Naira Depression and What Sanusi Can Do (I)d

But these companies would not do such a thing largely because they belong to several outfits like even Goldman Sachs, who allow such penetration and dumping of Naira as unspoken guarantee that the so called business done by the like Sinopec, who are fast becoming the oil company to be in Nigeria, who are part of Red chip china companies but registered through ADR, may just be a redress of withdrawing Shell. As such the Swaps, the Bond, the guarantee against eventuality and exposure is subject to the depreciation of Nigerian Naira. That’s to say that ‘baits’ so far acquired in the interest on Nigeria will never make it and these deals with Chinese Sinopec will ‘deal break’ as long Naira keep its downward spiral.

If over 7 billion dollars sent to Nigeria by Nigerians abroad is obtained through banks in Naira terms and not the dollars or any other currency, it becomes possible to gauge the performance of Nigerian Naira within its local economy. This is the form for the economy and the stock gain in Naira terms becomes a function of its market. If foreign transactions take place in Nigeria through Naira, the Naira will assume an ‘f’ value and would inch in against any currency in the world. It is difficult to explain this because of the poor quality of the Nigerian statistical grid point. But sending 7 billion to Nigeria to be picked only Naira is buying into the Naira in the global markets, which I think Sanusi is doing with oil derived dollars. But the US interest rates have not really started climbing.

Money is like that, especially currency. These companies doing business in Nigeria and asking you pay them in Rand, dollars, pounds, euro, Yang, etc, are creating their own values in Nigeria. This is such a slap that a depression economy like the 30’s US and the International Valuation drag down on price is the only way to explain the problem. There is nothing ‘money’ about Gold beyond its acceptance as a unit of exchange, there is nothing ‘money’ about oil except in terms of its exchange and command of arbitrage. The only form of money known to us is used for business and transaction, a form IOU but I settle you…