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Politics › Re: Peter Ekpendu Reacts To The Assault Onyemaechi Mrakpor by olagamalin(m): 11:25pm On Apr 22, 2016

He admitted to only 4 cars in his convoy. Wait......Are these people mad in this country .....a comptroller of prison has 4 cars!!!!! & he's got the nerve.

No Longer at ease, things have surely fallen apart ....we need a man of the people.

Culture › Re: Ooni Ogunwusi Hosts African Ambassadors In His Palace - Photos by olagamalin(m): 6:30pm On Apr 21, 2016

TANTUMERGO007:
and they compare this omi of ife to the great OBA of BENIN, this omi of ife that was declared wanted by EFCC to an OBA that is 'stainless'.

Pls, what is the point of this comment?

8 Likes 1 Share

Politics › Re: Budget Distortion: Fear Grips NASS Members by olagamalin(m): 9:15am On Apr 16, 2016

TPAND:
Why are all exonerating Ameachi. NASS shouldn't be blamed for a ministry's error. Ameachi never included it in the budget. The all uprising in NASS over the missing Lagos-Calabar railway still amazes me.

We should put the blame on Ameachi for such fatal flaw.

****try to read. Who mentioned Rail

Nairaland General › Re: How To Make Sense Of Nigeria’s Currency Swap Deal With China by olagamalin(op): 7:17am On Apr 16, 2016

As you can see, Nigeria is coming very late to the party. Perhaps, this might open the gates in Sub-Saharan Africa. It’s also clear they are done on a country by country basis depending on the amount of trade that goes on between them (although the exact correlation is not so easy to work out).

You’re probably asking — if the agreements are for 3 years, what happens at the end? In theory, both countries simply exchange currencies at the same exchange rate they used at the beginning of the swap. Returning to the example above — Nigeria will return the Y1bn to the PBOC and take back its N30bn from them. If this sounds too good to be true, it is. The person who initiated the swap will pay interest on the money it received at an agreed interest rate.

So What Did Nigeria Swap?

Given the above, inquiring minds probably want to know how much Nigeria swapped with China and when does the agreement begin? Well, this is Nigeria and nothing is ever straightforward as it should be.

First of all, it appears that the swap Nigeria entered into was with the Industrial and Commercial Bank of China (ICBC) — the world’s largest bank by assets. That is, the CBN is not dealing with the PBOC but with a ‘private’ Chinese bank (ICBC is owned by the Chinese government).

Second, I have trawled the internet and cannot find the amount that was or is being swapped. As you can see from above, there has to be an amount swapped for it to make any sense. I have searched Chinese news outlets and even ICBC’s news page and cannot find anything on the swap let alone the amount. The news appears to have originated from Nigerian officials who briefed the media. In contrast, Dangote did get a $2bn expansion loan from ICBC and this was announced.

When They Come Back Home

So that’s that about that. Perhaps when they come back home from China, we will get more details from them. But based on this, we know what questions to ask (I’m talking to you Nigerian journalists).

Why was the swap signed with ICBC and not PBOC? How much is being swapped and for how long? And (bonus question), what is the interest rate to be paid? (We can assume the CBN initiated the swap and will be the one to pay interest on the Yuan it receives). How will the Yuan market be priced? Will it be another ‘official’ and parallel rate mess like we currently have with the dollar? This is a trick question because, if it is market priced, we shall have plenty of fun with the contradictions in pricing the dollar ‘officially’ and the Yuan by the market.

But that’s enough speculation for one post

Feyi Fawehinmi tweets via @DoubleEph

http://www.africanliberty.org/feyi-fawehinmi-how-to-make-sense-of-nigerias-currency-swap-deal-with-china/

Nairaland General › How To Make Sense Of Nigeria’s Currency Swap Deal With China by olagamalin(op): 7:13am On Apr 16, 2016

Swap It, Don’t Break It

Imagine you are China. You sell a lot of stuff to the world. In fact, your whole economy is based on selling things to the world. You have an incentive to make trade as smooth as possible with other countries especially when it comes to making payments.

But you have another dilemma. You are not a wholly open economy. You like to control your currency as much as you can to make it undervalued in a way that benefits your manufacturers. If you let the currency trade freely like the dollar or Pound, the market will probably value it higher than you want which will make your products more expensive.

So, the way you can achieve this is by tightly controlling the amount of your currency that is available around the world. Unlike the US dollar that is widely available around the world to the extent that countries like Ecuador can decide to adopt the dollar as their currency without getting permission from the US, you can’t do that with the Chinese Yuan.

These 2 issues — trading with the world and tightly controlling the circulation of your currency — are in tension with each other. So how to solve it?

A Simple Story of Swaps

Or if you prefer the ‘technical’ name — Bilateral Currency Swap Agreements. Depending on who initiates the swap, a simplified version will work something like this.

Nigeria wants to make life easier for its traders who buy a lot of stuff from China. As Nigeria doesn’t sell much to China, it is not easy for the CBN to build up Chinese Yuan reserves. This means that for any trader who wants to buy stuff from China, they have to get prices in dollars. This adds costs and risks given that the person in China giving the quote has to convert Yuan to dollars before sending to Nigeria, bearing in mind the risk of currency moves affecting his bottom line. The Nigerian guy then has to buy dollars to make the payment to him. From the point of view of the CBN, this is extra dollar demand that can be avoided.

So CBN approaches the People’s Bank of China (PBOC) and asks to set up a swap. Xe.com tells me that 1 Chinese Yuan is currently worth about N30. So for the sake of simplicity, let’s say CBN offers to swap N30bn for Y1bn. Both of them agree an exchange rate on the day of the swap (N30 to Y1) and they make the transfer.

Now that CBN has some Yuan, it can then sell it to Nigerian banks in the same way it sells them dollars. The Nigerian trader can then tell his Chinese trading partner to give him a quote in Yuan instead of dollars. Once he has the Yuan quote, the trader can then go to a Nigerian bank and make a request for Yuan in the same way he used to make requests for dollars. Instead of the headache of dealing with 3 currencies, the dollar element is now removed and we have a normal 2-way quote.

This takes off some dollar demand pressure as people who want to buy stuff from China can face their Yuan squarely while the dollar people face their dollars. At least we get to know who is who. All of this is, of course, conditional on the amount of Yuan being swapped.

But what are the Chinese guys going to do with their N30bn? Same thing — they can now pay in naira for anything they buy from their Nigerian trading partners.

Chinese Swaps

For a number of years now, the Chinese have been entering into these swap agreements with various countries on a country by country basis. The swaps typically last for 3 years after which they are renewed and/or increased. As an example, in 2012, the UK signed a swap agreement for Y200bn with China. Last year, it was extended and increased to Y350bn.

The map below shows the countries that had swaps with China as at 2015, per the PBOC

China’s bilateral currency swap agreements with other central banks — 2015

And here’s a table with the agreements and amounts swapped.

China’s swap agreements and its counterparties — 2015

Politics › Re: Nnamdi Kanu Likely Poisoned As DSS Breaks Into His Prison Cell! by olagamalin(m): 8:09am On Apr 15, 2016

But why break in ....when they have access to the keys.

1 Like

Politics › Re: Fayose's Letter To Chinese Government To Stop Buhari's $2bn Loan (Photos) by olagamalin(m): 7:42am On Apr 15, 2016

Truth is, I'm more embarrassed rather than annoyed. He should roll over and play dead.

21 Likes 1 Share

Politics › Re: Fayose's Letter To Chinese Government To Stop Buhari's $2bn Loan (Photos) by olagamalin(m): 7:39am On Apr 15, 2016

Antics of an attention seeking miscreant ..... An excuse for a Governor. Which ever side of the fence y'all proclaim to be on (in addition to yours truly pretending to sit on the fence), We can all agree that his municipal madness is going global. Let's all join our hands in prayer for this paranoid being.

9 Likes 1 Share

Politics › Re: We Will Reexamine The Budget – Dogara by olagamalin(m): 5:28pm On Apr 13, 2016

Jirate:
APC, Listen and Listen Good. I am not one of your fans but let me Advise you about the Lagos to Calabar Rail Project. "Put it back" into this Year's Budget as Quickly as you can, Edo and Ondo States Gubernatorial Elections are Fixed for September 10 and November 26 this Year. If this Laudable Project is Scuttled, in Conjunction with other Perceived Failures of APC in Nigeria now generally, it is "Good Night" APC in Edo and Ondo States Respectively, Period. "A Word is Enough for the Wise" :

Ooh pls

1 Like

Politics › Re: I Am Coming Out For The Presidency Come 2019!!!! by olagamalin(m): 9:24pm On Apr 12, 2016

Destined2win:
Hello Ladies and Gentlemen,

You have suffered enough in this country. I have come to bring it to your notice that the time to take our destiny in our hands is now.
I am destined to win and I am destined to unleash prosperity to the land and take this nation to its promised land; a land that flows with 'milk and honey'. You might be a little bit skeptical about this which is OK anyway but do not allow your skepticism to take away what rightly belongs to you. Almost forced to type the opposite of your username

By God's grace, I will be coming out for the Presidency come 2019. You and your family better start praying about it because your blessings will not pass you by. I am coming! I am coming...watch out!!!!!

Jokes Etc › Re: Hillarious Chat Between An Mtn Customer Care And An Angry Mtn User (pic Included by olagamalin(m): 9:21pm On Apr 12, 2016

overdrive:
And u had to include Glo numbers I smell lies

We are sorry grin

Celebrities › Re: Davido Signs Endorsement Deal With Pepsi by olagamalin(m): 7:00pm On Apr 12, 2016

Donharrie:
pls Davido sign a life contract with Jesus.. it pays much

Tell them

2 Likes 1 Share

Celebrities › Re: Davido Signs Endorsement Deal With Pepsi by olagamalin(m): 7:00pm On Apr 12, 2016

REMMEI:
I know one of you big company/firm will sign me soonest..i will come back here to testify..ko sere!

Remy Martin Or Remilekun Printing Press?

1 Like 1 Share

Celebrities › Re: Davido Signs Endorsement Deal With Pepsi by olagamalin(m): 6:59pm On Apr 12, 2016

olihilistic:
Ok use the money wisely

Thanks sir .... We always look forward to your financial/investment tips.

1 Like 1 Share

Phones › Re: The Fraud In Slot Limited by olagamalin(m): 6:57pm On Apr 12, 2016

nokingasgod:
Can you please define a prestigious school?.

Perhaps, one of the attributes of a prestigious school is that school where the students will unleash mayhem at the slightest provocation and be crazy quite easily.

We never cease to amaze me on this forum..... Must you be more Catholic than the Pope?.....or more saddened than the bereaved?. Cheer up....You don't need to internalize every bone of contention, especially the sarcastic ones. Calm your thunder....You will be fine, The World is rooting for you. Cheers mate

Phones › Re: The Fraud In Slot Limited by olagamalin(m): 6:56pm On Apr 12, 2016

Politics › Re: Route Of The Coastal Railway From Calabar To Lagos by olagamalin(m): 5:52pm On Apr 12, 2016

americanigga:
I here by call on all Bayelsa state Indigens, residents, Ipobs and Biafran hopeful, both in and ouside the country to openly reject this good will from High chief, (Rit.) Hon Chibuike Rotimi Ameachi to construct a railway line in Otuoke Bayelsa. Because this will be a slap on the face of former president Dr Goodluck Ebele Jonathan the suposed hero of the Igbo race, who aparently did not do anything in the whole of Bayelsa let alone Otuoke. This looming embarrassment must be averted.

What the hero could not do in six years, the man that has been labeld as a betrayer is about to do it in one year. What will people say?

BADDEST COMMENT EVUR!!!!.....laced with the right dose of sarcasm and invective. grin

21 Likes

Phones › Re: The Fraud In Slot Limited by olagamalin(m): 11:55am On Apr 12, 2016

AyamConfidence:
i just dey smile at this OP's gentleness...if i craze enter slot ehn...them go pack up that day

Shay you get ....scatter the place. Manager go think say the matter pass charger

Phones › Re: The Fraud In Slot Limited by olagamalin(m): 9:30am On Apr 12, 2016

t33why:
Abeg make una two get some chill and don't derail the thread...... The only usefulness slot has now is to get an idea of current prices and even at that sef na scammer dem still be. My sis bought her s4 Galaxy at slot otigba and in her excitement didn't realise it was branded... Na the following day dem know say craze get categories. For me it's Microstation........ SLOT is overrated

Lool

Phones › Re: The Fraud In Slot Limited by olagamalin(m): 8:52am On Apr 12, 2016

AmbodOfLASU:
.
What makes it not prestigious?
A school that trained the present Deputy Governor of Lagos State. The present Speaker of Lagos State. The present First Lady of Lagos State. The present Inspector General of Police, Solomon Arase studied Law in LASU. Desmond Elliot, ASA etc all schooled here, just to mention but a few.

What about the youngest PhD holder in South African University, who is a graduate of LASU?
LASU STUDENTS BEATING THE BEST LAW UNIVERSITY IN INDIA?
I believe your assertion is born out of prejudice and propaganda. We may have our challenges, as every day other institutions, but we are more than prestigious.

Lmao.... I'm I supposed to be impressed by the list of politicians (albeit in LAGOS) you itemized? Who else should occupy such positions....you are way too funny. Pardon me..... But I can only compare with where I'm coming from....this is not to malign you in any way. Let's face your issue squarely.....which is slot

2 Likes

Phones › Re: The Fraud In Slot Limited by olagamalin(m): 7:22am On Apr 12, 2016

OP .....you started with a lie, your school is anything but prestigious. That been said, I think you should have caused enough uproar in returning the said charger that your coming here will just be testimony. In other words, BE CRAZY

Politics › Re: PHOTOS: Visible Cracks On Apapa Bridge- NEWSHELM by olagamalin(m): 6:42pm On Apr 11, 2016

I so love the advent of smartphones.....We can all be journalists. On the substance of the thread.....pls where is the crack huh

. OP is high on KK....another form of crack.

Politics › Re: Sambo Dasuki Wins FG At ECOWAS Court by olagamalin(m): 6:39pm On Apr 11, 2016

Wassap with the dramatic headline though.....The ECOWAS Court is always particular on the issue of human rights. That is hardly the substance of the matter.

1 Like

Politics › Re: FG Included Lagos-calabar Rail In 2016 Budget - Gbenga Ashafa by olagamalin(m): 4:19pm On Apr 11, 2016

bendovex:
This confirms what Jibrin said, that the Lagos-Calabar rail was not captured in the main budget. However, a supplementary document from the ministry of transport was submitted to that effect by the minister of transportation during his ministry's budget defense, which was later sent to the Senate committee on appropriation for proper appropriation.
But the lying government would want us to believe that Lagos-Calabar rail was captured in the original budget, useless government!
what a shame!

hahaha.... A supplementary budget was sent and acknowledged by the committee. What are you saying

9 Likes

Sports › Re: Shooting Stars Tweet About Maiduguri; Funny Or Inappropriate? by olagamalin(m): 11:50am On Apr 11, 2016

Use the reasonable man's test. Will an average Borno man feel offended when he sees this?. Your guess is as good as mine.

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