Keep rising

Whynotthetruth:


smh...can government sell to BDC above government pegged official rate

smh... Can the pegged official rate change? ?

chibuzorAbia:


Borrow from whom? And repay the borrowed dollar from what?

if you find it difficult to attract foreign with such amount above $20billions it's makes no sense adding more to the reserves,when the economy is plunging downwardly you gotta spend what you've got to stay out of recession. okay?

GEJ did it, but corruption effect negates the spending. But since there's a check on corruption we can give it a try.

michoim:
Where is prof. Pat Utomi and the senator Ben Bruce that have been making noises that the FG policies are wrong? PMB have now proved them wrong that applying theoretical knowledge alone from Cambridge or Oxford universities, is not enough to provide good leadership.
Where are the satanic Fayoses, FFK etc?

...accretion of FX reserves could be attributed to two factors – the improvement of oil prices following the agreement by OPEC and Russia to slash oil production by 1.2 million barrels per day, and the relative peace achieved in the Niger Delta....“The oil price rally coupled with improved output from Nigeria have resulted in increased foreign earnings in recent months

So which of Buhari's policy are you talking about?

Keneking:
Ok

"He also disclosed that with the single-mindedness exhibited by the CBN governor to rebuild FX reserves, he has set a target to grow reserves to $35 by the middle of 2017 and $40 billion by the end of the third quarter of this year."

This statement is useless as there is huge backlog of forex requirement by students (schooling abroad) for tuition purposes and your government is not considering supporting them. I think this reserve build-up is unnecessary. Because the stomach can not be hungry, while soup is in the fridge.

Nonsense.

the reserve build up is probably for Debt servicing in the future and Diversification.

Sacrifices must be made, surely you know that means some people will be hurt by this but then it's for a purpose.

for the Buhari Zonebs,spambots and 250k NAIRA PER MONTH POSTERS, before you start with your rabid half truths, heres what they really think about your failed CBN governor and President

One concrete step President Muhammadu Buhari could take to address the crisis would be to eliminate the country’s disastrous foreign exchange controls. Instead, Buhari has made no secret of his desire to defend Nigeria’s currency.

“And the central bank has mostly gone along. Despite allowing the devaluation of the naira in June, it is continuing to manipulate the exchange rate — discouraging foreign investors, creating a crippling shortage of dollars for businesses that need to import, and feeding a currency black market. To keep down the street price of vanishing dollars, Buhari’s government has arrested informal money-changers. More capital controls are in the works.”

Bloomberg said “dismantling Nigeria’s foreign exchange controls will doubtless cause at least a short-term rise in inflation”.

The company’s editorial board however said dismantling the forex controls “will not only draw foreign investment and make the economy more productive and competitive, but also cut off a conduit for corruption”.

it advised that when the forex controls are removed, the government could “cushion the blow for Nigeria’s poor through targeted cash payments”, as it was done for farmers under former president Goodluck Jonathan.

Keneking:
Ok

"He also disclosed that with the single-mindedness exhibited by the CBN governor to rebuild FX reserves, he has set a target to grow reserves to $35 by the middle of 2017 and $40 billion by the end of the third quarter of this year."

This statement is useless as there is huge backlog of forex requirement by students (schooling abroad) for tuition purposes and your government is not considering supporting them. I think this reserve build-up is unnecessary. Because the stomach can not be hungry, while soup is in the fridge.

Nonsense.

This same mentality that landed us into recession...you must be an ogogoro addict, they think this way always...you want our hard earned reserves to be given to the few privileged ones who send their children to study abroad right, at the expense of attracting investors who will stimulate our economy and create job for the youth...No wonder the so called youths are their own enemy...

Keneking:
Ok

"He also disclosed that with the single-mindedness exhibited by the CBN governor to rebuild FX reserves, he has set a target to grow reserves to $35 by the middle of 2017 and $40 billion by the end of the third quarter of this year."

This statement is useless as there is huge backlog of forex requirement by students (schooling abroad) for tuition purposes and your government is not considering supporting them. I think this reserve build-up is unnecessary. Because the stomach can not be hungry, while soup is in the fridge.

Nonsense.

You are not well!

Standing5:
smh... Can the pegged official rate change? ?

Changing it to create MORE forex rate dichotomy? All these APC economists sef

Adminisher:


You must be an Ijaw man. Sorry we are not running Nigeria with clueless Ijaw philosophy again. And yes there could be good in the fridge and the stomach stays have hungry. It is called "delayed gratification". All successful people in the world do it. Ijaws don't do it.

So this clueless n inept economic policies of this government is what u call delayed gratification ?
Chai ,with reasonings like this I fear for the future of this country.
Nnamdi azikiwe,awolowo n the great nationalists must be weeping in their graves now.

LOL. BMC @ work

Admin401:


the reserve build up is probably for Debt servicing in the future and Diversification.

Sacrifices must be made, surely you know that means some people will be hurt by this but then it's for a purpose.

What is the essence of stacking up funds when there are genuine demands by the public?

Aristo3146:
This same mentality that landed us into recession...you must be an ogogoro addict, they think this way always...you want our hard earned reserves to be given to the few privileged ones who send their children to study abroad right, at the expense of attracting investors who will stimulate our economy and create job for the youth...No wonder the so called youths are their own enemy...

So after the build-up, what next?

Keneking:


What is the essence of stacking up funds when there are genuine demands by the public?

There will always be demand wether the government goes on Saving mode, or Massive spending mode.
Demands will always be there, only that in spending mode, demand will increase even more. but then what about the future?
Everyone ls moving away from oil, the Saudi's, Iran, every other oil major country is moving away from it because the price will fall in the future when scientist discover other Economical and stable form of energy (which they always do) there is one thing that never stops in this world and that is innovation. when oil is worthless we will need something else to stand on. You think school fees of students that school and base abroad is much more important than your future? be my guest.

Admin401:


There will always be demand wether the government goes on Saving mode, or Massive spending mode.
Demands will always be there, only that in spending mode, demand will increase even more. but then what about the future?
Everyone ls moving away from oil, the Saudi's, Iran, every other oil major country is moving away from it because the price will fall in the future when scientist discover other Economical and stable form of energy (which they always do) there is one thing that never stops in this world and that is innovation. when oil is worthless we will need something else to stand on. You think school fees of students that school and base abroad is much more important than your future? be my guest.

Can you meet me on gmail? So that I cane deal with your points line-line.

Anything to divert Nigerians mind from looking for the missing president and asking questions and the chronic failure of the president is sustainably pushed out to the gullible through the media.

From lying reserves are up, to EFCC misleading loot recovery propaganda.What next, let me guess? Another set of chibok girls are found or EFCC discovers $12m in Judge so and so house.

Believe this lying liars FG at your own risk.

Keneking:
Ok

"He also disclosed that with the single-mindedness exhibited by the CBN governor to rebuild FX reserves, he has set a target to grow reserves to $35 by the middle of 2017 and $40 billion by the end of the third quarter of this year."

This statement is useless as there is huge backlog of forex requirement by students (schooling abroad) for tuition purposes and your government is not considering supporting them. I think this reserve build-up is unnecessary. Because the stomach can not be hungry, while soup is in the fridge.

Nonsense. Is the terminal date for Nigeria - May 29, 2019?

So why act as if there is an award to be won in the end?

Hopeless situation.

What benefits do fx allocation to school fees have on the economy.

At this point it is only wise to channel our efforts towards production and optimize this.

I support the build up of the reserves because that is the only way we can gather investors confidence. We suffer from too much tunnel vision in this country.

pasol4real:

So this clueless n inept economic policies of this government is what u call delayed gratification ?
Chai ,with reasonings like this I fear for the future of this country.
Nnamdi azikiwe,awolowo n the great nationalists must be weeping in their graves now.

Scarcity is a great factory for invention and Innovation.
Someone asked in his post ..What next?. What next is People using their brains. People doing import substitution, people making things in Nigeria.
It worked for India, North Korea, Iran, China, Brazil, South Korea, South Africa. Nigeria's exchange rate is a good pull for investment already. $35billion has flowed in from Nigerians abroad already. Look at textiles that Jonathan comprehensively destroyed through zero action, It is $5bn a year conservative export potential..And the cotton is grown locally.
We have to stop the stupidity that sees Nigeria as only an oil producing country that then converts oil prices to local currency to share inefficiently via corruption, patronage, prostitution to its masses . This is not a modern way to run a country

deenee:



What benefits do fx allocation to school fees have on the economy.

At this point it is only wise to channel our efforts towards production and optimize this.

I support the build up of the reserves because that is the only way we can gather investors confidence. We suffer from too much tunnel vision in this country.

The build up of reserves serve what purpose?

The threshold for reserves is three months of import in case of drought, famine, war etc.

Do we have humanitarian crises?

spectator2001:
This is simply elementary economics! "...foreign investors will be assured that once they want to take their funds out, they can do so without hindrance." How did we get to this level as a nation? It's a pity that the blame game in the Nigerian politics is like a pendulum -it goes back and forth. Trust me, the nation is on a jet-speed in the direction opposite of a successful destination.

The CBN governor who supervised the looting of the previous administration in conjunction with a Minister of Finance presumably thought to be above board all failed the nation immensely. The day some man named Oronsaye was named in a corruption scandal was the day I gave up on Nigeria. Africans are forever unfit for self-governance. Please don't argue this. Jammeh escaped with $11 million dollars, how much does Gambia as an entire nation possess to warrant that dirty looking nui.sance escape with such amount of money?

The problem with Nigeria is very simple. "Let me get there and chop my own". Until a generation is ready to sacrifice all the entrapment of comfort which our lackadaisical attitude promotes, we shall forever watch our nation earn optimal level of disrespect from the rest of the world. same goes for other African nations.

How does the external reserve directly affect the life of those people at bottom of the "crumbs" chain NOT food chain please! How? Every move or pronouncement at this very point should translate into something meaningful in the lives of the ordinary Nigerians, when its time to impress the upper class with jargons such as external reserves bullshit, we'd get there.

Wait, Isn't it the same government that is about to plunge the nation into further debt of billions of dollars? If these figures as quoted strikes off as genuine- then it is pure madness if the government can't withdraw $10 billion dollars from the external reserve to fund a proper recovery plan for the economy which would include massive infrastructure development that would thoroughly impact the lives of Nigerians positively!

You will live long. God bless you.

michoim:
Where is prof. Pat Utomi and the senator Ben Bruce that have been making noises that the FG policies are wrong? PMB have now proved them wrong that applying theoretical knowledge alone from Cambridge or Oxford universities, is not enough to provide good leadership.
Where are the satanic Fayoses, FFK etc?

This news is not true o. Believe am at your own risk.

Admin401:


There will always be demand wether the government goes on Saving mode, or Massive spending mode.
Demands will always be there, only that in spending mode, demand will increase even more. but then what about the future?
Everyone ls moving away from oil, the Saudi's, Iran, every other oil major country is moving away from it because the price will fall in the future when scientist discover other Economical and stable form of energy (which they always do) there is one thing that never stops in this world and that is innovation. when oil is worthless we will need something else to stand on. You think school fees of students that school and base abroad is much more important than your future? be my guest.

Agreed, there's a drift from oil by major oil producing countries but with a clear focus and vision.Remember that those countries didn't default economically before they took their decision. Now that you're saving without vision and focus, your economy is melting down financially, savings is not enough you gotta spend. When there's a warning of an impending flood you have to be prepared to spend lots of monies for erection of bridges,dams,channels...etc to reduce the impact of the flood. You dont have to safe and wait till the flood come and there's pandemonium everywhere.
Before drying up of oil in Dubai provisions were made for investment in tourism. They projected their spending in a clear and focal way.
When there's no vision the people perish.
Not when there's no money

who this foreign reserve help

Whynotthetruth:


1)Can you ever comment without mentioning Jonathan?

2)How much debt do Nigeria have now under Buhari and what's the justification for them?

3)Increased reserve now is a product of increased output and high price of crude not any special policy or plan or action of this government...

1. Wow, so you had time to go through all my posts in Nairaland! You know what, just help me out, type my moniker + Jonathan in the search bar, then express the number of posts you can count as a percentage of my total posts on Nairaland and come back to me with the percentage.

2. I was talking about external debt, and the external debt by the end of your Hero's tenure was $9.3 billion

https://www.thecable.ng/nigerias-external-debt-now-9-4-trillion

Yes o, the statistics I put before were from a November 2014 report. Let me go modify my post gan. He had all the income in the world and still borrowed.

Now, as at June 2016 (I'm sorry, defender of corruption, I couldn't find any more recent report) the EXTERNAL debt stood at N 3.19 trillion = $7.9 billion, going by the exchange rate as at then.

Sure, the internal debt rose, but that was inevitable. The difference between external and internal debt is that one is caused by borrowing,while one is caused by the value of the naira. And of course the value of the naira would drop* when they restricted Forex access. Just watch and see what will happen when forex is available once more.


3. The crude oil prices as at now are just shy of HALF of what was made under the Jonathan administration. The policies include the harsh restrictions and limits placed on forex

Keneking:


The build up of reserves serves what purpose?

The threshold for reserves is three months of import in case of drought, famine, war etc.

Do we have humanitarian crises?

Replying this guy is crass stupidity!

Sunmolar:

if you find it difficult to attract foreign with such amount above $20billions it's makes no sense adding more to the reserves,when the economy is plunging downwardly you gotta spend what you've got to stay out of recession. okay?

GEJ did it, but corruption effect negates the spending. But since there's a check on corruption we can give it a try.

Spend on what? Consumer products that we are too stupid, lazy or foolish to produce ourselves? Spend on rice perhaps! God almighty!

Standing5:
Everything u wrote depends on how much the govt/cbn decides to sell. If they try to impress the populace by making forex rate low then the BDCs win, otherwise life goes on.

The CBN is trapped already. Is either they sell or the rate keeps on going up

chibuzorAbia:


Replying this guy is crass stupidity!

He has a point but for a country like Nigeria even $300b reserve is not a good threshold because of the import dependance in case of war or famine whatever, the population is much

NgeneUkwenu:

http://www.thisdaylive.com/index.php/2017/02/13/as-emefiele-targets-40bn-fx-reserves-cbns-strategy-becomes-apparent/

lalasticlala

Forex reserve is rising but airlines can't pay their obligations because they can't access Forex at the quantity they need. What is the point of having a rising reserve if these issues remain. By the time CBN starts releasing Forex again the reserve will again go down.

AnonyNymous:


1. Wow, so you had time to go through all my posts in Nairaland! You know what, just help me out, type my moniker + Jonathan in the search bar, then express the number of posts you can count as a percentage of my total posts on Nairaland and come back to me with the percentage.

2. I was talking about external debt, and the external debt by the end of your Hero's tenure was $9.3 billion

https://www.thecable.ng/nigerias-external-debt-now-9-4-trillion

Yes o, the statistics I put before were from a November 2014 report. Let me go modify my post gan. He had all the income in the world and still borrowed.

Now, as at June 2016 (I'm sorry, defender of corruption, I couldn't find any more recent report) the EXTERNAL debt stood at N 3.19 trillion = $7.9 billion, going by the exchange rate as at then.

Sure, the internal debt rose, but that was inevitable. The difference between external and internal debt is that one is caused by borrowing,while one is caused by the value of the naira. And of course the value of the naira would rise when they restricted Forex access. Just watch and see what will happen when forex is available once more.


3. The crude oil prices as at now are just shy of HALF of what was made under the Jonathan administration. The policies include the harsh restrictions and limits placed on forex

Plz Oga, which school did you attend abi finish from? Your Nos 2 & 3 summarized your brain power... Sorry, I don't engage your specie because they corrupt knowledge Kindly desist from discussions beyond your mental capacity good pm!!!