Now dollar is #1,400/Naira. Will the prices of food items and commodity reduce?

[Cryptomultiplier]

The naira has continued to appreciate against the dollar following some foreign exchange measures put in place by the Central Bank of Nigeria.

Some of the FX reforms include;
* efforts made at achieving a willing buyer-willing seller market
*removal of all limits on margins for the International Money Transfer Operator remittances
* introduction of a two-way quote system and the broad reforms in the Bureau De Change segment of the market to restore stability,
*enhance transparency,
*boost of supply, and
* promote of price discovery in the Nigeria Autonomous Foreign Exchange Market.

The pressure on the naira/dollar exchange rate is beginning to ease as Nigeria’s external reserves have sustained growth in one month.

https://punchng.com/naira-rebounds-to-n1400-as-speculators-offload-forex/

I was happy to learn that the Naira against the dollar is now somewhere between #1400-#1500. So let's say after all the new reforms by the CBN we are seeing a light at the end of the tunnel and perhaps inflation would reduce substantially to ease the suffering in the country.
After CBN cleared $7billion forex backlog, they said there is improvement in the external reserves.

I thankGod o. My question is very simple though because this country is complicated already;
* Now that the dollar to Naira exchange rate is about #1,400 /dollar, will the prices of food items and other commodities reduce?
Or is it that what goes up never comes down?

Your thoughts are welcomed!

[Cryptoprincess101]

That is the problem we have in this country, it is always difficult to reduce the price of food and other commodity in the country as their mentality have always been that when the price of goods increases that is shouldn't reduce anymore because they want to make insane profits after they will be blaming the government when they are the author of the problems in this country. What the government need do is to set up a task force to checkmate the prices of goods and commodity in the market if possible there should be a regulation of prices.

The recent appreciation of the Naira to dollars is a nice one,  we do hope it continues so that life can be easy for the common man in the society because all these things affects the common man directly so we should seek for a favourable environment for all no matter how vulnerable they are to the society, every one is human and of such we should endeavour to make life conducive for all

Like I always say, the CBN knows the real causes of naira devaluation, and they also know how to make the naira gain strength against the dollars but for some selfish interests they don't want to "hit the hammer at the head of the nail" that's why they are "bitting about the bush" chasing clouts where not necessary.

[Cryptomultiplier]

That is the problem we have in this country, it is always difficult to reduce the price of food and other commodity in the country as their mentality have always been that when the price of goods increases that is shouldn't reduce anymore because they want to make insane profits after they will be blaming the government when they are the author of the problems in this country. What the government need do is to set up a task force to checkmate the prices of goods and commodity in the market if possible there should be a regulation of prices.

The recent appreciation of the Naira to dollars is a nice one,  we do hope it continues so that life can be easy for the common man in the society because all these things affects the common man directly so we should seek for a favourable environment for all no matter how vulnerable they are to the society, every one is human and of such we should endeavour to make life conducive for all

Like I always say, the CBN knows the real causes of naira devaluation, and they also know how to make the naira gain strength against the dollars but for some selfish interests they don't want to "hit the hammer at the head of the nail" that's why they are "bitting about the bush" chasing clouts where not necessary.

The CBN definitely knows what needs to be done to make things better but instead they chase clout. Just like the Binance saga really, are they not supposed to just ensure that the practices is safer for the citizens,regulate if possible, so it serves as good means to earn and pay for transaction rather than trying to tax every crypto currency user and owner.

Also it the case of the wholesale and retail sellers. They would still not want to reduce the prices of their food items because they clearly don't read the news or follow up with newspaper to know the new policies by the government. So it's a sure thing for them to keep the price same way until government actually enforces a task force that goes about ensuring the prices have been regulated according to new proceedings and progress in the economy.

[Samlucky O]

I Thank God o. My question is very simple though because this country is complicated already;
* Now that the dollar to Naira exchange rate is about #1,400 /dollar, will the prices of food items and other commodities reduce?

Or is it that what goes up never comes down?

The problem is that Nigeria is unpredictable which mean that you may never know the next move that will take place. In previous cases dollar increased, also do the the price of goods and services, but dollar fell and price of commodity never reduced. So it hard to say. But I know that there will be a small dip in price of commodities
But it may never go back to previous price before the increase in price of dollars.

[7juju]

Knowing the kind of people and how wicked that most Nigerians are when it comes to market activities, they won't reduce the price of things. Their reasons of not reducing will be that they bought at a high price and they will want to finish their old stocks at the price they bought. But if the rate keeps dropping and the traders finish their old stocks and buy new goods at a reduced price of course things will reduce, as they won't have any more excuse about dollar rising. In an organized country, at some point the government will Wade it if after sometime and the price don't fall considerately in the market if the dollar depreciate considerately.

[Dailyscript]

I Thank God o. My question is very simple though because this country is complicated already;
* Now that the dollar to Naira exchange rate is about #1,400 /dollar, will the prices of food items and other commodities reduce?

Or is it that what goes up never comes down?

The problem is that Nigeria is unpredictable which mean that you may never know the next move that will take place. In previous cases dollar increased, also do the the price of goods and services, but dollar fell and price of commodity never reduced. So it hard to say. But I know that there will be a small dip in price of commodities
But it may never go back to previous price before the increase in price of dollars.

I heard in the news yesterday that the the price of goods and services will reduce soon. However, we wont expect it to just reduce immediately because there are still products that was bought with the old price amd this sellers have to retain selling the same price untill there is none of those products remaining in the store. Whenever they go for the next market we expect them to buy at a cheaper price on the shores so that we the consumers can buy at a lesser price too.

Although, only few people would want to reduce the price of things. As some greedy persons would want to still sell at the old price which is high for a long time. Typically things are suppose to go down, the government had figure a way for it, after taking thier ransom from Binance and local crypto exchange.

[Cryptomultiplier]

Knowing the kind of people and how wicked that most Nigerians are when it comes to market activities, they won't reduce the price of things. Their reasons of not reducing will be that they bought at a high price and they will want to finish their old stocks at the price they bought. But if the rate keeps dropping and the traders finish their old stocks and buy new goods at a reduced price of course things will reduce, as they won't have any more excuse about dollar rising. In an organized country, at some point the government will Wade it if after sometime and the price don't fall considerately in the market if the dollar depreciate considerately.

If we begin to wait for the traders to finish selling off their old stock before reducing the price to meet the current price, we may yet witness another volatility that may make the dollar rise against the Naira and instead of low prices, we might be seeing the prices remaining same or going higher.
I do understand though that profit has to be made and that's why the old stocks must be sold out completely before new ones are gotten at the reduced price and sold at same. 
Let's pray the exchange rate further reduces to at least less than a thousand Naira, then all the talk of minimum wage being increased will be more meaningful without the exorbitant  figure that NLC is calling to be paid in that regard.

[Gozie51]

How far has fuel price dropped? To me na dat one be the koko wey go even make price of food drop. Once the fuel drop then e reflect for transportation fee, traders go begin realize how much them go remove from their cost of bringing the goods down to their place.

Again, the actual thing wey go follow reduce price be say government dey serious with price control, monitor and punish offenders then business people no go like make price drop as Nigerians .

[Mate2237]

As of today the price of dollar has come down to NGN1,300. And at least dollar is coming down gradually and we dey pray shey before next two months go end him go come down or reduce well well. So dat make many things wey don go up well well go come down too. And mostly cement price and other buildings materials. And my own be shey make dollar go down to the normal price we Goodluck Ebele Jonathan keep whey we been dey use and dat amount was $1 equal to NGN150. Omen in dis era we dey if Nigeria go back that exchange rate again life go too sweet.

Although if we compare it to this present day dollar exchange rate it will affect those who have enough BTC because the price of bitcoin when dem go change am to naira e no go big again as for now wey dollar high. But make we make our country be a good one with our local currency and not dollar country.

[knowngunman]

I thankGod o. My question is very simple though because this country is complicated already;
* Now that the dollar to Naira exchange rate is about #1,400 /dollar, will the prices of food items and other commodities reduce?
Or is it that what goes up never comes down?

Your thoughts are welcomed!

First of all, it's important for us to know that dollar is just a currency like our own naira, a mere means of exchange and not a commodity. Let us engage in meaningful business activities and stop the speculation. Now, the dollar rate has not been stable for several months now and you can not expect down cut of commodities prices when there is no stability of currency exchange. In the morning you have a lower exchange rate but the end of the day, it jump up to higher rates like before and you anticipate reduction? It's not possible. Traders in Nigeria are very greedy set of people that are always eager to increase the price of their goods but feel sad to reduce the price even when it's necessary. They have been hiding under the dollar rate even those that have no business with dollar. If Naira can maintain it value at $1-#1400 or even less for at least three months, we will probably experience price reduction but for now don't put your hopes high in vain. The prayer point has always been may God provide for us no matter the situation.

[Obim34]

How far has fuel price dropped? To me na dat one be the koko wey go even make price of food drop. Once the fuel drop then e reflect for transportation fee, traders go begin realize how much them go remove from their cost of bringing the goods down to their place.

Again, the actual thing wey go follow reduce price be say government dey serious with price control, monitor and punish offenders then business people no go like make price drop as Nigerians .

To be honest, I am not much concerned seeing the NGN drop against dollars, of what benefit when the price of goods and commodities are not reducing. The price of fuel is not even reducing, at worst, fuel is now scarce to get, people are suffering meanwhile just an implicit or explicit action from the government can return everything back to normal.

[Marykeller]

Wetin I don learned about this our country in the past don make me understand say, anything wey manage to increase for price em d hard to come down for price. That one na a known fact wey all Nigerians know and there is nothing our FG don do about am to find a lasting solution to why everything d increase immediately to dollar but em no fit reduce once dollar decreases.

Em d very fortunate sai, most of our people don turn this dollar increase to naira as a way to make huge money for themselves in their businesses in a way that their old stock dem go increase their price to a price of new stock.

At times we be our own problem that we d dey in a hurry to increase the price of goods when dollar increase but we no d in a hurry to decrease the same price of old stock wey we dey sell.

It's so heartbreaking that we d live in a country that its government no care for its citizen well-being of whether them go fit the eat three square meals or not in a day. Wetin dem know na sign bill wey go be at their favor but affect the poor.

[Uhwuchukwu53]

How far has fuel price dropped? To me na dat one be the koko wey go even make price of food drop. Once the fuel drop then e reflect for transportation fee, traders go begin realize how much them go remove from their cost of bringing the goods down to their place.

Again, the actual thing wey go follow reduce price be say government dey serious with price control, monitor and punish offenders then business people no go like make price drop as Nigerians .

All the marketer are holding on fuel issue I think what you said I concur because without fuel dropping nothing will still come down .
 But what is the issue is that except the government regulate the cost of food items and other things it will be difficult to drop down, that is how the economy has operated over the years.
The government need bring policy and regulates the market by pumping in some of those products to effects local marketer to reduce their prize once they see that product is selling for cheaper prize by the government and if they fail to align will run into loss and expired products the things will automatically come down but if just for marketers to bring it down it will not happen in this country . Alternatively either they ceased the product of marketer that fail to sell according to the under listed prize which will automatically put fear for other if not it won't work.

[Tmoonz]

The naira has continued to appreciate against the dollar following some foreign exchange measures put in place by the Central Bank of Nigeria.

Some of the FX reforms include;
* efforts made at achieving a willing buyer-willing seller market
*removal of all limits on margins for the International Money Transfer Operator remittances
* introduction of a two-way quote system and the broad reforms in the Bureau De Change segment of the market to restore stability,
*enhance transparency,
*boost of supply, and
* promote of price discovery in the Nigeria Autonomous Foreign Exchange Market.

The pressure on the naira/dollar exchange rate is beginning to ease as Nigeria’s external reserves have sustained growth in one month.

https://punchng.com/naira-rebounds-to-n1400-as-speculators-offload-forex/

I was happy to learn that the Naira against the dollar is now somewhere between #1400-#1500. So let's say after all the new reforms by the CBN we are seeing a light at the end of the tunnel and perhaps inflation would reduce substantially to ease the suffering in the country.
After CBN cleared $7billion forex backlog, they said there is improvement in the external reserves.

I thankGod o. My question is very simple though because this country is complicated already;
* Now that the dollar to Naira exchange rate is about #1,400 /dollar, will the prices of food items and other commodities reduce?
Or is it that what goes up never comes down?

Your thoughts are welcomed!

We should not always forget that there are consumable goods and material goods, now if dollar valuation affects naira valuation in terms of material goods which of course majority are imported goods, my question is how does dollar valuation affects consumable goods that are produced in our country? the country is in complete mess up to sum it all and we should stop generalizing cost of things in terms of dollar and naira valuation.

[Kelward]

I de happy say our naira don appreciate small, Aldo I no think say di currency get any business to skyrocket reach more dan1700  to 1 US dollar before e start to come down, make e come bellow 1000 to 1 dollar before we go relax small. As for your question say as naira value don appreciate small say weda e go make prices of goods to also come down, I laf for dat kind question, e no de possible for now and in di nearest future, because law of gravity no de affect high price inside Nigeria, unless government enforce price regulations. Business people go claim say dem buy di goods wen price de very high, sodiafo dem go sale at high price to make dem profit, even if dem buy at reduced price, most of dem go claim say na high price dem buy dem goods.

[Wiwo]

If fuel price keep being high there is no way you should expect reduction in the price of goods and services, fuel is the major propellor of the economy and not the exchange rate between naira vs dollar's,  sometimes we Nigerians need to build our awareness about all this things so that we can know better what is really happening in the economy today, many times we tend to mislead ourselves with social media news and some wrong assumptions as to what courses the rise in the price of good and services within an economy such as in this situation.

It may be disappointing to many to see that the Nigerian naira is appreciating against the dollar's but the price of basic goods will still remains high or even increase with time, if nothing is done to crash the price of fuel.

[adultcrypto]

Everyone in Nigeria already know that it is easier for prices of commodities to rise than to reduce. It is only in this countries that there is union in almost everything, the purpose of those unions being to take advantage of every opportunity they see to rip off fellow citizens. This may sound funny but it is true, there is union now for keke and mini-bus drivers with the prices of transportation doubled and any of them who defaults will face serious punishment included ban from operation. Just recently, my barber told me that union people have asked them to increase their price and that anyone who fail will be punished. We can say that there is a general consensus among traders to sabotage the government by making things extremely difficult for people. This is the reason prices of goods went up when the exchange rate was high and is reluctant to come down now that it has reduced. It is only in few items you will see minor drop in price like cement and I am also hearing about rice too. 

[iPaD]

You actually spoke my mind shah, because that the exact question I was also having in mind just of recent about still the current high prices of goods in the country after our Naira has appreciated. But one thing I have always known about Nigeria is that when a goods goes up, I bet you it will take the head of a cow to pass inside a needle than for the price of that goods to go down.

[DaNNy001]

I Thank God o. My question is very simple though because this country is complicated already;
* Now that the dollar to Naira exchange rate is about #1,400 /dollar, will the prices of food items and other commodities reduce?

Or is it that what goes up never comes down?

The problem is that Nigeria is unpredictable which mean that you may never know the next move that will take place. In previous cases dollar increased, also do the the price of goods and services, but dollar fell and price of commodity never reduced. So it hard to say. But I know that there will be a small dip in price of commodities
But it may never go back to previous price before the increase in price of dollars.

Nigeria is like space that lacks gravity because nothing that goes up ever comes down and by this I mean the price of commodities. This has been a problem and it's a problem that have been going on for some time now even before the past two administrations that have ruled the country. In Nigeria almost everyone is an opportunist and that's why when they say the problem of the country is all shared among everyone in the country because I believe the citizens themselves are one of the major causes of price never wanting to go down.

[Charles-Tim]

I was happy to learn that the Naira against the dollar is now somewhere between #1400-#1500.

You are happy with it? But the price of goods and services continue to increase while dollar is decreasing in value against naira as naira itself appreciates in price. So why are you happy about it? My happiness would be when goods and services prices are also decreasing.