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Nairaland Forum / Nairaland / General / Business / FG Mulls Redenomination Option To Stabilise Naira (42597 Views)
FG Mulls Unified Naira Exchange Rate Regime / $48b Forex Inflows, $45b Reserves Stabilise Naira / CBN, BDC Partnership Stabilise Naira Despite Campaign Spendings (2) (3) (4)
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Re: FG Mulls Redenomination Option To Stabilise Naira by obyno82: 9:19pm On Aug 20, 2023 |
jumper524: I don't get those your daft response walahi. You people just because of crumbs they are paying you. You are now trying to gaslight people that are criticising this obvious Freudian slip that this government is embarking on |
Re: FG Mulls Redenomination Option To Stabilise Naira by Eriokanmi: 9:23pm On Aug 20, 2023 |
Fujiyama: |
Re: FG Mulls Redenomination Option To Stabilise Naira by Lekan239(m): 9:31pm On Aug 20, 2023 |
Racoon:you think it's Tinubu or any president that will bring ideas that will stabilised the economy. Something that economic expert have been failing to a accomplished so far. So if Obi or Atiku won, u expect them to know anything about how to stabilised the economy abi. There are people who are specialists for that. They bring ideas for the president, all the president just need to do is to give them go ahead on Any plans if he is convince enough. You want one man to be controling, head and know about every sector ni. Make una dey use una head small na |
Re: FG Mulls Redenomination Option To Stabilise Naira by Fantastictelem: 9:36pm On Aug 20, 2023 |
Solution to our economy problems is production and nothing else. No monetary or fiscal policy will solve our problem if we don't reduce our importation. Currency denomination can not strengthen the naira and is the worst economy policy I have ever seen. We need to have industrial parks in each region and ensure that we start producing products that we capacity to produce locally 1 Like |
Re: FG Mulls Redenomination Option To Stabilise Naira by pocom35: 9:44pm On Aug 20, 2023 |
bigiyaro: Easy for you to say . How exactly do you want government to revamp local production..goes government own all the industries? And can they just give a matching order for all industry to revamp? Most of what Nigerians import are essential in various degrees.. except there are substitute created by local industries..imports will continue..and as much as Nigerians will continue to despise local produce like rice for example and love the foreign ones.. people will continue to import it.. Crude oil theft is highly sophisticated..however the most effective approach is the one buhari put out by awarding contract to miscreants..that has resulted in more arrest in less than a year compared to the arrest made by the navy in 4 years .. The oil companies are the crooks behind cause account of oil sales ..they are falsified by their Ogas and will be difficult to fight |
Re: FG Mulls Redenomination Option To Stabilise Naira by pocom35: 9:52pm On Aug 20, 2023 |
Fantastictelem:Simple.. State government and local government together have more responsibility than the federal ..it is their responsibility to ensure provisions of land for investors..cuz the federal government doesn't own land... But Nigerians are naive of truly how government works and should be .so everything is blaimed on tinubu alone..when the state government relax and do nothing.. Another thing is based on our odd mentality.. Nigerians love leaders that do alot of white elephant projects to gain support and love..a lot of governors capitalize on this and build usel projects and Nigerians hail them.. Just like umahi who wasted 36bn on a non functional airport, serakie Dickson wasted 37bn on an airport that doesn't work.. And Many more..toh 1 Like |
Re: FG Mulls Redenomination Option To Stabilise Naira by LordAdam16: 10:07pm On Aug 20, 2023 |
grandstar: You make excellent points. I do not purport to know the exact thought process of the proponents of redenomination in the administration, but surely it is not being billed as a silver bullet. Argentina, Turkey, and Ghana are economic basket cases. Our malaise is not as bad as theirs. From my vantage point, the purpose of a redenomination is temporary stability. Tinubu needs a cooling off period to execute his fiscal liberal agenda without having to put out a lot of fires. The Ghanaian Cedi lost half its value relative to the USD (moved from 1:1 to 1:2) in 7 years. That's an economic miracle knowing their history. If they had not redenominated, the crash would have been more severe, hard as that may be to grasp. The problem for Ghana, and the two other Musketeers, are the economic structural imbalances that the ruling class persistently fail to fix. Germany, China, and South Korea redenominated in the past. Brazil, Mozambique, and Israel too. Of course, if we redenominate and sit on our thumbs, it'll haunt us in a decade. But if we are serious about reforms, a redenomination offers soft landing as long as we keep to a strict timeline. An analogy is gravity assist in orbital mechanics. Wrong calculations will kill you, but if you get it right, it cuts your travel time. Or anesthesia. You'd still have to go under the knife and it can be fatal if not administered by a pro. I'm in the camp that posits it is a risk worth taking. Under Obasanjo, GEJ, Tinubu, and an hypothetical Obi or Atiku or el Rufai Presidency; I'm in favor. Under Buhari and Yar'Adua, I'll be a staunch opponent. The former group can theoretically realize the advantages of the policy. The latter group are demonstrably incapable. It is fair to call it a cosmetic exercise. It is. It'd also be expensive and I have my reservations about returning to coinage. But we just had a teaser with the naira redesign + aggressive currency mop up policy that stabilized the FX rate from inception until the float. A redenomination paired with a sharp decline in the money supply will be the redesign policy on steroids. Currency substitutions risks amplifying the dollarization of the economy. It'll also decentralize round tripping. Federating units are a blackhole for funds. The other fanciful critiques on the thread fail to note that we are stuck in a catch-22. Tinubu attempted to cut the big-ticket subsidies. But the consequent pain impelled a reversal. The factors fueling our economic difficulties still remain while we sink deeper into debt trying to hold it all together. When the $3B AFRIEXIM loan is exhausted, as it will in weeks, what will we do? Get another loan to subsidize consumption when we already spend a whooping 96% of government revenues on debt servicing? People think a Sri Lanka can't happen in Nigeria. But we're well on our way. Pakistan is getting there faster. They have just $9B in reserves. Import $60B when they only export $35B. And they have similar population of 230m. But sure, let's borrow dollars to "defend the naira" so you can buy cheap gasoline and import toothpick and wigs for pennies on the dollar. We're playing a stupid game of musical chairs and hoping the music never stops. No prizes if you guess how this ends. -Lord 3 Likes 1 Share |
Re: FG Mulls Redenomination Option To Stabilise Naira by LZAA: 10:07pm On Aug 20, 2023 |
Vision101:First of it's IGBO not Ibo Second you are mad Eat your corn in peace and stop trying to shift blame Wetin concern GEJ with APC 8 and a half years of APC yet na PDP we still dey hear? Smh |
Re: FG Mulls Redenomination Option To Stabilise Naira by LZAA: 10:10pm On Aug 20, 2023 |
LordAdam16:That nonsense you just posted is amazing Those three countries make more from tourism than many countries worldwide Don't defend nonsense and try to sound smart Cheers |
Re: FG Mulls Redenomination Option To Stabilise Naira by Kay25(m): 10:25pm On Aug 20, 2023 |
Racoon:Shut up joor even obi would have failed more woefully than this..u people don't want to accept reality that's is it.. |
Re: FG Mulls Redenomination Option To Stabilise Naira by IslamIsIdiotic: 10:31pm On Aug 20, 2023 |
Your kind of ignorance and lack of intelligence is unusual, even by Nigerian standards. Anyone with basic common sense and who is not living in denial can see what is going on. I stay in Ibadan and yesterday, when I went to a pharmacy to buy some anti malaria pills, someone that I know stopped me to beg for 3k because the asthma medication he used to buy for 5,000 is now 23k. I thought he was trying to scam me, so I asked the cashier and she confirmed that he was telling the truth. When I asked my brother who owns his own pharmacy in Lagos, he told me that the price in Lagos is 40k! Your country is on the road to ruin but most of you are just too stupid to see the tsunami of economic collapse that is coming your way. jumper524: |
Re: FG Mulls Redenomination Option To Stabilise Naira by LordAdam16: 10:46pm On Aug 20, 2023 |
LZAA: No one will put you on trial if you avoid wading into issues that you clearly do not have the mental bandwidth for. I listed 6 countries. The first three that "make more from tourism than many countries worldwide" grappled with rampant inflation and an erratic currency market early on. To a degree much worse than we're dealing with currently. They redenominated, implemented wide-reaching economic reforms, and continue to reap the fruits of the timely intervention today. Of course, since you're unlettered, you think their superb economies were conjured out of thin air. They weren't. -Lord |
Re: FG Mulls Redenomination Option To Stabilise Naira by Lincton: 10:48pm On Aug 20, 2023 |
Some losers are terribly wounded during the last election that they were unable to move on, so terrible for them. Check the names of economists that come up the suggestions... As a nation we have to move out of the economy mess we are into, the earlier we get it right the best for us. |
Re: FG Mulls Redenomination Option To Stabilise Naira by kettykin: 10:52pm On Aug 20, 2023 |
Who else foresaw this coming, signify by liking my post. Very soon they will use naira to bailout naira. I can stop laughing, this comedy or sitcom is really interesting. 1 Like |
Re: FG Mulls Redenomination Option To Stabilise Naira by tachia406: 10:59pm On Aug 20, 2023 |
obyno82: It would have been worse with any other one among him, Atiku and Obi. To this day, he remains the best candidate. All we need is patience and patriotic zeal to see the country work for all. |
Re: FG Mulls Redenomination Option To Stabilise Naira by jmoore(m): 11:07pm On Aug 20, 2023 |
Vision101:The refineries in Egypt are working and there is subsidy in Egypt. |
Re: FG Mulls Redenomination Option To Stabilise Naira by jmoore(m): 11:11pm On Aug 20, 2023 |
tachia406:Selfdeceit is delusion. Even Buhari is better than Tinubu. Just 2 months plus and the economy is choking. |
Re: FG Mulls Redenomination Option To Stabilise Naira by HeroicMeastro: 11:15pm On Aug 20, 2023 |
lexy2014:No insults, just a question.. because I am curious. |
Re: FG Mulls Redenomination Option To Stabilise Naira by LZAA: 11:22pm On Aug 20, 2023 |
LordAdam16:Again you are spewing the same garbage Redomination will not cure this malaise Rather it will expose it But hey the corn you are munching must be sweet so chew on Smh |
Re: FG Mulls Redenomination Option To Stabilise Naira by Vision101(m): 11:36pm On Aug 20, 2023 |
@jmoore The refineries in Egypt are working and there is subsidy in Egypt. @me I agree that this is a public forum therefore anyone can come up with any argument. 1. What is the size of consumption in Egypt? 2. What is the size of outlay in terms of subsidy 3. Is corruption so pronounced in Egypt as it is in Nigeria? 4. What killed manufacturing in Nigeria? Answer: you make more money importing than producing. 5. What killed the refineries? Answer: you make more money importing than refining - fx roundtriping, subsidy payment, etc. 6. In summary corruption killed the refineries and it will never come back so long as there's subsidy and special exchange rate. 7. Remove both and importation will no longer be attractive and the officials will want the refineries fixed. |
Re: FG Mulls Redenomination Option To Stabilise Naira by jmoore(m): 12:05am On Aug 21, 2023 |
Vision101:Good leaders are in Egypt while misleaders are in charge in Nigeria. Egypt generates 59,000 megawatts while Nigeria is generating 5,000 megawatts. Why should any home in Egypt owe a generator? Nigeria is run by petrol. |
Re: FG Mulls Redenomination Option To Stabilise Naira by Freeus1: 12:55am On Aug 21, 2023 |
@ Racoon why do you address tinubu as president? |
Re: FG Mulls Redenomination Option To Stabilise Naira by Timetravel88: 1:43am On Aug 21, 2023 |
okeysoninv: And you think that cosmetic approach will solve the problem? Redenomination at this time will be the end of the naira, with such inflationary spikes in the economy and poor purchasing power of the currency, the move will throw the business community into a monetary crisis that will further implode the forex market. |
Re: FG Mulls Redenomination Option To Stabilise Naira by Timetravel88: 1:46am On Aug 21, 2023 |
starstaz: Too little too late, it won't work at this point. The forex disparity are miles apart 1 Like |
Re: FG Mulls Redenomination Option To Stabilise Naira by Timetravel88: 1:57am On Aug 21, 2023 |
jmoore: The naira still has a better purchasing power than these currencies. A bottle of coke in Liberia is over 2 USD (400 Liberian dollar) while in Nigeria it is less than a dollar at 205 naira. This doesn't mean I support the corn man in Abuja. Redenomination of the naira at this time is a bad call. |
Re: FG Mulls Redenomination Option To Stabilise Naira by Timetravel88: 1:57am On Aug 21, 2023 |
Opurumiri: Nigeria is useless |
Re: FG Mulls Redenomination Option To Stabilise Naira by SpockFederation: 4:50am On Aug 21, 2023 |
Heyy..... |
Re: FG Mulls Redenomination Option To Stabilise Naira by BenedictAbajue(m): 6:46am On Aug 21, 2023 |
Shoodboi:so the new 100 naira becomes very scarce and the old 1000 naira notes are gradually wiped out. I understand now. 1 Like |
Re: FG Mulls Redenomination Option To Stabilise Naira by AareGaa: 6:56am On Aug 21, 2023 |
Naustine: Ghana had done it. I remember Nigerians who were against it saying that Ghana economy was small, that it would surely fail in Nigeria. Despite, it still failed woefully in Ghana because Ghana too is a consuming nation.. Aside, that policy can only reduce the volume of currency in circulation, it can never add any value to a currency. There was no inflation through out the regime of Abacha. In fact, exhange, rate, prices of goods and services were dropping everyday. They should go and study how Abacha govt did it. |
Re: FG Mulls Redenomination Option To Stabilise Naira by Lordatkinson: 7:15am On Aug 21, 2023 |
It is obvious now that both the technocrats and our politicians have eaten our common wealth so much that their brains are no longer functioning. How can you revisit a long dead policy? Especially, when the policy is not addressing inflation, eradication of poverty, unemployment and production of all things consumed in nigeria locally. These people already have brain touch |
Re: FG Mulls Redenomination Option To Stabilise Naira by cucumbar: 7:15am On Aug 21, 2023 |
alphabbey1:He is not funny… he is mad. Dullard trying to sound intelligent. |
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