The foreign exchange market is like cabbage and potatoes.
Ten years ago, 1 euro gave you 197 naira. Today, for 1 euro they give you 503.17, more than double: 2.55 times more.
The Naira normally hovers above 400 Naira for 1 Euro.
what about that ? What is happening in Nigeria?
Esteve, a friend of mine who imported generators from Japan, had to stop. Because? If you import (whatever), you pay in dollars. And, when selling in the Nigerian domestic market, you sell in naira and you are paid in naira (we are not doing well anymore) It cannot be any other way. And, when you buy again, you do it again in dollars (what a remedy). But before that, you have to exchange your naira that you made by selling, for (fucking) dollars, which cost you 2.55 times more than when you started the business, and what it should cost you, if Nigeria were to do well. Without Japan intervening in anything. Japan is innocent. Even if Japan sells them to you at the same price, you take it, you multiply it by 2.55. Result? The Import market is impossible. My friend Esteve, who was married and is still married to a Japanese woman, with a daughter, has closed the Japan terminal. I guess because he invited me to his wedding with a very pretty Nigerian girl. I couldn't go to the wedding and she invited me to dinner one day so I could get to know her. All I can say is that he didn't speak Japanese. I think he deserves more. Now engaged in car rental with chauffeur that travels all over Nigeria. It charges in naira and has costs in naira. Everything works. I don't know what will happen to the 'terminal' in Japan if the Naira recovers, we will hear about it. What should Nigeria do? Produce domestically and export. It does so only with crude oil and an insufficient part of agricultural production. It produces (crude) oil, exports it and gets paid in dollars. Well! What happens is that, since it does not refine, it buys gasoline outside the country (imports it), and it has to pay for it (we guessed it) in dollars. Pity! So good that we were going! Now, let's say one thing: If Spain were not in the euro, and we operated in pesetas (also Catalonia in the current situation), for every 100 pesetas they would let us smell a dollar. Smell it without touching it.
Does it mean that we are doing well with the euro? It means that the day the Germans say they're fed up (the mule pulling the cart folds its legs), we're all there to sign up for the Chinese Communist Party.
So far currency exchange is done on the street. It is mostly done by Muslims, who do it very well, seriously and give good change, which is the result of the free market, since the currency is a product like any other, like cabbages for example. We must not confuse Muslims with Arabs and Islamists. Some may coincide with others, but they are different things. Arabs are still those of Arab countries. The government now wants the banks to exchange currency for cash. It means that they will not fix anything, that the exchange will be worse, and also that the banks will frequently run out of currency. In other words, they will not be able to sell dollars, as occasionally happens when a product runs out in a market, potatoes for example. Bad for business. The Japanese and Chinese here are also, as far as these potatoes are concerned, innocent.
The Chinese are becoming more and more nice to me, what harm are they doing?
The other is that, if when you go to buy dollars (or euros or whatever) at the bank they ask you to explain where these dollars go and want to document it, as they will surely do, then problems for the black market.
The black market lowers prices in the market. Who would have thought, right? If you interrupt the entry of products into a market, the less quantity of product, the higher the price. We're not talking about morals and stuff here. Here we do additions and subtractions knowing the landscape of misery that I know in Nigeria.
What I can't talk about is what the dollar smells like because I don't remember it anymore.
Meanwhile, six months of drought and six months of rain.
Joan Llopis Torres