Dullardihio policies
Japan errand boi

APCHaram:
This is total nonsense.

As stupid as this govt is, this policy of easing on borrowing is not a bad idea towards stimulating investments and consumer spending. The only thing the CBN has to do is reduce lending rates so as not to over inflate the economy.

These useless banksters have double standards when viewing developing and western economies.

The Federal reserves has a 0% lending rate for banks and loan rates are hovering at no more than 3% and 15% for business and consumer loans respectively.

Buhari is a dunce, agreed but these jew rat banksters need to be ignored.

you need to brush up on your economics, reducing interest rates actually causes inflation as it makes borrowing cheaper, cause more spending, more demand and hence prices to rise, hence inflation. Increasing does the opposite.

These are reasons why this country entered recession, every economic and development indices is heading towards negativity.

isthatso:


you need to brush up on your economics, reducing interest rates actually causes inflation as it makes borrowing cheaper, cause more spending and hence prices to rise. Increasing does the opposite.

Not in the case of Nigeria where consumption has dipped significantly owing to economic depression.

There are too many goods and services available but very low patronage owing to austerity.

If the retailers can't move their products they won't restock and in turn producers and importers alike will record significant loses. With those loses they will default on existing loans and or cut down drastically in operations leading to job losses.

APCHaram:


Not in the case of Nigeria where consumption has dipped significantly owing to economic depression.

There are too many goods and services available but very low patronage owing to austerity.

like i said brush up on your economics. Our problems in Nigeria are fiscal and structural not a monetary policy deficit.

APCHaram:
This is total nonsense.

As stupid as this govt is, this policy of easing on borrowing is not a bad idea towards stimulating investments and consumer spending. The only thing the CBN has to do is reduce lending rates so as not to over inflate the economy.

These useless banksters have double standards when viewing developing and western economies.

The Federal reserves has a 0% lending rate for banks and loan rates are hovering at no more than 3% and 15% for business and consumer loans respectively.

Buhari is a dunce, agreed but these jew rat banksters need to be ignored.

My thoughts exactly. Very soon, a lot of uninformed jobbers will jump on the back of this uningenious idea to castigate the federal government, for the simple reason that they hate Buhari. In their own countries, almost every body has a credit card. Any sensible body knows that lack of access to finance by Nigerian msmes has contributed in no small way to a stagnation of the Nigerian economy. Finally the central bank is forcing greedy and shyllock banks, (who ordinarily declare huge profits at the end of each financial year), into lending more and the likes of Fitch are not happy about it. They must be mad in that place.

sylve11:


but make we talk truth small, GEJ fucck up too. Our leaders are mad people. their brains wear torn rags.

Quote of the day.

I pity foreign portfolio investors who have pumped money into treasury bills. Were the Naira to devalue unexpectedly, they'll lose heavily.

Anyway, irresistible double digits rates have lured them in compared to the pittance available in the rich countries. They had better keep their ears to the ground and flee before anyone else, before the poo hits the fan.

Emefiele' s poor attempt at picking winners will see it losing hundreds of billions in lending to zombie companies. His persistent refusal to allow creative destruction do it's work and perennial meddling by him and the president is taking a toll on the economy

Nbote:
Noooo PMB is d best thing to have happened to dis country since afta jollof rice.. All d policy somersault is caused by d PDP and GEJ and presently by Atiku

"May"...... Guy, may don pass, na august we dey. We are in crisis already.

Which Crisis again abi the economy don first comot from crisis before?

Mind your business, Fitch.

As No Nigerian now has guts to tell PMB truth, so let foreigners talk to PMB.
Nigeria, pity you and your citizens.

DuxofMen:


My thoughts exactly. Very soon, a lot of uninformed jobbers will jump on the back of this uningenious idea to castigate the federal government, for the simple reason that they hate Buhari. In their own countries, almost every body has a credit card. Any sensible body knows that lack of access to finance by Nigerian msmes has contributed in no small way to a stagnation of the Nigerian economy. Finally the central bank is forcing greedy and shyllock banks, (who ordinarily declare huge profits at the end of each financial year), into lending more and the likes of Fitch are not happy about it. They must be mad in that place.

In your opinion what has the effects of TSA been on the economy since we have entered an era whete government is perceived to be a better manager of resources than the citizens or shall we say the private sector. Why can't TSA be suspended for a season.

Chidexter:
Their entire write up, proposition and analysis doesnt have, RUga, or FUlani in it, therefore it would be ignored by the FG

Be deceiving ur kinsmen with false information and hate speech. Fulani is more than a tribe of 5 to 6 million people. Fulani people are in 6 African countries. So your online hate speech will only make your kinsmen bitter about life. Which will only make them suffer depression health wise.

grandstar:
I pity foreign portfolio investors who have pumped money into treasury bills. Were the Naira to devalue unexpectedly, they'll lose heavily.

Anyway, irresistible double digits rates have lured them in compared to the pittance available in the rich countries. They had better keep their ears to the ground and flee before anyone else, before the poo hits the fan.

Emefiele' s poor attempt at picking winners will see it losing hundreds of billions in lending to zombie companies. His persistent refusal to allow creative destruction do it's work and perennial meddling by him and the president is taking a toll on the economy

I like that.... creative destruction. Useful tool in development in a sense..... Hopefully it will work in the political sphere where Nigerians may come alive and enlightened to democracy and civic responsibilities when they experience the torrid sufferings of bad governance for a season.

Reference:


In your opinion what has the effects of TSA been on the economy since we have entered an era whete government is perceived to be a better manager of resources than the citizens or shall we say the private sector. Why can't TSA be suspended for a season.

TSA helps to curb corruption to certain level. It has blocked some loopholes.

The idiot of a president is only interested in just harassing youths in the name of fighting corruption.

You are even keeping track of how much and how they bribe. You refused to arrest them and now you're coming out to tell us. What should we do about this?

nwakibie3:
Fitch, a credit ratings international organisation has disclosed that the Central bank of Nigeria (CBN) under President Muhammadu Buhari might drag the Nigerian economy in crisis due to mismatch in economic policy management.

In the latest report released by Fitch, titled Nigeria’s Unconventional Policies Aggravate External Vulnerability, the organisation stated that the CBN’s recent attempt to boost economic activity through giving incentives to banks’ lending had clashed with the goal of maintaining a stable exchange rate, and this is not good for the economy.

Uncoordinated policies: Fitch noted that the CBN’s policy moves to reconcile competing goals through unconventional macroeconomic management and weaknesses in policy settings were raising medium-term vulnerabilities to shocks, and this could expose the economy more to falling oil prices or disruptions to hydrocarbon production.

- According to the report, tight management of domestic liquidity had been the key pillar of Nigeria’s exchange-rate policy in recent years.

- However, the recent measures to boost lending have contributed to a temporary loosening of domestic financing conditions. This has combined with falling oil prices and deteriorating investor sentiment towards emerging markets to put pressure on the naira.

- Specifically, one of the major policies cited by Fitch is the policy implemented in July, which includes a requirement for banks to have a loans-to-deposits ratio of at least 60% by the end of September and tighter restrictions on the amount of remunerable deposits that banks can park at the Central Bank.

Macroeconomic Pressures: Also, it was stated that exchange rate movement pressured the CBN to resume its liquidity tightening operations in August by auctioning Open Market Operations (OMO) bills, and to increase the supply of foreign currency, releasing about $800 million from its foreign-currency reserves between mid-July and mid-August.

- According to Fitch, these moves by the CBN have contributed to a rebound in domestic interest rates and limited the depreciation of the naira on the Investors’ and Exporters’ FX Window by 1% since the end of June.

- Hence, Fitch noted that the competing goals of preserving naira stability and supporting Nigeria’s fragile recovery were pushing the CBN towards increasingly complex policy measures, with a risk of aggravating external vulnerability or causing macroeconomic distortions.

- Fitch stated that the CBN’s policy of auctioning OMO bills to non-residents had led to a rapid build-up of short-term external liabilities with non-resident holdings of these bills amounting to $15.8 billion (4% of GDP) at end-April, equivalent to a third of reserves. This generates meaningful rollover risks, which could necessitate persistently high-interest rates, holding back growth and increasing the government’s debt-servicing costs

FOREX restriction on milk and food items: Fitch identified CBN’s recent move to intensify restrictions on FOREX access for imports that were imposed in 2015. While the President of Nigeria, Muhammadu Buhari, recently called on the CBN to end FOREX for milk importers, the President has also announced restriction of FX access for all food imports, but according to Fitch, the scope, modalities and timeline of such measures remain unclear.

Also according to Fitch, FX restrictions are unlikely to foster expansion in the domestic food supply, as Nigeria’s agricultural and food sectors suffer from deep-seated challenges from infrastructure gaps, communal conflicts, insecurity and weather hazards. Instead, these restrictions could push more traders towards the informal economy and compound inflationary pressures.

On Nigeria’s inflation, Fitch noted that Nigeria’s Inflation at about 11% already raises the risk of an overvaluation of the real effective exchange rate, which could put more pressure on the naira and increase the risk of a sharp adjustment following an oil price shock. Withdrawal of portfolio investors would aggravate the potential balance of payment pressures.



https://nairametrics.com/2019/08/28/buharis-cbn-policies-may-drag-nigerian-economy-into-crisis-fitch/

It should've been 'Previous Level' instead of Next level, cos we seem to be going backwards on all indices.

Tomorrow, he will lie that PDP caused
the problems

I stand with CBN governor after all his monetary prudence and management steered Nigerian economy outside self-made recession.

nwakibie3:
Fitch, a credit ratings international organisation has disclosed that the Central bank of Nigeria (CBN) under President Muhammadu Buhari might drag the Nigerian economy in crisis due to mismatch in economic policy management.

In the latest report released by Fitch, titled Nigeria’s Unconventional Policies Aggravate External Vulnerability, the organisation stated that the CBN’s recent attempt to boost economic activity through giving incentives to banks’ lending had clashed with the goal of maintaining a stable exchange rate, and this is not good for the economy.

Uncoordinated policies: Fitch noted that the CBN’s policy moves to reconcile competing goals through unconventional macroeconomic management and weaknesses in policy settings were raising medium-term vulnerabilities to shocks, and this could expose the economy more to falling oil prices or disruptions to hydrocarbon production.

- According to the report, tight management of domestic liquidity had been the key pillar of Nigeria’s exchange-rate policy in recent years.

- However, the recent measures to boost lending have contributed to a temporary loosening of domestic financing conditions. This has combined with falling oil prices and deteriorating investor sentiment towards emerging markets to put pressure on the naira.

- Specifically, one of the major policies cited by Fitch is the policy implemented in July, which includes a requirement for banks to have a loans-to-deposits ratio of at least 60% by the end of September and tighter restrictions on the amount of remunerable deposits that banks can park at the Central Bank.

Macroeconomic Pressures: Also, it was stated that exchange rate movement pressured the CBN to resume its liquidity tightening operations in August by auctioning Open Market Operations (OMO) bills, and to increase the supply of foreign currency, releasing about $800 million from its foreign-currency reserves between mid-July and mid-August.

- According to Fitch, these moves by the CBN have contributed to a rebound in domestic interest rates and limited the depreciation of the naira on the Investors’ and Exporters’ FX Window by 1% since the end of June.

- Hence, Fitch noted that the competing goals of preserving naira stability and supporting Nigeria’s fragile recovery were pushing the CBN towards increasingly complex policy measures, with a risk of aggravating external vulnerability or causing macroeconomic distortions.

- Fitch stated that the CBN’s policy of auctioning OMO bills to non-residents had led to a rapid build-up of short-term external liabilities with non-resident holdings of these bills amounting to $15.8 billion (4% of GDP) at end-April, equivalent to a third of reserves. This generates meaningful rollover risks, which could necessitate persistently high-interest rates, holding back growth and increasing the government’s debt-servicing costs

FOREX restriction on milk and food items: Fitch identified CBN’s recent move to intensify restrictions on FOREX access for imports that were imposed in 2015. While the President of Nigeria, Muhammadu Buhari, recently called on the CBN to end FOREX for milk importers, the President has also announced restriction of FX access for all food imports, but according to Fitch, the scope, modalities and timeline of such measures remain unclear.

Also according to Fitch, FX restrictions are unlikely to foster expansion in the domestic food supply, as Nigeria’s agricultural and food sectors suffer from deep-seated challenges from infrastructure gaps, communal conflicts, insecurity and weather hazards. Instead, these restrictions could push more traders towards the informal economy and compound inflationary pressures.

On Nigeria’s inflation, Fitch noted that Nigeria’s Inflation at about 11% already raises the risk of an overvaluation of the real effective exchange rate, which could put more pressure on the naira and increase the risk of a sharp adjustment following an oil price shock. Withdrawal of portfolio investors would aggravate the potential balance of payment pressures.



https://nairametrics.com/2019/08/28/buharis-cbn-policies-may-drag-nigerian-economy-into-crisis-fitch/

I know that Nigeria is on the best tracks, the moment all these arm companies or bodies of these so called "world powers or G-something" economies are coming with a public report to sacred educated illiterates Nigerians to revolt against a government policy or move.

Nbote:
Noooo PMB is d best thing to have happened to dis country since afta jollof rice.. All d policy somersault is caused by d PDP and GEJ and presently by Atiku... Infact Igbos are responsible for d policies not working as dey are supposed to.. D policies are actually working perfectly jus dat it's effects are so bright we can't see it yet

If you were employed in company to replace a manager that was not bringing in needed results and at the point entry you were given a target and timeline within which to meet the set target,then as time goes on you didn't live up to expectations and you kept putting the blame on your predecessor,can you guess what would become of you?

Burger01:
Buhari again

Who cursed Nigeria with this dullard of a president

We are tired of this dullard..

He should just go..

so many are not tired of him: The more incompetent he gets, the more fans he has!

APCHaram:
This is total nonsense.

As stupid as this govt is, this policy of easing on borrowing is not a bad idea towards stimulating investments and consumer spending. The only thing the CBN has to do is reduce lending rates so as not to over inflate the economy.

These useless banksters have double standards when viewing developing and western economies.

The Federal reserves has a 0% lending rate for banks and loan rates are hovering at no more than 3% and 15% for business and consumer loans respectively.

Buhari is a dunce, agreed but these jew rat banksters need to be ignored.

I believe this will be the first time I am agreeing with you on an issue that involves the Nigerian economy.

Nbote:
Noooo PMB is d best thing to have happened to dis country since afta jollof rice.. All d policy somersault is caused by d PDP and GEJ and presently by Atiku... Infact Igbos are responsible for d policies not working as dey are supposed to.. D policies are actually working perfectly jus dat it's effects are so bright we can't see it yet

congrats bro, at least. one of your favourite news is coming in...

APCHaram:
This is total nonsense.

As stupid as this govt is, this policy of easing on borrowing is not a bad idea towards stimulating investments and consumer spending. The only thing the CBN has to do is reduce lending rates so as not to over inflate the economy.

These useless banksters have double standards when viewing developing and western economies.

The Federal reserves has a 0% lending rate for banks and loan rates are hovering at no more than 3% and 15% for business and consumer loans respectively.

Buhari is a dunce, agreed but these jew rat banksters need to be ignored.

Well, I beg to differ a bit.

If we move away from all the economic & financial jargons, a salient point made was that there are no policy frameworks with definite timelines for action to implement whatever plan the government has.

The import is that PMB's understanding of the marriage between fiscal & monetary policy actions is rudimentary at best & suffers from knee jerk reactions rather than well thought out & realistic forecasting.


In otherwords, like you noted, the general idea might seem good, but again, where is the framework that supports that idea, gives a structure, addresses the drawbacks & mitigates the negative fallout... That, I think is the thrust of the matter...

Buhari is on top of the matter. No need to waste time talking. He is fixing it already. This is evidence we are in the next level. You know this is a paid writeup by the PDP. Our EFCC has traced the deposit from Atiku to the foreign account where the deposit was made. In due time, we will fish out the culprits.

We ask all Nigerian to be patient with the president as this is already settled. You may witness some of the actions as hardship but it is evidence we are building our country. PDP and IPOB are out to rubbish our effort. We ask you to remain patriotic and live within your means.