chronique:



When you want to buttress your arguments with facts, don't just copy any link you see on Google. Go to the direct source.

https://www.swfinstitute.org/swfs/excess-crude-account/

Read that and help yourself.

seguno2:


If she saved the federal government share, the same lousy looter governors would have asked that it be shared with all of them.

Ovamboland:
Are you this daft? On what basis will governors ask for and collect FG's share?

aribisala0:


When the government sells oil for dollars it hands the dollars to the CBN who prints Naira nots in return. The government then spends the naira. According to your logic the government still owns the dollars? No the people , whoever, is now holding that naira "owns" the dollars and should have access to exchange it for the naira whwnever. Inability to do so devalues the naira


External reserves are not savings .I am sorry but that is a very ignorant andt stuppid thing to say,
External reserves belong to the creditors of the CBN not the government to ask who owns the CBN is a clear indication you should no talk on this thread .You have no clue.

What is the basis of the Naira we all carry about in our pockets. Without external reserves, it is an empty promise.

To Provide a fall back for the “ Rainy Day” Economies of nations sometimes experience drop in revenue and would need to fall back on their savings as a life line. A good external reserves position would readily provide this cushion and facilitate the recovery of such economies.

https://www.cbn.gov.ng/intops/ReserveMgmt.asp

wirinet:
The more I read excerpts from madam world Bank the more disappointed I become. She thinks Nigerians are fools, but it is she that is making a fool of herself.
I wish I could copy and paste some of the ridiculous statements she made in this page.

First the Excess Crude Account is illegal and foreign to the constitution, there are no laws governing it's creation and operation. So anything done in that regard is illegal.

The money in the Excess Crude Account does not belong to the FG, but to all three tiers of government, so even if it was illegally created and managed by the FG, monies cannot be spent from the account without the accent of the three tiers. Okonjo-Iweala is talking like the money is the FGs, to spend or save as she likes.

The book says "He was strongly supported by Governor Adams Oshiomole of Edo state, who was very vocal in his disapproval and suspicions of the Federal Government’s management of the Excess Crude account"
The main problem was the Governors did not trust Okonjo-Iweala and her principal with their money.

Finally, the governors were not after FG's money, they wanted their own money, is it by force to help them save their money for them. What happens to the share of the money controlled by Okonjo-Iweala? Why did she not save the share of the Excess Crude Account under her control?

deomelllo:




1. You referenced the CBN to support your flawed claim that Reserves are not savings and I quoted the same CBN and their core mission statement stating that reserves are Rainy Day savings that countries fall back on during economic hardships.

That alone negates your flawed claim that Reserves are not saving.

You should at this point stop arguing with me and instead argue with the Nigerian Central Bank.

2. The main definition for the word RESERVE to start with = To save, to keep and to hold.

3. Reserves are assets and your assets are basically your savings.

4. Reserves doesn't belong to any creditor, it is your money, your basically pay your creditors and for what you import. It'slike saying our now $47 billion reserve belongs to creditors. You are not making any sense.


Again, the CBN offered and articulated clear explanation and connection between reserves and savings and also how Nations use reserve savings as a Rainy Day tool to fall back during economic hardship.

Please, stop arguing blindly.

aribisala0:
It is dishonest to quote two people and pretend they are one. I NEVER referenced the CBN. THAN IS A LIE

Reserves are assets of the CBN not the government . This has to be balanced with the liabilities of the CBN. You cannot talk about assets without talking about liabilities. So what are the liabilities of the CBN > It is only when you have an understanding of the CBN liabilities that you understand the matter. The naira in your pockect is an asset to you but a liability to the CBN

The money in your account is an asset to you but a liability to your bank The owners of a bank cannot use your money in your account on a so called rainy day

One simple fact whenever the foreign reserves go down is it because the government spent them? Have you ever heard of government spending reserves

The reserves go down when the CBN redeems its liabilities(Naira) by exchanging them for dollars etc i.e selling dollar reserves for naira. When reserves go down Naira in the CBN hands goes up. Naira which the CBN itself issued

What does it mean to "defend the naira"

Last year 22 bllion was remitted back home by the diaspora. That oney immediately becomes a CBN asset but also there is an Immediate equal and opposite liabilty somewhere. WHAT IS THAT. ? It is only when you understand that you can talk. To suggest that 22 bilion is available to the government for rainy day spending is not just "blind" but foolish argument. You need to keep quiet and stick to what you understand

The same thing happens with Dollar oil receipts the money enters the CBN which issues naira equivalent to the government who then use it to pay salaries . Those dollars are still CBN Assets but the Naira issued is the liability . Naira has no intrnsic value other than being backed up by CBN asssets. Otherwise the CBN could print unlimited amount of Naira

In summary without CBN assets the Naira is just toilet roll. The CBN must maintain assets to make people believe its liiabilities : THE NAIRA.
The CBN assets and liabilities are like an object and its shadow. A shadow is not something you can give away or spend

To Provide a fall back for the “ Rainy Day” Economies of nations sometimes experience drop in revenue and would need to fall back on their savings as a life line. A good external reserves position would readily provide this cushion and facilitate the recovery of such economies.

https://www.cbn.gov.ng/intops/ReserveMgmt.asp

deomelllo:







Beats me why you keep getting into this needless academic exercise, reserves is what you save to pay your bills with and when you deplete it, you can not pay your bills or fund imports, including raw materials for your factories and industries which means low industrial productivity, lay offs and unemployment which we experienced after Jona left.

Your reserves is like your own personal savings, you can not pay your bills when you run low or when you deplete it.

You don't know better than the CBN, the same CBN you are talking about doesn't agree with you and your claim in the above quote and I'll keep posting it till you get the gist.


Before your next argument, make sure you come back with the definition for RESERVE

aribisala0:
Exteernal reserves are not what you save. They are assets of a Central Bank.
There is NEVER a time that the budget is funded from reserves.

Reserves are used to settle balance of international trade accounts. People bring in dollars in exchange for naira the reserves go up. They demand dollars in exchange for Naira they go down. The CBN job is to manage the supply of Naira and its value .

It is clear that you are an economic illiterate. That was clear a long time ago and I have perssted with this not because of you but for others reading the thread.

You are one of those with 4 core problems

1. You don't know
2 You don't know that you don't know
3. You believe that you know
4 . You have no one to tell you

I repeat there has NEVER EVER been a time that foreign reserves are spent or captured in the the budget or public finances. They are monetary and not fiscal resources

The government may have Foreign Exchange reserves but the government is NOT the CBN

The ECA is an example of this .

aribisala0:
Exteernal reserves are not what you save. They are assets of a Central Bank.
There is NEVER a time that the budget is funded from reserves.

Reserves are used to settle balance of international trade accounts. People bring in dollars in exchange for naira the reserves go up. They demand dollars in exchange for Naira they go down. The CBN job is to manage the supply of Naira and its value .

It is clear that you are an economic illiterate. That was clear a long time ago and I have perssted with this not because of you but for others reading the thread.

You are one of those with 4 core problems

1. You don't know
2 You don't know that you don't know
3. You believe that you know
4 . You have no one to tell you

I repeat there has NEVER EVER been a time that foreign reserves are spent or captured in the the budget or public finances. They are monetary and not fiscal resources

The government may have Foreign Exchange reserves but the government is NOT the CBN

The ECA is an example of this .

To Provide a fall back for the “ Rainy Day” Economies of nations sometimes experience drop in revenue and would need to fall back on their savings as a life line. A good external reserves position would readily provide this cushion and facilitate the recovery of such economies.

https://www.cbn.gov.ng/intops/ReserveMgmt.asp

Government savings

External reserves are a form of government savings that can be used when access to capital markets and borrowing is curtailed. A central bank may also build-up its reserves to accumulate wealth or provide backing for the domestic currency.


https://www.proshareng.com/news/Nigeria%20Economy/Evaluating-The-Adequacy-of-Nigeria%E2%80%99s-E/36781

deomelllo:












Please, stop bothering me with the needless academic essay about foreign reserves because I know all about that and it doesn't alter the fact that Foreign Reserves are what you hold, save and set aside to pay your bills with and and when you don't save or when you deplete your reserves, you can not pay your bills o protect your local economy and currency.



NL ignorant economist forming as if they know more than real economists and CBN.



Come back with another essay and I keep referring you to that CBN quote.