IMF Proposes Devaluation Of Naira - Business (7) - Nairaland
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| Re: IMF Proposes Devaluation Of Naira by manny4life(m): 9:54pm On Feb 19, 2011 |
Kobojunkie: Ok Ms. Kobo, you win. Doesn't seem like you geeting my explanation maybe because I'm not explaining enough or explained very well, well   |
| Re: IMF Proposes Devaluation Of Naira by Kobojunkie: 9:56pm On Feb 19, 2011 |
^^^ I get your explanation, but I am just not that easily convinced. Probably because I have learnt over the years of how things in Nigeria are not always as they seem. You have certainly done a good job trying to explain this to me, but being who I am, I also need to do my homework to figure out if it all makes sense considering what I know. |
| Re: IMF Proposes Devaluation Of Naira by EzeUche2(m): 9:57pm On Feb 19, 2011 |
manny4life: Arguing with Kobojunkie can make anyone go insane. She has that way, that can piss anyone off. You are not the first and you definitely will not be the last to argue with her and give up. That is the way she operates. Most of the time I argue with her, it is never a pleasant experience. I leave with a migraine headaches. Her circular arguments are always confusing, that she even forgets why she is arguing. |
| Re: IMF Proposes Devaluation Of Naira by manny4life(m): 10:02pm On Feb 19, 2011 |
Kobojunkie: It's ok, you don't have to be easily convinced, well if you need to do some homework and need some materials, look at what Nigeria's deficits are and what is causing the deficits and how CBN is trying to offset these deficits. That should make a good research case and findings. |
| Re: IMF Proposes Devaluation Of Naira by yeswecan(m): 10:10pm On Feb 19, 2011 |
manny4life: I refuse to buy into your "CBN is trying to offset these deficits" argument - it is on paper but if you understand anything about Nigeria economics "on ground" you may come to my conclusion that its just another lie. What deficit are we talking about? trade deficit? come on manny4life |
| Re: IMF Proposes Devaluation Of Naira by manny4life(m): 10:19pm On Feb 19, 2011 |
yeswecan: I was only quoting like the Media said and what Ms. Kobo said; The CBN has been depleting the foreign reserves in a futile bid to hold up the value of the Naira. The Naira's value falls where the demand for foreign exchange exceeds its supply. The CBN tries to mitigate the Naira's fall by dipping into the foreign reserves to improve supply. Obviously High demand of foreign exchange is as a result of high imports, and high imports with less exports creates deficits; I might not be an expert on Nigeiran Oil and economy, but without doubt it does seem to me that might be what's going on. Nigeria's oil sale can no longer cover the amount of imports so we have to dip into reserve . Nigeria has deficits that one I know of because we don't produce enough let alone to export to cover our imports hence deficits. This is exactly one of America's problem; high trade deficts. |
| Re: IMF Proposes Devaluation Of Naira by Kobojunkie: 10:27pm On Feb 19, 2011 |
^^^^ The media did not say that. That was actually @4Play's contribution to this thread. It is on Page 2 |
| Re: IMF Proposes Devaluation Of Naira by Sunofgod(m): 10:33pm On Feb 19, 2011 |
How about the IMF propose 'Auterity' measures for our politicians. They should propose their salaries are slashed immediately by up to 95% The revenue saved from this could fund untold projects in Nigeria. (And the citizens of Nigeria wouldn't even mind them getting a backhander for their efforts). The devaluation of the Naira is theft from every nigerian that holds the currency. Nobody is exempted. just imagine a foreign product that may cost you N100,000 today costing you N200,000 tomorrow because the Naira you hold has lost its value. Let hope the sabatour installed by the IMF (and Goldman Sachs) as our finance minister doesn't try it. (  - Of course he will) |
| Re: IMF Proposes Devaluation Of Naira by Kobojunkie: 10:36pm On Feb 19, 2011 |
^^^ You live in a democracy and you want the IMF to come in to tell you how much your government can get paid and who your government can hire as finance minister?? Do you people ever get tired of believing some MONSTER IN THE CLOSET is to blame for all of your own irresponsible ways? |
| Re: IMF Proposes Devaluation Of Naira by Sunofgod(m): 10:44pm On Feb 19, 2011 |
As you have confirmed, the problem with Nigeria lies in the ignorance of our people. The inability to see the big picture and know who our true enemy is. The IMF is offering Nigeria advise. So of course we are going to take it! All politicians within so called democracies only think about the 'short term' because thats all that matters. By taking the advise allegedly proposed by the IMF would bring short term gains to some politicians but long term misery to all Nigerians. |
| Re: IMF Proposes Devaluation Of Naira by Kobojunkie: 10:48pm On Feb 19, 2011 |
^^^ An advise is not MANDATORY suggestion. It is simply just that, an advise, and YOU are responsible still. You have to consider your situation to decide if that advice is good for you or not. Stop pretending OJUJU CALABAR is to blame for all your woes please. |
| Re: IMF Proposes Devaluation Of Naira by passyjango(m): 11:03pm On Feb 19, 2011 |
Nigerians want the best things, but we are never ready to make the little sacrifice required. Most of the worry about a lower valued Naira is because it will increase the price of all those imported goods that we buy. Price of TV, cars, etc will rise that is the main fear for most people. Some have said that what we need is to fix power, but the big question is where are you going to find money for fixing power when we are wasting the little you have to artificially keep our currency stable. That is why we are now borrowing to finance our budget. Nigerians must match their expectations with reality. You cannot have it all, there are always trade-offs. Like I, said earlier, we either allow our currency to float now or we will be forced to do so when our reserves are completely depleted, then the Naira will fall so rapidly. This is a good suggestion by IMF and we do not even need IMF to tell us that without any productive base, it is not sustainable to continue stabilizing the value of the Naira in the long run. To be fair Sanusi, when he first came in wanted to allow the Naira to float. However, after several harassment by politicians (like NASS), who were probably worried that they will be spending more on their luxury goods, the guy backed down. |
| Re: IMF Proposes Devaluation Of Naira by cap28: 11:09pm On Feb 19, 2011 |
Looks like the IMF are up to their old tricks with nigeria again, if nigeria devalues the naira this will mean that we will be exporting oil at a grossly reduced price, conversely it will also mean that we will be paying more for imports, long term effect will be increase in food prices, reduction in profits for domestic businesses and a rise in unemployment for the average nigerian. If this goes ahead there will be mass riots and chaos, nigerians do not need their living standards to plummet any further, enough is enough. |
| Re: IMF Proposes Devaluation Of Naira by Sunofgod(m): 11:14pm On Feb 19, 2011 |
It seems most people know their proposals will be detrimental to Nigeria. However I think that their proposals are already plans and will soon be implemented by the 'agents' they have implanted into our government. America and Europe are in trouble. The further exploitation of Africa and their people will ease 'The Wests' pain in the short term. |
| Re: IMF Proposes Devaluation Of Naira by Sweetnecta: 11:20pm On Feb 19, 2011 |
in the 1970s Naira was worth more than half of BPS and more than twice USD. I am still shock at the current worth of Naira to each of these currency. Thanks to the likes of Babangida and his supporters. I pray that we do not have people with that type of mindset ruling Nigeria, ever. Thank God that goodluck is in not the driver of our CB. Neither shall kobojunkie. She will plunder our Naira while she junkie[ed] her Kobo. |
| Re: IMF Proposes Devaluation Of Naira by Kobojunkie: 11:21pm On Feb 19, 2011 |
^^ Please grow a brain for your own sake! |
| Re: IMF Proposes Devaluation Of Naira by Muza(m): 12:02am On Feb 20, 2011 |
Once bitten, 2 decades shy. . . |
| Re: IMF Proposes Devaluation Of Naira by cap28: 12:12am On Feb 20, 2011 |
Am actually amazed that many posters are not dismissing these proposals as just another conspiracy theory as they have done in the past whenever i have raised the dangers posed by the IMF to nigeria's economy. |
| Re: IMF Proposes Devaluation Of Naira by lastpage: 2:32am On Feb 20, 2011 |
Every year, what we hear is "Excellent growth of 7%  " and "Inflation is down to single digit" But show me the excellent growth when: 1.) more and more are unemployed 2.) Infrastructures like roads, Hospitals, Water, Housing e.t.c keeps degenerating! 3.)Power has gone down so badly, every house now has a generator! 4.)Insecurity in on the increase with more sophisticated, deadly attacks that leaves a whole town massacred! Show me the reducing inflation naah! Or dont we all know that 5.) A bag of Rice has constantly doubled in price every two years since 1999? 6.) Ordinary pepper (Tomatoes, Onions, Red oil, e.t.c) to cook a pot of stew demands a budget in the rate of 5% of your monthly income! 7.) Bread, has gotten smaller in size, lighter in weight and yet higher in price, but inflation is low  8.) Take Garri, that "poorest" man's diet! Its so costly now that rich people use it to show-off! 9.)Has anyone been taking public transport lately? (Not the govt subsidized BRT in Lagos, l mean "private" public transport),. Prices are so high you wonder if it was referring to the cost of a large sized chicken? I think those that bandy these figures (especially our CBN and Government Economists) either are[b] "artful-forgers" or they live in another world![/b] There is certainly a disconnect between the figures and reality. Show me the money! The IMF is a long-discredited organization and as of two weeks ago, its Head admitted that its policy in the third world IS A FAILURE and here we are again, TAKING ADVISE FROM THEM! BTW: ANY Country that does not have a very strong "Manufacturing Base" already in-place, should NEVER consider devaluation of its currency! You will never get the desire benefit We did it before, under IBB and we are still paying the price till today. Maybe thats what we need to instigate a REVOLUTION in Nigeria  |
| Re: IMF Proposes Devaluation Of Naira by EzeUche2(m): 3:10am On Feb 20, 2011 |
cap28: When I say it, it is much more believable. A person who is always saying the sky is falling, will be seen as the village fool. However, when a person with a lot of titles says it, then this is much believable. I hope that helps you understand how Nairaland works. Some of the things you raise are conspiracy theories. However, there are many instances, that can be seen by Africans in how the IMF have destroyed our economies. |
| Re: IMF Proposes Devaluation Of Naira by amor4ce(m): 3:55am On Feb 20, 2011 |
Would SAP not have worked here if not for corruption? Anyway, I think this devaluation proposal would have been unnecessary if not for the way GEJ and his government have been consuming and spending huge sums. Has GEJ as president or governor ever debated actively and directly on any economic policy? |
| Re: IMF Proposes Devaluation Of Naira by ofala(m): 5:10am On Feb 20, 2011 |
Why are we even contemplating to have anything good from these guys? I was thinking that GEJ will be better than other old military thieves that were there before but he is disappointing the 'learned' world, where he came from. Even if this man is not an economist, doesn't he have advisers? Were he not in Nigeria and witnessed what SAP did to us? PLEASE TIME UP FOR P D P or whatever they call them selves! They have already killed this country and now want to trash inside deep ocean. God forbid! |
| Re: IMF Proposes Devaluation Of Naira by manny4life(m): 5:36am On Feb 20, 2011 |
passyjango: What are you talking about? Stabilizing the Naira? Where did IMF mention that we using our reserve to stabilize the Naira? No we cannot allow the Naira to float for several reasons because that would triple inflation in the long run. Fixing light/power issue isn't a luxury, it's a necessity. Why should they have to borrow when they can allow the private sector handle it. This is a terrible suggestion by the IMF for which I do not agree with their experts. |
| Re: IMF Proposes Devaluation Of Naira by Jenifa1: 6:13am On Feb 20, 2011 |
OMG NOOOOOOooooooo!!!!! I knew it. GEJ has been playing puppet to the west for a while now. he better not accept this one
China is a net exporter of manufactured goods. so IMF (west) will actually want China to raise it's currency. because china has basically killed a lot of western industry. due to cheap imports because of china's low currency exchange. we nigerians are not a manufacturing country. the only cheap exports will be our OIL.we will be selling our oil for cheap!! and because we are not a manufacturing country, we will be consuming imported manufactured goods at a higher price!! it's a total win-lose situation. |
| Re: IMF Proposes Devaluation Of Naira by Jenifa1: 6:28am On Feb 20, 2011 |
cap28: perfectly said. I thought we paid off our loans. what are we still doing with IMF? they definitely are purposely using their conditionalities to screw us over. |
| Re: IMF Proposes Devaluation Of Naira by Tunmi(f): 6:36am On Feb 20, 2011 |
Kobojunkie: I agree with Kobo here. Is there an economist/someone who understands inflation somewhere? Could this help curb Nigeria's inflation? |
| Re: IMF Proposes Devaluation Of Naira by Jenifa1: 7:26am On Feb 20, 2011 |
the way US deal with inflation is by tinkering with interest rates, govt spending, taxes etc. inflation is caused by too much soft money circulating in the economy. govt printing too much money. so all they need to do is stop. |
| Re: IMF Proposes Devaluation Of Naira by manny4life(m): 7:28am On Feb 20, 2011 |
Tunmi: This isn't about inflation or not; however, yes in the short-run but would rise back up more in the long run. inflation is just a rise in the price of goods and service with respect to what one unit of currency can buy with measure to GDP (aka measure and volume what we produce). Now if we devalue or currency, that means more purchasing power (in the right economy), that should slow or reduce inflation because people can pay close to the "real" value of what one currency unit is worth in value, that makes us more competitive. Keep in mind, that is if everything is equal (in the right economy) i.e. we are producing; however, devaluing your currency without proper shore up in manufacturing of goods or services would bring down the price of goods yes, but ask yourself when there are less goods we right back to where we started only in a more bad situation. |
| Re: IMF Proposes Devaluation Of Naira by cap28: 12:37pm On Feb 20, 2011 |
EzeUche_: Sorry?? Titles?? what titles do you have that makes you beleivable? So you think because you've just learnt how to read and write that makes you an authority on any given subject? Is it your tragic delusions of grandeur and comical and immature attempts at debating that have convinced you that you are "beleivable"? Or is it your clueless bigotry and xenophobic babbling that makes you "beleivable". A fool is a person who fails to heed words of warning beleiving that he knows best - that is definitely you. Since i have been on NL i have continued to highlight the dangers posed to the nigerian economy by the IMF but people like you have been too s.tup.id and dumb to listen and understand, now at the eleventh hour the IMF is once again knocking on nigeria's door preparing nigerians for another round of extreme poverty and suffering, i should know because i was in nigeria during the first IMF sponsored austerity measures - keep displaying your limitless naivite and stu.pidity - may you and your family be the first casualties of the coming food shortages, petrol scarcity and mayhem. |
| Re: IMF Proposes Devaluation Of Naira by MAURI: 2:06pm On Feb 20, 2011 |
@ kedukc Finally, economic variables - currency, interest rate, foreign reserve balances etc. can only provide short-term cushions -- Our spending has to go into things that guarantee future value i.e capital investment, I am of the opinion that devaluation makes it even more difficult to do this, hence my opposition to it. You seem to know your onion, but I am not quite sure what you mean i.e. Capital investment in this case. I am of the opinion that devaluation makes it even more difficult to do this, hence my opposition to it What’s your alternative suggestion? I am sure you are familiar with the term: Arbitrage in currency exchange rate, this is one of the reasons why the black market strives in Nigeria. Something needs to be done and urgently too. As some of the contributors have observed, our major fx generator, oil, is currently and has been selling above the budget-linked price, thereby generating excess foreign income than projected, yet the Naira is having serious difficulty stabilizing. |
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