Last week we saw one of the greatest drop in the
value of the dollar with a sharp gain of the naira in the black market.
How was this achieved. Who made this happen. Who is the smart ass.
Anyway this move made a lot of people poorer i.e currency speculators who kept buying the dollar putting a demand on the dollar while the naira suffered from low demand till it hit the high of 2016 and just then the CBN intervention came in with a mad flood of much more dollars and the mopping up of naira so that there was a scarcity of naira.
And wholla the dollar came crashing down while the more the naira was mopped out of the system.
This brilliant intervention means the CBN is using our reserves to fight the dollar war
How sustainable is this ....will the CBN be willing to continue this.
As a forex trader with 10years experience I watched with my mouth open as it happened and shook my head as the internet was glowing with news how osinbanjo is the man
How he tamed the dollar in one swing of the magic wand.I saw panic selling going on as many turned in thier dollar. While smart investors bought all these dollars for keeps.
Now the dollar fall has stopped
Why did it stop
I thought it will fall for ever as we are made to believe.
Just yesterday while watching ARISE TV the news came out of the economy contracting by -1.4% for the first time in 20years.
Meaning for the first time in 20years the economy stopped growing
Now the real bad news was from the PMI ( producers manufacturing index) saying it fell
What does this mean
It mean the real people who needs the dollars are not getting it
But osinbanjo gave dollars for school fees payment
While the manufacturers who need dollars are not getting it
Even the economy according to the news saw major improvement from the oil sector because militants have stopped bombing
So the non oil sector fell even the most holy agriculture.
Osinbanjo has stated in the last FED meeting he favours a devaluation of the naira.
Right now the naira is 405naira to 1 dollar
Let's assume he goes ahead to devalue to let's say 20 basic points
That would be 425naira to 1 dollar
Now imagine what the black market will do
We will be looking at 550-600naira to 1 dollar
Already JP Morgan is worried that Nigeria is not attracting FDIs ( foreign direct investments)
What does that leave us
It leaves us with an economy that will keep shrinking and a dollar war we can't win as fear will make more people demand for dollars as naira will keep falling.
My advice to you
Keep buying the dollar for keeps
Keep your bulk money in dollars
The trip to hell is about to get nasty
God save our soul
Anyway this move made a lot of people poorer i.e currency speculators who kept buying the dollar putting a demand on the dollar while the naira suffered from low demand till it hit the high of 2016 and just then the CBN intervention came in with a mad flood of much more dollars and the mopping up of naira so that there was a scarcity of naira.
And wholla the dollar came crashing down while the more the naira was mopped out of the system.
This brilliant intervention means the CBN is using our reserves to fight the dollar war
How sustainable is this ....will the CBN be willing to continue this.
As a forex trader with 10years experience I watched with my mouth open as it happened and shook my head as the internet was glowing with news how osinbanjo is the man
How he tamed the dollar in one swing of the magic wand.I saw panic selling going on as many turned in thier dollar. While smart investors bought all these dollars for keeps.
Now the dollar fall has stopped
Why did it stop
I thought it will fall for ever as we are made to believe.
Just yesterday while watching ARISE TV the news came out of the economy contracting by -1.4% for the first time in 20years.
Meaning for the first time in 20years the economy stopped growing
Now the real bad news was from the PMI ( producers manufacturing index) saying it fell
What does this mean
It mean the real people who needs the dollars are not getting it
But osinbanjo gave dollars for school fees payment
While the manufacturers who need dollars are not getting it
Even the economy according to the news saw major improvement from the oil sector because militants have stopped bombing
So the non oil sector fell even the most holy agriculture.
Osinbanjo has stated in the last FED meeting he favours a devaluation of the naira.
Right now the naira is 405naira to 1 dollar
Let's assume he goes ahead to devalue to let's say 20 basic points
That would be 425naira to 1 dollar
Now imagine what the black market will do
We will be looking at 550-600naira to 1 dollar
Already JP Morgan is worried that Nigeria is not attracting FDIs ( foreign direct investments)
What does that leave us
It leaves us with an economy that will keep shrinking and a dollar war we can't win as fear will make more people demand for dollars as naira will keep falling.
My advice to you
Keep buying the dollar for keeps
Keep your bulk money in dollars
The trip to hell is about to get nasty
God save our soul
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