Oil Producers Currency Collapse Continues, Nigeria's Naira Crashes To Record Low Against Dollar

Tyler Durden's picture

Having proclaimed it is not Zimbabwe, Nigeria's currency is starting to look a lot like a hyper-inflating mess. After devaluing to a 168 peg in November, the Naira has crashed to 200 / USD today - smashing above the upper peg band of 176 as it appears Nigeria is losing control. The collapse of Oil Producer currencies had abated for a week or two but the last 2 days have seen the Ruble and Naira tumble (even as The USDollar weakens modestly ahead of the ECB QE tomorrow).


Nigeria's Naira is crashing...


But Oil Producers have a long way to go to catch down to Russia..



Charts: Bloomberg

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Jay Bird's picture

This should be interesting...

whotookmyalias's picture

Either cutting off your nose to spite your face or a double-trap honey dick.  Neither ends well for the common man.

knukles's picture

Je suis fucked
Nous somme fucked
Il sont fucked

And fuck Charlie, the EU, Vallerie, Vickie, Victory and VichyDC

knukles's picture

Sorry, my omisson.
Fuck whatthe, too. 

Handful of Dust's picture

"Nigeria isn't Greece," the Nigerian PM told the journalists.

MalteseFalcon's picture

Oh, no, not the Naira!! Time to give up hope, I guess.

Monty Burns's picture

Jaysus! Just shows how low Greece has sunk when the Nigerians don't want to be compared to them.

GMadScientist's picture

Nous sommes fuckons comme un chien en chaleur.

Oldballplayer's picture

Je fous--I fucked


tu fous-- You fucked


il/elle fout -- He/she fucked


nous foutons --We fucked


vopus foutez -- You fucked


ils / elles foutent--They Fucked
falga's picture

What a surprise! Most populous country in West Africa is a Basket case without oil to buy peace & stability...

GMadScientist's picture

Why the fuck else would they let a foreign corporation exploit their sole natural resource and give them nothing in return?

All part of the great empire's charade: 1) get tribes fighting 2) back winning side 3) sell resources 4) repeat

Sandmann's picture

They can chant "Je suis un Charlie" as Boko Haram massacres them all

GMadScientist's picture

What currency are all those missiles going off in the Ukraine purchased in again?

JustObserving's picture

Pepe Escobar's take on the games being played with oil:

What Game is the House of Saud Playing?

Let’s start with oil – and some background. As much as US supply has increased by a couple of million barrels a day, enough oil from Iran, Kirkuk in Iraq, Libya and Syria has gone out of production; and that offsets extra US oil on the market. Essentially, the global economy – at least for the moment – is not searching for more oil because of European stagnation/recession and the relative China slowdown.

Since 2011, Saudi Arabia has been flooding the market to offset the decrease in Iran exports caused by the US economic war, a.k.a. sanctions. Riyadh, moreover, prevented OPEC from reducing country production quotas. The House of Saud believes it can play the waiting game – as fracked oil, mostly American, is inexorably driven out of the market because it is too expensive. After that, the Saudis believe they will regain market share.

In parallel, the House of Saud is obviously enjoying “punishing” Iran and Russia for their support of Bashar Assad in Damascus.


UselessEater's picture

Ann Barnhardt's take...

Citi is the only big bank that is INCREASING its derivatives position...NINE TRILLION $ IN ONE QUARTER!!

Do you know who the largest private shareholder of Citigroup is? Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud.  Mister Saudi Arabia. So, I’m going to indulge in a little dot connecting here.  I don’t think this is terribly far-fetched.

I hypothesize that the Washington DC regime is providing Saudi Arabia with a “laundered short hedge” on oil prices through Citi.  Citi “borrows” money from the Federal Reserve at next to zero percent, plows it into swaps (a form of highly leveraged derivative wherein cashflows, not assets, are the underlying “commodity”) at this stunning clip because all swaps are held “off balance sheet”.   Remember that term from MF Global?

The position is such that it makes money when oil prices drop, thus “hedging” Saudi Arabia.


gonetogalt's picture

Good catch, thanks for the link.

blown income's picture

So this is why oil jumped a $1 in the past hour?

Counterpunch's picture
Counterpunch (not verified) Jan 21, 2015 9:22 AM
localizer's picture

Nigeria is a ticking time bomb and this is 7th most populous country on earth!

noben's picture
noben (not verified) localizer Jan 21, 2015 9:38 AM

Dat be a lot of Nigers.

Note to self: "Use the NATO principle: Keep Big Oil in, keep China and Russia out, and keep the Nigers down" -TPTB

PrayingMantis's picture



... Please be seated, keep your seat in an upright position for take-off and please fasten your seatbelts. Those who couldn't find a seatbelt, kindly fasten your own belt to your seat …and those who couldn't find a seat, do not hesitate to alert a stewardess who will explain how to fasten yourself to your suitcase.

... Thank you for flying Nigeria Airlines ...

noben's picture
noben (not verified) Jan 21, 2015 9:32 AM

This is MOST interesting, in light of yesterday's ZH post on Proven Oil Reserves.

As I recall, these guys are in #10 spot, and the US is hell bent on owning, controlling or destroying any and all oil producers.

Looks to me that they are simply in the process of acquiring leveraged control over the world's energy assets, before the Reset occurs, and currencies are backed by real assets.

Until then, they will be trashed, a la "buy low, sell high" principle. And nothing is lower than when there's blood in the streets.

It's not complicated: the Game is simple, the moves complex.

localizer's picture

Very good point indeed! Let's see now:

1 Venezuela 297,740

2 Saudi Arabia 268,350

3 Canada 173,625 - 175,200

4 Iran 157,300

5 Iraq 140,300

6 Kuwait 104,000

7 UAE 97,800

8 Russia 80,000

9 Libya 48,014

10 Nigeria 37,200

11 United States 30,529

So most are already under control except for Venezuela, Iran, Russia and Nigeria... and who is hit most by the crashing oil price, huh?

Archetype's picture

Is this it? Have the feeling it's all going to fall apart very soon, bricks falling over everywhere. Then again, every time I get that feeling it's just a matter of time before the stockmarkets shoots away to brand new all time highererers...


One thing is certain, if none of all these circumstances dos'nt have any larger affect on the stockmarket and economy soon we are all probobly set for a long deflationary spiral over the next 20-30 years.

Mike Honcho's picture

Now Nigeria is becoming unstable!  No hope for the rest of us.




Archetype's picture

Haha, true! My point though is that there's just too much going on in different places. The SNB action, China hard landing, no moar BOJ QE, Russia, Oil and commodities and so on.


The liquidity injections remiand me of a leeking hull on a supertanker. At some point the entire tanker flips around and sinks due to the instability of whater slushing around.

Monty Burns's picture

I saw a guy hit by a truck in Lagos lying by the side of the road, seemingly dead.  Everyone just went about their business, ignoring him.

1.5% of the "Irish" population is now made up of Nigerians and their spawn.

RadioactiveRant's picture

Report in the FT says the IMF warning "the oil price decline as largely permanent".

Smegley Wanxalot's picture

Does this mean I won't get my 30% of the $28 million King Jonathan Oliver Edward Harald Frederick Zingdoongaloobaloobalingalungah of the Nigerian Oil Ministry promised me in that email after a mutual friend gave him my trustworthy name and I emailed back my bank info?