Just a quick reminder
1. Nigeria does not print dollar bills
2. Nigeria earns forex through exports, FPI /FDI & remittances
3. With Covid 19 FPI will drop significantly
4. Oil which is our major revenue earner is now trading at a lower rate
1. Nigeria does not print dollar bills
2. Nigeria earns forex through exports, FPI /FDI & remittances
3. With Covid 19 FPI will drop significantly
4. Oil which is our major revenue earner is now trading at a lower rate
5. The CBN must keep at foreign reserve at a particular threshold to make sure that we can at least finance 6 months imports - food, oil, machinery, raw materials etc.
6. The CBN also needs to supply foreign currency to keep the market steady and prevent inflation
6. The CBN also needs to supply foreign currency to keep the market steady and prevent inflation
7. Constant demand for dollars will continue to weaken the Naira if it is not matched by exports or production
8. The govt will be forced to devalue the currency if the CBN can no longer defend the Naira
9. There is no magic that can be done, it's simple economics..
8. The govt will be forced to devalue the currency if the CBN can no longer defend the Naira
9. There is no magic that can be done, it's simple economics..
10. Devaluation, increase in exports, FPI and import substitution are options
11. If we cannot increase forex earnings through these means and demands for dollars keep soaring, no aggressive import substitution, reserves getting depleted, the Naira will be devalued again.
11. If we cannot increase forex earnings through these means and demands for dollars keep soaring, no aggressive import substitution, reserves getting depleted, the Naira will be devalued again.
