thesicilian:

Somehow makes sense.

francotunsco:
...and our money will become worthless! As if our money was worthful before. What is inflation self? Why are we running away from our shadow? A measure of Garri which used to sell for between 250 and 400 now sells for 1200 and we are running away from an imaginary inflation! Voodoo Economists!

IamaNigerianGuy:


You might face the unwanted attention of the international community as to how you raised the money. Remember that each country has an account operated by the world bank, Bank for International Settlements and other financial institutions. You would also 'pollute' your legitimate funds with the fraudulent ones and cause your viability to be called to question.
Some countries practice what you advocate but they do so as a last resort and need to be very smart about it. It's just much safer and foresighted to create value through production in the long term and borrow in the short term.

sorextee:
Very funny question.. Even the naira sef, we cant just be printing it anyhow..
it would lead to inflation, the money no go get value. more money chasing fewer goods.

Evaberry:



Wow I'm learning so much. following your comments and shares

eponoloyin:
The cost of printing nko? or you think it's A4 paper they use

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.

Collyno82:
but borrowing it in oyinbo man's currency won't cause economic downturn abi. oyinbo man raping us & our economy since 1914
(

chiefeconomist:


Your question was answered 300 years ago when Europeans thought more money means more wealth and prosperity for an economy. However, Adams Smith revealed that a country's wealth is determined by its output and not gold or money. An individual will be wealthier by having more money. But what's true for an individual is not true for the whole economy. If you print money to fund anything, you'll have more money chasing the same quantity of goods and services which will raise prices (inflation) and make everyone poorer.
The most recent example of a country that printed money to fund government spending is Zimbabwe in the early 2000s. The end result was predictable: sky-high inflation (economists call it hyper-inflation). Due to the inflation, a teacher's salary in Zimbabwe was 30 billion Zimbabwean dollars per week, yet she had to resign because it couldn't transport her to work for the whole week. A bottle of coke was famously sold for 2 billion Zimbabwean dollars.
Surely Nigeria won't want to repeat that experience don't you agree?

tillaman:
Ur kidding Right ?

Lectureradodo:
In my own candid opinion, I think Der is more to printing money in any nation than d way I grammatically grammatically sound, cos if printing I money is dat easy, am sure all CBN governors would have been richer,

sweetkev:
But if a nation borrow huge amount of money to finance her projects it won't lead to inflation abi? We Africa have a very loooooong way to go

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.

Truckpusher:
And you had to point out a typo this Wednesday morning ?

I killed five people in Aba because of this

Ebookmathswaec:


No. I mean Naira equivalent.

Ebookmathswaec:
Why can't we print the $5.5bn ourselves instead of borrowing since we can print money ourselves? Uncle you want to cause inflation and undervaluation of currency

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.

abescom:
China practically imports nothing. While countries like America buy plenty stuffs from China. America buys a lot of means when China devalues their currency, America have to pay more to buy from China.

Simply put - China de-valuate ( heir currency knowing a weaker yuan will boost their export against other nations that buy from China - including America which is why America didn't like it as most of their deals are more EXCHANGE deals.

Switzerland did same when they de-linked their economy from the Euro.

For instance if 5 yuan equals 1 dollar. This means when China sells something worth 1 dollar to America they get 5 yuan but when the the yuan is devalued, to say 6 yuan to one dollar, they get 6 yuan for one dollar but when they have to buy from the yanks, they spend less. This logic however only works for a very productivity economy as China's. They practically don't have to import but instead export.

In Nigeria terms, imagine we have to export so much crude and don't have to import much. We will buy making more money while spending less. China can afford it, Nigeria can't.

abescom:
China practically imports nothing. While countries like America buy plenty stuffs from China. America buys a lot of means when China devalues their currency, America have to pay more to buy from China.

Simply put - China de-valuate ( heir currency knowing a weaker yuan will boost their export against other nations that buy from China - including America which is why America didn't like it as most of their deals are more EXCHANGE deals.

Switzerland did same when they de-linked their economy from the Euro.

For instance if 5 yuan equals 1 dollar. This means when China sells something worth 1 dollar to America they get 5 yuan but when the the yuan is devalued, to say 6 yuan to one dollar, they get 6 yuan for one dollar but when they have to buy from the yanks, they spend less. This logic however only works for a very productivity economy as China's. They practically don't have to import but instead export.

In Nigeria terms, imagine we have to export so much crude and don't have to import much. We will buy making more money while spending less. China can afford it, Nigeria can't.

sorextee:
Very funny question.. Even the naira sef, we cant just be printing it anyhow..
it would lead to inflation, the money no go get value. more money chasing fewer goods.

stilldoingokay:



pls explain not understanding, and will it lead us to inflation

sorextee:
Very funny question.. Even the naira sef, we cant just be printing it anyhow..
it would lead to inflation, the money no go get value. more money chasing fewer goods.

exlinklodge:

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?