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Nairaland Forum / Nairaland / General / Politics / The Economist-How To Make A Hard Currency Crisis Worse By Buhari (21434 Views)
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The Economist-How To Make A Hard Currency Crisis Worse By Buhari by ValerianSteel(m): 9:29am On Mar 24, 2016 |
THE mutterings of discontent are growing louder in Nigeria’s street markets. The price of a bag of rice has surged by 12.5% in the past month. Supplies of bread have dwindled after bakers turned off their ovens to protest about the rising cost of flour. The rich lament that milk is missing from supermarket shelves. The poor complain about the price of garri (cassava flour). A fish importer estimates that 70m Nigerians can no longer afford his wares. www.economist.com/news/middle-east-and-africa/21695065-how-make-hard-currency-shortage-worse-can-you-spare-dollar?fsrc=scn/tw/te/pe/ed/canyouspareadollar 17 Likes 2 Shares |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by Marvin67: 4:34am On Mar 25, 2016 |
The economist doesnt need to write all these grammer, even the old woman selling pepper down the road can explain that things aren't working and times are hard. Companies are releasing employees, cost of the day to day good has increased, there's no fuel to run around, everything is tight , simply because one baba would not listen. If only this president would listen, if only he'd seek advice from those who know. Anyway, we re waiting for him around the corner in 2019. His party says "no vacancy in aso rock" we'd show them that with our votes we decide who stays in aso rock and who leaves aso rock. Let's even start now, click like if you want Buhari out of aso rock , for a better Nigeria. Click share if you believe Buhari should remain in aso rock to fix Nigeria 358 Likes 67 Shares |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by ellechrystal(f): 4:35am On Mar 25, 2016 |
And some zombies who know nothing about Economics will come here n type trash, God help us o. This kind president , his policies r killing his citizens, N he is so non challant about it. I blame the people who were chanting "CHAINS" It's not about being victorious after the elections, the real thing is how to maintain the victory JONATHAN, I no go lie, we miss u I guess even in defeat, Jonathan is the victor here 153 Likes 7 Shares |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by Dahveydson(m): 4:35am On Mar 25, 2016 |
Listen to the economists at your own peril. PMB refuses to devalue, if you like write a whole bible on it. A policy that is still in motion have been concluded not working already. Sigh We've had countless threads from intelligent Nigerians on here, and the conclusion have been devaluation is a no no. Wailers and their likes said naira will go up to N500 to $1 if we don't devalue, we haven't devalued, and it's still N320 on the black market. We will continue to hold the forte.. I SAY NO TO DEVALUATION 116 Likes 14 Shares |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by Xtracoool(m): 4:37am On Mar 25, 2016 |
So in summary: Central bank regulating exchange rate breeds corruption, and is causing inflation and shrinking growth Central bank not regulating exchange rate will truly reflect that Nigeria has become poorer. I am no economist, neither do I know the purpose of this article, but it seem to only remind us that we are going through tough times. Otherwise, it says nothing new. Exchange rate regulation or not: There has always been corruption. Inflation is increasing and growth is shrinking. We know Nigeria has gotten poorer. The CBN believes it is acting in the best interest of Nigeria and Nigerians, same can't be said of the folks from the West. 63 Likes 3 Shares |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by DONMAYOR19(m): 4:37am On Mar 25, 2016 |
Marvin67:for FISH 1 Like |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by ChiChiOfLondon(f): 4:38am On Mar 25, 2016 |
well |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by jamesbanjo(m): 4:38am On Mar 25, 2016 |
We all know BABA is confused(frustrated).. We just have to endure til after his tenure.. 40 Likes 2 Shares |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by jayonline: 4:38am On Mar 25, 2016 |
Ok |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by millionaireman: 4:41am On Mar 25, 2016 |
According to Economist: In Buhsri's Nigeria, Milk getting scarce, Rice more expensive, Sugar scarce, I add, biscuits getting out of reach for children. What do these suggest? Are Nigerians going back to queue for Essential Commodities as was during Buhari the military dictator? 54 Likes 3 Shares |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by emmddy: 4:44am On Mar 25, 2016 |
I thought you have a solution to the scarcity of dollar.... If you like speak from now till Jesus come Mbuhari will not change his mind... 8 Likes |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by Nobody: 4:45am On Mar 25, 2016 |
devaluation will only make import easy for importers. d current system will promote local production in d long run. All d people asking for official devaluation is to make import of luxury and import of products we want to make locally cheaper. This will kill local production. We are currently importing luxury and other non essential product at 320 naira to a dollar. If we devalue to say 250 and free forex, we start importing them at 250 naira to a dollar. This will kill d motivation 4 local production. we must bear dis initial difficulties to achieve local production. i support PMB rigidity on this. Any attempt tp go flexible we will return to where we have been and Nigeria wont progress. 84 Likes 8 Shares |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by Teewhy2: 4:47am On Mar 25, 2016 |
The economist will promote poll that will best suit the world power and the rest not actually that they have the interest of ordinary Nigerians at heart. I feel this policy at the long run if properly implemented will reduce importation and encourages us to look inwards and develop our country. Countries like India were in this situation before banning all importation, and this makes the citizens looks inward and now they produce nearly all that is needed in the country. 48 Likes 3 Shares |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by Sohot1(m): 4:47am On Mar 25, 2016 |
Wahalla day ooo....God help Nigeria 1 Like |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by DankemzI(m): 4:48am On Mar 25, 2016 |
And this same Party said there's no vacancy in 2019. I would like to know the kind of propaganda they'll use then 17 Likes 2 Shares |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by three: 4:52am On Mar 25, 2016 |
The REAL cost of a deficit in VISIONARY leadership!! And who better to 'weather' the storm of financial uncertainty than the corrupt or 'artificially' wealthy! How does the President's economic policy help the man or woman on the street in the short and even long term? If You are below 40 you should be palpably WORRIED about the DEFICIT in genuine Visionary and Altruistic Leadership. This 'merry-go-round' won't work!!! Where are the young vibrant visionary SELFLESS leaders?!!! 5 Likes 2 Shares |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by worlexy(m): 4:53am On Mar 25, 2016 |
May God Help us. But if there is a wise saying that "The gods will not do for a man, what he has the capabilities to do for himself." We have sound economists in Nigeria that can help us out in this harsh situation we've found ourselves if only the president would listen and give it a try. PMB should stop being stubborn, the masses are seriously suffering. By allowing such a wide margin between the parallel market and official exchange rate, he has shot himself in the leg in his anti corruption fight because he has simply opened another gate of corruption! 6 Likes 2 Shares |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by opribo(m): 4:53am On Mar 25, 2016 |
What type of kangaroo formula is this one they are bringing into out country. Which one is dual window for import. It is either you are devaluing the naira or not. There is nothing like trying to please Mr president. If the president believes strongly in not devaluing the currency so be it and he should be ready to tale the consequences of his decision. All over the world economic polices are the same, there is what is expected of a country to do that is heavily import dependent. This is what happens when you receive advice from kitchen cabinet those who pretend to know it all yet they are below par when it comes to sound world class economic problem solvers, besides operating in Nigeria where they use the power of 'man know man' to get by they have never been involved in any international think tank. Unfortunately, that is where we are in Nigeria. Quacks all over the place. 4 Likes 1 Share |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by ojuolu(m): 4:55am On Mar 25, 2016 |
ellechrystal:And you think the Economist with this TRASH is right? If we devalue our naira, what do we have to export apart from oil to justify this devaluation? Dear, don't be fooled by every nonsense these self serving neo colonists vomit out. A weaker naira with nothing to export apart from oil with falling price means we gonna import inflation into the country. IMF, World Bank, etc are agents of the imperial neo colonists. 45 Likes 4 Shares |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by valdetino(m): 4:58am On Mar 25, 2016 |
Building a strong bridge takes time. Patience is Gold...... 17 Likes 2 Shares |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by ellechrystal(f): 5:00am On Mar 25, 2016 |
ojuolu:Am not in support of devaluing d naira man. Like I rightly stated, his policies r killing the economy, thank yoi 3 Likes |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by greatiyk4u(m): 5:00am On Mar 25, 2016 |
ValerianSteel: She did but couldn't comprehend. 4 Likes |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by alexlee50: 5:01am On Mar 25, 2016 |
Dahveydson:where you people not applauding when someone wrote a stupid article in the economist calling GEJ an ineffectual buffon now the economist has talen a swipe at your hero, I want us to ignor the paper? U guys have a funny sense of judgement 39 Likes 5 Shares |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by ApcSucks: 5:06am On Mar 25, 2016 |
Dahveydson: but you believed the economist when they called GEJ Ineffectual BUFFON, clap for yourself Mr zombie, zombie : economist calls GEJ ineffectual buffon they rejoice and say nice article zombie : economist writes article castigating buhari's policies and hard times he heaped on the poor masses and they say believe economist at ya own peril that a foreign website won't tell us what to do. who created this Zombie's please? I doubt it's God 43 Likes 4 Shares |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by monopoly3072: 5:08am On Mar 25, 2016 |
tuale4u:my guy don't mislead pple wit ur analysis...consult ur elementary economics wella before putting up a write-up 15 Likes 2 Shares |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by Tiskified(m): 5:09am On Mar 25, 2016 |
DISCLAIMER: This post is a my reflection on a currency devaluation. It is not meant to be a defense of or a rejection of a decision to devalue. Note also that this post is not political in nature. Just my thoughts. Where a country operates a fixed exchange rate syatem like we do in Nigeria, devaluation as a monetary policy would involve reducing the value of the Naira with respect to those goods, services or other monetary units with which the naira can be exchanged. When we devalue our currency, we officially lower its value versus other currencies in a fixed exchange rate system that is the monetary authority (the CBN) formally sets a new fixed rate with respect to a foreign reference currency (in this case the dollar) A devaluation means that the value of the Naira falls. Nigerians will find imports and foreign travel more expensive. However domestic exports will benefit from their exports becoming cheaper. Herein lies the crux of the matter. A weakened currency is only valuable if we EXPORT! Advantages of devaluation 1. Exports become cheaper and more competitive to foreign buyers. This provides a boost for domestic demand and could lead to job creation in the export sector. 2. Higher level of exports should in theory lead to an improvement in the current account deficit. This is important if the country has a large current account deficit due to a lack of competitiveness. 3. Higher exports and aggregate demand (AD) can lead to higher rates of economic growth. Disadvantages of devaluation 1. Is likely to cause inflation because: Imports more expensive (any imported good or raw material will increase in price) Aggregate Demand increases causing demand pull inflation. Firms / exporters have less incentive to cut costs because they can rely on the devaluation to improve competitiveness. The concern is in the long-term devaluation may lead to lower productivity because of the decline in incentives. 2. Reduces the purchasing power of citizens abroad. e.g. more expensive to go on holiday abroad. 3. A large and rapid devaluation may scare off international investors. It makes investors less willing to hold government debt because it is effectively reducing the value of their holdings. 4. If consumers have debts, e.g. mortgages in foreign currency – after a devaluation they will see a sharp rise in the cost of their debt repayments. This occurred in Hungary when many had taken out a mortgage in foreign currency. In summary devaluation of a currency is not a task to be taken lightly. If we stimulate exports properly then it MAY be beneficial in the long run. But just devaluing for the sake of having the dollar more readily available is a reckless economic endeavour. 63 Likes 7 Shares |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by OrlandoOwoh(m): 5:11am On Mar 25, 2016 |
Our local industries must not die. Sai Buhari. 3 Likes |
Re: The Economist-How To Make A Hard Currency Crisis Worse By Buhari by engrsoma(m): 5:12am On Mar 25, 2016 |
Someone must be somewhere giving him a bad advice, Even I an undergraduate don't know much about financial economics talk less of a man without certificate. One thing I remember for economics in secondary school is comparative advantage, and then we had examples using groundnut etc, but Nigeria is a monoeconomy naa. 6 Likes |
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