Because you can't print (real) money

bakynes:

Exactly, what I was going to say but to expaintiate more in lay terms, if you produce products and services worth $1m dollars and you print $5m dollars that means you are putting too much money in the hands of individuals for $1m dollars worth of productivity, this will now bring about inflation. Because the seller knows you now have money he will charge you whatever he offers(either goods or services)5X more so the cost of goods and services will sky rocket and inturn devalues your local currency. It simply an economics principle.

This is clear and enlightening... Thanks so much

oya


were are those economics gurus and legal practitioner

Click the link
https://www.quora.com/Why-dont-countries-print-trillions-of-currency-so-that-everybody-becomes-rich

abescom:
Yet people like you call Buhari dullard. Shameful. Do your investigation when America is crying wolf for China it is because China devalued their currency which is very smart.

The western world won't appreciate an export based economy like China to devalue their currency but will want countries like ours to devalue ours because then they get our stuffs for cheap while China's will be expensive to purchase for them.

It is common logic the west use against third world countries to systematically steal from them. Ever seen any import based economy that takes IMF's advise to devalue their currency recover? It is rare even if such exists.

It is you that is a dullard. America prints dollars when ever its needed and dumps it on the world. They are the worst currency manipulators in the world but no other nation is allowed to try such cause its an American world we live in. Read more about it.

Brugo:
What a question!

Okay, even if I would answer you. You want to turn us to zimbabwe? You will flood the economy with cash. Inflation will ravage our economy and our money will become worthless. Besides, have you thought about the cost of printing the naira equivalent?

Anyway, I want to believe you're just pulling our legs.

This is the most reasonable point

Ur kidding Right ?

Klington:
As at last check, our dear naira is printed overseas.

Useless shameless country

Printing of money by the Cbn (monetary policy ) is good at the short run but has a humongous bad effect at the long run as it will plunge us back to double dip reccession and a double digit inflation thus money will be too much in circulation making money to loos it value. (Money illusion) the situation where by you have plenty of money yet you can only use it to but little thing In the market, from my economics point of view so borrowing money ain't that bad if your using the money to finance a capital expenses. When it becomes a liability is when u borrow this money and finance a recurrent expenditure like payment of salary and others.

It'll lead to inflation,if not hyper inflation.

Read about Zimbabwe. At some point, they had to express their money value in 'powers'. It was that bad

Now you see why you should have paid more attention during Economic Lesson when you were in secondary school

This Op of this thread has just brightened my morning with his question. It will definitely be a good day

N dem. Awon counterfeit.

thesicilian:

Somehow makes sense.

It doesn't.

thesicilian:

Somehow makes sense.

Which sense? You don chop so?

1freshdude:
Money is valuable because it is relatively scarce, the level of productivity in a country is always put into consideration before taking this decisions, else money loses value, it becomes worthless and an alarming inflation ensues. Zimbabwe is a good example of what printing more money in the face of very low output can cause.

Uganda shilling is a perfect example

Abi o

thesicilian:

Somehow makes sense.

Which sense? You don chop so? You'd rubbish our currency if that is done. If it can be done then there'd be no reason to work, we just print, make exchanges, purchase what soever we want, come back to the country and relax. Is that even possible? Think!!!

malton:

Because printing such a huge naira amount would result in inflation.

u got it.

The queen visit the surdana of sokoto in kano


The capital of the northern region was kano.. not kaduna..


https://www.youtube.com/watch?v=T3Wnsux_nIY

Ebookmathswaec:
Why can't we print the $5.5bn ourselves instead of borrowing since we can print money ourselves?

I believe if we print the money ourselves, we can use it for whatever we want and we won't need to pay back money to anybody.

Nairalanders pls! I need explanation.

Abi na

9jakohai:


Because....inflation

Many often ask why government’s don’t print more money to deal with the problem of national debt.

The reason is that printing more money doesn’t increase economic output in any way – it merely causes inflation.

Suppose an economy produces £10 million worth of goods; e.g. 1 million books at £10 each.
If the government doubled the money supply, we would still have 1 million books, but people have more money. Demand for books would rise, and firms would push up prices.
The most likely scenario is that if the money supply were doubled, we would have 1 million books sold at £20. The economy is now worth £20 million rather than £10 million. But, the number of goods is exactly the same.
We can say that the increase in GDP is a money illusion. – True you have more money, but if everything is more expensive, you are not any better off.
In this simple model, printing more money has made goods more expensive, but hasn’t changed the quantity of goods.

[left][/left]

https://www.economicshelp.org/blog/634/economics/the-problem-with-printing-money/

See what happened in ZImbabwe and Germany 1919-24

What of printing 16b dollars >equivalent} needed for the Eastern rail that Amechi say no money.

When counterfeiting is in ur blood, u begin to think it's a normal sturvs . OP u see ur life.

Ebookmathswaec:
Why can't we print the $5.5bn ourselves instead of borrowing since we can print money ourselves?

I believe if we print the money ourselves, we can use it for whatever we want and we won't need to pay back money to anybody.

Nairalanders pls! I need explanation.

The question should be what does the President want to do with $5.5Bn that he won't use his local content to achieve. You can print less naira notes, control inflation, use local content to achieve your milestone and increase employment opportunities.
When you want to use outside and imported products, that is when you require dollar equivalent of your naira. A good leader can build us out of nothing....
So printing more naira notes can be wonderful only when we dont seek for foreign products....

mickeyenglish:
But why Op?? I ll give u an instance..

When Mansa Kanka Musa left for Mecca, he took tons of gold along with him and gave it to people he met on his way till he got to Mecca know what happened next? There was a very large circulation of gold in Mecca that it literally became worthless. Gold being a medium of exchange then in the middle east, they had to persuade him to stop expressing his benevolent nature before he runs Mecca aground with gold..



In other words, too much of everything is bad.. Just imagine everybody in Nigeria now with nothing less than a billion dollars in their various bank accounts.. U think Nigeria won't disappear into the abyss?

But bros.. I don't think the op is talking about printing the money and sharing it to everyone's account. I think what he's saying is, why not print the money and use it for industrialization and infrastructural development that will in turn boost the economy.?

abescom:
Yet people like you call Buhari dullard. Shameful. Do your investigation when America is crying wolf for China it is because China devalued their currency which is very smart.

The western world won't appreciate an export based economy like China to devalue their currency but will want countries like ours to devalue ours because then they get our stuffs for cheap while China's will be expensive to purchase for them.

It is common logic the west use against third world countries to systematically steal from them. Ever seen any import based economy that takes IMF's advise to devalue their currency recover? It is rare even if such exists.

Ayam not understanding you again oh.

Read your first and last paragraph and see how you've contradicted yourself with respect to Mr Jubrin's knee jack economic policies especially the strangulation of the dollar just to give the Naira a false sense of appreciation without an almost or near export margin by Nigeria which was one of his first imbecilic idiotic policies .

JAkpayen:
@OP,

There is no reason why it is not technically possible but the naira will become junk and a piece of tissue paper will be more valuable than that.
.

Exactly what the apex bank chairman of the then Idi Amin's regime told him. Printing more money will make Uganda's money look like toilet paper. And Idi Amin retorted “you call Uganda's money shit money? Mallam Mugu (or whatever his 2IC was called) show him what do to shit”.

In essence op, our money will be worthless.

Truckpusher:
Print the goddamn thing and before the West will wake up and suspect anything you've already used it in buying shares, gold, companies from their economy while bringing in policies that will lure their investors down here with the promise of cheap labor and wait till everywhere is calm.

Haven't you heard about currency manipulation by China that America keeps crying about while they are the chief currency manipulators.

Stop comparing China or American with Nigeria.

Those countries have the needed GDP to back their currency manipulation...Every country manipulates their currencies including Nigeria e.g. CBN pumping Forex into the market to stabilize Naira is currency manipulation, anything done to boost a country's currency outside market forces is currency manipulation.

There is not wrong in currency manipulation, the only downside is, if you don't have the GDP to back it, it will lead to hyper inflation and even Nigerians will stop selling goods and services in exchange for the Naira note as its value would have been worthless.

Yes, Nigeria can print any amount of Naira they want, but the country will be in the toilet and your previously otherwise lucrative salary of e.g. N500k/month may now have a buying power of a mere N500.

Adeoba10:
Inflation will occur... Money will not have value..... For example, you need 5k, you went to your photocopy machine and printed it out, if you get to the market and they called toothpick for you at d rate
Of 3000naira, you will just pay them and leave bcus you have d printing machine @ home. Look at Zimbabwe for another example....

How can Zimbabwe tackle their inflation problem?

From my little knowledge of how money works... if you observe inflation is always high during weekends i.e Fri and Sat because that is when people patronize the market most.. Prices of commodities are cheaper during weekdays... More money tends to chase few goods during the weekend compared to weekdays... That is why l don't buy tomatoes, onions and atarodo during weekends

Oga is like you have not heard of inflation?

samsard:
This dude skipped basic economics class in secondary school. And you wonder why they say the standard of education is very low in the country. SMH

Shut the hell up.