₦airaland Forum

barcanista:
The Economic program of Silva is never the problem, that of Dilma is the problem. Just as how Nigerians protested after IBB had accepted the SAP which Muhammadu Buhari firmly rejected. A government will always bring excuse for everything. Jonathan cut subsidy yet no significant change. The Problem is the policy of the incumbent and not the predecessor

kolaaderin:

ducii:
No qualms we agree to disagree

barcanista:
How shallow can you go? Buhari is illiterate yet he was trained in Military Schools home and Abroad. Buhari is too illiterate yet he reduced inflation rate from 27% to 5% within 20 months. He was pragmatic with sound economic policy, yet he had no degree. Your Havard trained Iwaela with PHD and the equally PHD holding President are dummies when placed side-by-side with Muhammadu Buhari.

PS: Brazillian immediate Past President Da Silva had NO tertiary education but he lifted so many poor Brazillians to middle class through his economic policies. Something the incumbent couldn't sustain despite her bogus certificates.

ducii:
[s]I will give you an instance governor Fayemi lost an election and reduced University Tuition, a programme he new the state did not have the money to cater for.[/s]

What I am saying is the welfare programme Da Silva started helped him get people out of poverty when the going was good, but it is the same programme that is dragging the country backwards. I saw an interview that a Brazilian gave during when the protest was going, and he said that Dilma Rousseff was wicked, because he wanted to take food out of his mouth, so the presenter asked him what he did for a living and he said he was unemployed. So because Dilma was cutting welfare programmes, she became the villain.

In Brazil today you have young people who are not bothered about school anymore because they think the state will take care of them, so how does this mind set help the country?

diluminati:
this actually happened under Jonathan's watch, we don die!

nduchucks:
Before I agree to disagree with you, lets be clear on what the disagreement is all about.

Do you disagree that if our reserves had been butressed by the $10.8 to $20billion which the NNPC did not remit to the Central bank, it wouldn't have been necessary to devalue the naira?

All I was stating was that our reserves could have increased to at least $50billion if those funds had not been stolen. That would have been enough to keep supporting the naira, at least until, we find our way out of the current predicament.

barcanista:
Fayemi was defeated because Fayose was a better politician in "Nigeria" context. It isn't applicable here.
There is nothing like when the going was good in economics, the fiscal policies of the government coupled with the CBN policies determines whether the going will be good or not. Leaders build, Leaders destroy or fail to build on what have been built. The Failure of Dilma is on Dilma and wasn't experienced under Da Silva. You can't give credit of a government to his predecessor neither is it logical to pass blame. Like I said, Silva took Brazil off economic woes, he didn't do a quick fix (like was done in Ghana which backfires), he was da bomb

ducii:
Well I don't think the Americans will but your theory, because they blame the Bush administration for 2008 Economic downturn.

barcanista:
something

crixtex:
Dont worry.. we will soon go biafra.

customized13:
clown

ducii:
Second of all I am saying that even if we had the $10 or $20billion, that it wouldn't have be put in our reserves, it would have been used for capital expenditure.

customized13:
clown

ZKOSOSO:
GMB is damn too illiterate to handle economics of polity.
GMB pls go to school.
Go get OND or Degree first before I take u serious!! This is not arab nation pls!

ducii:
Look at the Indonesian Rupiah, the Indian Rupees, the South African rand, the mexican peso, the Russian ruble(although their's are also affected by the sanctions), and also the Argentine Peso, most of these countries are affected by what is happening globally in the US and the EU.

ducii:
Don't make it a Jonathan thing. it is a problem with most emerging economies. Nigeria has even done a better job in managing our currency.

If you look at some country's currency you will marvel

nduchucks:
Are you making assumptions here? If not please provide verifiable points to support this statement i. e. why wouldn't some if not all of the proceeds form NNPC activities go into the reserves?

Before you answer my question, I hope you are aware that Nigeria’s external reserves derive mainly from the proceeds of crude oil production and sales. One of the categories of revenue from crude oil production and sales is Direct Sales (i.e. by NNPC).

Caseless:
that's how most of u clueless guys give excuse for failure. No wonder gej told us that ' Nigerians dont panic. Terrorist attack happen everywhere. Maybe it is our turn.' so becos other emerging economies are facing similar crisis we shld also face it. just listen to urself.

macklef:
1 dollar is how many rands still? Using south africa as an african country.

Its not upto 12rands. U just cant compare bro d extent of dier devaluation compared to ours.

ducii:
At the beginning of this 2013 the rand was $1 = 6 rand today it is $1= 11.6

The rand in 2 years lost over 40% to the dollar, that is why it is one of the Fragile 5 currencies.

with all the devaluation the Naira has only lost 12% of its value to the Dollar

barcanista:
How shallow can you go? Buhari is illiterate yet he was trained in Military Schools home and Abroad. Buhari is too illiterate yet he reduced inflation rate from 27% to 5% within 20 months. He was pragmatic with sound economic policy, yet he had no degree. Your Havard trained Iwaela with PHD and the equally PHD holding President are dummies when placed side-by-side with Muhammadu Buhari.

PS: Brazillian immediate Past President Da Silva had NO tertiary education but he lifted so many poor Brazillians to middle class through his economic policies. Something the incumbent couldn't sustain despite her bogus certificates.

ducii:
Ok you are getting it wrong, A countries reserves comes from a lot of places, when foreign investors come into your country the money they come with goes to your foreign reserves, Nigeria's reserves is I think constitutes 20% contributed by Foreign investment and around 80% by the Nigerian government. South Africa's is a bit higher 30% Foreign and 70% Local

What you are talking about is the Excess Crude Account (ECA) where proceeds from the sale of above our benchmark is supposed to be saved. So for instance our bench mark has been set at $65, so anytime oil goes above $65, the excess is suppose to go to our ECA.
As at today Nigeria has about $6billion in the ECA

The Nigeria also has $1.5billion Sovereign wealth fund, that is supposed to take care of the gap in infrastructural development.

Central Bank of Nigeria:
To Safeguard the Value of the Domestic Currency Foreign reserves are held as formal backing for the domestic currency. This use of reserves was at its height under the gold standard, and survived after the Second World War under the Breton woods system. After the Breton Woods system, the use of foreign exchange reserves to back and provide confidence in domestic currency replaced the gold.

ducii:
At the beginning of this 2013 the rand was $1 = 6 rand today it is $1= 11.6

The rand in 2 years lost over 40% to the dollar, that is why it is one of the Fragile 5 currencies.

with all the devaluation the Naira has only lost 12% of its value to the Dollar

nduchucks:
I am not talking about the Excess Crude Account (ECA). I am talking about the External reserves of Nigeria which stood at over $40billion for that past decade! NNPC is a major contributor to the reserves. The said reserve is used to back the Naira by the central bank as it sees fit.

The reason why the central bank devalued the naira is because the Extrenal reserves of the country was dwindling and reduced to under $38 billion within a short time period.

Please read about the sources of our External Reserves here and note that the a significant portion of the missing NNPC funds, if available, would have gone to increase the said external reserve. I'm not sure you understand how the central bank uses our External Reserves to back the naira. The Excess Cruse Account is not primarily used for that purpose.

ducii:
Why was the Naira devalued in 2011?

The Issue is when you defend a currency and it keeps falling then you will know that strategy is not working, then your next option is to devalue the currency and raise rates

nduchucks:
The above is a red herring.

My point all along is that if we have had just $45 billion in the reserves, we would have been able to absorb a $3billion drop in the reserve balance without devaluing our currency. If the missing funds had been available, we wouldn't have needed to devalue a few weeks ago. Why is this difficult for you to accept?

Caseless:
remember, rand increased by 5rand against dollar while our naira increased almost 40(160+40) naira. How do u explain this?

macklef:
Example pls?

Canme4u:
Aburo, I sight you.