Naira versus Dollars...the story continues....

By Kemi Mobuse - Friday, February 26, 2016

The explanation below is an excerpts on the situation concerning dollar and naira exchange rate.

Please let me explain to those of us who don't understand Economic terms. Dollar has not increased since Buhari became president.
1. Dollar is not our currency so dollar should not be our business.
2. Our problem is not d government but our problem is our importers and consumers.
3. Naira has remained at 197 naira to 1 dollar since Buhari became president.
4. Buhari has promised not to devalue the Naira and he has maintained that promise.
5. Both at CBN and at interbank rates, dollar has remained 197.
6. However because we are too lazy to produce what we use in Nigeria we import even toothpicks and matches.

7. Buhari does not like d importation of luxury goods because luxury goods is d reason for most corruption, that is why he banned 41 products from having access to forex.
8. However when Nigerian importers insisted on importing those 41 products, FG asked them to find their dollar at d BDCs parallel market also known as black market.
9. And to discourage the pressure Nigerians are mounting on the Naira just to get dollars for importation, CBN banned DMBs from selling dollars to BDCs.
10. To survive the pressure of excess dollar demands, BDCs resorted to sourcing for dollars from neighbouring countries through illicit money laundering routes.
11. Because of the risks faced by BDCs to source for dollars, and because of the increase in demand for dollars by importers because China just resumed from their business holidays, BDCs keep increasing the price at which they exchange dollars to naira and now it is 400 naira to 1 dollars.
12. However that does not mean that govt has changed the exchange rate because if our genuine importers go to CBN and fill Form M to import raw materials for local production, they will get dollars at 197 naira each.
13. So the problem is that we love to consume luxury foreign products yet we are too lazy to manufacture them here.
14. For example u will see a dull girl using iPhone 5 without even knowing simple physics and computer engineering part of how that phone was produced.
15. I want Buhari to ban every foreign product from Nigeria until Nigerians learn to produce and use Made in Nigeria products.
16. Let us stop complaining about dollar as if dollar has become Nigeria's currency.
17. It is even bad enough that most of those complaining about the high exchange rate of dollar do not have 1 single dollar in their purse.
God bless 9ja.
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