major466:

APC e minions have no clue what International Reserve is talk less of what it's all about. If they do, they wouldn't have created this topic.

datolee:
[s]To buttress my point again..

SLS is a strong believer of defending the naira

Soludo didn't believe much in that and here is another evidence

While SLS spent a whooping $117bn defending the naira, Soludo spent only $57bn

So can you see now that while other regimes may have defended the naira, SLS did more than them.

The question should be.. What is better, defending the naira or devalue it.... In any of these, the question should be directed to the CBN governors not the president.[/s]
http://www.punchng.com/business/global-finance/the-logic-of-nairas-devaluation/

EldaTimba:

Datolee raised an issue on the 5x increase in budget and you replied with "value of naira". I gave a rebuttal saying naira to dollar exchange rate only increased by 25%. You added inflation and I answered you quite alright. I think subsidy like barca said is for another day where I will be there to refute some claims(if christ tarry). Till then, shalom.

major466:
The more I see post like these, the more I'm made to believe that APC got nothing to offer as far as economic development is concerned.
Every government have a peculiar kind of challenge. Challenge of international trade as it affect world economic activities and the Nigerian economy.
Using international reserves as a yardstick to economic performance without considering other economic indices prior to GEJ administration is laughable.
It most have escaped the memory of APC e minions to know that Nigeria was predominantly an mono economy prior to the coming of GEJ. Oil was the single export commodity of Nigeria. How can you have a sound economy without a strong manufacturing base? The manufacturing sector was in a state of comertoes. Go and do a review of the manufacturing sector between 1999 to 2011 and you will see the difference between other administrations and GEJ. Not only is the manufacturing sector coming to life but Nigeria is set to begin export of Automobiles. Was that the situation in OBJ and Yar'adua's era? Nope.
Prior to GEJ, non oil export was at a record low. In OBJ's government, non oil export contributed almost nothing to the Nations GDP. Why do you think AGOA failed? Its up to you to find out.
The manufacturing sector and non oil export today contribute significant percentage of Nigeria's GDP, the highest ever in the history of the country. Nigeria is becoming more competitive in international trade spiral with non oil export as far as economic diversification is concerned. The records are there for all to see.

Under OBJ, the Agricultural sector was crawling. Nigeria was spending huge amount of foreign currency on importation of sugar. Rice importation was at an all time high. How can the economy be in good shape with these records? We were a consuming nation. Nigeria virtually imported every kind foodstuff available during those periods.
That's not the case today. It's public knowledge that Nigeria saved over $2 billion dollars from importation of rice. Not only that, Nigeria is scheduled to begin export of rice. That's an economic achievement rival by no other administration if you ask me.

By the time you make a sum review of the economic indices between various administration from 1999 to date, You'll discover the real difference between economic growth and economic development.
High external reserve with poor economic indices is as good as nothing.

Demdem:


Good, so what other alternatives are u looking at capable of defeating this curse knowing fully well under this drunkard Nigeria have never have it this terrible?

Obiagelli:

Okay,

datolee:


Valid question, Do I want change.. hell yes, but I have my conditions

1. I would rather GEJ continue than Buhari

2. If we must criticize this governement, let's do so with facts not lies

3. and if you must promote your candidate, please don't sell lies

I'm clear now sir?

patrickmuf:
Economic development shouldn't end on the pages of Newspapers though...

datolee:


I will vote any of Fashola or Kwankwaso.. my honest answer. I really believe that GMB should just take a rest, we are in 2014 not 1983.

ayukdaboss:

Did you vote for him in 2001 when he was 60years old?

barcanista:
Like seriously isn't this laughable? What is the value of the Naira despite the "spending" to resist devaluation? As at today the Naira is 160=Dollar and Soludo time it wasn't this high. I don't know how you reason but you are off it.

First, you were talking as if it was ONLY Jonathan that refused to DELIBERATELY devalue the Naira. They all did!!!

The others had enough in Reserve despite the Price of Oil and the then subsidy bills. WHile Jonathan depleted the account and still furthers d debt

EldaTimba:
was there an election in 2001? I thought I am clueless ooo

ayukdaboss:

Did you vote for him in 2001 when he was 60years old?

datolee:


I will vote any of Fashola or Kwankwaso.. my honest answer. I really believe that GMB should just take a rest, we are in 2014 not 1983.

barcanista:
There is something called typo error. You definitely have not clue what that means

datolee:


Like seriously, do you know what value Naira would have been now if not for the strategy?

Again, you keep missing my point, the strategy to defend the naira in from CBN not president. Here is the example: Emefiele and SLS are the CBN governors under GEJ, while one SLS believes in defending the naira, the other Emefiele does not believe as much.

Which policy is right? I don't know, ask the CBN governors and they will give you reasons.

What i object is saying that Jonathan depleted the external reserve as though withdrew the money and use it for other purposes

datolee:


Like seriously, do you know what value Naira would have been now if not for the strategy?

Again, you keep missing my point, the strategy to defend the naira in from CBN not president. Here is the example: Emefiele and SLS are the CBN governors under GEJ, while one SLS believes in defending the naira, the other Emefiele does not believe as much.

Which policy is right? I don't know, ask the CBN governors and they will give you reasons.

What i object is saying that Jonathan depleted the external reserve as though withdrew the money and use it for other purposes

EldaTimba:
was there an election in 2001? I thought I am clueless ooo

datolee:


I guess you didn't understand my argument.. Your link is saying what should have been added to the external reserve BUT my argument is[b],[/b] the money taken out from external reserve was to defend the naira and not for any other usuage

So how did your link correspond to my argument? I'm really getting lost by you

ayukdaboss:

Sorry 1999*

barcanista:
cc omenka obiagelli You don't ask the CBN Govs but you asked the FG?

The Bold in red sound logical to you? They spent it but you can't say, I should ask the CBN Govs...

just give it up, you have no point

forgiveness:


If the bases of your argument is the bolded.

then, what sayest thou about this?

EldaTimba:

No problem bro but it was 2003 not 1999. Only obj and baba falae contested in 1999

datolee:


No because I believe he has no business contesting in a democratic government. He overthrew a democratic government, he hated democracy, therefore shouldn't partake in one... have I answered your question?

datolee:


No because I believe he has no business contesting in a democratic government. He overthrew a democratic government, he hated democracy, therefore shouldn't partake in one... have I answered your question?

datolee:


Like seriously, do you know what value Naira would have been now if not for the strategy?

Again, you keep missing my point, the strategy to defend the naira in from CBN not president. Here is the example: Emefiele and SLS are the CBN governors under GEJ, while one SLS believes in defending the naira, the other Emefiele does not believe as much.

Which policy is right? I don't know, ask the CBN governors and they will give you reasons.

What i object is saying that Jonathan depleted the external reserve as though withdrew the money and use it for other purposes

EldaTimba:

Mr "Clueful" how is 2001 and 2003 related? I am confused ooo.
Back to the topic, is there anything worth debating after it is glaring GEJ used the reserve mainly for naira defense? I doubt it.
Once again, this thread is DEAD on ARRIVAL.

datolee:


What is your point?

Your question was, why did the external reserve decrease under GEJ.. the answer, SLS used it to defend the naira

You change your topic again whether the policy of defending the naira was a good policy by saying that naira is still 160 to a dollar today.. My answer to that, how would you know that value of naira today is not as a result of the policy.

Finally, if you want to which policy is better, please ask the CBN governors.

P:S would you rather naira is devalued or defended?

forgiveness:

CBN Restricts Dollar Sales As Naira Sinks Below N170 In Almost 5 Years by msmon(m): 7:51am
Muhammad Bello in Abuja and Obinna Chima with
agency report
With the price of crude oil heading south and the country’s foreign reserves under pressure, the Central Bank of Nigeria (CBN) yesterday banned the sale of dollars at its Retail Dutch Auction System (RDAS) to importers of telecoms equipment, power generators and finished products.

Others affected by the ban include importers of
electronics, finished products, invisible transactions
business and information technology.
However, they can source their foreign exchange
requirements from the interbank market and dealers.

Owing to the directive, the naira hit a new intra-day
low in almost five years to N170.05 against the dollar yesterday, falling 1.87 per cent as the stock market continued to slide, Reuters reported.

In a circular titled, Exclusion of Some Transactions
from the RDAS Window, posted on its website
yesterday, the CBN said: “This is to inform all
authorised dealers and the general public that in
order to maintain the existing stability in the foreign exchange market and to further strengthen the various measures already initiated by the Central Bank of Nigeria, the importation of the following items shall henceforth be funded from the interbank foreign exchange market only: electronics, finished products, information technology, generators, telecommunications equipment, invisible transactions.”

In another circular, the central bank also said it had
observed that banks and discount houses now have a preference for keeping their idle balances in its
Standing Deposit Facility (SDF), thereby constraining the process of financial intermediation.
In order to encourage banks to increase lending to
the productive sector of the economy, the regulator
therefore announced a review on the guidelines for
the operations of the SDF.

Specifically, it stated that “the remunerable daily
placements by banks and discount houses at the SDF shall not exceed N7.5 billion. This shall be
remunerated at the SDF rate of 10 per cent per
annum.
“Any deposit by a bank and discount house in excess of N7.5 billion shall not be remunerated. These provisions are without prejudice to the subsisting Monetary Policy Rate (MPR) corridor.
“For the avoidance of doubt, the SDF remains as a
monetary policy tool.”

According to the banking sector regulator, the MPR
corridor remains +/- 200 basis points, that is 10 per
cent per annum up to the limit of N7.5 billion.
Reacting to the CBN’s directive on the diversion of
demand from CBN’s official foreign exchange window to the interbank market, a market analyst, who preferred not to be named, said: “The objective of this policy decision is to reduce pressure on foreign exchange reserves.

“In October, the CBN used 10 per cent of its foreign
exchange reserves to intervene in the foreign
exchange market. The last time the CBN used such a large share of foreign exchange reserves, in a month, to intervene was in the second half of 2011 and the central bank devalued the NGN by 5 per cent in November 2011.”

He said the policy decision confirmed that the CBN
could not afford to keep intervening in the foreign
exchange market to defend the official target
exchange rate of NGN150 +/-3%, at the rate it has
been doing in recent weeks, especially in a depressed oil price environment.
“In enacting this policy, the CBN must have expected the interbank exchange rate to weaken. Which makes me wonder if this policy decision is a tacit devaluation” he said.

On the second directive by the central bank, which
capped banks’ deposits that earn interest, he termed the move negative for the naira.
“I think this is negative for the naira, because it will
result in banks diverting funds to treasury bills,
which will put further downward pressure on yields
and make them less attractive to foreign investors.”
The market analyst said the fact that both policy
decisions were naira-negative, was evident from the
depreciation of the naira to its weakest level,
NGN171.82/$1, where after it retraced to about
NGN170/$1.
“I believe the central bank must have anticipated
further naira weakness, and widening in the gap
between the official and interbank exchange.
“It is for this reason, I believe this may possibly be a
tacit devaluation, or at least a precursor to an explicit one that may be announced at the November 25 MPC meeting,” he explained.

He added that the implication of the policies adopted by the CBN was that the rate of inflation would rise and could have adverse consequences on consumer stocks.

The stock market also remained bearish in
yesterday’s trading, as major company stocks
depreciated further, with Nestle leading the losers'
chart with a N47.5 loss, to close at N883.
Forte Oil slumped from N208 to N194, while Dangote Cement, the biggest stock in the market, lost N10.4 to close the day at N198.

WAPCO fell to its lowest price of N80 in four years,
after shedding N8.73, Nigeria Breweries also took a
hit to N143.45 having lost N7.55, while Unilever
closed at N29.80, slipping down from N31.35.
Market capitalisation sank to N11.425 trillion, losing
N475 billion from N11.9 trillion at the close of trading the previous day.

www.thisdaylive.com/articles/cbn-restricts-dollar-sales-as-naira-sinks-below-n170/193422/

barcanista:
My friend stop being clever by half.
Obj kept Naira stable for a very long time. The Naira has always been defended against deliberate devaluation, though It kept devaluating even till date. It is not only Jonathan that defended the Naira, Yar adua also did. But He didn't deplete the Reserve, instead it was soaring and only dipped during the economic crises. Sanusi came and bailed banks. as at the lowest, oil price was 30$ per barrel. His borrowing was just a few dollars(external debt)/

Goodluck Jonathan also defended the naira from deliberate devaluation, However, Oil price was high as 85-107 dollars. On a normal circumstance we wer supposed to have more in our reserve and even cleared the $3. billion debt that he inherited. Rather the Reserve was depleted, debt worsened and he even enjoyed partial subsidy removal which his predecessors didn't.

My friend you have no point!!!