What that means is that we have $47 Billion savings which we'll hold in reserve to continue our artificial propping of the Naira. That's absolute rubbish.

deomelo:
Things are indeed looking great.


This is what you get when you don't have the PDP, Jona and their stealing and looting gangs stealing every kobo in sight.


Kudos to PMB and his marvelous team

I hope Osun can tow this path.

ihatesycophant:
You're being myopic on the issue at hand. Foreign reserve gives investors confidence and stabilise country's currency.. If the reserve has not be depleted our currency exchange rate would have been stable by now.
You're comparing Nigeria with fairly stable economies. With this your mindset Nigeria can never grow.

You are the one being myopic. Government uses the foreign reserve jargons for politics and investors are reaping us off. A majority of foreign investors in Nigeria are port folio investors, they contribute nothing to the economy and take so much out. If a foreign investor buys Treasury bills with $100k, they'll be making almost $17k (approximately) in profits and not one single job would have been created.

The bold is where you are making a mistake. Our currency is not stable because we produce nothing. Our major export is Oil and its priced dollars so in reality, nobody apart from Nigerians need the Naira.

Isn't ironic that foreign reserves have been increasing but there's no corresponding increase in jobs created?

ICEMAN:
What that means is that we have $47 Billion savings which we'll hold in reserve to continue our artificial propping of the Naira. That's absolute rubbish.

The funny thing is the FG isn't supporting the Naira like it did 3-4 years ago. Nigerians now bear the brunt more and this has made people step up a little bit towards exporting goods/services.

Even though we all did not study econometrics, so we may not understand the nitty gritty of these figures, but I reckon we did not study Cambridge commerce before we all felt the massive bite of recession, dollar rise and economic downtown. so if I say that all these figures mean no jack to the average Nigerian, I won't be wrong, because until we feel the positive impact of this, then you may as well keep the figures to yourself.

AZeD1:


You are the one being myopic. Government uses the foreign reserve jargons for politics and investors are reaping us off. A majority of foreign investors in Nigeria are port folio investors, they contribute nothing to the economy and take so much out. If a foreign investor buys foreign Treasury bills with $100k, they'll be making almost $17k (approximately) in profits and not one single job would have been created.

The bold is where you are making a mistake. Our currency is not stable because we produce nothing. Our major export is Oil and its priced dollars so in reality, nobody apart from Nigerians need the Naira.

Isn't ironic that foreign reserves have been increasing but there's no corresponding increase in jobs created?

Cocoa Yam economics!

CodeTemplar:
The day we start producing other things asides oil is the day we start growing. Anything oil earning ends up being shared and looted. The govt is a drain.

Now you are talking. We don't produce anything so what makes our currency stable? Do you think there's any where in the world were people are telling their brokers to sell X currency and buy the Naira?

PS: You cannot have a stable currency without sound economic fundamentals.

Lots of peeps here are confusing exchange rate with the stablilty of a currency.

How do they intend to explain this to a common lay man? All we(common people) knw is that clappa tin tomatoes and sachet power price has reduced to 40 and 50 naira respectively. Take ur big grammer and go.

AZeD1:

Nigeria runs an artificial market and an import depended economy.
I have been fortunate to live in 2 developed countries and its only Nigeria foreign reserves is news to the common.

If Nigeria as a country increased its non oil exports, Foreign reserves would have nothing to do with the stability of the Naira.

The only reason why its matters in Nigeria is because the government spends money defending Naira.

I agree with you. A country that relies on its reserves to defend its currency is a structurally imbalanced economy. The failure of our leaders persistently is that they fail to listen to economic experts just so they can continue to steal public funds. The root of economic growth and development is human development plus financial development. When human development in terms of human capital formation and overall wellbeing of the human populace combines with available funds to finance research and development societies develop rapidly...but sadly our leaders are interested in smiling to the bank with billions while all others suffer. Though this administration fared better than the previous , in my opinion, I still say we are yet to get effective and efficient leadership!

Esseite:
Dont be deceived...

What do we then do with the N20tr debt profile in same 30months?

Fools paradise....

to bring more light to the issue an improved foreign reserve means our economy is stable both in its agreed payment of debt and also other aspects of economic growth. so as long as we still have a steady rise or fall our economy is stable and developing. this current government deserves our support for at least putting us on track for development a country's development takes years to see and I believe most haters here are only tribalistic and religiously motivated.

AZeD1:


Now you are talking. We don't produce anything so what makes our currency stable? Do you think there's any where in the world were people are telling their brokers to sell X currency and buy the Naira?

PS: You cannot have a stable currency without sound economic fundamentals.

Lots of peeps here are confusing exchange rate with the stablilty of a currency.

stability to me connotes predictability of Naira value. It helps people plan and make informed decisions. Naira strength is much complex than periodic forex interventions.

Oduwils222:
How do they intend to explain this to a common lay man? All we(common people) knw is that clappa tin tomatoes and sachet power price has reduced to 40 and 50 naira respectively. Take ur big grammer and go.

lol...finally an honest view..in summary what this means is that we are moving in the right direction, though we aren't there yet

Naruto87:

to bring more light to the issue an improved foreign reserve means our economy is stable both in its agreed payment of debt and also other aspects of economic growth. so as long as we still have a steady rise or fall our economy is stable and developing. this current government deserves our support for at least putting us on track for development a country's development takes years to see and I believe most haters here are only tribalistic and religiously motivated.

Stop deceiving yourself. This forex growth is cosmetic economic growth. What's the point increasing forex reserve by $20bn but suffering hardship and huge capital loses because we can't build a $12b refinery to stop petrol import? Stop celebrating cosmetic growth. It is like a 16 year oil who rubs pancake and starts feeling fly.

Sai Buhari!

efficiencie:


I agree with you. A country that relies on its reserves to defend its currency is a structurally imbalanced economy. The failure of our leaders persistently is that they fail to listen to economic experts just so they can continue to steal public funds. The root of economic growth and development is human development plus financial development. When human development in terms of human capital formation and overall wellbeing of the human populace combines with available funds to finance research and development societies develop rapidly...but sadly our leaders are interested in smiling to the bank with billions while all others suffer. Though this administration fared better than the previous , in my opinion, I still say we are yet to get effective and efficient leadership!

Ours is worse than imbalanced.

GavelSlam:

Around the same as it was when Jonathan left office.

And you had to edit the name and date. Fear God na. How much are they paying you self? Vanity

CodeTemplar:

Stop deceiving yourself. This forex growth is cosmetic economic growth. What's the point increasing forex reserve by $20bn but suffering hardship and huge capital loses because we can't build a $12b refinery to stop petrol import? Stop celebrating cosmetic growth. It is like a 16 year oil who rubs pancake and starts feeling fly.

lol..so it takes a day to build refinery? or do u expect a country to use its foreign reserve for mainly that? it seems the term "foreign reserve" isn't clear to u. study more, judge with ur head and not ur hearth

Naruto87:

lol..so it takes a day to build refinery? or do u expect a country to use its foreign reserve for mainly that? it seems the term "foreign reserve" isn't clear to u. study more, judge with ur head and not ur hearth

Who say refinery should be built in a day? To quickly define it, Forex Reserve is forex reserved for the purpose of meeting forex needs like import, profit repartriation etc
Optimum forex level is equivalen of 3-6 months of a nations forex needs. Stop announcing what you don't know to all.

CodeTemplar:
Who say refinery should be built in a day? To quickly define it, Forex Reserve is forex reserved for the purpose of meeting forex needs like import, profit repartriation etc
Optimum forex level is equivalen of 3-6 months of a nations forex needs. Stop announcing what you don't know to all.

at least u "sound" educated... apply it more positively

who measures d health of an economy with its foreign reserve capacity?

Naruto87:
at least u "sound" educated... apply it more positively

? Jibe or what?

biztip:
who measures d health of an economy with its foreign reserve capacity?

APC does. It is a sort of make up for the economy.

If you have sound macro-economic fundamentals (low inflation, high GDP growth, export growth and high FDI inflows), then forex reserves are a sign of strength. However, in Nigeria's case, the increasing forex reserves are largely to do with the recovery in oil prices and, more importantly, the depreciation of the Naira from circa N155 to $1 to N360 to $1. The latter acted as a curb on imports by reducing the purchasing power of the average Nigerian, whilst the recovery in oil prices allowed the CBN to replenish the reserves. This is why the comparison between now and the GEJ era is ignorant - you are comparing levels of forex reserves at vastly different exchange rates.

The example I have often cited before is the Abacha era when forex reserves increased from $500m to $7bn at one point (an increase of 1300%). This wasn't because of sound economic policies. This was largely due to the collapse in the Naira as we went from N22 to $1 to N85 to $1. This curbed imports and helped replenish the reserves. Put simply, you can save money by starving yourself (arguably starvation to death saves money) but that is not living. Policies which cause the collapse of the Naira and significantly reduce living standards do not become vindicated because of an uninformed fixation with forex reserves.

It's debates like these that illustrate that the Nigeria's problem isn't solely about the quality of political leadership but is also about a hopelessly uninformed electorate. To celebrate forex reserves against a backdrop of collapse in both living standards and the purchasing power of the average Nigerian is a celebration of abject ignorance.

CodeTemplar:
Can you compare Agric Ministry under Adesina to what it is under Ogbeh today. If we break this admin down ministry by ministry and compare to 4 - 5 years ago, it becomes easier to see the faults of the current admin.
Ask yourself what our Agric output would have looked like if the Buhari govt didn't default on fertilizer payment and doubled investment on other aspects of agric?
The APC knew what the system was like before their campaign. We can't use handover conditions to justify a 3 years of weak growth.

Wtf are u saying? They shouldn't have revived all those abandoned fertilizer processing coys, but continue to pay for imports

Can u compare d current revolution in agricultural investments, to what was obtainable under Adesina?

Or, u want to tell me, d works ministry was more proactive during d last admin?

Or, d past ministry of finance, was able to meet up with d financial obligations of d nation, better than what is currently available?

Pls, if we dey cry, we still dey see o

AZeD1:

Stop misinforming people.
Foreign reserves is basically the money government has to pay for imports(liabilities). Has nothing to do with stability of a currency.

So, when ur foreign reserve is very low n foreign entities fear u cannot meet ur forex obligations, what happens to ur currency? It remains stable ba? All these coconutheads sef

Positiveminds:
Let me explain this in simple terms. Amassing Foreign Reserve in a time of hyper inflation is bad economics. People will continue to suffer because the country isn't producing anything.

Good financial management is to invest capital projects to produce more. That will arrest the problem of inflation as the Nigeria begins to stabilize against other currencies. With the present state of the economy, the naira will remain worthless, relative to other currencies. Soon,a loaf of bread would sell for N500.00, if they don't invest in infrastructure, boost production , heaping up foreign reserves will remain bad decision.

Una don start...chia!

Sharp men, sold bonds in for example to shore up the reserve and by so doing accumulated debts

- All salary arrears paid up

- All contractual debts paid up

- All Pension arrears paid up

- All money owed Biafran war veterans paid off

- Almost known treasury leakages sealed up

- Treasury thieves being investigated and prosecuted

- Recession overcome within one year

- The foreign reserve keeps growing despite low oil price

- Inflation is reducing

- The Capital market rated highest globally

- The ease of doing business rated high

- Greatly reduced food import bills

- Greatly increased Internal Revenue Generation drive

- Revamped and more effective tax regime

- More efficient and more responsible Civil Service

- All Federal roads being reconstructed across the Country

- Fast rails being constructed between the state capitals

- Gas pipeline being laid from South to Abuja, Kaduna and Kano

- 13 Modular Refineries being built in ND

- Private Financing for our three Refineries being negotiated

- Private Refineries to collocate with the existing Refineries being concluded

- Influx of foreign companies increasing

- Increased investments by domestic investors

- The Electricity Generating capacity at 7000 MW

- Transmission Capacity at 7000 MW

- Distribution capacity being restructured to inject more capital and expertise

- The economy of Nigeria being Restructured from oil based to Agric, Solid Mineral and Manufacture based

- Boko Haram now a distant ding in the orchestra of general quietude

- IPOB now a mute idea ready for discussions at the right time

- Niger Delta Avengers now reduced from a movement to Madam’s Patie military wing for retaining her loot.

- Military vehicles sourced from a Nigeria car manufacturer for the first time

AZeD1:


We don't produce anything so what makes our currency stable?

We use the foreign reserves to defend the naira. That is Nigeria's current plan for a stable currency.

So, a high foreign reserve means; a business can invest his money and not fear that the currency will plummet. This encourages FDI.

A high foreign reserve also means a country can meet its obligations, loans, tbills e.t.c

This is a simple paper regarding this issue:
^{The recent growth of international reserves in developing economies: A monetary perspective
https://www.sciencedirect.com/science/article/pii/S0261560615001497}

Admin401:


Read the thread. It gives our currency a bit of stability versus other currencies. Buhari is very conservative with our FX for reasons best known to him.

We are always quick to rejoice over high reserves while the country sweats on hunger, bad roads, power and deads all over. So for me, the reserve is as good as nothing. Otherwise, it could have be low reserves but Nigerians feed well. READ MY COMMENT AGAIN.

Kingspin:
We are always quick to rejoice over high reserves while the country sweets on hunger, bad roads, power and deads all over. So for me, the reserve is as good as nothing. Otherwise, it could have be low reserves but Nigerians feed well. READ MY COMMENT AGAIN.

What you mentioned has always been in the country since i was born and that's 28 years ago. Nothing new really. I'm just happy about the stable Fx Rate.

Admin401:


What you mentioned has always been in the country since i was born and that's 28 years ago. Nothing new really. I'm just happy about the stable Fx Rate.

Then someone must fix the Nigerian economy not FX rate. I thank God is only your happiness not Nigerians.