solopumpy227: THE TITLE OF THIS THREAD IS MISLEADING " A RECORD HIGH" means it has not gotten here before?

But we all remember Anty Ngozi and the FG have not answered Anty Oby's question.
OBJ LEFT $6? Billion How did it drop to $3? billion without any commensurate development in the system?

Im I missing something? Is 50 more than 60 in Aso Rock?

Sunny_bobo:

U are getting figures muddled up here bro. What Oby Ezekwesili made reference to wasn't only foreign reserve but a sum total of the foreign reserve which stood at $45bn and Excess crude account which stood at $22bn making a total of $67bn. Here, we are talking of the foreign reserves alone. Hope you understand now.

solopumpy227:

Sunny Bobo thank you for your education.

Please can you help me with more information on what the Foreign reserve and excess crude account were (1) At the beginning of OBJ Govt (2)At the end of OBJ government and (3) Just after yaradua's death.

Thank you in advance

awodman:
See how you have laboured to downplay such a significant acheivement..well let me try and clarify some issues you have raised here less you mislead us all

A direct economic benefit of increase in foreign reserves is on how importers by commodity abroad... importers buy their goods from their International Suppliers with DOLLARS that they get from the Exchange Market and the Central Bank controls most of the Dollar sales in the Exchange market, and it is from the Central Bank's Component of the Foreign Reserves that the Central Bank mostly gets the Dollars it sells to buyers .
That said If the foreign reserves is increasing it means that the demand of dollars by importers is decreasing,which can be translated to mean that local manufacturing is increasing.Also a high foreign reserve means that for those goods that can't be sourced locally the country can conveniently fund its imports over a long period of time

I hope you can see that the increase in foreign reserves is definitely not a ruse.

tomakint: ...and they (ACN, APC, CPC e-thugs) will come here with their lies, deceits, smear campaigns, conspiracies just to whine and cry over nothing meanwhile my JONATHAN is working, scoring another FIRST in the history of this country again...LORD I thank you for giving us someone like JONATHAN!

juman: The government suppose to invest the money in the country through implementation of budget to yield another money.

omenka:

Pot calling kettle black. Even the topic of the post itself is a big lie! Iweala sed 'nearly 50billion' and the OP said '50billion'! You people lie so much that the line which separates a lie from truth is completely blurred out.

And so what if it is 50bill?
She should tell us what our trade deficit is.
She should tell us what our life expectancy is.
She should tell us what our unemployment figures look like.
She should tell us what our external dept figures look like.
Not to forget, the poverty rate, income disparity, growth rate of the middle class, infant mortality rate, etc. These are the real indices used to measure economic progress and not all that crap she keeps spitting on CNN and elsewhere.

So disapointed in this woman.

Do you see their new drift? The same ACN/CPC red eyed e-thugs who made Ezekwesili an automatic hero because she stated (quoting wrong data) that GEJ/Yar'Adua depleted foreign reserve are the same people suggesting that there is no sense building up the foreign reserve. They are even suggesting that it should be used on infrastructure while they wait to accuse the same govt of squandering 50b USD foreign reserve if they do that. You see how easy Lie Mohammed and othe ACN e'warrior's jobs are?
The complaint of dead rail have changed to complaint of slow speed locomotive rail.
Complains of impassable Benin Ore road has changed to 'only 2 lanes?!!!'
'Why are the refineries not working' has changed to ' we have always refined at 10m capacity na'
'Prosecute subsidy thieves' changed to 'jail subsidy thieves'
'He is clueless and weak has changed' to 'he is too harsh and behaving like a dictator'
When inflation is in the mid to the high 10s, the screaming was 'this guy cannot even tame inflation', when it came down to 8:6, it changed to 'what is the gain to the masses on the streets'
If they search out a poor rating figure of the country, then GEJ is called names, but if we receive positive rating on the same data, they won't trust 'those compromised rating agencies'
When the time come, GEJ will sit down and play politics with you guys, for now, he is busy working on delivering his campaign promises

0lumide:

It doesn't work that way. Remember that our central bank is not limited by any law as to how much foreign reserve it can keep.

Now, we don't get paid in dollars for export do we? Anyone looking to buy nigerian products (Apart from oil), has to buy naira either from the CBN or from currency speculators. 99% of the FR is from petrol dollars not international trade. So we get paid in dollars for our major export which is oil. The problem with this is that we are not providing naira to those seeking to invest in Nigeria instead, we are providing dollars for Nigerians looking to import. Remember the FR came from oil. Now, Nigerians can buy $50bn worth of USD from our central bank. For what? To invest in Naira? or to purchase imports? Because obviously, Nigerians are not buying naira. We are buying dollars. Investors are not buying naira, instead we are forced to deal in dollars because the investors don't have saving in Naira.

How many nations are holding their reserve in naira so as to be able to import nigerian products? Since Nations don't have Naira reserves, Nigeria conducts international trade in Dollars. Now, Nigerians and foreign investors has to buy Dollars from CBN pushing the value of Naira against the Dollar lower because more Naira is buying the dollars than vice versa..

So the reserve is useless because it's not from international trade, rather, it's oil dollars. So Nigerians importing(majority of Nigerians), will have to buy the FR out although CBN might make money selling those dollars, the Naira will devalue against the dollar...

awodman:
you are getting things muddled up here...firstly any international trade,be it import or export is trasancted with dollars which means that we get paid in dollars for export..

Secondly 99% of foreign reserve is not mainly due to oil sales..stop confusing it with EXCESS CRUDE ACCOUNT..

Thirdly a country does not need to have its reserve in Naira before it can by Nigerian goods..all over the world countries hold their foreign reserves in dollars..that is why the dollar is used for international trade..

Lastly a large FR means that the Naira exchange rate to dollar will be stable and not the naira weakening as you erroneously pointed out

So if you say the foreign reserves is useless,I hope you also mean that China which has almost a $1 trillion dollars in foreign reserves are doing rubbish..or don't you know that it is one of the reasons China is referred to as strong economy..if u believe the FR is useless I hope also you didn't join the condemning train when Oby Ezekwesili raised her allegations of squandered FR

nameo:

If she even gave those indices, you would also find a way to rubbish it. That is what HATERS (forgive me for using this word)do.

By the way, most of those indices are improving; and NIGERIA DOES NOT RUN A TRADE DEFICIT.

I believe this posters comment is appropriate for people like you:

omenka:


@ caps: Chai!!!! Bros, I duff my hat foor u!! Reuben Abati would consider himself a learner in the art of lieing going by what u jst sed.

Kai. Didn't know naija now exports more than she imports! Lwkmd!! Lol.

awodman:
you are getting things muddled up here...firstly any international trade,be it import or export is trasancted with dollars which means that we get paid in dollars for export..

Secondly 99% of foreign reserve is not mainly due to oil sales..stop confusing it with EXCESS CRUDE ACCOUNT..

Thirdly a country does not need to have its reserve in Naira before it can buy Nigerian goods..all over the world countries hold their foreign reserves in dollars..that is why the dollar is used for international trade..

Lastly a large FR means that the Naira exchange rate to dollar will be stable and not the naira weakening as you erroneously pointed out

So if you say the foreign reserves is useless,I hope you also mean that China which has almost a $1 trillion dollars in foreign reserves are doing rubbish..or don't you know that it is one of the reasons China is referred to as strong economy..if u believe the FR is useless I hope also you didn't join the condemning train when Oby Ezekwesili raised her allegations of squandered FR

0lumide:

YOU ARE WRONG!!!!!!

China has 3 trillion US dollars reserve because it want to keep it's currency lower than the dollars so more Chinese products can go into the US which is their biggest market. If China demand trade in their currency, the value of their currency against that of the rest of the world will be too much such that no one will want to buy Chinese products because of exchange rate. Now, China has to do that because they are not importers in China rather they are exporters.

Now, What is the purpose of our foreign reserve. That is the aim of my comment which you ignored. Our foreign reserve provide dollars exchange for money leaving the nation mostly because we are importers. The CBN has to provide dollars for both foreign investors (other stable economies provide their local currencies for foreign injections which includes exports). No one is buying Naira so the CBN can not keep the reserve in Naira. Naira will continue to buy the dollars and not the other way around because we trade in Dollars even for FDI.. Like In Canada, if you want to invest in Canada from outside, they provide their currency and to convert yours same thing happens with export. They keep different currencies in FR so that when they trade in any of the currencies, they don't have to buy. But I must admit they tend to do this with stable currencies but the dollar hasn't been stable so that doesn't take away from my point.

0lumide:

YOU ARE WRONG!!!!!!

China has 3 trillion US dollars reserve because it want to keep it's currency lower than the dollars so more Chinese products can go into the US which is their biggest market. If China demand trade in their currency, the value of their currency against that of the rest of the world will be too much such that no one will want to buy Chinese products because of exchange rate. Now, China has to do that because they are not importers in China rather they are exporters.

Now, What is the purpose of our foreign reserve. That is the aim of my comment which you ignored. Our foreign reserve provide dollars exchange for money leaving the nation mostly because we are importers. The CBN has to provide dollars for both foreign investors (other stable economies provide their local currencies for foreign injections which includes exports). No one is buying Naira so the CBN can not keep the reserve in Naira. Naira will continue to buy the dollars and not the other way around because we trade in Dollars even for FDI.. Like In Canada, if you want to invest in Canada from outside, they provide their currency and to convert yours same thing happens with export. They keep different currencies in FR so that when they trade in any of the currencies, they don't have to buy. But I must admit they tend to do this with stable currencies but the dollar hasn't been stable so that doesn't take away from my point.

juman:

The federal government in general is liar.

What is the essence of fat foreign reserves while we lack ALL basic infrastructures.

The government should spend some of the money to build our badly needed infrastructures.

4 Play: This Olumide is hilariously trying defend an argument that is illogical and hopelessly misinformed. We accumulate foreign reserves because we have a current account surplus.

Strong reserves keeps the Naira exchange rate relatively stable. Without it, the Naira will plunge lower and inflation will skyrocket as we import a lot of what we consume as well as bond yields and the cost of credit going up as the CBN pushes up interest rates to restrain inflation. The famous common man will suffer in an environment of hyper-inflation and rising credit costs.

I went to Nigeria in April and exchanged pounds sterling at N240 which is roughly the same amount as I exchanged it for in 2003. I am old enough to remember significant Naira currency devaluations on an almost daily basis in the 90s. Abacha tried to mask the problem by fixing an official exchange rate which was way at odds with the real exchange rate but inflation pummeled Nigerians then. Nigerians seem to have short memories.