aribisala0:


Can you give me one example of an investment just one, where Foreign reserves have been pledged as securty to ensure investment security? ANYWHERE in the world

Seriously.... You do not know what you are talking about and you are talking to someone who can see through your bluster.

Guy you are talking jazz

Use your brain man. Without high Foreign reserve what collateral does Nigeria have? You think CBN is just piling on cash for nothing?
In literal sense you don't go to investors with just high FOR but it's part of what will give an investor confidence in your economy.
Without high Foreign reserve Russia rubble would have crashed due to U.S. and EU sanctions.

dadavivo:
honestly the thing tire me, you borrow money put for your bank details brag see you get money.

That means you don't know how much revenue Nigeria makes daily

Bolowolowo:


The OP stated the US has a larger forex than Nigeria, which I clearly refuted with the data that I showed (the data took gold into account, by default). Perhaps OP should’ve been clearer about with measure of FOREX they were using with regard to that statement.

GOLD is not FOREX


Foreign reserve and foreign exchange reserve are often used interchangeably but do not mean exactly the same thing

Dollyak:

Use your brain man. Without high FER What collateral does Nigeria have? You think CBN is just piling on cash for nothing?
In literal sense you don't go to investors with just high FOR but it's part of what will give an investor confidence in your economy.
Without high FER Russia rubble would have crashed with the U.S. and EU sanctions.

collateral for what? what nonsense are you talking about?

Can you tell me one example from anywhere where foreign reserves have been used as collateral?

If they are not even used as collateral for borrowing cash how can they be used as collateral for investors. An asseet that des not belong to government which is highly liquid and volatile? guy you really are out of your depth here and do not know what you are talking about

Crashing of ruble is irrelevant to FDI discussion we are having here and is just a gratuitus diversion.


FDI and Foreign reserves have no correlation.

Investors are interested in genuine opportunity ,security and rule of law not foreign reserves

georgecso:
Sai Bubu till 2023
Foreign Exchange Reserves are assets held by a central government or other monetary authority, usually in various reserve currencies. ... The main purpose of holding foreign exchange reserves is to make international payments and hedge against exchange rate risks.

so u r happy cos of dt? does Nigeria have dt more than the US??

aribisala0:

collateral for what? what nonsense are you talking about?

Can you tell me one example from anywhere where foreign reserves have been used as collateral?

If they are not even used as collateral for borrowing cash how can they be used as collateral for investors. An asseet that des not belong to government which is highly liquid and volatile? guy you really are out of your depth here and do not know what you are talking about

Crashing of ruble is irrelevant to FDI discussion we are having here and is just a gratuitus diversion.


FDI and Foreign reserves have no correlation.

Investors are interested in genuine opportunity ,security and rule of law not foreign reserves

You Nigerians never fail to amaze me. A quick Google search will cure your ignorance (see below).

https://www.economicshelp.org/blog/853/currency/foreign-currency-reserves/

Have a read or continue in your ignoramce. Investing in third world countries are normally deemed high risk. Therefore, your need a degree of credit worthiness to attract significant investment.

aribisala0:
GOLD is not FOREX


Foreign reserve and foreign exchange reserve are often used interchangeably but do not mean exactly the same thing

I was referring to forex reserves the whole time. My apologies for not making the distinction.

TheAngry1:
And South Africa leads Nigeria in infrastructure and human capital development. The way we celebrate meaningless awards and titles in this country ehn! That was how one otondo President and his Zuwo Finance Minister re-calibrated and said we were Africa's biggest economy, while they were busy looting the treasury. Mscheeewwww!

The illiterates/drop out youths won't know these.

GavelSlam:


Well work is going on.

The economy is always an unfinished business but positive strides are being made.

I like your positive outlook...I also cautiously optimistic.

SoNature:


I can't have a conversation with you

i can assure you that this is the best post you ever posted here

Dollyak:

You Nigerians never fail to amaze me. A quick Google search will cure your ignorance (see below).

https://www.economicshelp.org/blog/853/currency/foreign-currency-reserves/

You can be confident I won't be visiting your little blog.

Take home points

Foreign exchange reserves are not government reserves or funds
They are CBN assets used to maintain value of naira and support international trade
They cannot be used as a collateral FOR ANYTHING
Governments do not routinely provide collateral to investors ,I have never heard that before

Can you give one example where Foreign exchange reserves have EVER been used as a collateral?

Just One

MiddleDimension:


i can assure you that this is the best post you ever posted here

Thanks, but are you a monitoring spirit?

maestroferddi:
Propaganda not taking APC anywhere...

How much has been borrowed by this government before we start talking about foreign reserves?

And so what if the government borrowed even $25bn?

Wealth does not translate to development. Nigeria is the richest country in Africa but still underdeveloped. Its not by having reserves, its by what is obtainable in your economy.

To say that government owns CBN reserves is as foolish as saying Jim Ovia owns the deposits in Zenith Banks

The reality is that a basic accounting principle is all the deposits in a bank are liabilities of the banks not its assets.

So if the CBN has $40 billion in reserves what are its liabilities?


To start with all the naira in your pocket is a CBN liability. Every single naira in the country is a CBN debt so when you put that in perspective you must realizee that $42 billion is not such a big deal.

If every Nigerian turns up at the same time wanting to buy dollars then the CBN is in trouble unless it has the reserves to "defend the naira " i.e pay its debts.
The CBN was not able to do so 4 years ago and so it DEVALUED its debt(currency) and Naira crashed to where it is now.

If for any reason the government appropriates the forex reserves guess what will happen to the naira in your pocket?
It is the same as government taking the money in your account

georgecso:
Sai Bubu till 2023
Foreign Exchange Reserves are assets held by a central government or other monetary authority, usually in various reserve currencies. ... The main purpose of holding foreign exchange reserves is to make international payments and hedge against exchange rate risks.

Your sai Buhari who has indebted you and your generations unborn?
Do you know what you are talking about?

aribisala0:
You can be confident I won't be visiting your little blog.

Take home points

Foreign exchange reserves are not government reserves or funds
They are CBN assets used to maintain value of naira and support international trade
They cannot be used as a collateral FOR ANYTHING
Governments do not routinely provide collateral to investors ,I have never heard that before

Can you give one example where Foreign exchange reserves have EVER been used as a collateral?

Just One

Read below, Bank of England definition of FER and equate it to the junk you've been writing. FYI, FER is not only exclusive to your highlighted comment.

This conversation is definitely going nowhere, so knock yourself out if the link below can't cure your ignorance.

https://www.bankofengland.co.uk/-/media/boe/files/ccbs/resources/foreign-exchange-reserves-management.pdf

Dollyak:


Read below, Bank of England definition of FER and equate it to the junk you've been writing. FYI, FER is not only exclusive to your highlighted comment.

This conversation is definitely going nowhere, so knock yourself out if the link below can't cure your ignorance.

https://www.bankofengland.co.uk/-/media/boe/files/ccbs/resources/foreign-exchange-reserves-management.pdf

Simple question

Can you give one example where Foreign exchange reserves have EVER been used as a collateral?

PUSH1:


You are not different from your president if you said this trash.

Lol. How are those fact I said trash? Isn't Nigeria the country with the poorest people in africa? Is south Africa not generating 50,000 megawatts? Southafricans is 100 years miles ahead of Nigeria. A whole president of the country resigned because of corruption allegation. Local government chairman won't even resign in Nigeria self no matter the atrocities he commits. Common use ur brain.

aribisala0:


Simple question

Can you give one example where Foreign exchange reserves have EVER been used as a collateral?

Why should I reply an unintelligent troll who supposedly knows more than BOE, has refused to read the information provided but instead spread his ignorance. Please get off my mentions and welcome to my ignore list.

Dollyak:

Why should I reply an unintelligent troll who supposedly knows more than BOE, has refused to read the information provided but instead spread his ignorance. Please get off my mentions and welcome to my ignore list.

Posting stupid links is no substitute for a lack of substance.

You came here to talk nonsense
Specifically you stated the incredibly stupid idea that

FOREIGN RESERVES CAN BE USED AS COLLATERAL

Such uncommon idiocy is truly rare.

When called out on this you try to bluster and bluff.

It won't work

Your idea of a link between foreign reserves and investment is quite foolish



where is the correlatiion

am they are 70% better off nigeria what a show of shame

Printerscanner:
Nigeria is leading South Africa in net foreign reserves as that of the West African country hits $47.37 billion in March to beat South Africa which has $43.15 billion.

Nigeria which recently recovered from economic recession with less than $21 billion in foreign reserves has built up its reserves massively over one and half years. The increase in the country’s foreign reserves is reported to have stabilised its foreign exchange which had gone haywire in the past.

South Africa’s reserves fell to $43.115 billion in April from $43.384 billion in March, the Reserve Bank said on Tuesday. The forward position, which represents the central bank’s unsettled or swap transactions, was lower at 1.933 billion dollars from 1.996 billion dollars in the previous month. “The decrease of 440 million dollars in the gross reserves reflects the foreign exchange payments made on behalf of the government and the appreciation of the U.S. dollar against most currencies,” the central bank said. Nigeria’s new figures rose from about $46.2 billion realised at the end of March.

The CBN Governor, Godwin Emefiele, announced the new balance in the reserves at the opening of the 25th seminar for Business Editors and financial Correspondents in Uyo. Mr Emefiele, who was represented by the newly appointed deputy governor, Corporate Services, Edward Adamu, said the CBN hopes to meet the $50 billion target before the end of the year.

SOURCE: https://www.vanguardngr.com/2018/05/nigeria-leads-south-africa-foreign-reserves/

Foreign reserves are phenomenally easy to acquire for a resource based economy, especially one that relies on oil. Literally exporting of crude earns you dollars. Nigeria is far weaker than South Africa in every other metric be it economic development, diversification, infrastructure, literacy, wealth per person, etc.

pennyforthought:


Foreign reserves are phenomenally easy to acquire for a resource based economy, especially one that relies on oil. Literally exporting of crude earns you dollars. Nigeria is far weaker than South Africa in every other metric be it economic development, diversification, infrastructure, literacy, wealth per person, etc.

Indeed, hence why this news isn't a course for celebration.

cosmatika:
I just read that our exchange rate has been stabilized; U mean at $1=#360? Nawao.
Moreover, economists in the house should help me explain how this foreign reserve affects the life of a common man who still buys things very costly

This can help
https://www.nairaland.com/4408581/whats-inside-nigerias-foreign-reserves#65998275

cosmatika:
I just read that our exchange rate has been stabilized; U mean at $1=#360? Nawao.
Moreover, economists in the house should help me explain how this foreign reserve affects the life of a common man who still buys things very costly

This can help

https://www.nairaland.com/4408581/whats-inside-nigerias-foreign-reserves#65998275

Petrobros:


Crude Oil price influence no ni.

So when will the ordinary man on the streets start benefiting from the Rise of Crude oil price and increase in external reserves?

This explains the foreign reserve

https://www.nairaland.com/4408581/whats-inside-nigerias-foreign-reserves#65998275

TheAngry1:
And South Africa leads Nigeria in infrastructure and human capital development. The way we celebrate meaningless data, awards and titles in this country ehn! That was how one otondo President and his Zuwo Finance Minister re-calibrated and said we were Africa's biggest economy, while they were busy looting the treasury. Mscheeewwww!

God bless you real good... you said it all!

aribisala0:
You are the one that is confused so I will ask you soe simple questions if you think you have better facts

Tell us in which currency or currencies the US Treasury holds its foreign reserves and how much each in each currency

I thought you will just keep quiet and enjoy your ignorance or better still be educated more by the numerous corrections you have received, then you came up with this your question.
You deserve an award for emptiness.

mars123:
The importance of having a buffed up foreign reserve is just like having dollars (not naira) in your personal savings account. Buhari deserve some accolades for raising that amount from USD 20 billion to what it is now. If Buhari is man enough to keep growing that money and not share it like the previous government, then the next president will have an easy task of managing the economy.

ignorance

Lifestone:

I thought you will just keep quiet and enjoy your ignorance or better still be educated more by the numerous corrections you have received, then you came up with this your question.
You deserve an award for emptiness.

You win the one for FOOL-ness

What is the point of foreign reserve when you can boast of common electricity in so called cities in Nigeria?You might just as well have zero reserve if your country can not afford the basics of life for her citizens.

Animals in humans skin.