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Nairaland Forum / Nairaland / General / Business / Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? (34937 Views)
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Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by seunmsg(m): 9:30am On Oct 11, 2017 |
Truckpusher: Where will you get the money to print such a huge sum of money? |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by thunderbabs: 9:33am On Oct 11, 2017 |
We cant print it ourselves bcoz the tree needed as raw material to print the money has been possessed by a demonic being |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by DavidEsq(m): 9:34am On Oct 11, 2017 |
Eberex:He was busy jumping fences wen his mates wr taking Eco classes 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by exlinklodge: 9:35am On Oct 11, 2017 |
abescom: Am interested in your explanation about China devaluation of their currency and IMF wanting third world countries like our to devalue ours. I know if Nigeria devalues it will be a gain to the advanced world since we are import based country, so they buy our goods cheaper while we buy theirs higher. But I don't understand how China gains more by devaluing their currency since they are export based country. Could you shade more light on that? 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Omoluabi16(m): 9:35am On Oct 11, 2017 |
lol. This was what I thought back then. CBN should just print money, give every Nigerian so we all be rich. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Saintinoo(m): 9:35am On Oct 11, 2017 |
Op nice question, here are some answers though. No we can't just print currency just like that becaause it will rise inflation and thing is that we must have equal gold reserve to the paper note we are to print, so a country can only print notes if it has much gold reserve which is the real money. 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by abescom: 9:35am On Oct 11, 2017 |
dataking:How does Nigeria and America compare economically? Nigeria is basically an import based economy unlike America. Just take a good look at Zimbabwe. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Kashif(m): 9:36am On Oct 11, 2017 |
Ebookmathswaec: You must be kidding. But if you are not, I don't even know where to start explaining. Your question is too elementary for this forum imo. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by hadura29(m): 9:36am On Oct 11, 2017 |
Ebookmathswaec: Our productivity is low, hence it will lead to inflation.. my opinion though. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by ttmacoy: 9:36am On Oct 11, 2017 |
Hey this forum also provides some good insight which can help you understand better. https://www.quora.com/Why-doesnt-a-poor-country-print-more-money-for-itself Ebookmathswaec: |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Gepheral: 9:36am On Oct 11, 2017 |
The billion coin comes to mind... |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by omoadeleye(m): 9:37am On Oct 11, 2017 |
Ebookmathswaec: Money, go spoil, everything go dabaru, imagine buying a pencil for the cost of 600,000 naira? |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Topmaike007(m): 9:37am On Oct 11, 2017 |
to read economics sweet oo. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by victorazyvictor(m): 9:38am On Oct 11, 2017 |
Ebookmathswaec: How we used to think when we are toddlers |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Truckpusher(m): 9:38am On Oct 11, 2017 |
linearity:Who's printing naira and who's inserting the printed money into the economy immediately? |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Truckpusher(m): 9:40am On Oct 11, 2017 |
victorazyvictor:Hope you are aware that all the big economies actually do these things you think they are childish ideologies with respect to the guy you just quoted. 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by victorazyvictor(m): 9:41am On Oct 11, 2017 |
Kashif: you even givam promotion, the question is cretchary. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by thesicilian: 9:42am On Oct 11, 2017 |
lovingyouhun: JuanDeDios: Cloud007: abescom:Hahaha. I know it is not a good idea share, considering the economic implications, but sometimes I just like thinking outside the box, as in, "what if...?" Inflation only occurs if the public knows what you have done. After all, no one will ask you where you got your money from when you go to buy a car in the market. Just like its not possible to recognize a black chicken in the stew... Not feasible share, but still fun to think about. 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by EHIRIMCHA(m): 9:42am On Oct 11, 2017 |
Ebookmathswaec:u want naira to get devalued like Zimbabwe currency where u will buying a pen for 10,000 naira.u don't know it will have huge implication in d forex market |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by linearity: 9:42am On Oct 11, 2017 |
johndwayy: It's the same thing, the government will not be able to spend that money with the pre-printing buying power. All infrastructure developments in Nigeria are done in dollars, the exchange rate will increase to compensate for the new circulating currencies...even Nigerians will gradually stop accepting Naira as a means of payment... Remember when Naira/dollar was at abt N500/$1, some businesses start insisting on using dollar as means of payment....and others hyper increased the value of their merchandise and some have not reduced it since then...e.g. Keyes Marwa use to be around N300k, it shot up to about N600k, even after stabilizing Naira, the price of keke marwa refuse to come down, same with many other goods and services. 2 Likes |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Nobody: 9:42am On Oct 11, 2017 |
Truckpusher:This is quite ridiculous. You obviously lack an understanding of China's economic model. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Nobody: 9:44am On Oct 11, 2017 |
pocohantas:And the great German inflation that the country's currency was used as a wallpaper. It was that worthless 'cause they felt printing would solve their problem. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by oglalasioux(m): 9:44am On Oct 11, 2017 |
I hope it's from your village that government will use the money to buy things it wants because elsewhere the money won't be worth the paper it is printed on. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Truckpusher(m): 9:47am On Oct 11, 2017 |
TimeMod3:Jesus!! you've lost your sense of humor. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by pocohantas(f): 9:48am On Oct 11, 2017 |
kimbraa: You mean it? Let me go read about it. I am more interested in how they resolved the inflation. I dey come *runs out of thread* |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by mojims: 9:49am On Oct 11, 2017 |
PLS READ ME!!! a country cannot print money morethan its export value, because the world bank regulate the amount to be printed it has to be less than your export value e.g if nigeria export crude oil and other valuables at $1million by the time you subtract the cost of printing $1million you wud be left with $800,000 to print worth of naira, if you exceed ur currency wud b worthless thats why every country can only print money the value of what they produce and cashless policy inproves the economy, cos nigeria can spend 200naira worth of material just to print 5naira and same amount to print 1000naira but they have to do it cos of getting change when you buy things 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Nobody: 9:50am On Oct 11, 2017 |
malton: Borrowing such huge amount wouldn't lead to inflation?...what the west wants us to bliv |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by ElRapido: 9:50am On Oct 11, 2017 |
Make dem sell Nigeria joor and share the money to everybody 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Ensquare(m): 9:50am On Oct 11, 2017 |
9jakohai:look at this,what if we print this naira exchange it with dollars n make sure make sure the money is in CBN(Not in circulation).Then use to dollars to settle all outstanding debt. will it still affect the economy? |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Ebookmathswaec: 9:51am On Oct 11, 2017 |
johndwayy: 100000000000000 likes! |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Oba09085(m): 9:51am On Oct 11, 2017 |
There are two main reasons why the government cannot just go ahead and print currency notes. One of them been inflation has been well explained by some other forum members in their post. The other is regarding what is known as fiduciary issue. You see for every one naira printed by the CBN there is an asset with the worth of one naira backing the currency note. In the past all currency notes were backed up with metals such as gold or other valuable metals and were held by the central bank. However now many central banks make use of fiduciary issues which refers to currency which is not protected by a specific backing of metal or coin. These days the currency notes are backed up or protected by deposits with other central banks or short dated bills payable in other gold using countries. So for the central bank to print new currency notes they must have enough deposite with another central banks to protect the new notes to be printed. 3 Likes |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Nobody: 9:53am On Oct 11, 2017 |
You want an inflation to take place? That will just make things worse! 1 Like |
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