Good evening Nairalanders

Please help me understand some things in governance.

Considering the huge debt the country is faced with under this Buhari's Government, why can't the government print money in the CBN and pay the lenders??

Thank you so much.

1.Printing money involves us using scarce foreign reserves to do the job (because most of our currency is printed abroad).

2.Out of the same scarce reserves, we also pay our debts and pay for the running of the country.

3.Also, printing more money=inflation, and eventually a fall in the value of the Naira.

4.Naira can only become more strong if we are more productive.

5.Our creditors want their cash in dollars, not in Naira.

(NOT AN EXPERT....someone can do better than me!)

Rhapsodia:
Good evening Nairalanders

Please help me understand some things in governance.

Considering the huge debt the country is faced with under this Buhari's Government, why can't the government the print money in the CBN and pay the lenders??

Thank you so much.

Reasons.

1. introduce hyper - inflation
2. destroy the value of the Naira
3. cripple manufacturing
4. prepare for mass unemployment
5. destroy your standing in international financial markets


Op if you're a farmer and suddenly you jam plenty money, will u farm again? I bet no. So what will happen to the ppl that buys the food from u? Same wit doc, hair dresser, lecturers etc non of em will waanna work again.

There has to be a delicate balance between the naira in circulation and the forex made from export else we go the way of Zimbabwe so the challenge then is not moey note printing but more productivity, more engagement of our natural resources(beyond crude oil) and human resources to generate more forex to properly run the country and comfortably clear our debts which by the way should not(because it can) be paid once for it's adverse effect on the country economy but rather paid in the staggered way we have agreed like how you pay back a bank loan

Oga you need to study what is inflation iN ECONOMICTO MUCH MONEY IN CIRCULATION CAUSES HYPER

GALLOPING INFLATION

Wahala for who no understand economics
Even me sef no understand

Good question from the OP. Experts in the house should enlighten him.

Why didn't you ask God first before consultation.

Sammy07:


Reasons.

1. introduce hyper - inflation
2. destroy the value of the Naira
3. cripple manufacturing
4. prepare for mass unemployment
5. destroy your standing in international financial markets


Op if you're a farmer and suddenly you jam plenty money, will u farm again? I bet no. So what will happen to the ppl that buys the food from u? Same wit doc, hair dresser, lecturers etc non of em will waanna work again.

I like this your example, oil dey your head.....am learning

Claudiusdeux:
1.Printing money involves us using scarce foreign reserves to do the job (because most of our currency is printed abroad).

2.Out of the same scarce reserves, we also pay our debts and pay for the running of the country.

3.Also, printing more money=inflation, and eventually a fall in the value of the Naira.

4.Naira can only become more strong if we are more productive.

5.Our creditors want their cash in dollars, not in Naira.

(NOT AN EXPERT....someone can do better than me!)

The CBN has a printing facility in Lagos. They can use it. The only problem is the paper needed which is sourced from abroad but we begin to source that locally if the CBN is serious.

Rhapsodia:
Good evening Nairalanders

Please help me understand some things in governance.

Considering the huge debt the country is faced with under this Buhari's Government, why can't the government the print money in the CBN and pay the lenders??

Thank you so much.

Why not print receipt of everything u want and use it to go and collect them ?
Can u ?

Sammy07:


Reasons.

1. introduce hyper - inflation
2. destroy the value of the Naira
3. cripple manufacturing
4. prepare for mass unemployment
5. destroy your standing in international financial markets


Op if you're a farmer and suddenly you jam plenty money, will u farm again? I bet no. So what will happen to the ppl that buys the food from u? Same wit doc, hair dresser, lecturers etc non of em will waanna work again.

You are wrong. The printed money will be used to settle foriegn creditors which means it won't circulate in the local economy.

Rhapsodia:
Good evening Nairalanders

Please help me understand some things in governance.

Considering the huge debt the country is faced with under this Buhari's Government, why can't the government the print money in the CBN and pay the lenders??

Thank you so much.

This is a very good idea. The secret behind America's prosperity is that their Federal reserve prints billions of dollars yearly to settle their foriegn debts.

BRIGHT180:
There has to be a delicate balance between the naira in circulation and the forex made from export else we go the way of Zimbabwe so the challenge then is not moey note printing but more productivity, more engagement of our natural resources(beyond crude oil) and human resources to generate more forex to properly run the country and comfortably clear our debts which by the way should not(because it can) be paid once for it's adverse effect on the country economy but rather paid in the staggered way we have agreed like how you pay back a bank loan

"...generating more FOREX"

Please, I really don't understand this thing with forex...can you break it down? I am tied of pretending to understand it.

Cyberterror:


You are wrong. The printed money will be used to settle foriegn creditors which means it won't circulate in the local economy.

Our foreign creditors don't spend naira, they spend and receive dollars. So after printing the naira it will remain here and be useless to us because they will still have to exchange it to dollars before leaving the country.

Cyberterror:


You are wrong. The printed money will be used to settle foriegn creditors which means it won't circulate in the local economy.

Sir, did you do econometrics?
How can you use printed money to settle debts?
Do you know the rationale behind printing money?
Naira will be devalued, people will be poorer.

Don't you know that money is being regulated?

Lol, so you think they'll just print money and ask China for their account number and Nigeria will just send am Gbam?

SUPERPACK:
Our foreign creditors don't spend naira, they spend and receive dollars. So after printing the naira it will remain here and be useless to us because they will still have to exchange it to dollars before leaving the country.

Very good

Brilliant. Settled

QED!

tatatar:
Same way you can't create a car,house, foodstuffs,clothes....products and services out of thin air then you shouldn't just print money because money represents these things. Doing so would lead to consequences like inflation,in other words just printing money doesn't actually create money,you've only transfered the cost to others.
The money is just paper and has no value on its own .See it as an advanced and convenient form of trade by barter. The money is proof that you own or earned that amount of product or services and hence can be exchanged for its equivalent product or service.

I love this your last paragraph....sense wan kill you. God bless....

SUPERPACK:
Our foreign creditors don't spend naira, they spend and receive dollars. So after printing the naira it will remain here and be useless to us because they will still have to exchange it to dollars before leaving the country.

So what if, after printing the Naira, we use it to buy dollars from central bank and send it to China bank account??

[s]

Cyberterror:


The CBN has a printing facility in Lagos. They can use it. The only problem is the paper needed which is sourced from abroad but we begin to source that locally if the CBN is serious.

[/s]

What trash are you saying sir?
Are you sure you did economics in higher institution
If no, pls let those of us that studied it or those that has knowledge on the topic should answer it.

Rhapsodia:



So what if, after printing the Naira, we use it to buy dollars from central bank and send it to China bank account??

Sense

This means the people traveling out of the country for greener pastures have a higher intelligence quotient.

Now that naira has devalued, now u cannot see original perfume to buy again

Naso so pirated inferior perfume u go dey see.

The Miyetti Allah FULANI HERDSMEN GROUP ARE GETTING THE MONEY. THAT'S WHY WE HAVE ARTIFICIAL QUIETNESS IN THE NORTH.

Rhapsodia:



So what if, after printing the Naira, we use it to buy dollars from central bank and send it to China bank account??

Money must be scarce so that it can have value.

Rhapsodia:
Good evening Nairalanders

Please help me understand some things in governance.

Considering the huge debt the country is faced with under this Buhari's Government, why can't the government the print money in the CBN and pay the lenders??

Thank you so much.

If you borrow in dollars, you will print dollars to pay them back abi?

Cyberterror:


You are wrong. The printed money will be used to settle foriegn creditors which means it won't circulate in the local economy.

Nigeria can only print Naira and foreign creditors wants Dollars, meaning you can't print money to settle your debt. What we need now is to be productive to get foreign currency like Dollar, Euro and Pounds to help Naira gain value.

So printing money is not the solution as it lead to inflation even USA that has the power to print Dollar since their currency is generally acceptable worldwide will not do that because it will make their creditors more powerful, if printing money is the solution, USA will not borrow.

Rhapsodia:



So what if, after printing the Naira, we use it to buy dollars from central bank and send it to China bank account??

This is what I wanted to type now. Good to know you are thinking straight not like the other clowns in this thread. This is what countries like America, UK and Canada have been secretly doing for ages but they will tell Africans and Latin Americans not to do same using mumbo jumbo economic fear mongering and clowns will buy hook, line and sinker.

Cyberterror:


The CBN has a printing facility in Lagos. They can use it. The only problem is the paper needed which is sourced from abroad but we begin to source that locally if the CBN is serious.

Oh you mean NSPMC...

Last time we had to print currency, NSPMC was saying they could not meet all our demand.

Cyberterror:



This is what I wanted to type now. Good to know you are thinking straight not like the other clowns in this thread. This is what countries like America, UK and Canada have been secretly doing for ages but they will tell Africans and Latin Americans not to do same using mumbo jumbo economic fear mongering and clowns will buy hook, line and sinker.

We cant use this tactics smartly.

Rhapsodia:



So what if, after printing the Naira, we use it to buy dollars from central bank and send it to China bank account??

1.We don't have enough dollars with the CBN in the first place due to the falling price of oil which accounts for most of our frex income.

2.In printing the money, we would have had to use forex to pay the printers, even if we do use NSPMC, which can't even meet all our demand...which means lower forex income.

3.We have to earn more dollars, and that is only possible if we are more productive.

Once you know Nigeria's problem is that we don't have enough forex , you will understand a lot of things....