₦airaland Forum

Do you know that forex (dollars) from foreign loans can be counted as part of gross foreign reserves once it's received and deposited by the central bank?

Now you know why Nigeria's foreign reserve is rising.

Tinubu is indeed a master strategist.

Connect with me on X (Twitter) every weekend (Saturday, 3pm) for spaces on interesting topics and giveaways:

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OssanaQuest:
Do you know that forex (dollars) from foreign loans can be counted as part of gross foreign reserves once it's received and deposited by the central bank?

Now you know why Nigeria's foreign reserve is rising.

Tinubu is indeed a master strategist.

Connect with me on X (Twitter) every weekend (Saturday, 3pm) for spaces on interesting topics and giveaways:

https://x.com/intent/follow?screen_name=Ossanaquest

Why would we borrow money just to place in foreign reserves??

Kemetian:
Why would we borrow money just to place in foreign reserves??

The president and the minister of finance should be able to answer this question.

Kemetian:
Why would we borrow money just to place in foreign reserves??

Which money did you borrow to place in FX? The projects across the country, which money the government has been using to execute them

OssanaQuest:
Do you know that forex (dollars) from foreign loans can be counted as part of gross foreign reserves once it's received and deposited by the central bank?

Now you know why Nigeria's foreign reserve is rising.

Tinubu is indeed a master strategist.

Connect with me on X (Twitter) every weekend (Saturday, 3pm) for spaces on interesting topics and giveaways:

https://x.com/intent/follow?screen_name=Ossanaquest

You are definitely not an Economist and don't have mastery of the subject matter. You are attributing loans to increased Foreign reserves?

OssanaQuest:
Do you know that forex (dollars) from foreign loans can be counted as part of gross foreign reserves once it's received and deposited by the central bank?

Now you know why Nigeria's foreign reserve is rising.

Tinubu is indeed a master strategist.

Connect with me on X (Twitter) every weekend (Saturday, 3pm) for spaces on interesting topics and giveaways:

https://x.com/intent/follow?screen_name=Ossanaquest

Didn't previous governments take loans?

Is the present government not repaying loans?

OssanaQuest:
Do you know that forex (dollars) from foreign loans can be counted as part of gross foreign reserves once it's received and deposited by the central bank?

Now you know why Nigeria's foreign reserve is rising.

Tinubu is indeed a master strategist.

Connect with me on X (Twitter) every weekend (Saturday, 3pm) for spaces on interesting topics and giveaways:

https://x.com/intent/follow?screen_name=Ossanaquest

This is not quite true, otherwise our forex reserves would have been way above 100 bn dollars by now.

1. Oil prices have been very high recently
2. Stricter fiscal polices...we are saving a bit more

AND EVEN THEN

3. It would have been much higher than this if not for the debt incurred by tinubu and buhari

Femmyfamous4u:
You are definitely not an Economist and don't have mastery of the subject matter. You are attributing loans to increased Foreign reserves?

You have data. Just do basic research.

nairalanda1:
This is not quite true, otherwise our forex reserves would have been way above 100 bn dollars by now.

1. Oil prices have been very high recently
2. Stricter fiscal polices...we are saving a bit more

AND EVEN THEN

3. It would have been much higher than this if not for the debt incurred by tinubu and buhari

Net reserve Tinubu met is $4bn

So far he's borrowed $51bn, some of which have been used to settle bills for project.

The rest is held by CBN and counted as part of Nigeria's gross foreign reserve.

That's why reserve appears to rise anytime new borrowing is approved and received.

If we repay 50% of our foreign loans today, Nigeria would be bankrupt and foreign reserve will fall below $5bn.

It's a perfect strategy to manage scarce forex by the master strategist.

OssanaQuest:
Net reserve Tinubu met is $4bn

So far he's borrowed $51bn, some of which have been used to settle bills for project.

The rest is held by CBN and counted as part of Nigeria's gross foreign reserve.

That's why reserve appears to rise anytime new borrowing is approved and received.

If we repay 50% of our foreign loans today, Nigeria would be bankrupt and foreign reserve will fall below $5bn.

It's a perfect strategy to manage scarce forex by the master strategist.

Again, oil prices have been higher recently, plus the debt rose to 51.9 billion dollars...which i think you misidentifed as 'rising forex'

(It's even too low for nigeria, which is why I don't regard any news of a rise in our foreign reserves as a plus)

Also, we ain't paying for subsides, both on dollar and on the petrol.

OssanaQuest:
Do you know that forex (dollars) from foreign loans can be counted as part of gross foreign reserves once it's received and deposited by the central bank?

Now you know why Nigeria's foreign reserve is rising.

Tinubu is indeed a master strategist.

Connect with me on X (Twitter) every weekend (Saturday, 3pm) for spaces on interesting topics and giveaways:

https://x.com/intent/follow?screen_name=Ossanaquest

No.

You are wrong .

Foreign reserves are accrued revenue earned mostly from exports that are domiciled in foreign banks in order to guarantee international trade settlements.

Money borrowed never hits either the CBN account or our foreign reserve accounts but are held in a special account within the lending institution examples being the IMF or World Bank.

From there the money is disbursed to its intended end use as stated in the loan agreement.

FX reserves are maintained solely to meet international settlements that are coordinated by the Bank of International Settlement.

OssanaQuest:
The president and the minister of finance should be able to answer this question.

You are the one throwing this useless argument around in a bid to discredit the increase in foreign reserves by claiming it is being buoyed by loans .

The FX is rising because wastage on subsidizing imported fuel with scarce FX has been eliminated.

Dangote refinery has also gone a long way in reducing FX outflows by reducing importation of fuel that would have been paid in FX.

Oil output has increased due to increased production and drastic reduction of bunkering .

There's also a massive reduction in importation due to the floating of the naira which has discouraged importation..

Add the significant increase in oil pricing due to the straits of Hormuz closure and a boost in exports of non oil products mainly from the agricultural sector .

Strict observance on money laundering and capital flight has also seen to less demand for FX directly sourced from the CBN as used to be the case.

The increase is due to solid economic reforms, boost in both oil and non export revenue , drastic reduction on imported goods , tighter currency controls when it comes to capital flight and money laundering.

So stop with all these your ignorant assertions that are just meant to dismiss the reforms that are now slowly yielding positive outcomes.

Kemetian:
Why would we borrow money just to place in foreign reserves??

You have time replying that dunderhead

He doesn't know that each loan taken is tied to a specific purpose and you cant access more loans if you fail impact assessment.

nairalanda1:
This is not quite true, otherwise our forex reserves would have been way above 100 bn dollars by now.

1. Oil prices have been very high recently
2. Stricter fiscal polices...we are saving a bit more

AND EVEN THEN

3. It would have been much higher than this if not for the debt incurred by tinubu and buhari

Incurred by Tinubu? How much was the reserve when Tinubu came in?

Femmyfamous4u:
You are definitely not an Economist and don't have mastery of the subject matter. You are attributing loans to increased Foreign reserves?

Somebody sitting in his 2x2 just heard his fellow traders discussing something someone told them in their beer parlor last night, and he brought it to Nairaland. These people should be seen as the comics they are.