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Nairaland Forum / Nairaland / General / Business / Why Can't The CBN Just Print More Money? (30273 Views)
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Re: Why Can't The CBN Just Print More Money? by InvertedHammer: 3:49pm On Sep 04, 2022 |
PNomsule:/ 1. Does Nigeria print her own money? 2. Why are other nations not turning on their printers as well? 3. Is Nigeria running a real Economy in the real sense of it? Personally I believe it is all textbook. The data you see just about everything in Nigeria is cooked up in a peppersoup joint. 4. Think about printing money in terms of supply and demand. Do what do you think will happen to naira if there is excess money supply in the system? 5. Currently there is excess liquidity in the system. The major issue is that they are converted into foreign currencies and banked outside Nigeria by looters. A lot of Nigerian money is not circulating in the system to support local economy. / |
Re: Why Can't The CBN Just Print More Money? by planetx: 3:50pm On Sep 04, 2022 |
The same money that the Americans print recklessly and call it quantitative easing. 80% of the dollars in circulation was printed over the last 3 years. 1 Like |
Re: Why Can't The CBN Just Print More Money? by sholikay(m): 4:02pm On Sep 04, 2022 |
I'm not a financial analyst or student... Printing more money is a waste of time..what is needed is proper circulation of money..before the advent of money, people do trade by barter system before they saw some disadvantages and then decided to bring in money so that you will have to buy what you need easily and sell easily.. unlike the trade any barter where you will wait for someone that both have different items they needed so they can pair up and exchange... Why people find it easier in saner climes is because,their taxing system is fair,they execute infrastructural project when due,with the right contractors and right amount....no much bribing,like the case of our dear country,no substandard and abandoned project.... If these projects are being awarded by the government to those contractors,with thr tax money,the contractors will employ people or workers,they pay them well, according to their minimum wage which is quite okay,they won't owe them their wages or salaries,as when due,the workers in return will be able to purchase what they need,eat well and afford things easily,while those selling items the workers purchases also will sell at a lesser AD control prices, without having to fault bad roads,agbero, or high cost of transportation of their goods, greed etc,just to hike their basic goods price ..then the sellers and workers too will gladly pay their taxes ,apart from the enforcement by government.. because they know they are earning well,and no hitch in their business...these same money goes back to the governmentas tax(es)and then it's will be a continuous cycle.... I feel where monies should be printed more is in the cases of torn or worn out monies..that is why the whites makes sure you don't manhandle their currencies unlike ours..... The money circulation system is not just working effectively in our dear country..mif they print more money it will encourage more embezzlement and inflation..las las,na poor people go still suffer am.... stealing can never be totally eradicated from our governmental leaders..it's always their by default of assuming whatever position...only God can enter their heart thoroughly.... |
Re: Why Can't The CBN Just Print More Money? by darediamond(m): 4:05pm On Sep 04, 2022 |
PNomsule:If them Like, make them print Willions of Naira. As long as oil Backed Dollar is Rigth there in the Commercial Banks and The Tech to extract them are there too like ATM cards and yes Mobile ATMs, I. W. T enable Cards etc., hmm... to Hell With The ARTIFICAL INFLATION THEY ARE CREATING OR WOULD CREATE AGAINST THE MASSES! Who as time for slow motion? MO MO ona ti oya, MO YA GBE OKADA. KNOWLEDGE FIRST BEFORE MONEY... |
Re: Why Can't The CBN Just Print More Money? by Nobody: 4:10pm On Sep 04, 2022 |
PNomsule:Price control has its own limits too and it will eventually lead to shortage/scarcity and create black market. Last last no body go dey alright. Ask Venezuela, USSR and East Germany. |
Re: Why Can't The CBN Just Print More Money? by highness25(m): 4:30pm On Sep 04, 2022 |
PNomsule:I understand. He would have had a chance if he had allowed peace reign in Rivers APC because everyone would have supported him there |
Re: Why Can't The CBN Just Print More Money? by emmaskyblue(m): 4:30pm On Sep 04, 2022 |
Printing more money is like giving birth to so many children without feeding or taking care of them. When you print without investment plan it becomes suicide. |
Re: Why Can't The CBN Just Print More Money? by emmaskyblue(m): 4:30pm On Sep 04, 2022 |
Printing more money is like giving birth to so many children without feeding or taking care of them. When you print without investment plan it becomes economic suicide. 1 Like |
Re: Why Can't The CBN Just Print More Money? by kgr28(m): 4:33pm On Sep 04, 2022 |
planetx:True. World Bank and IMF only threatens African countries with all sorts of sanctions whenever they mention printing money. The point here is yes a country can print money, but that money should not be used for current expenditure, but for infrastructure development and funding small businesses and research and development. The story of Zimbabwe was that they printed money to fund the payroll of government employees while neglecting the private sector investment. |
Re: Why Can't The CBN Just Print More Money? by Fidelismaria: 4:35pm On Sep 04, 2022 |
Halo22: PNomsule, The above should answer your question. Also by the time you'll increase the capacity to employ more people, the country will already be too broke to afford the cost. Also, why will I need to work in a rice producing factoring when the government just gave me 10million Naira for doing nothing? A lot comes into play here, and Nigeria government cannot control all the factors. So, the short answer is no, it's not impossible because our economy overly relies on imported products, raw materials etc. |
Re: Why Can't The CBN Just Print More Money? by Tqw1: 4:38pm On Sep 04, 2022 |
Yeah |
Re: Why Can't The CBN Just Print More Money? by pointblankeirie: 5:02pm On Sep 04, 2022 |
Truth of the matter is with excess money in circulation no one will want to work |
Re: Why Can't The CBN Just Print More Money? by whitemand4(m): 5:25pm On Sep 04, 2022 |
Taigaban: You don't necessarily need to print money in form of paper note. When you deposit money in the bank the credit alert you receive on your phone is a form of money printing. Banks can credit ur account weather you deposit cash or not. America dey do am steadily |
Re: Why Can't The CBN Just Print More Money? by skj1377(m): 5:52pm On Sep 04, 2022 |
Inflation . Or in other words Zimbabwe loading |
Re: Why Can't The CBN Just Print More Money? by Scientheosopher(m): 6:08pm On Sep 04, 2022 |
Print more money; lend it to manufacturing companies that would employ workers thereby reducing unemployment; and the regulation of price by govt. Hmm. While it reads like socialism, it's a reasonable measure. However, regulation is the main problem; and we have the agencies as you pointed out but they performing below expectations. Govt being govt, they will probably get slack along the way as usual. This would make companies try to raise price, defeating the initial plan. (It should be noted that companies are largely driven by profit. When govt control prices directly and tightly as it would happen in this situation, companies don't feel comfortable because they don't make as much gain if the reverse is the case. Consequently, they will reduce, if not stop, production). A major problem that's hurting the economy is that our govt don't like buying local goods. How many govt officials uses Innoson motors or eat rivers' rice? So for this to work, govt need to start buying internally manufactured goods however low in quality they may be and pressure makers to improve quality. That said, instead of printing more money, I suggest lending from the ones already present to companies. This would remove printing costs, which would inturn reduce govt's non-job creation expenditure that is usually a cause of inflation. And more importantly, the loans should be of low interest rate so that they can easily be paid. 1 Like |
Re: Why Can't The CBN Just Print More Money? by Scientheosopher(m): 6:12pm On Sep 04, 2022 |
Print more money; lend it to manufacturing companies that would employ workers thereby reducing unemployment; and the regulation of price by govt. Hmm. While it reads like socialism, it's a reasonable measure. However, regulation is the main problem; and we have the agencies as you pointed out but they are performing below expectations. Govt being govt, they will probably get slack along the way as usual. This would make companies try to raise price, defeating the initial plan. (It should be noted that companies are largely driven by profit. When govt control prices directly and tightly as it would happen in this situation, companies don't feel comfortable because they don't make as much gain if the reverse is the case. Consequently, they will reduce, if not stop, production). A major problem that's hurting the economy is that our govt don't like buying local goods. How many govt officials uses Innoson motors or eat rivers' rice? So for this to work, govt need to start buying internally manufactured goods however low in quality they may be and pressure makers to improve quality. That said, instead of printing more money, I suggest lending from the ones already present to companies. This would remove printing costs, which would inturn reduce govt's non-job creation expenditure that is usually a cause of inflation. And more importantly, the loans should be of low interest rate so that they can easily be paid. 1 Like |
Re: Why Can't The CBN Just Print More Money? by Quicksilver14: 6:22pm On Sep 04, 2022 |
jumper524: The US owes no one. They just keep printing money and are indebted to no one. This guy explains it better. https://www.youtube.com/watch?v=mQUhJTxK5mA 1 Like |
Re: Why Can't The CBN Just Print More Money? by UtuokeAlcoholic: 6:22pm On Sep 04, 2022 |
PNomsule:Why don't you advocate for adequate supply first before raising demand to be on the safer side? 1 Like |
Re: Why Can't The CBN Just Print More Money? by Cmeo(m): 6:33pm On Sep 04, 2022 |
Timekeeper452: Kudos to your explanation. However, Nigeria's situation deterred most globally known theories from having effects due to a lot of peculiarities/variables because of our creativity (both negatively and positively). The true value of money is in productivity and the real sense of productivity resides with peoples' capacity and the resources under them. Print more money will help our economy at this time provided it is directly to acquiring plant and machines that will boast our productivity. 1 Like |
Re: Why Can't The CBN Just Print More Money? by Quicksilver14: 6:37pm On Sep 04, 2022 |
Every currency is compared with the US dollar. (Forex 101) If we print more money and distribute, this will happen. Every child will have at least 5 million naira in cash. Brick layers will want to be paid 100million naira weekly. Lawyers and bankers will want 10 billion naira monthly. That's called inflation. This affects NGN/USD. 1 dollar will = 1million naira. If Nigeria has 300 million *dollars* debt, we will need to print 300m*1m naira. Print more.? 1 dollar will now = 10million Now we have 200 million USD in debt. Better right? Wrong! We will need 200m *1m naira to pay the debt. Guess what, this figure is larger than the "300m *1m naira" we started at. The more we print, the more zeros will be added to the debt we owe. Keep printing more and people will need to carry money in wheel barrows, just to buy fuel. 1 Like |
Re: Why Can't The CBN Just Print More Money? by Quicksilver14: 6:41pm On Sep 04, 2022 |
The US dollar isn't backed by anything, they just keep printing more of that s**t. But they pay for it by inflation rate only (rise is price of goods). They're indebted to no one. |
Re: Why Can't The CBN Just Print More Money? by Timekeeper452: 7:33pm On Sep 04, 2022 |
Cmeo:so you believe if more money is printed, our government will use it to acquire plant and machines that boost productivity? Our Nigerian leaders? Lol. With the one in circulation even, education is crumbling towards its death. 1 Like |
Re: Why Can't The CBN Just Print More Money? by Masterchef(m): 9:43pm On Sep 04, 2022 |
PNomsule: Very funny post but the fact is that companies won't just build more processing plants simply because people have money they'll probably blow in 3 months when it'll take 12 to 18 months to build such plants and they'll have to go borrowing to do so. Secondly, I guess it makes more sense providing funds to industries to expand rather than funding consumption. Again, part of the problem companies in Nigeria are facing today are those of high cost of diesel, power, uncertainty caused by insecurity and rising cost of imported inputs. This makes them non competitive and we have to keep importing from China. Then, you can't just assume there is a market waiting to take whatever local companies will be producing extra. For instance, if the Cocacola company in Nigeria starts producing more drinks today, do you assume people will automatically start buying more? If that's the case, then you can also assume that those expansion projects have already been done. By the way, you need to be specific on the type of processing plants you have in mind and what they are supposed to be producing more of. Lastly, trying to solve unemployment or underemployment problems by just giving people handouts seems to be disingenuous. If things work that way, it means we better share every Nigerian multiples of the N5m you suggested. But you can bet me that some of us won't get a dime while those with privileges will get multiple rations. In summary, Nigeria will be better only when it has the right policies to develop say, it's petroleum refining capacity; develop large industries that will produce the many things we import; engage in large scale agriculture for export; build human capacity so the people have the modern education and skills that makes them employable or productive etc Doling out cash to peoole is simply a shortcut to nowhere! 1 Like |
Re: Why Can't The CBN Just Print More Money? by smogia1994(m): 10:14pm On Sep 04, 2022 |
jumper524:Financial analyst to the mud u are a failed being. I pity dos who envy you |
Re: Why Can't The CBN Just Print More Money? by blackfase(m): 10:34pm On Sep 04, 2022 |
The plank of the issue you raised is premised on another fact that your country Nigeria, hardly produces most commodities your country men prefer to use. Let me cite two examples in simple terms. 1. Nigerians would prefer to buy an imported Toyota or Honda in preference to an Innoson auto. 2. Nigerians would prefer a Samsung phone to lets say an Innoson Android phone assuming they manufacture one. These two examples are in response to how challenging it will be for capitalists to get people employed as you stated. This fundamental is at the very heart of the unemployment crisis your Nigeria is bleeding from. PNomsule: 1 Like |
Re: Why Can't The CBN Just Print More Money? by being(m): 10:39pm On Sep 04, 2022 |
First of all economics is a social SCIENCE that tries to study & predict human behaviour. Give EVERYONE 5M, why would ANYONE want to work? Sọ goods & services will actually reduce... and then d demand would have increased because of extra money in circulation and here comes inflation.. Now inflation generally is unwanted but in some cases it can lead to higher productivity in the economy which is the actually objective of any macro economist. So let's go back to giving people money- if you give the poorest people or those who are least or un productive money, more demand is created, inflation, but then higher productive people catch on the demand to be able to make more money. Unlike if you gave everybody PNomsule: 1 Like |
Re: Why Can't The CBN Just Print More Money? by steveodo(m): 11:00pm On Sep 04, 2022 |
Why are you proud in ignorance,seigniorage can go both ways, is either the government loss or gain, make research on how Much D&G produce 1000 note. PNomsule: |
Re: Why Can't The CBN Just Print More Money? by muyico(m): 5:06am On Sep 05, 2022 |
PNomsule: 1 Like |
Re: Why Can't The CBN Just Print More Money? by BluntCrazeMan: 5:25am On Sep 05, 2022 |
PNomsule:You see that Currency they call Zimbabwean Dollar?? Go and Questions why it crashed. |
Re: Why Can't The CBN Just Print More Money? by Belawy(m): 6:06am On Sep 05, 2022 |
You made some good view point at the beginning but spoilt it because of your partisan politics. Printing more money in an economy is bad cos plenty money would chase view goods. But they're still some cases you still have to print money to address some certain things Sucre6: |
Re: Why Can't The CBN Just Print More Money? by Sucre6: 6:12am On Sep 05, 2022 |
Belawy: Everyone has got its own opinion, so that's mine, plus there is certain amount of money that should be in circulation, ones there is excess then inflation sets in |
Re: Why Can't The CBN Just Print More Money? by deniguy01(m): 6:35am On Sep 05, 2022 |
Lies. Donald trump gave out a lot of money using Pandemic unempLoyment assistance(PUA). Did it lead to inflation. Everyone blew their money under 2 years. |
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