‎So, Banks Can Trade Dollar .... ‎ ‎By Oni Gbolabo (Ph.D) ‎

‎1. Almost five years ago, a piece titled DIE IF YOU WANT TO DIE DOLLAR WILL CONTINUE TO RISE by Oni Gbolabo was widely circulated and published by several media sources. The piece centered on the oddities that made forex dealings a difficult task in Nigeria that time.

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‎2. The piece highlighted various odd reasons why Nigeria was experiencing crazy rise in forex exchange without corresponding value to productivity. It mentioned why forex profits kept going to the criminals behind the market manipulation while manufacturing companies were groaning to strike balance.

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‎3. It explained the unbridled and unpatriotic manipulations by cruel individuals, mean financial institutions and dubious organizations that almost run the economy to standstill. Then, forex defied all Known fiscal policies/theories. It was a bleak era for economy but a boom for the criminals behind the scene.

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‎4. One of the issues I raised then queried why the Central Bank of a sane country found it difficult to control exchange rate be it dollar or pound? whereas CBN is the gateway for the inflows and out flows of the currency! The criminality negated all administrative logic because we had nobody to tame the beast. The proceeds even went to financing bandits. Economic sabotage on top of banditry a deadly combination.

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‎5. CBN became numbed and helpless but the agents of the criminals are sitting in kiosks opposite a big hotel in Victoria Island controlling the price of same currencies the CBN could not control. Well, it is not so strange, it is the same way petrol stations won't have fuel to sell but area boys will be hawking fuel in kegs in front of same petrol stations. At a point I believed area boys have their own refineries. Odd society.

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‎6. I am not here to do the job of National Orientation Agency (NOA) which is in coma, still I owe it a duty to amplify Tinubu's policy concerning forex dealings which leads to the current stability. If I have cash I will buy a brand new Citroen car for Tinubu for eliminating deadly manipulators in the chain of forex stability.

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‎7. We need to say it here that stability of forex is just a pre condition for economic stability, it is not the same as economic stability. Forex stability strengthens predictability of trade, which will affect accurate budgetary planning for manufacturing companies and states. It will also dictate long term projections for investment/invest Still CBN needs to do more.

8.The elimination of evil middleman who sits on a mat in his bedroom with the power to order CBN to release $10 million dollars to him on the pretence of pilgrimage, who later sell to his agents with the profit margin of N300 after which all manufacturers are compelled to buy from the agents from the black market was beyond witchcraft. He had made N300 which manufacturers will level on the cost of production and the poor pay. Haba!

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‎9. Please let's reason as people in reality; CBN has no dollar, commercial banks have non but one Aboki has dollars for manufacturing companies to buy at his own dictated price. Meanwhile, CBN will tell us that it is controlling fiscal policies! What a lampoon. One day someone will be bold enough to define what sophisticated insanity means in Nigeria.

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‎10. The bold step taken to remove the marginal discrepancies between selling dollars to manufacturing companies and pilgrimage is the magic that closed the gap, hence the true price of dollar is known. Therefore hoarding and artificial scarcity are eliminated for good. Whoever is annoyed with this must be a witch and we will pray MFM fall down and die prayer upon such person.

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‎11. Indirectly, the sabotaging attitude of hoarding, creation of artificial scarcity, sectoral deprivation are ordinarily eliminated. What a game and what a winner, thanks to the CBN.

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‎12. After all the thunderstorms and brimstones all now calmed down. Today, same commercial banks are luring people to come and buy, speculators are trying to dispose what they hoarded, those holding dollars as store of value are disposing it, domestic values of naira is now known and planning can be done without fear because there is stability.

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‎13. Galloping inflation can now be controlled so that middle class and low income earners could live, at least dollar can be predicted for a period of 15 days which is small but sensible. We can now predict the probability of variation within a given period.

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‎14. Should we rely on this status as an end? In my opinion NO! We still need steps further because the stability gained may not directly impact on households incomes unless there is increase in productivity.

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‎15. It is productivity that will create employment, which in turn will improve purchasing power parity to some extent, then increase GDP, later increase revenue with the chance to plough back to the economy. We should know that whatever government is able to save is what will be available to invest, savings is equal to invest chance S=I.

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‎16. I will end this in the perspective of Amatyre Sen, (2012,2013) that despite the probability of forex stability leading to economic growth it may not lead to human development. Growth is not always a pathway to human development if not well managed.

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‎17. The fact that regularized forex will usher in trade and price stability which may lead to economic growth, mproving the quality of life of the people through it matters. That is if our governors have brain capacity to tango with the reality provided.

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‎18. To impact on households, federal and state governments must invest massively in agriculture, encourage manufacturing like cottage industries and support drive to enjoy economy of scale that will bring cheaper prices. Mass production must bring cheaper prices.

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‎20. To complement federal opportunities like forex stability states should stop voting dull heads as governors, many of them know nothing about human development index and how to annex economic stability for their advantages.

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