GetUmad:


Nope I don't need to. Tell me if your president knows anything about what you just wrote there. Tell me if Emefiele and Adeosun understand the dynamics of management of external reserve to the benefit of "growing" a "growing or dwindling economy".

You now see who needs to take a practical class and not just a "course" in whatever?

kahal29:
And they still say Buhari is not working... From $28 billion handed over to him in 2015 to $38 billion in November 2017. However the same reserve fell from $53 billion in 2008 to $43 billion in 2012 and then to $28.5 billion in may 2015 with nothing tangible to show for the depletion of the reserves. The worst is that even when oil prices were above 100 dollars our reserves instead of going up was still going down.

Teacher1776:
But meanwhile, due to the government borrowing policies, Nigeria's debt is well over 60 billion dollars. So why stack money in foreign reserve when you are neck deep in debt.?

kahal29:
And they still say Buhari is not working... From $28 billion handed over to him in 2015 to $38 billion in November 2017. However the same reserve fell from $53 billion in 2008 to $43 billion in 2012 and then to $28.5 billion in may 2015 with nothing tangible to show for the depletion of the reserves. The worst is that even when oil prices were above 100 dollars our reserves instead of going up was still going down.

Teacher1776:
But meanwhile, due to the government borrowing policies, Nigeria's debt is well over 60 billion dollars. So why stack money in foreign reserve when you are neck deep in debt.?

kahal29:
And they still say Buhari is not working... From $28 billion handed over to him in 2015 to $38 billion in November 2017. However the same reserve fell from $53 billion in 2008 to $43 billion in 2012 and then to $28.5 billion in may 2015 with nothing tangible to show for the depletion of the reserves. The worst is that even when oil prices were above 100 dollars our reserves instead of going up was still going down.

kahal29:
And they still say Buhari is not working... From $28 billion handed over to him in 2015 to $38 billion in November 2017. However the same reserve fell from $53 billion in 2008 to $43 billion in 2012 and then to $28.5 billion in may 2015 with nothing tangible to show for the depletion of the reserves. The worst is that even when oil prices were above 100 dollars our reserves instead of going up was still going down.

Mofe72:


Our external reserves witnessed a major increase during Abacha's time.
It didn't even the odds for the average Nigerian then.

GavelSlam:


Who is this one.

If I can save when my income is 30 dollars what stops me from saving when it is 140 dollars.

What manner of Nigerians are we breeding?

GavelSlam:


No be only CNN na FOX network you for talk.

Your currency strength is proportional to your savings ( foreign reserves) and your debt ratio.

The currency weakened because there was no buffer to support it.

You cannot rewrite history. Jonathan inherited some respectable savings which he not only wiped out, he simply could not point to the benefit of doing so. In fact, since then we've discovered that his wife and many of his cronies became quite wealthy despite not having factories or industry.

4Play:


What these people don't get is that the build up of the reserves is not necessarily a reflection of sound economic management. Reserves went up from $500m in 1993 to $9bn in 1997 (an increase of 1,900%) during the Abacha era as the currency lost value and oil prices stabilised.

The exchange rate is the "price" at which reserves are built up and oil prices/forex inflow is the income which pays for the price. It is cheaper to build up reserves at N360 to $1 than at N220 to $1 so comparing the total stock of reserves at significantly different exchange rates reflects economic illiteracy.

More importantly, and as you allude to, economic growth is weak to non-existent for most Nigerians. Reserves are meant to act as a buffer against sudden economic shocks, hence focusing on them is a bit of red herring when the economy is barely growing.

deco22:
It seems i have to keep on spelling it out for you,oil prices were low and the naira was losing its value and the CBN had to take money out of the foreign reserve to help the naira.

There was a oil boom in the early 2000s,but from 2010 to now due to the Arab uprising and other issues in the oil producing countries,Oil prices went down,and Nigeria which is highly independent on oil was greatly affected and the naira was losing its value which made the CBN spend our foreign reserves,whats so hard to understand there.

GavelSlam:


Will you stop the tomfoolery.

The chart below says it all.

GetUmad:

How does that affect the average Nigerian on the street or how has it been affecting the Nigerian economy?
It's like having a sophisticated tool without the technical knowledge to out it into its optimum use.




On a lighter note;
Why is it that when they are shooting a movie in Nigeria you'd see passersby watching. The annoying thing is even dogs and the chickens too would stay and be looking at the camera.

kahal29:
GOVERNOR, Central Bank of Nigeria, CBN, yesterday, disclosed that the nation’s external reserves have risen to $38.2 billion, the highest in 39 months.

Emefiele disclosed this in Agbara, Ogun State while commissioning Unilever Plc’s 10,000 metric tonnes Blue Band factory.

Emefiele stated: “We have seen reserves move up from the $23 billion I talked about in October 2016, but as I speak today, external reserves are $38.2 billion.”

Emefiele said that the Unilever plant was made possible by the foreign exchange restrictions placed on the 41 items.

He said: “When the restriction of foreign exchange (forex) for the 41 items came on board about two years ago; before that time, Unilever had a factory producing Blue Band margarine. But margarine was also part of the 41 items. The Managing Director and the executive team of Unilever Nigeria visited me in Abuja and said they wanted us to grant them some form of forbearance. I said there was not going to be any forbearance, but that if he promised to re-establish the factory in Nigeria because as at that time their factory had been dismantled in Nigeria and taken to another country.

“And he (Unilever managing director) made a promise that between 12 to 18 months the factory would be re-established in Nigeria. Based on that, we granted them some form of forbearance that made it easy for them to import margarine into Nigeria, but we kept monitoring them and we were discussing.

“The entire essence is to say that by re-establishing that factory here in Nigeria, he has created direct jobs for Nigerians in this factory. He created indirect jobs for Nigerians by virtue of the fact that he buys palm oil which is part of the formulation that he uses in producing margarine.” What does it take produce margarine? It is mixing oil and water. By creating indirect jobs by buying from people producing oil in Nigeria, he feeds millions of people. “That is the entire idea. I keep saying we do not have foreign exchange to allocate to import products that can be produced in Nigeria. I am happy that Unilever has proved us right that Blue Band margarine can be produced in this country. So far they are doing about 10,000 metric tonnes per annum and he has promised that he is going to ramp it up to 50,000 metric tonnes. By doing so you create jobs, which is what we are talking about. By creating jobs, you save the country forex that is needed to create jobs.”

https://www.vanguardngr.com/2017/12/nigerias-external-reserves-hit-39mths-high-38-2bn-emefiele/

http://www.thisdaylive.com/index.php/2017/12/06/external-reserves-hit-four-year-high-of-38-2bn-on-the-back-of-eurobond-issue/

kahal29:
And they still say Buhari is not working... From $28 billion handed over to him in 2015 to $38 billion in November 2017. However the same reserve fell from $53 billion in 2008 to $43 billion in 2012 and then to $28.5 billion in may 2015 with nothing tangible to show for the depletion of the reserves. The worst is that even when oil prices were above 100 dollars our reserves instead of going up was still going down.

kahal29:
GOVERNOR, Central Bank of Nigeria, CBN, yesterday, disclosed that the nation’s external reserves have risen to $38.2 billion, the highest in 39 months.

Emefiele disclosed this in Agbara, Ogun State while commissioning Unilever Plc’s 10,000 metric tonnes Blue Band factory.