₦airaland Forum

Ireportlive:




What will Nigeria do with these new increase in oil price revenue, since we are stopping subsidy and Dangote Refinery starts soon

Tinubu is about to become one of the most financially luckiest President after Yakub Gowon and Jonathan and he has experience as former ExxonMobil treasurer,

*No more subsidy means keeping atleast $16 billion USD in our foreign reserves annually strenghtning Naira value
This means Dollar to Naira might go back to atleast N350 to _$1

*Using Tompolo and Asari Dokubo as pipeline security, Nigeria might reach 2.3 million Barrels per day this multiplied by new global Oil price , oil royalty from NNPC is about to increase drastically with all arms of government FG State and LGA sharing larger FAAC allocation, Abia State, Kogi State and Benue State won't have a reason to owe workers



.

God1000:
I think Saudi Arabia and Russia are purposely doing this to spite Washington, Biden should withdraw all US troops from Saudi Arabia and place sanctions on them

This is a political move

God1000:
I think Saudi Arabia and Russia are purposely doing this to spite Washington, Biden should withdraw all US troops from Saudi Arabia and place sanctions on them

This is a political move

BidenDTrounced:
"The effect on the dollar is positive. This simply means that the market need more dollars (increase demand for dollar) which will consequently hike the exchange rate as buyers compete for more dollar"

It's noteworthy to mention that the fluctuations in the exchange rate of the dollar is not exclusive to the oil market.
In addition to the hikes occasioned by the irresponsible fiscal policies of the US, there's a massive dump of the dollar for prudent reasons.

---

China trims US Treasury bond holdings
By SHI JING in Shanghai | CHINA DAILY | Updated: 2023-01-20 06:47

$870b figure in Nov lowest since June 2010, shows financial management

China continued to lower its holdings of US Treasury bonds as the US Federal Reserve is expected to maintain its hawkish stance over the following months, market observers said on Thursday.

According to Treasury International Capital data released by the US Department of Treasury on Wednesday, China decreased its holdings of US Treasury bonds by $7.8 billion in November, marking the third consecutive month of selling. With this, China holds about $870 billion worth of US Treasury bonds, the lowest amount since June 2010.

In October, China cut its holdings of US Treasury bonds by $24 billion, according to TIC data.

Yu Yongding, a member of the Academic Divisions of the Chinese Academy of Social Sciences, said China's reduction in its holdings of US Treasury bonds is a measure to adjust the country's balance sheet of overseas assets, which can enhance the security of its overseas assets and increase the net returns on overseas investment.

In November, foreign official institutions sold $12.2 billion of medium-and long-term US securities like Treasury notes and bonds, according to the latest TIC numbers.

Past TIC data show that several central banks sold US Treasury bonds for 49 months since October 2017. Analysts from China International Capital Corp interpreted such selling as a worldwide trend of "de-dollarization".

While the US dollar used to be a global safe haven, economies have been reducing their US Treasury bond holdings over the past few years to lower their over-reliance on the greenback. Such risks of over-reliance became apparent last year during the geopolitical tensions in Europe that were followed by Western financial sanctions on Russia. Diversification of foreign exchange reserves has been more widely adopted by central banks, said CICC experts.

https://www.chinadaily.com.cn/a/202301/20/WS63c9c892a31057c47ebaab84.html

Also countries have succesfully developed mechanisms to carry out trade using other mediums that attenuates the need to posses the USD.

zizoo36:
We the masses will be at the receiving end.

Lionstep:
That's to say they don milk your country dry ?

God1000:
I think Saudi Arabia and Russia are purposely doing this to spite Washington, Biden should withdraw all US troops from Saudi Arabia and place sanctions on them

This is a political move

God1000:
I think Saudi Arabia and Russia are purposely doing this to spite Washington, Biden should withdraw all US troops from Saudi Arabia and place sanctions on them

This is a political move

God1000:
I think Saudi Arabia and Russia are purposely doing this to spite Washington, Biden should withdraw all US troops from Saudi Arabia and place sanctions on them

This is a political move

God1000:
I think Saudi Arabia and Russia are purposely doing this to spite Washington, Biden should withdraw all US troops from Saudi Arabia and place sanctions on them

This is a political move

Lionstep:
Ok....how I wish oil can just dry up in Nigeria

Mercury12:
let me guess. You are from Biafra😂
Nah una way be that

Kayyus09:
Will reduce further.

But watch our for inflation data and interest rate speculations.

Dennisbulkan:
The effect on the dollar is positive. This simply means that the market need more dollars (increase demand for dollar) which will consequently hike the exchange rate as buyers compete for more dollar

Horus:
The US Dollar will join the Zimbabwe Dollar in the Graveyard of dead Fiat Currencies.

Saudi Arabia & Russia just created a new strategy that bans the Petrodollar Forever

Lionstep:
Ok....how I wish oil can just dry up in Nigeria

nlfpmod:
https://www.reuters.com/business/energy/sarabia-other-opec-producers-announce-voluntary-oil-output-cuts-2023-04-02/

BABAawoo47:

Placing sanctions on saudi...
It's not today saudi don dey spite Washington...If you place sanctions on them, then they will kill off petrodollar

owoshuyi:
Hmmmm thanks for the response.
But what about now that some OPEC+ countries like Russia are no longer exchanging oil with USD $? Wouldn't this reduce the value of the dollar?

shegzhkn:
And how will they do that.

Dennisbulkan:
o
Dollar is a global reserve because the Saudis peg the dollar to the global crude market. Meaning Saudis only accept the dollar in exchange to crude oil. They can announced that they no longer accept the dollar any day & opt for gold instead, Chinese yuan, or whatever other than the dollar. American economy will crash hard as buyers will dump the dollar for whatever Saudi is accepting to get crude oil. Do more research about this, Google is there for you.

shegzhkn:
Lol, still stuck in the 70s.
You may be partly true but the USD is also backed by our enormous economy - we have the biggest country in the world : Apple, Alphabet, CVS, Lockheed Martin, Northrop Grumman, Boeing.
And it seems you are forgetting something - the basis for our relationship with the Saudi is oil for security arrangements (you should know that) and don't think for once they can decide one night to start buy inferior military hardware from other world powers because that is literally impossible because of interoperability probs.
Now I admit it is very hard to place a sanction on them without us feeling the heat because most of those petrodollars always find it way back to our economy - Saudi student scholarship, weapon sales, trade and services, etc.

Dennisbulkan:
While it is true that the US economy is supported by large corporations like Apple, Alphabet, CVS, Lockheed Martin, Northrop Grumman, and Boeing, this argument does not fully counter the potential impact of the Saudis choosing to no longer peg their oil to the US dollar. The US economy may indeed be enormous, but it is still vulnerable to sudden shifts in global markets and economic relationships.

Furthermore, while the US and Saudi Arabia do have a strong relationship based on oil and security arrangements, this does not guarantee that the Saudis will always choose to use the US dollar. If they were to switch to another currency or commodity, it could have a significant impact on the value of the dollar and the stability of the US economy.

Finally, while it is true that Saudi Arabia's petrodollars do flow back into the US economy through various channels, this does not necessarily mean that the US is immune to the consequences of a shift away from the dollar. In fact, it could make the US even more vulnerable if it becomes too reliant on Saudi investment and trade.

In short, while the US economy may be strong, it is not invulnerable to sudden shifts in global economic relationships. The potential consequences of a shift away from the US dollar as the global reserve currency should not be underestimated.

jaxxy:
U can't do that..Saudi is a strategic partner with the US and they maintain strong ties even when they disagree on issues.

Russia is only trying to create division to gain economic power and survive sanctions.

China is looking for away to avoid the economic sanctions scenario of Russian incase they want to abuse international laws against humanity or their neighbours like Russia.

My problem with these people isn't the disaffection with the US bt the fact that they hold their own people hostage with autocratic style of governance and u want other people to trust u?

Badassniggga:
don't come here preaching to us like we're kids here. Please define "Hold people hostage".

jaxxy:
go to China or Russia and say anything u like to government and see if u won't dissappear.

Badassniggga:
make we hear word abeg... how many
people don disappear for Russia since the war started? Abi Dem don kill all those that protested back then? Loo

jaxxy:
How many people are talking against the war? Many want to speak against it bt can't.

Go China talk anyhow like u talk here and see urself.


Continue to defend rubbish.

Badassniggga:
how many people are talking against the war? The fact they're not against it should tell you Russians are unanimous about the Ukraine war. Did you checked Putin's approval ratings conducted after the war started? Over 70% supported the government's decision to safeguard their territory from encroaching zombies in the name of NATO. You're probably one of those that believed Putin is a dictator that took power in a coup d'etat . There's no point arguing with you further.