Activa:
Thanks.

Do we really need more of them or real FDI?

Quite frankly, they should not be the priority, especially for a growing economy like ours. What we really need are those that will invest in the REAL economy with the opportunity for job creation, import substitution, exports and tax revenue for government.

Activa:


Thanks.

Do we really need more of them or real FDI?

How much more you don't know? Everything is not politics

Truth234:


How much more you don't know? Everything is not politics

You don't know anything. You're mixing up a lot of ill-digested ideas.

I know what I've been saying and my response to bevista doesn't mean I don't know what I've been saying. My use of the term was ambiguous and I admitted it.

I've been teasing you to expose your ignorance which you've done abundantly.

Bevista:
Quite frankly, they should not be the priority, especially for a growing economy like ours. What we really need are those that will invest in the REAL economy with the opportunity for job creation, import substitution, exports and tax revenue for government.

This was my point. I don't care so much about them.

Bevista:
Quite frankly, they should not be the priority, especially for a growing economy like ours. What we really need are those that will invest in the REAL economy with the opportunity for job creation, import substitution, exports and tax revenue for government.

This bring us back to the original topic, there is no way we will attract real investors without clear cut economic policy. Not everyday restrictions, that the little foreign investors left are contemplating to move or not. The MPC reduces interest rate from 13 to 11, its yet to reflect on loans, yet banks are re-pricing deposit rates lower but not credit. Repricing deposit rate while leaving borrowing cost high will invalidate the MPC momentary policy of stimulating the economy.

These are things I expect CBN to look into in order to stimulate the economy from within, currently US export is poor due to strong dollar but they made up for that with lower unemployment rate achieved because of lower interest rates that encourage borrowing, couple with high spending due to cheaper gas. They devise a means to manage their economy from within, something China is planing to do by moving from manufacturing dependent to service dependent, these are things we need, not all these bogus policies.

Truth234:
This bring us back to the original topic, there is no way we will attract real investors without clear cut economic policy. Not everyday restrictions, that the little foreign investors left are contemplating to move or not. The MPC reduces interest rate from 13 to 11, its yet to reflect on loans, yet banks re-price deposit rates lower but not credit. Repricing deposit rate while leaving borrowing cost high will invalidate the MPC momentary policy of stimulating the economy.

I understand your skepticism. But according to PMB during the budget presentation to NASS, government Fiscal Policies and CBN Monetary Policies are perfectly aligned. We will need to watch these policies evolve before making an informed opinion. I would prefer if they talked more about their policies and explained where they are going and what they are going to achieve, as this would help gear up investors. Investors do not like uncertainty.
---
The CBN is adopting an expansive monetary policy. They have reduced MPR and also reduced CRR for public sector deposits. In an ideal world, this should lead to re-pricing down of loan interest rates as well availability of more funds for loans. But the transmission mechanism of Central Bank policies are not always perfect. Even in the US and Europe, while they adopted QE, most banks were not loaning all that excess money out. Since they are the ones bearing the risk, they are always concerned about the health of the economy and the capacity of creditors to pay back.
---
In theory, the CBN monetary policies are appropriate, but they need to monitor to ensure a proper transmission mechanism of the effects to the real economy.

Activa:


What cbn holds is public knowledge. Our external reserve is less than $30b

If you continue to spend it without additions to it, it will finish and you won't be able to import anything again.

There's nothing like 'a whole cbn'. Cbn doesn't manufacture dollars.

There's nothing like 'hoarding' for special transactions. If you know how much they're hoarding say it.

Nigeria sells oil but the oil dollars is no longer as much as it used to be. That's the problem.

Here is the question I have whenever you people bring up this argument:-

Is dollar transaction restriction the only way the CBN can raise dollars?. Is dollar transaction restriction the only way the CBN can encourage dollar inflow into Nigeria?

Aren't there other avenues, like making policies that will encourage dollar inflow into the country?.

Paypal for example; only allow Nigerians to "send" money through their service, but doesn't allow us "receive" in return. Therefore, everyday Nigerians wire millions of dollars overseas via PayPal, but have no way to bring back same to our country.

What is preventing the CBN from getting PayPal to immediately allow Nigerians start receiving money?.

This is just one example out of many of how the CBN can encourage dollar inflows into Nigeria.

Bevista:
I understand your skepticism. But according to PMB during the budget presentation to NASS, government Fiscal Policies and CBN Monetary Policies are perfectly aligned. We will need to watch these policies evolve before making an informed opinion. I would prefer if they talked more about their policies and explained where they are going and what they are going to achieve, as this would help gear up investors. Investors do not like uncertainty.
---
The CBN is adopting an expansive monetary policy. They have reduced MPR and also reduced CRR for public sector deposits. In an ideal world, this should lead to re-pricing down of loan interest rates as well availability of more funds for loans. But the transmission mechanism of Central Bank policies are not always perfect. Even in the US and Europe, while they adopted QE, most banks were not loaning all that excess money out. Since they are the ones bearing the risk, they are always concerned about the health of the economy and the capacity of creditors to pay back.
---
In theory, the CBN monetary policies are appropriate, but they need to monitor to ensure a proper transmission mechanism of the effects to the real economy.

Banks loaned in USA and it works perfectly well. Only in Europe even with the introduction of LTRO, zero interest loans, people are not taking it because of other factors affecting the region, their export has dropped significantly, Greece issue, etc. which leave them asking question " for whom to sell". The difference is, this is by choice, in fact banks were begging qualified investors to take loans and recently ECB adjust the more to make it more attractive.

Down here, it is different, interest rate is over 25%, why can't CBN monitor that for proper job creation? Why making it hard for the masses? Policy that is not affecting the economy positively is not appropriate.

musicwriter:


Here is the question I have whenever you people bring up this argument:-

Is dollar transaction restriction the only way the CBN can raise dollars?. Is dollar transaction restriction the only way the CBN can encourage dollar inflow into Nigeria?

Aren't there other avenues, like making policies that will encourage dollar inflow into the country?.

Paypal for example; only allow Nigerians to "send" money through their service, but doesn't allow us "receive" in return. Therefore, everyday Nigerians wire millions of dollars overseas via PayPal, but have no way to bring back same to our country.

What is preventing the CBN from getting PayPal to immediately allow Nigerians start receiving money?.

This is just one example out of many of how the CBN can encourage dollar inflows into Nigeria.

God bless you, the economy is not attractive enough to attract inflow of funds, rigid economic policies. China was like that for years, nobody teach them to start making adjustment.

musicwriter:


Is dollar transaction restriction the only way the CBN can raise dollars?. Is dollar transaction restriction the only way the CBN can encourage dollar inflow into Nigeria?

Dollar restriction is not meant to raise dollars or encourage dollar inflow. It's to reduce dollar usage.

musicwriter:


What is preventing the CBN from getting PayPal to immediately allow Nigerians start receiving money?.
This is just one example out of many of how the CBN can encourage dollar inflows into Nigeria.

Allowing Paypal receipt won't necessarily make the existing senders send more money or create more dollars for nigeria. It will only make Paypal have more share of the money transfer business.

Activa:


Dollar restriction is not meant to raise dollars or encourage dollar inflow. It's to reduce dollar usage.



Allowing Paypal receipt won't necessarily make the existing senders send more money or create more dollars for nigeria. It will only make Paypal have more share of the money transfer business.

Unfortunately, you evaded the questions instead of answering them. So, I don't see how we can hold a credible debate on this.

Aren't you the same person that argued CBN is finding it hard to raise dollars?. If the CBN is finding it hard to raise dollars, why can't they explore other means?.

If the CBN doesn't need dollars, what is this crisis about?.

In fact, I don't think you understand this situation. The CBN want to reduce dollar usage?. Where do you see the dollar?. The CBN doesn't even have enough dollar to finance the economy?. What are you talking about!

Truth234:


God bless you, the economy is not attractive enough to attract inflow of funds, rigid economic policies. China was like that for years, nobody teach them to start making adjustment.

The CBN can even encourage dollar inflows by giving free or 50% tax relief to any company exporting anything out of Nigeria right now.

Activa:
...
Allowing Paypal receipt won't necessarily make the existing senders send more money or create more

legally earned $10 five days a week would be enough to keep many a youth from vice.

musicwriter:


Unfortunately, you evaded the questions instead of answering them. So, I don't see how we can hold a credible debate on this.

Aren't you the same person that argued CBN is finding it hard to raise dollars?. If the CBN is finding it hard to raise dollars, why can't they explore other means?.

If the CBN doesn't need dollars, what is this crisis about?.

In fact, I don't think you understand this situation. The CBN want to reduce dollar usage?. Where do you see the dollar?. The CBN doesn't even have enough dollar to finance the economy?. What are you talking about!

Even from a layman perspective it is glaring that CBN policies are aimed at Reduce Dollar Usage and demand.unfortunately for an import based Economy it will bite hard couple with the international community's opposed position

musicwriter:


The CBN can even encourage dollar inflows by giving free or 50% tax relief to any company exporting anything out of Nigeria right now.

CBN is not the right body to do that.

Cvesta:

Even from a layman perspective it is glaring that CBN policies are aimed at Reduce Dollar Usage and demand.unfortunately for an import based Economy it will bite hard couple with the international community's opposed position

@musicwriter is adept at muddling things up.

teemy:
legally earned $10 five days a week would be enough to keep many a youth from vice.

From where?

musicwriter:


Unfortunately, you evaded the questions instead of answering them. So, I don't see how we can hold a credible debate on this.

Aren't you the same person that argued CBN is finding it hard to raise dollars?. If the CBN is finding it hard to raise dollars, why can't they explore other means?.

If the CBN doesn't need dollars, what is this crisis about?.

In fact, I don't think you understand this situation. The CBN want to reduce dollar usage?. Where do you see the dollar?. The CBN doesn't even have enough dollar to finance the economy?. What are you talking about!

Which questions did I evade? Be specific.

Truth234:


God bless you, the economy is not attractive enough to attract inflow of funds, rigid economic policies. China was like that for years, nobody teach them to start making adjustment.

Pls tell me two countries which left their economies unprotected before they became developed.

Activa:


From where?

e.g menial assignments on fiverr but paypal is the form of receiving funds.

Activa:


Thanks.

Do we really need more of them or real FDI?

What's not "real" about such investors? They play a key role in providing liquidity to the stock markets, and they are important in signalling which businesses are worth giving more money to by bidding up the prices of particular companies.

Activa:


What cbn holds is public knowledge. Our external reserve is less than $30b

If you continue to spend it without additions to it, it will finish and you won't be able to import anything again.

There's nothing like 'a whole cbn'. Cbn doesn't manufacture dollars.

There's nothing like 'hoarding' for special transactions. If you know how much they're hoarding say it.

Nigeria sells oil but the oil dollars is no longer as much as it used to be. That's the problem.

Then how does our politicians get the ones they are spending both home and abroad.
These politicians spends foreign currencies in Nigeria as if they are in that country.
Except from Sen. Ben Bruce have you seen any of them kicking against the policy? Why? Because they know their way.
Again crude oil is our major export but it still remains part of our major import that is been paid for in dollars. You plant cassava and take it to the market to sell in other to use the same money to buy garri for your family consumption does that make any sense at all?
Please, why can't our government (FG, states & LG) continue to pay naira for foreign transactions in other to strengthen the naira?

Activa:


@musicwriter is adept at muddling things up.

Please read this latest news release by CBN. You need to understand what this dollar crisis is all about. https://www.nairaland.com/2827242/cbn-insists-it-wont-reverse

The CBN isn't trying to reduce dollar use cause there's none in the first place. If there was excess dollar they wouldn't be banning Naira to Dollar ATM transactions. Get it?.

Oil price has nose-dived and dollar is literally "dried up" in Nigeria, cause FG is no longer earning enough dollars.

THE CBN NEED DOLLARS!. THE CBN IS NOT TRYING TO REDUCE DOLLAR INFLOW INTO NIGERIA!.

And I didn't say the CBN should make policies for relief to exporters. Rather, I said they can encourage such.

Sorry, if you understand it as an attack on your person, but that wasn't the purpose.

Activa:


CBN is not the right body to do that.

Why can't they make the proposal to the government? Or are they established for monetary system alone?
Again can can financial institutions exists with the economy?
Since they form part of the economic team of a country they to make economic proposals to the benefit of a country.