Good day house, pls i need to know this, is it that CBN is under any regulation as to the amount of money to be printed by its integra (Nigeria printing and minting). Or why is it that the federal government complain of being broke which occasioned it to go abroad for borowing

Lolx

Are you in university?
There's something called inflation which occurs if too much of a currency is distributed. CBN printing more than a set quota of notes would run the economy into inflation because when a commodity is surplus it loses value.

Take borrowing from foreign countries the same way people collect loans; you borrow from the country, use the money for projects, make money off those projects and pay back with interest.

charix:
Are you in university?
There's something called inflation which occurs if too much of a currency is distributed. CBN printing more than a set quota of notes would run the economy into inflation because when a commodity is surplus it loses value.

Take borrowing from foreign countries the same way people collect loans; you borrow from the country, use the money for projects, make money off those projects and pay back with interest.

this doesnt answer my que. At lease cbn should be able to print up to the need of federal govt. Pls lalastical help give it optimum audience cc: lalastical

YUSUPH1986:
this doesnt answer my que. At lease cbn should be able to print up to the need of federal govt. Pls lalastical help give it optimum audience cc: lalastical

It is the equivalent of giving a child money drawn with pens on paper and telling him to buy real things.

The country has a budget it must not exceed. I understand you saying more cash can get printed to cushion deficits but any more currency printed over our budget is as worthless as paper suggested in my first paragraph.
Then there's the second option of shortchanging other needs to pool more financial capital into a pressing one, that'd make for budget deficits and imbalances in sectors.