₦airaland Forum

The name of the op is NINOLOWO

Redoil:
why will any sensible and responsible government will be saving more than 40million dollar in savings and in another country account and there is high employment, hunger, lack health facility, lack of basic necessities

I have explained this several times. Having foreign savings helps to protect your country in times of emergency. This could be a result of war and your economy is in trouble and your money becomes worthless and your trading partners don't want to accept it. The foreign currency still has its value, you can still use it to buy whatever you want around the world.

Secondly, it is used to attract foreign investments and build investor confidence. Having a lot of savings in foreign currency is simply telling foreign investors that your country is NOT broke and that your economy is doing well. That way, you will alay the fear that your government can change its policies and tax them heavily just to pay a loan you owe other countries or lending institutions. Every country has its currency saved in something - perhaps gold or another currency. And every country needs foreign investors, including the United States.

Everyone as answered well. But can u use ur naira to buy something from other countries aboard? The ans is no. Reasons u need to borrow money. Because even if u print more money. U still need the universal currency for exchange.

LaIabobo:
Only USA can afford to print money (dollars) and have minimal effect on their economy. Even so, countries can’t just print money because it makes prices go up (inflation). If they keep printing, the currency loses value as there is too much in circulation.

For your information the USA can no longer afford to print money (dollars) without major inflation blowback. The emergence of China has practically destroyed the United States. There are too many dollars in circulation and inflation is now a rampant event in America. The old paradigm has shifted……

bbode1:
Everyone as answered well. But can u use ur naira to buy something from other countries aboard? The ans is no. Reasons u need to borrow money. Because even if u print more money. U still need the universal currency for exchange.

The dollar is no longer a universal currency as of 2025. The old paradigm has shifted with the continuing emergence of a super strong China.

Exousiang01:
Money is not the paper you hold in your hand.

The bulk of the money around the globe is not in cash. Only 8% of the money is in cash, that means the remaining 92% is not not cash.

So you think Damgotes $23billion is sitting in one bank account somewhere?

Or you think Elon Musk has his billions kept in one bank...

PS: It cost more money to mint money, so minting money is actually not ideal

Them say make u explain...u don use Nigerian system of ITK further complicate the matter.....

Na Dem Buhari Dey Think Like This

I thought Economics was and it’s still a compulsory subject in secondary schools.

No offense meant.

Printing money withoany economic value backing it leads to inflation

alphaconde:
Instead of printing money, countries borrow to avoid the risk of severe inflation, maintain economic stability, and preserve the value of their currency. Recklessly printing money floods the economy with more currency without increasing the supply of goods and services, which makes the currency less valuable and drives prices up dramatically.

so if they borrow money are they not bringing that same money back into the economy?

The US dollar is no longer a reliable store of value. It has been overprinted over the years (they did not anticipate the emergence of a rival economic superpower- China).

Dazzay:
But your god Tinubu advised the failed late Buhari to print more money to curb inflation when the failed Buhari was in power.

Tinubu matter no allow this one see road again 😀😀😮😯

patomaniac:
Because if countries just keep printing money, it makes the money less special.

Imagine you have 1 shiny sticker. Super cool, everyone wants it. Then suddenly, your mom prints 1,000 of the same sticker. Guess what? Nobody cares about your one shiny sticker anymore, because now everyone has one. Stickers are worthless.

That’s what happens with money: if a country prints too much, the money loses value. This is called inflation, which is basically the economy having a tantrum.

So instead of printing and making their money useless, countries borrow from others. It’s like asking your friend for their toy and promising you’ll give it back later—much safer than flooding the playground with knockoff toys that break instantly.

So since u don't want to print and flood ur economy likewise other countries not willing to print and lend u their currency then wat do u now do?
Ur explanation on this issue is vague and without clear path.

Many a country depends on goods and finished products from other countries. Their money may not be accepted when they want to buy so they have to convert their money to another money that is acceptable. E.g the Nigeria government cannot print dollars so either he borrows dollars to buy goods in the USA or service the foreign exchange of his citizens or exchange raw materials.

The costs of printing the money will be too high

Kimo21:
The enlightenment doesn’t change the fact that he is failure personified….a puppet being used by the IMF .

And it doesn't change the fact that no Obi man would be President of this country come 2027😀😀😀😀😀

If OP didn't jump fence during his School days, he aught to have known that one of the characteristics of money is "relatively scarce". Money must not be too abundant; a limited supply helps prevent inflation and maintains its value over time, ensuring it remains a reliable store of value.

d142475:
Buhari printed money indiscriminately. Now, look where we are. Printing money will wreck the economy. If they print money indiscriminately, you’d need a wheelbarrow load of money to buy a loaf of bread. Inflation will go through the roof.
The only country that can remotely get away with that is the US, only because the dollar is the reserve currency of the world. They can print and ship out to other countries without it having much impact on the US inflation rate

Now who told that it was as a result of Buhari printing of currency that resulted to the failing of our economy?

Germany printed money so much one time thinking it would solve economic crisis... Money became useless, people were using barrows to carry money to buy common stuffs on the streets. Robbers would turn out the money and escape with the barrow.

Bullshit, Money for Production is not Inflation.

Therock5555:
Inflation my brother....


It's basic Economics.


Print more money, prices of things increases due to more money chasing lesser goods. So what happens when the goods become more expensive? Print more money right?


Go and ask late Mugabe how the matter take finish for am, you go carry one wheelbarrow filled with money to go and buy one loaf of bread....


Otilo....

Therock5555:
Inflation my brother....


It's basic Economics.


Print more money, prices of things increases due to more money chasing lesser goods. So what happens when the goods become more expensive? Print more money right?


Go and ask late Mugabe how the matter take finish for am, you go carry one wheelbarrow filled with money to go and buy one loaf of bread....


Otilo....

This your explanation is some kind.... what is the in government printing money, use the money to execute projects or provide social amenities, more workers can even be employed.
How does your response justified the scenario I painted

efemena5050:
So since u don't want to print and flood ur economy likewise other countries not willing to print and lend u their currency then wat do u now do?
Ur explanation on this issue is vague and without clear path.

When a country prints money like a kid with unlimited Monopoly cash, here’s what happens:

Prices go bananas – Suddenly bread costs N50, then N500, then N50,000. That’s called hyperinflation. It’s like if sardines went from N150 to the price of a used car in one week.

Money turns into trash – Literally. In Zimbabwe in the 2000s, they had bills worth 100 trillion dollars… and they could barely buy a loaf of bread. People started weighing stacks of cash because counting them took too long.

Trust disappears – Nobody wants the country’s money anymore. People try to use foreign money, gold, or even trading goats because at least goats don’t lose value overnight.

Chaos ensues – Businesses collapse, savings vanish, and people get angry because their life savings turn into pocket lint. Governments fall apart.

DeepSight:
Why do you think only USA can do that?

1. Size of their economy OR
2. The dollar being the global reserve currency.

Yes because it is a global currency so there is huge demand for it. Also people over the world still trust the USD.
However they cannot keep printing endlessly as it'll also affect its own economy. So these days, the reserve bank just create digital dollars and credit bank accounts of creditors.

Inflation, the more cash you print the more money you have chasing the same goods. Rather you borrow and return the money back. Na my layman explanation.

Mear23:
This your explanation is some kind.... what is the in government printing money, use the money to execute projects or provide social amenities, more workers can even be employed.
How does your response justified the scenario I painted

Here’s the catch:

Yes, projects get built. You’ll get shiny new roads, hospitals, and playground slides.

Yes, people get jobs. More workers can pour cement, teach kids, or fix potholes.

BUT… if the money is just printed, not earned through taxes or borrowed responsibly… then the cost of everything starts rising. Workers will demand more pay because bread suddenly costs triple. The government will need to print more and more just to keep up. That’s the doom loop.

Think of it like this: if you want to throw the world’s greatest birthday party, you can’t just print invitations and assume cake will magically appear. Someone still has to bake it, and flour still costs something. If you flood the town with fake party invites, everyone shows up angry because you don’t have enough cake for them.

So yeah—printing money to fund projects works for, like… ten minutes. Then it melts down into inflation, unemployment, and riots. The “free lunch” turns into a food fight.

tunde1200:
At least you know IMF
If it reach your Messiah Obi to rule the country use or find another better ways to solve generation issue Nigeria have.

Since you’re proud that this administration is only known for nothing but borrowing Oya clap for yourself…obi is a private citizen. Leave him out of this discussion. Focus on that disaster that forced himself into aso rock. Only borrow and not do anything better with the borrowing what a shame

LaIabobo:
Yes because it is a global currency so there is huge demand for it. Also people over the world still trust the USD.
However they cannot keep printing endlessly as it'll also affect its own economy. So these days, the reserve bank just create digital dollars and credit bank accounts of creditors.

I see that as the same thing as printing. Soft copy.