at that critical point now. To be able to harness the gains, we must stay the steady course. My contribution to the FX debate since the new unification policy was put in place, was an article I wrote, a few weeks back , where I stated that the challenge now, was to maintain policy consistency That is what I am still reiterating.The only thing we have to fear is fear as President FDR Roosevelt once said.If the CBN gets into panic mode and do anything other than letting the Naira find its value, we will get into a bigger currency crisis, that will do even more harm. We should not worry about what the Naira Exchanges for, even at N1,500 to the Dollar. We should worry more about what it can purchase locally. For context, the South Korean currency, the “WON “ exchanges for 1,320 to the Dollar as I write. Why should you expect the WON to exchange for that much , despite all its industries, productivity and strong GDP and with a population much less than Nigeria, yet we are expecting Nigeria’s non productive economy , to exchange its Naira for less. It is irrational to expect our currency to out- perform our economy. Our American Nixon moment. On August 15, 1971 President Nixon of the United States, severed the link between the US currency, the Dollar and Gold. In effect, he declared that the Dollar will no longer be backed by its Gold reserves but by the American economy, which he claimed was stronger than any other economy in the world. It was a gamble, but it worked. More than 50years later, the Dollar is the dominant currency in the world, and has nothing backing it, but the American economy. Let the Nigerian economy back the Naira even though I am not saying we have much of any economy now, we will have to grow it, because the potentials are there. We are currently, the largest economy in Africa. China was poorer than us relatively, given their population in 1970. We should work toward an economically driven Naira currency value. It will be painful for 5 years, because we left it too late.All the defending of the Naira, the CBN have done with our Dollar Reserves, in the last 10 years was pure waste . It is never late to be right. If we pursue this policy diligently, we will forever be off the yo-yo rate fluctuations the Naira is currently experiencing. Let the Dollar Demand Destruction complete its course. The artificial lifestyle of consuming foreign goods when we are not productive and we do not export much, must gradually change. We must allow importation to moderate itself. The higher demand for FX will eventually weaken, when we are unable to afford some of the things we buy with FX now, the demand and supply for Fx, will align. We are spending money to educate our children abroad, spending what we can use to improve our own educational institutions locally. We neglect investing in our Health care because we can buy it abroad, when most of the people can not go to the US or the UK, they do the cheaper option of India. We spend billions of Dollars every year to import petroleum products,because we chose to neglect our Refineries at home. If we want any development here, we must focus on developing our local industries. The irony is that those who benefit from the little FX Reserves we generate, represent a very tiny percentage of the population. Any industry that can not find alternatives, for most of its raw material here, is not ideal for our economy. The only known efficient allocator of resources, is price. Let higher prices determine who and which industries get FX. Any one or entity paying anything, outside of the market price for FX, is being subsidised and we have come to know, that is not good for any economy, especially when we become dependent on it. As importation gradually goes down, local manufacturing will take up the gap and even the replacement, that may be inferior now, will eventually improve in quality and competition with other local manufacturers , will force them to make better quality goods. Higher local currency receipts as we exchange dollars for Naira, will also make more money available to the States and local governments to share, thereby re-distributing the new Naira wealth to areas where development will be nearer the people. We are already seeing this happen in the last few months. The Nigerian policy making and reforms to get the Naira stabilized, must start from creating a good enabling economic environment. Inconsistent policy making must stop. Regulators in every aspect of our economy, must be made to understand that their role, is that of enablement for the area they regulate, not to constantly play police. This will result in rapid growth, for our economy. We will need double digit growth for the next 10years. This is the only way to reduce the current massive unemployment and create wealth that will lift our people out of poverty. We already have all the positive factor inputs to enable this: fertile land for Agriculture, large population for self sustaining market to support whatever our industries produce and large literate labour market, that can easily be skilled up. We must also address the soft issues of heavy investment into education, healthcare and the present challenge of Security. We must fight corruption head on, it has corroded every sphere of life in our country. Some immediate steps that may help. The fact that the black market has now gained over N200 premium to the official rate at the I&E window, at the FMDQ, since the alignment with the black market rate in July, tells me the market , in that window is not an efficient allocator. I will advocate that, the CBN should impose a N200 premium on any price determined at the I&E window daily, until it aligns its price with the black market rate , which the people seem to perceive as the real market. This will be a way to quickly find out, who are the real economic users for FX. The CBN should come to an arrangement with all the Deposit Money Banks, to lend it all their current holdings in Domiciliary Accounts, to be used to settle verified backlogs , something tells me the media reported Backlogs, have some fluff, that need proper verification . The Banks must be incentivized to to do this, at rates to be agreed. The CBN will also accommodate this as Fx holdings for the Banks. The CBN should allowed them, value quarterly balances with the CBN at whatever the current rates are, for reporting purposes . The CBN should also guarantee the the Banks, they will be ready to provide it, with liquidity to meet depositors request, at any time so there is confidence for depositors . And finally, the CBN must find a way to rid the economy of the excess liquidity floating around, which is also the reason for the unquenchable Dollar demand. Mr. Victor Ogiemwonyi is a retired Investment Banker and writes from Ikoyi Lagos CRITICAL POINT IN NIGERIA’s FX MANAGEMENT: By Victor Ogiemwonyi This week has finally pushed the Naira / Dollar exchange rate closer to N1000 to the Dollar. Most people who spoke to me this week all seemed understandably scared, they fear we are going to run into a currency crisis. I have always been a long term advocate of letting the Naira find its value in the market and I have not changed my mind.There are all sorts of problems with allowing market forces work to find the true value of the Naira; but we have to get to a point where the cost of buying Dollars will change our economy for good. That is how the laws of economics work.lt will be worse before it gets better. We are at that critical point now. To be able to harness the gains, we must stay the steady course. My contribution to the FX debate since the new unification policy was put in place, was an article I wrote, a few weeks back , where I stated that the challenge now, was to maintain policy consistency That is what I am still reiterating.The only thing we have to fear is fear as President FDR Roosevelt once said.If the CBN gets into panic mode and do anything other than letting the Naira find its value, we will get into a bigger currency crisis, that will do even more harm. We should not worry about what the Naira Exchanges for, even at N1,500 to the Dollar. We should worry more about what it can purchase locally. For context, the South Korean currency, the “WON “ exchanges for 1,320 to the Dollar as I write. Why should you expect the WON to exchange for that much , despite all its industries, productivity and strong GDP and with a population much less than Nigeria, yet we are expecting Nigeria’s non productive economy , to exchange its Naira for less. It is irrational to expect our currency to out- perform our economy. Our American Nixon moment. On August 15, 1971 President Nixon of the United States, severed the link between the US currency, the Dollar and Gold. In effect, he declared that the Dollar will no longer be backed by its Gold reserves but by the American economy, which he claimed was stronger than any other economy in the world. It was a gamble, but it worked. More than 50years later, the Dollar is the dominant currency in the world, and has nothing backing it, but the American economy. Let the Nigerian economy back the Naira even though I am not saying we have much of any economy now, we will have to grow it, because the potentials are there. We are currently, the largest economy in Africa. China was poorer than us relatively, given their population in 1970. We should work toward an economically driven Naira currency value. It will be painful for 5 years, because we left it too late.All the defending of the Naira, the CBN have done with our Dollar Reserves, in the last 10 years was pure waste . It is never late to be right. If we pursue this policy diligently, we will forever be off the yo-yo rate fluctuations the Naira is currently experiencing. Let the Dollar Demand Destruction complete its course. The artificial lifestyle of consuming foreign goods when we are not productive and we do not export much, must gradually change. We must allow importation to moderate itself. The higher demand for FX will eventually weaken, when we are unable to afford some of the things we buy with FX now, the demand and supply for Fx, will align. We are spending money to educate our children abroad, spending what we can use to improve our own educational institutions locally. We neglect investing in our Health care because we can buy it abroad, when most of the people can not go to the US or the UK, they do the cheaper option of India. We spend billions of Dollars every year to import petroleum products,because we chose to neglect our Refineries at home. If we want any development here, we must focus on developing our local industries. The irony is that those who benefit from the little FX Reserves we generate, represent a very tiny percentage of the population. Any industry that can not find alternatives, for most of its raw material here, is not ideal for our economy. The only known efficient allocator of resources, is price. Let higher prices determine who and which industries get FX. Any one or entity paying anything, outside of the market price for FX, is being subsidised and we have come to know, that is not good for any economy, especially when we become dependent on it. As importation gradually goes down, local manufacturing will take up the gap and even the replacement, that may be inferior now, will eventually improve in quality and competition with other local manufacturers , will force them to make better quality goods. Higher local currency receipts as we exchange dollars for Naira, will also make more money available to the States and local governments to share, thereby re-distributing the new Naira wealth to areas where development will be nearer the people. We are already seeing this happen in the last few months. The Nigerian policy making and reforms to get the Naira stabilized, must start from creating a good enabling economic environment. Inconsistent policy making must stop. Regulators in every aspect of our economy, must be made to understand that their role, is that of enablement for the area they regulate, not to constantly play police. This will result in rapid growth, for our economy. We will need double digit growth for the next 10years. This is the only way to reduce the current massive unemployment and create wealth that will lift our people out of poverty. We already have all the positive factor inputs to enable this: fertile land for Agriculture, large population for self sustaining market to support whatever our industries produce and large literate labour market, that can easily be skilled up. We must also address the soft issues of heavy investment into education, healthcare and the present challenge of Security. We must fight corruption head on, it has corroded every sphere of life in our country. Some immediate steps that may help. The fact that the black market has now gained over N200 premium to the official rate at the I&E window, at the FMDQ, since the alignment with the black market rate in July, tells me the market , in that window is not an efficient allocator. I will advocate that, the CBN should impose a N200 premium on any price determined at the I&E window daily, until it aligns its price with the black market rate , which the people seem to perceive as the real market. This will be a way to quickly find out, who are the real economic users for FX. The CBN should come to an arrangement with all the Deposit Money Banks, to lend it all their current holdings in Domiciliary Accounts, to be used to settle verified backlogs , something tells me the media reported Backlogs, have some fluff, that need proper verification . The Banks must be incentivized to to do this, at rates to be agreed. The CBN will also accommodate this as Fx holdings for the Banks. The CBN should allowed them, value quarterly balances with the CBN at whatever the current rates are, for reporting purposes . The CBN should also guarantee the the Banks, they will be ready to provide it, with liquidity to meet depositors request, at any time so there is confidence for depositors . And finally, the CBN must find a way to rid the economy of the excess liquidity floating around, which is also the reason for the unquenchable Dollar demand. Mr. Victor Ogiemwonyi is a retired Investment Banker and writes from Ikoyi Lagos
Business1 day ago

Critical point in Nigeria’s FX management

Editorial

NIGERIA: SPORTS AND ECONOMIC ADVANCEMENT
Comments and Issues3 hours ago

Nigeria: Sports and economic advancement

  If there were still some lingering doubts regarding the near-infinite capacity of deploying the abundant sporting talents of youngsters...
CBN’s Caveat on Banks’ Profits: What Implications? CBN’s Caveat on Banks’ Profits: What Implications?
Business1 day ago

CBN’s Caveat on Banks’ Profits: What Implications?
Begging for a seat at the table Begging for a seat at the table
Comments and Issues1 day ago

Begging for a seat at the table
Accountability deficit and the transparency question
Business3 days ago

Accountability deficit and the transparency question
HOW WE DE-INDUSTRIALIZED NIGERIA
Business3 days ago

How we de-industrialized Nigeria
Comments and Issues3 days ago

PEPT led Nigerians by the nose
Tinubu: All eyes now on the U.S. judiciary
Comments and Issues4 days ago

Tinubu: All eyes now on the U.S. judiciary
NIGERIA'S IMPRESSIVE DRUG CONVICTION RATE
Comments and Issues4 days ago

Nigeria’s impressive drug conviction rate
Editorial6 days ago

Mali, Niger, Burkina Faso Defence Pact: A Catalyst for ECOWAS Unity
More Editorial

Advertisement
https://nationaldailyng.com/customimages/zenithziva.jpg

Covid

Repeated COVID shots driving dangerous variants, turbo cancers Repeated COVID shots driving dangerous variants, turbo cancers
Covid-194 weeks ago

Repeated COVID shots driving dangerous variants, turbo cancers
Health1 month ago

COVID Vaccine manufacturer faces lawsuits over death of woman, others
Doctors for COVID Ethics details dangers of mRNA vaccines Doctors for COVID Ethics details dangers of mRNA vaccines
Covid-191 month ago

Doctors for COVID Ethics details dangers of mRNA vaccines

The Doctors for COVID Ethics (D4CE), an international group of physicians and scientists, last month released a new book, “mRNA...
Covid-191 month ago

How COVID protocols killed my 19-year-old daughter –distressed father

    In an exclusive interview with The Defender, Scott Schara recounted how his daughter, Grace, died after she tested...
Covid-192 months ago

COVID vaccine linked to miscarriages, stillbirths among pregnant women

  A major increase in spontaneous abortion among pregnant women was directly linked to the rollout of the COVID-19 vaccine...
Comments and Issues2 years ago

The Scientific Reasons for the actions taken by the UK on Covid-19

By Jeff Brown Dear Reader, The first domino has fallen… Boris Johnson had the courage – or more like the...

Sports

Djokovic is the best tennis player in history - Rafael Nadal Djokovic is the best tennis player in history - Rafael Nadal
Latest4 days ago

Djokovic crowned the best tennis player in history
Arsenal fans excited as Tottenham suffer major injury blow ahead EPL derby Arsenal fans excited as Tottenham suffer major injury blow ahead EPL derby
Football4 days ago

Arsenal fans excited as Tottenham suffer major injury blow ahead EPL derby
Rodri earns new Pep Guardiola's title Rodri earns new Pep Guardiola's title
Featured4 days ago

Rodri earns new Pep Guardiola’s title
Tottenham make shocking Harry Kane's revelation Tottenham make shocking Harry Kane's revelation
Featured4 days ago

Tottenham make shocking Harry Kane’s revelation
Turning Star gets new opponent Turning Star gets new opponent
Featured5 days ago

Turning Star gets new opponent
World Heavyweight Champion, Tyson Fury, Welcomes Seventh Child World Heavyweight Champion, Tyson Fury, Welcomes Seventh Child
Sports6 days ago

World heavyweight champion, Tyson Fury welcomes 7th child

Trends

25% Pay Rise: We haven’t been informed — ASUU 25% Pay Rise: We haven’t been informed — ASUU
Education2 days ago

25% Pay Rise: We haven’t been informed — ASUU
Pope visit to Marseille to shine light on latest EU migration crisis Pope visit to Marseille to shine light on latest EU migration crisis
Exclusive2 days ago

Pope visit to Marseille to shine light on latest EU migration crisis
MohBad: Fayose's ex-aide knocks singer's Mom MohBad: Fayose's ex-aide knocks singer's Mom
News3 days ago

MohBad: Fayose’s ex-aide knocks singer’s Mom
I Regret Tattooing Naira Marley's Face On My Body — Mandy Kiss I Regret Tattooing Naira Marley's Face On My Body — Mandy Kiss
Trending Stories3 days ago

I regret tattooing Naira Marley’s face on my body — Mandy Kiss
Gov Adeleke vows to end school-age street hawking in Osun Gov Adeleke vows to end school-age street hawking in Osun
Education4 days ago

Gov Adeleke vows to end school-age street hawking in Osun
Tribunal judgment replay of 2019 script, says NNPP Tribunal judgment replay of 2019 script, says NNPP
Featured4 days ago

Tribunal judgment replay of 2019 script, says NNPP

Advertisement