nextprince:

The govt main income comes from crude oil which is in dollars. Are you expecting the govt to start paying salaries and meeting other financial commitments in dollars?
Meaning, the dollars earned must be converted to naira through forex to meet the local financial obligations.

B4 u go to this direction, please educate urself on what is called balance of payments means and then u can take another trip to know how our foreign reserve works. With this u can now know the importance of import and export in our economy. U can't just open ur mouth and ask questions that has no meaning( economic meanings) if u don't know the basics.

[s]

Billyonaire:


First off, it is not government's responsibility to sell forex. The responsibility lies with our commercial banks. This fraud called 'Quantitative Easing' started in the US when they ditched the gold-back legal tender to a fiat currency, a piece of paper given value by pronouncements from Federal Reserve and now Central banks.

Now, our politicians are so ignorant and our accountants so silly that they think our inflation is caused by excessive liquidity by pegging our interest rate at over 19% and injecting more $$ into the FX system. Who does that if not mor0ns.

The Standard methodology is to reduce import dependency and launch a campaign for FDIs, the best way to get $$ into your country is to bring in foreign money, via foreign investors and every other sectors that bring foreign money, not by changing naira into dollars and sharing into the system. This is MADNESS.

Our musicians are bringing in Foreign Money, our Yahoo Yahoo boys are bringing in foreign money, foreign investors are bringing in foreign money, drug dealers are bringing in foreign money and exporters are bringing in foreign money. Encourage every harmless and legal means of bringing in foreign money instead of depleting our foreign reserves.

I am trying to use common terms here cos if I want to use fiscal registers many will get lost in the grammar. So my dear, we have ignorant people in government that can not think.

To bring in foreign money, you create environments for people to come in, tourism, opening up businesses, bring down taxes on foreign investors that bringing in cash. Do not make it easy for foreign investors to generate internal loan here to avoid fraud that happened in Etisalat, just make sure you design a fiscal system that works.

There is no way we can continue to inject oil dollars into the economy to give our money fake value for ever. Soon we would go broke, very very soon.

[/s]
Keep this epistle aside and answer the question.

chigoizie7:




B4 u go to this direction, please educate urself on what is called balance of payments means and then u can take another trip to know how our foreign reserve works. With this u can now know the importance of import and export in our economy. U can't just open ur mouth and ask questions that has no meaning( economic meanings) if u don't know the basics.

Pls explain to me in plain language how dollar earnings are converted to meet up with local financial obligations. Forget all these economic terms.
As in, the monthly allocations to states which is mostly from oil proceeds (in dollars), how did it get converted to naira other than through forex?

When you are done with this, I will also want an explanation on how the govt officials, importers, students abroad and PTA dollar requirements are met without selling dollars through the forex.

StarPlayer:
Instead of shoring up our foreign reserves and building infrastructure for more local production, we busy pumping dollars into the market. Are we cursed in this country?

Are you surprised to see how the country keeps deteriorating everyday? These criminals in government are busy using money gotten from the sale of crude unrefined commodities to subsidise the importation of finished goods! No plans on building/supporting import substitution industries, no plans on radical improvement of infrastructure especially power supply, roads & rails. No Vision nor plan on the economy, everything is premised on crude oil. USELESS COUNTRY!!

hoygift:
All u people know is investing money in the one you think that will benefit you people not knowing that they are some other places to invest money ... For example the U.S government invest money on their internet marketing like websites and other things and it pays them well in return ... Take a look at Nigeria internet fraudster (yahoo boys) not promoting them just for example do u know that dey are among the first 3 contributors to nigeria Economy Cus dey bring in dollar into the country this is to tell u how the internet can help improve our economy the most not just only forex invest in some other aspects too.... I rest my case those in support say hi ... Not in support go home the internet is not for u

What is this one saying

Lemme digress a bit. See eh, I'm looking for a girlfriend, if you're young beautiful smart and goal driven, holla me. Will be glad to hear from you

nextprince:

Pls explain to me in plain language how dollar earnings are converted to meet up with local financial obligations. Forget all these economic terms.
As in, the monthly allocations to states which is mostly from oil proceeds (in dollars), how did it get converted to naira other than through forex?

That is why I said u should know how import and export works.



Well, in a lay man terms.

We import using foreign currency, we also export to gain foreign currency.


In other words, since all our local dealing are done using the local currency and imports and exports by foreign currency. What we do is to exchange our local curency to that of foreign currency.


If naija exports crude and are paid using foreign currency, and then I want to want to import something like a car, I need a foreign currency to do that but I have my local currency, all I will do is to make a deal with the person with the foreign currency which happens to be the FG in this case for an exchange for my local currency whose exchange rate can be determined by our how our BOP stands.

Now FG needs local currency to dispose to the masses while I have it, and at the same time, I have the local currency which I need for my car importation, so, we exchanged . Simple.

chigoizie7:



That is why I said u should know how import and export works.



Well, in a lay man terms.

We import using foreign currency, we also export to gain foreign currency.


In other words, since all our local dealing are done using the local currency and imports and exports by foreign currency. What we do is to exchange our local curency to that of foreign currency.


If naija exports crude and are paid using foreign currency, and then I want to want to import something like a car, I need a foreign currency to do that but I have my local currency, all I will do is to make a deal with the person with the foreign currency which happens to be the FG in this case for an exchange for my local currency whose exchange rate can be determined by our how our BOP stands.

Now FG needs local currency to dispose to the masses while I have it, and at the same time, I have the local currency which I need for my car importation, so, we exchanged . Simple.

At the end of the day, the dollar was exchanged for naira, so what's the argument?
The importers still get the naira exchanged for the dollars right in Nigeria, so what's the difference?

nextprince:


At the end of the day, the dollar was exchanged for naira, so what's the argument?
The importers still get the naira exchanged for the dollars right in Nigeria, so what's the difference?

What is the correlation between what U are asking and the subject matter? I mean the body and the topic to which this thread was created for in the 1st place?

Kk

chigoizie7:
What is the correlation between what U are asking and the subject matter? I mean the body and the topic to which this thread was created for in the 1st place?

Your post

chigoizie7:
For how long are we going to keep pumping?

My response,

nextprince:

Even if 1 dollar = 1 naira, the govt needs to converts it dollar earnings to naira to meet its domestic financial obligations.

Your final post

chigoizie7:
Now FG needs local currency to dispose to the masses while I have it, and at the same time, I have the local currency which I need for my car importation, so, we exchanged . Simple.

The emboldened in the last two quotes explains it all.

[quote author=nextprince post=58571230][/quote]


I know u can't answer it.

Because in ur quest to ask questions, you refused to understand that there is a big difference between "EXCHANGING currency " and then, just "PUMPING fx to the market" without checking how our foreign reserve stands at or if it will affect the economy on the long run.


1st of all, if our balance of payments is not on deficit, fx would be equal to our local currency or almost near equal( - or +). But instead of our government doing things to make sure that they balance the payment ( terms of trade) ,they are busy dashing out money.


If the BOP is balanced, trust me, there won't be any need pumping a single dollar to the markets.

Trust me, even if it is balanced , it will still be exchanged.

My question as u quoted is , why " PUMPING"? Why no allow it to be determined by terms of trade? For how long are they going to keep doing it? Why not proffer solutions to make it balanced instead of pumping in extra that was not determined by the terms of trade?



Mind u, the reason why they are pumping in is because they want to saturate the currency market with enough dollar so that the laws of demand and supply will work its magic in reducing the exchange "RATE".

chigoizie7:



I know u can't answer it.

Because in ur quest to ask questions, you refused to understand that there is a big difference between "EXCHANGING currency " and then, just "PUMPING fx to the market" without checking how our foreign reserve stands at or if it will affect the economy on the long run.


1st of all, if our balance of payments is not on deficit, fx would be equal to our local currency or almost near equal( - or +). But instead of our government doing things to make sure that they balance the payment ( terms of trade) ,they are busy dashing out money.


If the BOP is balanced, trust me, there won't be any need pumping a single dollar to the markets.

But I just showed you the relationship the posts. Check again.
With regards the effect on the economy, the shortage of the dollars in the wake of reduced oil price and output had already affected the economy, the present effort is at reviving it.
If the oil prices and outputs were still same, all this news of dollar pumping etc wouldn't have been noticed.

nextprince:


Your post


My response,


Your final post


The emboldened in the last two quotes explains it all.

Well done bro. The guy just want to show us he knows the language of economics but he ended up saying the same thing you said.

nextprince:


Your post


My response,


Your final post


The emboldened in the last two quotes explains it all.

If u think u are right. Why not quote all my post? Why capitalize on just one line of it?

Even @ that, I still ask again, why are they pumping? I mean "PUMPING" .

Because they want to saturate the market with fx and then it will make the exchange rate reduced?

And then I went ahead to ask, for how long are they going to keep doing it?

chigoizie7:



That is why I said u should know how import and export works.



Well, in a lay man terms.

We import using foreign currency, we also export to gain foreign currency.


In other words, since all our local dealing are done using the local currency and imports and exports by foreign currency. What we do is to exchange our local curency to that of foreign currency.


If naija exports crude and are paid using foreign currency, and then I want to want to import something like a car, I need a foreign currency to do that but I have my local currency, all I will do is to make a deal with the person with the foreign currency which happens to be the FG in this case for an exchange for my local currency whose exchange rate can be determined by our how our BOP stands.

Now FG needs local currency to dispose to the masses while I have it, and at the same time, I have the local currency which I need for my car importation, so, we exchanged . Simple.

Ur last paragraph vindicated him. You don't have to go round the world before you finally agree that 2 + 2 = 4.
Say it the way it is, no need for long grammar.

chigoizie7:


If u think u are right. Why not quote all my post? Why capitalize on just one line of it?

Even @ that, I still ask again, why are they pumping? I mean "PUMPING" .

Because they want to saturate the market with fx and then it will make the exchange rate reduced?

And then I went ahead to ask, for how long are they going to keep doing it?

The one I quoted is what I had responded to and that is what I emboldened again for emphasis.
It will continue till the end of time and it has always been the case right from time all over the world, go and find out, except countries whose currencies are globbally acceptable.

nextprince:

The one I quoted is what I had responded to and that is what I emboldened again for emphasis.

Was that the only thing I said? In that very post?


I am not not going back on what I said.

For how long are they going to keep pumping ( trying to saturate the fx market to reduce the rates). Because come what may, there must be exchange weda 1$=1N.

I asked why they are pumping and for how long dey intend to do it, and then u went ahead to ask how dollar can be exchanged to naira, show me any correlation in this.

nextprince:

The one I quoted is what I had responded to and that is what I emboldened again for emphasis.
It will continue till the end of time and it has always been the case right from time all over the world, go and find out, except countries whose currencies are globbally acceptable.

If u want to be just on ur arguments, why are u re modifying ur posts after sending them?

U write something and when being replied, one sees another thing.


I asked for how long here? And u still went ahead to say it has been happening and will continue till the end of time. Brother?

chigoizie7:



Was that the only thing I said? In that very post?


I am not not going back on what I said.

For how long are they going to keep pumping ( trying to saturate the fx market to reduce the rates). Because come what may, there must be exchange weda 1$=1N.

I asked why they are pumping and for how long dey intend to do it, and then u went ahead to ask how dollar can be exchanged to naira, show me any correlation in this.

The correlation is that whatever the situation may be, the dollar earnings must be converted to naira to meet local financial needs and it will continue till the end of time as long as naira is not a globally accepted currency.
And this has always been so even when exchange rate was low in favour of the naira.
Same applies to any country all over the world whose currency doesn't not enjoy global acceptance.
Note, the concept of injecting dollars into forex didn't start with this administration, it has always been so, just that this administration has cultivated the habit of always making it public for obvious reasons.
You may go and find out.

wailersarefools:


Ur last paragraph vindicated him. You don't have to go round the world before you finally agree that 2 + 2 = 4.
Say it the way it is, no need for long grammar.

Do I also need to argue with u?

Just in case u want to know.


I asked how long they intend pumping and he responded with a question of how dollar can be exchanged. Please do go back and read well, start from the original post and then tell me how dollars can be exchanged had anything to do with the thread created by the op.




See, if I need clarifications, I will ask for it, I am not too big to ask questions.

chigoizie7:



If u want to be just on ur arguments, why are u re modifying ur posts after sending them?

U write something and when being replied, one sees another thing.


I asked for how long here? And u still went ahead to say it has been happening and will continue till the end of time. Brother?

Actually, after posting, something else may just occur to me which I will like to add. If you notice, I don't change the comments posted, just additions.

nextprince:

The correlation is that whatever the situation may be, the dollar earnings must be converted to naira to meet local financial needs and it will continue till the end of time as long as naira is not a globally accepted currency.
And this has always been so even when exchange rate was low in favour of the naira.
Same applies to any country all over the world whose currency doesn't not enjoy global acceptance.
Note, the concept of injecting dollars into forex didn't start with this administration, it has always been so, just that this administration has cultivated the habit of always making it public for obvious reaso

ns.
You may go and find out.

Aint u funny? I did not ask u if dollar will be exchanged,


What I asked is how long? With a question mark, it was a question.

If I had answered me that it will continue till the end of time, wether u are right or wrong, I wouldn't be Doing this with u.

I asked how long? And u went ahead to say dollar must be exchanged . Who doesn't know it will be exchanged?

My question still remains "HOW LONG" ?

mikeoh:



Migu and shallow reasoning

He has a point sha.

hoygift:
All u people know is investing money in the one you think that will benefit you people not knowing that they are some other places to invest money ... For example the U.S government invest money on their internet marketing like websites and other things and it pays them well in return ... Take a look at Nigeria internet fraudster (yahoo boys) not promoting them just for example do u know that dey are among the first 3 contributors to nigeria Economy Cus dey bring in dollar into the country this is to tell u how the internet can help improve our economy the most not just only forex invest in some other aspects too.... I rest my case those in support say hi ... Not in support go home the internet is not for u

can you eat or drive or shelter under internet. what are you marketing. abeg Mowu hia word

chigoizie7:



Aint u funny? I did not ask u if dollar will be exchanged,


What I asked is how long? With a question mark, it was a question.

If I had answered me that it will continue till the end of time, wether u are right or wrong, I wouldn't be Doing this with u.

I asked how long? And u went ahead to say dollar must be exchanged . Who doesn't know it will be exchanged?

My question still remains "HOW LONG" ?

Actually, the part I responded to is the only area I disagree with, by implication, I quite agree with the rest.

Note, I'm not arguing against your supposed position against shoring up the Naira at the expense of the foreign reserve, I agree with you 100% in that regard, as the impact of foreign reserve on the local currency cannot be overemphasised.
But, my argument is that, the injection of dollars into the Forex market to support the naira did not just start yesterday and it can't just end suddenly as long as we earn in foreign currency and spend naira at home.
I also agree with you in the area of boosting the foreign reserve to a robust level, but for how long can that continue when its impact is getting unbearable by Nigerians? No be who chop go save?
The present measures, to me, is to meet the short term requirements while alternative sources of exchange earners are being sought. This is my argument.

choky26:
After all the money injections, the price of commodities still keeps rising.

Who is decieving who?

Blame your greedy neigbhour..

hoygift:
All u people know is investing money in the one you think that will benefit you people not knowing that they are some other places to invest money ... For example the U.S government invest money on their internet marketing like websites and other things and it pays them well in return ... Take a look at Nigeria internet fraudster (yahoo boys) not promoting them just for example do u know that dey are among the first 3 contributors to nigeria Economy Cus dey bring in dollar into the country this is to tell u how the internet can help improve our economy the most not just only forex invest in some other aspects too.... I rest my case those in support say hi ... Not in support go home the internet is not for u

i won't really agree with you because of the "yahoo yahoo" stuff, they the truth still remain that 20-30% of Fx comes from those doing online jobs and stuff but the country has made it so hard for them to remit dollar that they start looking for alternative means to receive these dollars eg BITCOIN, SKRILL AND PERFECT MONEY etc

Fools,that is why they are driving away foreign investors that could help create jobs.And their sole aim to be able to convert their stolen useless to foreign currencies at high rate. Irrespective of the fact that dollar has fallen in nigeria,prices of goods are still sky high and on the rise every second.

Who else think osinbajo is trying. Let buhari stay in London pls. Tinz are getting cheaper now