ndu_chucks: Frankly, it is an exercise in futility to argue (discuss) exchange rate and monetary policy without the ability to define each term, let alone understand the terms.

Basically, an exchange rate (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies is the rate at which one currency will be exchanged for another. Nuff said

ilugunboy: Rent seeking in the simplest barest form is gaining without adding value...when you approach CBN and purchase forex at official consideration and rushing to the black market to sell at huge premium ..that is rent seeking. When you out of high level connection secured OPL and later sell it to others at huge premium..that is rent seeking...there are wide array of rent seeking activities that we as a nation currently engages in that is not beneficial to the economy in the long run since there is absolutely no value creation in the chain.

ndu_chucks: Frankly, it is an exercise in futility to argue (discuss) exchange rate and monetary policy without the ability to define each term, let alone understand the terms.

Basically, an exchange rate (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies is the rate at which one currency will be exchanged for another. Nuff said

jmslimx: These Leaders always forget that MUSIC , MOVIES do not build the society , For America , South Korea , Japan to be what it is today is the development of man power , Technology , Scientist , why cant they invest money on young Nigerians to go learn some special skills with 3billion..We the youth need to stand upto these leaders .. without it i dont think we would go anyway forward

love naija:
ONE OF THE MOST INTELLIGENT WRITE UPS ON NAIRALAND, HUMBS UP BRO.

nchewi:


Do u have a brain?? I seriously doubt!!!






Do tell, what is d academic qualification of your father?

dayo1401: I ask a simple question.....forget about foreign reserve....lets talk about sovereign wealth fund... ....what sense does it make for Nigeria to be saving in SWF..instead of spending such money on infrastructural projects..like road...power..agriculture..thereby creating job..diversifying the economy...growing the economy,..reducing dependency on OIl..and ultimately increasing its income throgh taxes...


Please expert in the house....advise and comment..

Symphony007:
Gladly your words mr.tinubu are extremely inconsequential because this voodoo economics you speak of has made nigeria the second largest economy in africa and projected to be first by 2020. You're entitled to your own opinion but not to your own facts, these are the facts and your opinion is just plain nonesense!

omonnakoda:
Foreign reserves are not FG funds . Foreign reserves are the substance or validation of every Naira in circulation. Naira notes are just paper and it is those foreign reserves that give them any meaning. In Nigeria we produce little and import much and it is foreign reserves that give the Naira any value/power to pay for imports. If we produce what we need we would need less foreign reserves and our foreign reserves would be in trillions.
So where do our foreign reserves go? On Brazilian hair,Kim Kardashian and mobile Phones and rice and frozen fish etc. These are decisions made by Nigerians. Government can refuse to provide the forex for that but what would happen to exchange rates. We need to start producing. Every time ANY Nigerian buys imported Items he is spending the foreign reserves.

In summary Foreign reserves are not funds held in an account belonging to the FG and in this respect TINUBU shows a misunderstanding of foreign reserves. Foreign reserves are if you like the counterweigh to the naira in your pocket and so it belongs to anyone who has any naira. It is basically a good way of measuring our capacity to import. It does not BELONG to government but to the Central Bank and CANNOT be used to pay debt of Government.

Of course government can increase its share of the Foreign reserves simply by printing more naira ,a move that has its own peculiar consequences

Statsocial :
Thank You! You explained it so beautifully. I honestly never knew much about this foreign reserve. You should be working in d CBN or NASS. Nice one

Statsocial:
Thank You! You explained it so beautifully. I honestly never knew much about this foreign reserve. You should be working in d CBN or NASS. Nice one

realborn:


Mr Omonnakoda indeed spoke well.

However, in concurrence with Mr Tinubu which Mr Onmakoda identified too, growing the reserves without stimulating manufacturing and production, and not providing same for necessities/goods consumed but not manufactured locally will lead to higher prices and perhaps staglaftion.

We urgently need to identify these pertinent goods, re-stimulate the manufacturing sector to produce most of these goods within a specific duration otherwise, with scarcity of forex, all sectors will suffer, demand will exceed supply, and the Naira will comtinue on a free fall.

For example, the allowance of forex for supply of petroleum products daily put a strain on our reserves. Why can't we have more investors like Dangote building refineries of similar capacity concurrently to ensure that in 4 years we will have no need to import, export to neighboring countires and save a huge chunk of our mandatory forex flight?

Another example is the commendable rice revolution. Why can't the FG consolidate on the learnings and ensure within a year we have rice reserves adequate to feed the nation and also export? Other key agricultural products alike.

In the short run, the FG needs to adequately manage the militating Niger Delta factor to sustain crude oil production (our present key forex commodity) to ensure production is at optimal level and thereafter supply corresponding forex for requisite commodities until we are duly sustainable to locally churn out these products. If this is not done, the Naira will keep sinking low.

Lastly, the FG needs to study how we survived before the advent of crude oil. We may reinvigorate the cash crops and minerals of yesteryears with minimal financial inputs with huge stimulating impact on employment and the economy thereby reducing the over-dependence on crude oil.

The micro and macro economics factors need to be reevaluated.

My 2 cents (not an expert)!

Standing5:
God bless you.
What we need is to stimulate local production. With local production there will be no need for huge forex with which to buy foreign goods. Imagine if 10 states replicate the Lake rice initiative or 10 states go into cotton production?