Naira exchange unification

[Charles-Tim]

I read a news recently about CBN dollar to naira exchange rate, that CBN has devalued naira from ₦465 to ₦630. Later it was said to be a rumour, but which many of us would have known as no changes in the parallel marker either.

https://twitter.com/cenbank/status/1664195669484097536?s=20

According to what I read later, it was reported that the rumour was as a result of what the recently elected president said about naira exchange unification and its importance.

In Nigeria, we know that different institutions like banks have their own exchange rate which is close/similar in price with CBN rate but different from bank to bank. Banks foreign exchange may not be possible anymore because CBN itself discouraged it.

CBN Ends Forex Sales To Banks

I do not know how true that is but I have watch a video before about how Nigerians can not more exchange naira to foreign currencies again in bank. You can obtain a dollar card in bank but which you will be the one to fund it yourself, not with the help of the banks.

Parallel market has its own price which is also different but what Nigerians are using because naira is more devalued in parallel market and of course it is what CBN will like.

The recently elected president talked about naira exchange to foreign currencies unification, and the rumour of CBN rate of dollar to naira, to ₦630 per $1 was what that happened next.

What do you people think would happen if the president make sure there is naira unification? Is it going to help Nigeria economy? We all know that if that is what would happen, CBN rate is going to become the parallel rate or there will be more decreasing of foreign reserves in Nigeria because we depend more on imports.

[CryptSafe]

This would hold no water. How long have we been hearing this from them for a long time now. The previous government made such attempt but it was hell. I just see this as a strategy used by the politicians to siphon more money after devaluation they stockpile from looting and they find all possible mean to make the currency value to be little stable at their own benefit. 
Secondly, Nigeria is a consuming nation,  we barely produce nor export anything rather than crude oil and gas. We depend on other countries for survival since we can not export but consume what others produce. so therefore, currency unification is no big deal anymore. Let us start producing and exporting.

[Doan9269]

I read a news recently about CBN dollar to naira exchange rate, that CBN has devalued naira from ₦465 to ₦630. Later it was said to be a rumour, but which many of us would have known as no changes in the parallel marker either.

There's nothing like rumors about news once it has been aired, there's a likely possibilities that every rumour is the genuine and official leaked information we are getting clue on, i wouldn't be surprised seing this since the inauguration of the new administration in office, many things have begin to change starting from the removal of fuel subsidy in it entirety, yet the administration is claiming that it's not coming from their end, also the NNPC made this same declaration for a fix price on the market fuel pump price and every other institutions involved made the implementation and readjusted their selling price, of naira today enters a new official rate of #630 from the bank then the black market should be something close to #1,000 or more for one USD.

[Mate2237]

Smile!!! This are threads under local Economics Board. The president just enter so he is trying to work well for Nigerians but the system will humble him very soon. There was a borrow course from social studies and there is a statement there that "the real ruler of a country is unknown". Fuel subsidy has been removed, na the di masses go suffer, then the masses go disembark to the president to reverse the price. Time is coming for that. Yesterday or today I also say di news that CBN has devalued Nigerian Naira from #465 to #630 per dollar, and in Nigeria these are the two major factors that control goods and services in the country so any thing that affect thses two elements affect all parts of the citizens. The naira devaluation news has not been verified because it is only on blogs and social media the news is escalating and has not shown in national TV news in Economy news . So that might be rumor but even though it is a rumour, the parallel market is still using their normal price of $700+
The problem in Nigeria is also cause by these parallel marketers. The naira unification will help the economy because when the economy is unified commodities will be sold equal rate with dollar because 1 dollar to 1 Naira so things might workout the way it has been planned.

[CryptoHeadlineNews]

The naira devaluation news has not been verified because it is only on blogs and social media the news is escalating and has not shown in national TV news in Economy news . So that might be rumor but even though it is a rumour,

Point of correction, "Daily Trust" which CBN claimed the news got published, as mentioned on the tweet which O.P provided a link to it above is not an ordinary blog or neither will you call it a social media, but know that "Daily Trust" is one of the most trusted and reliable licensed Nigerian newspaper that have been in existence for over 25yrs (i.e since 1998) publishing well verified & investigative news all around the federation. So to me, if "Daily Trust" did actually published about CBN planning to devalue our currency, than I think maybe that might have been their initial plan, but got to stop after the news went viral. Because I can remember those days when I was still at my teens seeing my dad coming home everyday with "Daily Trust" newspapers. And here are some other reputable Nigerian newspapers in the country.

[Liliana1304]

 I also saw the news two days back and it got me wondering what action they'd take next. From what I gathered, it seems this anomaly occured after President Tinubu's inaugural speech.
What I'm concerned about is if he can achieve such a feat because by calling for unification of exchange rate, there'd have to be proper planning, coordination and engagement with relevant bodies like the CBN. Lets hope that he achieves the task of unifying the naira so economic growth can be fostered and doesn't sidetracked.

[Doan9269]

The problem in Nigeria is also cause by these parallel marketers. The naira unification will help the economy because when the economy is unified commodities will be sold equal rate with dollar because 1 dollar to 1 Naira so things might workout the way it has been planned.

We shouldn't be decieved by the government, they are all aware of what the market price is saying, why should ban exchange rate have this huge market value from what the government is selling compare to the aboki exchanges, why does it have to take more than three months before you can make an exchange directly from the bank and that's if you're lucky to have achieved that at the long run after being waiting, why is it that the government now also requires a three years task clearance certificate for international exchange, the government may be salient on some aspects but they are the perpetrator to their influence and remain salient as if they were unaware of what's going on.

[Igebotz]

The naira devaluation news has not been verified because it is only on blogs and social media the news is escalating and has not shown in national TV news in Economy news . So that might be rumor but even though it is a rumour,

Point of correction, "Daily Trust" which CBN claimed the news got published, as mentioned on the tweet which O.P provided a link to it above is not an ordinary blog or neither will you call it a social media, but know that "Daily Trust" is one of the most trusted and reliable licensed Nigerian newspaper that have been in existence for over 25yrs (i.e since 1998) publishing well verified & investigative news all around the federation. So to me, if "Daily Trust" did actually published about CBN planning to devalue our currency, than I think maybe that might have been their initial plan, but got to stop after the news went viral. Because I can remember those days when I was still at my teens seeing my dad coming home everyday with "Daily Trust" newspapers. And here are some other reputable Nigerian newspapers in the country

If CBN says its fake then its fake, stop justifying nonsense to suit your agenda, even CNN and BBC carries fake news most of the time for clicks and and to spread runours

I do not know how true that is but I have watch a video before about how Nigerians can not more exchange naira to foreign currencies again in bank. You can obtain a dollar card in bank but which you will be the one to fund it yourself, not with the help of the banks.

Parallel market has its own price which is also different but what Nigerians are using because naira is more devalued in parallel market and of course it is what CBN will like.

That's because CBN and Banks makes more money through Naira arbitraging, buy cheap, sell at huge price at black market prices.

The recently elected president talked about naira exchange to foreign currencies unification, and the rumour of CBN rate of dollar to naira, to ₦630 per $1 was what that happened next.
What do you people think would happen if the president make sure there is naira unification? Is it going to help Nigeria economy? We all know that if that is what would happen, CBN rate is going to become the parallel rate or there will be more decreasing of foreign reserves in Nigeria because we depend more on imports.

Not a bad move but the question is ''will the N630 be available and accessible to everyone at the bank'' ? i doubt and trust me if the banks cannot keep up to the demand, the price on the street will raise to 1k/1$ or even more

[Merit.s]

Nigeria is a country that the president can wake up one morning and whatever he likes and nobody will be able to talk back because all the system is corrupt. In regard to this new,I think it is a rumor,since that was the final conclusion,so let's no worry about it. Whatever happens in this new administration we would always find a means to contain it abs continue with our daily lives. Tinubu has his own plan for Nigeria which we haven't sense yet but with time it will play out for us to see. As for fuel subsidy,the Mata just tire me because everything happen like film trick,not up to 48hrs of swearing in.

[Zaguru12]

So to me, if "Daily Trust" did actually published about CBN planning to devalue our currency, than I think maybe that might have been their initial plan, but got to stop after the news went viral. Because I can remember those days when I was still at my teens seeing my dad coming home everyday with "Daily Trust" newspapers. And here are some other reputable Nigerian newspapers in the country.

Yes Daily Trust is reputable but there have been numerous times they have published unverified reports sometimes. Although Tinubu has actually stated some of his campaign manifestos that he plans on the dollar unification which I strongly agree with, but there is yet to be a consensus or any order of such. This calculations of it been at 630 have been done by just economic analysts on social media. So no matter how reputable the news outlet is, the Nigerian apex should be the first to release a statement about it or grant interview on the subject matter before we believe it.

Not a bad move but the question is ''will the N630 be available and accessible to everyone at the bank'' ? i doubt and trust me if the banks cannot keep up to the demand, the price on the street will raise to 1k/1$ or even more

The problem has never been the price or unification, the problem as always been the availability to the common citizen. The limitations set on the amount to be available for one person a day is one big factor coupled with the numerous hassle to get them from the bank. I feel if there is a monetary policy that guides how the dollar flows from the bank to the common citizen then the issue of black marketers will be minimized. Also the hoarding of this currency should be addressed because most of these traders hoard this currency till the bank runs out of it at a time and they hike there prices

[Wiwo]

The naira devaluation news has not been verified because it is only on blogs and social media the news is escalating and has not shown in national TV news in Economy news . So that might be rumor but even though it is a rumour,

Point of correction, "Daily Trust" which CBN claimed the news got published, as mentioned on the tweet which O.P provided a link to it above is not an ordinary blog or neither will you call it a social media, but know that "Daily Trust" is one of the most trusted and reliable licensed Nigerian newspaper that have been in existence for over 25yrs (i.e since 1998) publishing well verified & investigative news all around the federation. So to me, if "Daily Trust" did actually published about CBN planning to devalue our currency, than I think maybe that might have been their initial plan, but got to stop after the news went viral. Because I can remember those days when I was still at my teens seeing my dad coming home everyday with "Daily Trust" newspapers. And here are some other reputable Nigerian newspapers in the country

If CBN says its fake then its fake, stop justifying nonsense to suit your agenda, even CNN and BBC carries fake news most of the time for clicks and and to spread rumours

That is it, there is no way that the CBN will come out to discredit the news and ther be a possibility of it true in practice, the CBN has not devalued the naira and even if the news was covered by a leading newspaper it doesn't guarantee its authenticity and just as you mentioned bigger institutions even the CBN have once posted unrealistic news and updates a couple of time.

The best possible way to avoid fake news blogs is to subject all information and news to verifications to see and know what is authenticity.

[Coyster]

What do you people think would happen if the president make sure there is naira unification? Is it going to help Nigeria economy? We all know that if that is what would happen, CBN rate is going to become the parallel rate or there will be more decreasing of foreign reserves in Nigeria because we depend more on imports.

If e go work, then e no go bad; but for it to work other factors go gats come into play, a unified exchange rate go mean say parallel market traders no go fit make profit like that again through arbitraging, thus if scarcity dey for the bank, those wey they sell for parallel market go gats increase their own rate, and this go defeat the idea of a unified exchange rate.

Having said that, production and alluring investors na the factors wey go make this kind policy to work, because if e go work then the banks go gats get enough foreign reserves, and e go only happen if we dey attract investors or if we get adequate exporting commodities (via local production). I believe say the government get all these ideas, and before them make move dey suppose don plan ahead, make we dey watch with fingers crossed and see if dem go get this right.

[Igebotz]

Not a bad move but the question is ''will the N630 be available and accessible to everyone at the bank'' ? i doubt and trust me if the banks cannot keep up to the demand, the price on the street will raise to 1k/1$ or even more

The problem has never been the price or unification, the problem as always been the availability to the common citizen. The limitations set on the amount to be available for one person a day is one big factor coupled with the numerous hassle to get them from the bank. I feel if there is a monetary policy that guides how the dollar flows from the bank to the common citizen then the issue of black marketers will be minimized. Also the hoarding of this currency should be addressed because most of these traders hoard this currency till the bank runs out of it at a time and they hike there prices

Nothing will change until the CBN directs banks to start selling to the public; banks will continue to act in their own self-interest. Another issue is that there is more dollar on the street than inside the bank; banks only sell to black market Marchants because that's where they make their money and will never accept to sell or convert Naira to dollar for you.

Nigerians' small dollar privilege on their naira card went from $5000 per month to $20 per month, and is now $0 per month. The CBN must be completely reformed.

They are distroying micro-busineses that rely on dollar

[Charles-Tim]

About if the news is fake or not, there are some news sites that are most likely not to have fake news, and I got it from one of them. And according to what I have noticed, I have seen some people reacting to it. Which definitely means it is not a fake news. You should not get me wrong, the rumor is that CBN did not devalue naira, but the news about naira exchange unification is true. So naira exchange unification news is not fake.

About some people that thinks this can help the economy, some analysts says it would have negative effect on Nigerian economy, saying only enough foreign exchange supply will make this likely. Also that exports, foreign reserves, importing and oil products needs to be addressed.

https://independent.ng/exchange-rates-unification-will-crash-nigerias-economy/

When I read this news, I think the analysts are very correct if true they make such conclusion.

[Cryptomultiplier]

The naira devaluation news has not been verified because it is only on blogs and social media the news is escalating and has not shown in national TV news in Economy news . So that might be rumor but even though it is a rumour,

Point of correction, "Daily Trust" which CBN claimed the news got published, as mentioned on the tweet which O.P provided a link to it above is not an ordinary blog or neither will you call it a social media, but know that "Daily Trust" is one of the most trusted and reliable licensed Nigerian newspaper that have been in existence for over 25yrs (i.e since 1998) publishing well verified & investigative news all around the federation. So to me, if "Daily Trust" did actually published about CBN planning to devalue our currency, than I think maybe that might have been their initial plan, but got to stop after the news went viral. Because I can remember those days when I was still at my teens seeing my dad coming home everyday with "Daily Trust" newspapers. And here are some other reputable Nigerian newspapers in the country

If CBN says its fake then its fake, stop justifying nonsense to suit your agenda, even CNN and BBC carries fake news most of the time for clicks and and to spread rumours

That is it, there is no way that the CBN will come out to discredit the news and ther be a possibility of it true in practice, the CBN has not devalued the naira and even if the news was covered by a leading newspaper it doesn't guarantee its authenticity and just as you mentioned bigger institutions even the CBN have once posted unrealistic news and updates a couple of time.

The best possible way to avoid fake news blogs is to subject all information and news to verifications to see and know what is authenticity.

I heard this news too. It might not have made much impact because the value is no much different than the almost 740naira to 1$ that was initially on board.
This is just the new government showing the citizens that it is making proactive effort to better the economy of the country.
I for one, as well as others, are interested in what serves the most to the common man, because with this subsidy removal, the best resolution is yet to be made, either regarding a review of the minimum wage or the acceptance of cryptocurrency or this unification of exchange for the Naira.

[Igebotz]

About if the news is fake or not, there are some news sites that are most likely not to have fake news, and I got it from one of them. And according to what I have noticed, I have seen some people reacting to it. Which definitely means it is not a fake news. You should not get me wrong, the rumor is that CBN did not devalue naira, but the news about naira exchange unification is true. So naira exchange unification news is not fake.

About some people that thinks this can help the economy, some analysts says it would have negative effect on Nigerian economy, saying only enough foreign exchange supply will make this likely. Also that exports, foreign reserves, importing and oil products needs to be addressed.

https://independent.ng/exchange-rates-unification-will-crash-nigerias-economy/

When I read this news, I think the analysts are very correct if true they make such conclusion.

I'm not claiming that the news of Niara exchange unification is false; it's true that Ps Tinubu has a plan for it, and he has said it publicly several times. My problem is Daily Newspaper claiming that the Naira has been devalued, despite the fact that the government has yet to implement it. The President invited the CBN governor last week to brief him on the Naira redesign and the E-naira initiative, so the Naira excahnge will be unified but not right away.

To be clear, the Naira exchange rate will not be unified under the present CBN governor; a new governor will be nominated soon.

[CryptopreneurBrainboss]

What do you people think would happen if the president make sure there is naira unification? Is it going to help Nigeria economy? We all know that if that is what would happen, CBN rate is going to become the parallel rate or there will be more decreasing of foreign reserves in Nigeria because we depend more on imports.

The unification fit help the naira welle because na this different price dey make banks hide dollars from us because dem know say if dem carry am go black market dem go make enough profits but if e come be say everywhere na the same rate then dollars go flow well for the country but wait oh, how the government want take achieve this one. Make dem no do another kind of subsidy policy wey na rubbish from day one. Tinubu need to know say him no go fit do everything or atleast do all of them one time. Make him take am easy (one after another) make people no take advantage of this him policy's dem use rip us.

Him just declaring the rate no go help matters as na the market dey determined price and not the government. Wetin him go put things in place to make sure all rate na the same for everywhere still never understand. Unification go help economy as goods no go too cost as dem dey cost now. People no go fit lie for dollar rate wey dem dey use add price to the market (goods and services wey dem dey offer). Belike tinubu get better plans for Nigeria but make e no too get over him head make them no all fail, remember (jack of all trades is a master of non).

[Davidvictorson]

What do you people think would happen if the president make sure there is naira unification? Is it going to help Nigeria economy? We all know that if that is what would happen, CBN rate is going to become the parallel rate or there will be more decreasing of foreign reserves in Nigeria because we depend more on imports.

A single exchange rate system would definitely be good for the economy. I am no economist but from the layman's point of view the multiple exchange rate really killed the economy. Unifying the exchange rate can have both advantages and disadvantages, depending on one's position in the market. If this truly works the advantage is that we are likely to see an increase in diaspora remittance, we may also see that an increase in portfolio investors because they know that they were coming in at a fixed yesterday and they know they will exit at that rate. On the other hand, the BDC guys may not profit much from this too. This may be off point but can we just abandon the dollar when doing imports. Say for example, use the yuan when importing from China. And only use if when importing from US? Is this possible?

[DaNNy001]

About if the news is fake or not, there are some news sites that are most likely not to have fake news, and I got it from one of them. And according to what I have noticed, I have seen some people reacting to it. Which definitely means it is not a fake news. You should not get me wrong, the rumor is that CBN did not devalue naira, but the news about naira exchange unification is true. So naira exchange unification news is not fake.

About some people that thinks this can help the economy, some analysts says it would have negative effect on Nigerian economy, saying only enough foreign exchange supply will make this likely. Also that exports, foreign reserves, importing and oil products needs to be addressed.

https://independent.ng/exchange-rates-unification-will-crash-nigerias-economy/

When I read this news, I think the analysts are very correct if true they make such conclusion.

I'm not claiming that the news of Niara exchange unification is false; it's true that Ps Tinubu has a plan for it, and he has said it publicly several times. My problem is Daily Newspaper claiming that the Naira has been devalued, despite the fact that the government has yet to implement it. The President invited the CBN governor last week to brief him on the Naira redesign and the E-naira initiative, so the Naira excahnge will be unified but not right away.

To be clear, the Naira exchange rate will not be unified under the present CBN governor; a new governor will be nominated soon.

Well if that one na actually the case then e good because the president has already stricken emefiele of all his right as the CBN governor so the unification as you said would be possible now since the CBN will definitely need a new governor to handle all its economical affairs. Nigeria has suffered a lot from the hands of this so called CBN governor and I just wish the country would do something tangible about his case instead of just probing him and then letting him go of all his charges as usual.

[Igebotz]

I'm not claiming that the news of Niara exchange unification is false; it's true that Ps Tinubu has a plan for it, and he has said it publicly several times. My problem is Daily Newspaper claiming that the Naira has been devalued, despite the fact that the government has yet to implement it. The President invited the CBN governor last week to brief him on the Naira redesign and the E-naira initiative, so the Naira excahnge will be unified but not right away.

To be clear, the Naira exchange rate will not be unified under the present CBN governor; a new governor will be nominated soon.

Well if that one na actually the case then e good because the president has already stricken emefiele of all his right as the CBN governor so the unification as you said would be possible now since the CBN will definitely need a new governor to handle all its economical affairs. Nigeria has suffered a lot from the hands of this so called CBN governor and I just wish the country would do something tangible about his case instead of just probing him and then letting him go of all his charges as usual.

Yeah, that was apparent from the minute a new government was formed; President Tinubu was among those who were opposed to the currency design and how it was implemented during those few days of currency scarcity. The former CNB Governor was solely responsible for Nigerians' plight. The unification of the Naira is a wise decision.

From cases of corruption to embezzlement, he has a lot of questions to answer.