What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? - Business (6) - Nairaland
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| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by kuuljay(m): 11:01pm On Feb 19, 2016 |
cckris:you look extremely stupid going by the answers we have been getting here,the antibuhari and the objective members critically explained their own view while you looked foolish, 7 Likes 2 Shares |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by Ayodee2(m): 11:01pm On Feb 19, 2016 |
Obiagelli:Private pockets and foreign banks. You see when you have a bumper harvest, you wouldn't even care whether your labourers are stealing or not. but when d harvest is bad, every single items count else you go bankrupt. 7 Likes 1 Share |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by Chibest2000(m): 11:03pm On Feb 19, 2016 |
Obiagelli:But why must we keep worshipping the dollar? Do we really want the Naira to survive @all? Having too much dollars in circulation isn't gonna help matters, Nigerian gov @ this juncture has no option than to take some painstaking decisions such as: 1. diversify the economy 2. encourage industrialisation 3. encourage more export instead of import by imposing embargo on Importation of certain goods that can easily be made in Nigeria and lastly entice foreign investors. Though these are gradual and long term processes, but 4 the economy to remain strong and steady the gov has no second option and the poor masses too have no choice but to endure till the aforementioned were achieved.. |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by kuuljay(m): 11:09pm On Feb 19, 2016 |
Ayodee2:sir...I call you sir because. I know this little knowledge has illuminated my reasoning, good one sir |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by SirShymexx: 11:25pm On Feb 19, 2016 |
dyydxx: I believe corruption is the reason why there's a restrictive FOREX in place, to block leakages, and deny those who looted the country's money during the past administration - from moving those funds abroad. Anyway, the government has to find a way from somewhere to boost but the agriculture and manufacturing sectors. And cut government spending. You don't even need to have gazillion of degrees in economics to know what's wrong and the steps required for a long term solution. Most paper economists with just keep theorising crap that at most would create a bubble. The great practical economist, with the most effective fiscal policies, naij ever produced was Awolowo. And he never even studied economics - he studied law. Heck, he was an unrepentant socialist. Buhari just needs to put his thinking cap on and stop acting clueless everywhere. |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by cckris: 11:26pm On Feb 19, 2016 |
READERS BEWARE Two sides of Economics are here. 1. Supply Side which Obama used for reviving the US Economy from 2008; &, 2. The Mixed Economy, by which Nigerian Govts seize the Commanding Heights of the Economy, & share UNEARNED, & therefore UNSUSTAINABLE wealth to their cronies, which ruined NEPA, the National Shipping Line, Aladja & Ajaokuta Steel, Nigeria Airways, NITEL, the Refineries, etc. Low crude oil price will soon expose the NNPC. Majority comments here are how to share, share, & continue sharing money, even the dollars that belong to America. No one bothers about Technology, which is actually how to create things, & make the money. |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by sam90s(m): 11:31pm On Feb 19, 2016 |
The US will be happy(they print the dollar in question), while our economy will have nothing to be happy about. Obiagelli: |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by Ayodee2(m): 11:34pm On Feb 19, 2016 |
I found this interesting and feel like sharing it here. It also reminds me of the stock market crash of 2008-2009. In Zimbabwe, a man appeared and announced to the villagers that he would buy monkeys for $20.00 each. The villagers seeing that there were many monkeys around, went out to the forest and started catching them. The man bought thousands at $20.00, and as supply started to diminish, the villagers reduced their effort. He further announced that he would now buy at $30.00. This renewed the efforts of the villagers and they started catching monkeys again. Soon the supply diminished even further and people started going back to their farms. The offer increased to $40.00 each and the supply of monkeys became so little that it took so much effort to even see a monkey, let alone catch it! The man now announced that he would buy monkeys at $100.00! However, since he had to go to Jo'burg on some business, his assistant would now buy on his behalf. In the absence of the man, the assistant told the villagers, "Look at all these monkeys in this big cage that the man has collected. I will sell them to you at $80, and when the man returns from the city, you can sell them to him for $100.00 each." The villagers came together with all their savings and bought all the monkeys. Then they never saw the man or his assistant, only monkeys everywhere! You have just been given a free lecture on how the stock market works!!! 3 Likes 2 Shares |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by milowys77(m): 11:43pm On Feb 19, 2016 |
Arguably one of the best threads I've read here in a while.. Sincere arguments and counter arguments without Insults, still shows how much the average Nigerian still cares about Nigeria. I personally see some gloomy days ahead, unless like some said some sort of war breaks out in the middle east, all talks of import substitution, export promotion, developing infrastructure etc.. These things take time and cost money..we don't seem to have either of the two, The solutions to our problems will take between 10 to 20 years before maturity, and unless we can mechanize our agriculture, revive the manufacturing sector, fix the refineries, sign favorable trade deals and agreements in less that 2 years.. Smh |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by darlenese(f): 11:54pm On Feb 19, 2016 |
My younger niece lamented this afternoon, "if Dollar is scarce , let dem print more nau  "Maybe Buhari shouold take her advice 1 Like |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by Nobody: 12:15am On Feb 20, 2016 |
CyberWolf: I have sat down calculate this thing. Nigeria government in collaboration with CBN and Nigeria Banks are the ones destroying this country internally. The last time I saw raw dollar, dollar was around 140 and then there was even little scarcity. Banks wants to make sure they are the only ones giving out dollars and other foreign currency so that they can extort we the masses like they are doing right now and our Mumu government agree to them thinking it's the best. Just imagine the result. Look at other countries, it isn't so. If government allow western union and moneygram to be independent from banks and not affiliated to them like it is in overseas, my brother you go see say Naira will rise to dollar. It is a very simple matter bro. Govt should allow foreign monetary organization like Western Union, moneygram and the rest be independent and separated from commercial banks. Banks greed for exploiting Nigerians has brought this country to this state, they want to be the only body giving out dollar and also receiving so that they can use every opportunity to rob Nigerians. "Nigerians, we are our own worst enemy". |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by Nobody: 12:22am On Feb 20, 2016 |
Obiagelli: It has increased local production  which is exactly what we need however I think Buhari needs to ease importation on some imports that we are not producing yet which would also require considerable resources to produce for example some drugs like cancer etc. Other items like shoes, paper, etc need to remain in China, we can manage Aba products and products from local companies |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by stephen2016: 12:23am On Feb 20, 2016 |
LRNZH: You have sense........one of the first sensible posts i have read since the begining of all this naira brohaha |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by lightdotcom: 12:38am On Feb 20, 2016 |
Obiagelli: |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by mikolo80: 12:49am On Feb 20, 2016 |
2 million barrels per day equals 700 to 1 billion barrels a year times 100 equals 100 billion dollars equals (as at 2015) 1.6 trillion naira. Nigeria is an 80 trillion naira economy. the dollars no go go round |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by shumuel(m): 12:59am On Feb 20, 2016 |
Obiagelli: God bless you, that man keep saying it on TVC at every given oppotunity, but the FG keeps doing the reverse and expect a good results, dumb Govt. Well i don't think they want NGR to have a good economy, its sad. |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by linearity: 1:00am On Feb 20, 2016 |
grandstar: I still do not see where the boom you speaks of will come from...merely replacing bulk conversion of dollar to Naira by CBN to retail/individual conversion (or dollar certificates as you call them) by each state will not create any boom. Due to economy of scale, CBN will get more bang for the buck by continuing to exchange their dollar reserve for Naira at the bulk level and redistribute the Naira to States, than for each state to exchange dollar (or dollar certificates) individually in retail fashion...you see why, I do not see the advantage in the dollar certificate, at best case scenario, it is wash. The government earns those dollars in foreign reserves as a result of their daily trade activities and foreign reserves serve a vital stabilizing role for our economy. The government cannot just deplete them in order to attend to monthly state expenditure items like salaries or state allocation, that is a suicidal mission. Foreign Reserves serves as buffers against external shocks, they also serve as a fall back for rainy days, they serve to boost the country's credit worthiness, they are also use as a safeguard for the value of the circulating domestic currency (since gold standard was done away with). Also, CBN will not be foolish enough to deplete those foreign reserves on a monthly bases in order to meet state allocations, they risk running into a down trend, from which Nigeria may never recover...Also that move will further lead to the devaluation of Naira as other foreign Countries that holds Naira; seeing that, the CBN is depleting their dollar reserves and fearing that, the value safeguide for their reserve Naira is gone, will rush to liquidity their Naira reserves, thereby increasing the supply of Naira and reduction in value. |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by Ayo8(m): 2:21am On Feb 20, 2016 |
Stelvin101:Come to think of it... millions of Nigerians are overseas working and sending money home to their families for upkeep and for projects... these monies in foreign currencies get collected by our bank in the name of almighty CBN directive and exchange it for far less thereby blocking the normal flow of money that could serve as a means of foreign earning to our economy... I think the CBN and our banks have been taking us for a long ride... 2 Likes |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by DropShot: 3:20am On Feb 20, 2016 |
Obiagelli:What we earn now is a tiny fraction of what it used to be. The fact is, there we don't earn anything close to what we need now. 1 Like |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by Nobody: 5:11am On Feb 20, 2016 |
Obiagelli:See chief zombie, You don't even know anything but you keep on calling GEJ clueless. Shame on u. |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by lordizak(m): 5:33am On Feb 20, 2016 |
Obiagelli:in other words, my president is no dullard. tell them. |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by lordizak(m): 5:35am On Feb 20, 2016 |
chisco82:See how u attack the lady. I am sure u truly are dumb, she asked a question wailers have failed to asked.......  chisco82:See how u attack the lady. I am sure u truly are dumb, she asked a question wailers have failed to asked....... |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by Osezzua(m): 6:37am On Feb 20, 2016 |
LRNZH: So U think diversifying an economy such as Nigeria is what can be done under ten years? U e-warriors try to appear smart. Time between an economic revolution and time to reap its dividends takes nothing less than twenty years. Don't come hear and spew rubbish. Gej ensured agriculture sector was empowered. He introduced dry season farming. TSA was his brain child. The government of the day knew the challenges better than me n u before they accepted to receive power. Why keep blaming the past? We should support them when they start rolling out development policies. |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by Nobody: 7:14am On Feb 20, 2016 |
All these rubbish policies that Nigeria government does; Treasury Single Account (TSA), limiting forex in the Nigeria market, going after "corrupt" people, devaluing of Naira etc, are going to plunge Nigeria into more and more economic quagmire. The MOST important question is, "what do you produce?" it is what a country produces that she competes with in the international arena. Identify your God-given resources (there's many, apart from oil), cultivate it, and watch your country bounce back...relatively, at least. |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by Nellybii: 7:23am On Feb 20, 2016 |
cckris: This is becoming ridiculous. What type of valueless comment is this? More ridiculous is the number of liked you generate when you make any tribal derogatory comments about PMB. Can anyone tell me the current parallel market exchange rate of the "like " to the dollar. theI know naira is now officially 198. |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by Fearcom(m): 7:52am On Feb 20, 2016 |
cckris: If you and your likers don't have any meaningful thing to say, just keep quiet! We are still grappling with the staggering multi billion dollar theft of the PDP Jonathan Presidency when oil was still at well over $100 per barrel...money that could have been invested or saved was squandered on campaign and useless propaganda. we badly need now that no body wants to even buy our oil because it is now useless; Even pirates don't want it! |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by Yehman(m): 7:57am On Feb 20, 2016 |
grandstar:Lol! Dats myopic thinking. What will then happen to other sectors of the economy? |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by Nobody: 8:18am On Feb 20, 2016 |
lordizak:See how u came up to defend her. ZOMBIE, oya clap for urself Note: it's never easy to be a leader and never u insult ur Leader. |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by monlawal(m): 8:21am On Feb 20, 2016 |
The same Western Union, moneygram and RIA that would give out dollars would be the same clique that would take out more dollars than you could possibly imagine if they are given autonomy to operate. All those foreign investors would just remit everything earned in Nigeria back to their country. Stelvin101: |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by terrence12(m): 9:16am On Feb 20, 2016 |
Wot do u feel d word "devaluation' means?..... u can't just release cash into the economy, it's a process |
| Re: What Exactly Will Go Wrong If The CBN Floods The Economy With Dollars? by Eluwilussit(m): 9:27am On Feb 20, 2016 |
Obiagelli: Nothing. And I mean absolutely nothing. In fact, that's the solution to our economic woes. Pumping dollar/money into the economy will actually stimulate it. This is actually the time the FG should award lots of contracts. Contractors borrow from banks to pay their workers and suppliers, who in turn take their money to the banks. It is a cycle. It helps to build faith in the economy and the government. Unfortunately, PMB is not a fan of positive economics or common sense. Anyhow sha, all na change.  |
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