₦airaland Forum

CBN doesn't have power to print money without the approval of IMF and this will probably lead to devaluation and inflation

Is it that the money we spend now have always been there? Or the CBN prints money regularly? What's more money? What's the money printed normally? Where did the bailout fund come from? There's already inflation in Nigeria, I think?

Please shed light.

Where's NgeneUkwenu the Nairaland resident economist when you need "her"??

INFLATION! @OP printing more money will render whatever we already have to be USELESS and plunge Nigerian into deeper economic crises that we may NEVER recover from.

dultmax:
goods and services produced in an economy are the key determinant of the value of a country's currency. Nigeria has a country lost its chances to improve its economy and add value to its currency when the price of crude oil rises to about 140$ per barrel. what this means is that the country earns more dollars (which is the center piece currency in the forex market) and as such should have a high impact on naira. However, naira does not appreciates during these years and this actually goes against economic indicators. However the only factor that can be responsible for these means that as the country is earning more dollars, so also is something taking away the dollars from the country and that is another concept of money laundery. in simple terms, the country now sell crude oil around 50 dollar per barrel which is the reason for the sharp decline in the nations revenue base and a reason why we need to source for another means to earn dollars which they now call diversification. The economy will fix itself if other sectors like Agriculture, Mining, can be developed . printing more money will devalue our currency and thats inflation.

diversification is part of the solution not the main solution.

SeverusSnape:
Where's NgeneUkwenu the Nairaland resident economist when you need "her"??

She/he is looking for Amaechi and Saraki news on goggle to copy and paste.

bettercreature:
CBN doesn't have power to print money without the approval of IMF and this will probably lead to devaluation and inflation

Ignorance bad sha. Ño blame the OP

scofieldsimba:
I just want to know if it is right for our Central bank to print more monies in order to heal our wounded economy..


We are deficit infrastructural. I think it won't be a bad idea if there is a special fund created by CBN to build roads,improve power, improve health care, and create more industries..

I heard most countries at some point in time had to resort to this....

Seasoned economics in the House, I need your contributions..

Printing more money that is not commensurate to your GDP is a disaster and shouldn't be encouraged at all.

There are basic economic policies that would do us justice but hey! someone is too old to understand the basic principles of a 21st century economy and to make matters worse he has no economic team on ground.
Economic team is akin to emergency health workers , they are always around to stabilize the patient/economy to stay afloat but the olodo General is more interested on who becomes his Senate President and who Governs Rivers State and Akwa Ibom State....smh

scofieldsimba:
I just want to know if it is right for our Central bank to print more monies in order to heal our wounded economy..


We are deficit infrastructural. I think it won't be a bad idea if there is a special fund created by CBN to build roads,improve power, improve health care, and create more industries..

I heard most countries at some point in time had to resort to this....

Seasoned economics in the House, I need your contributions..

According to the progressive JAGABAN, yes.
http://www.thisdaylive.com/articles/slump-in-oil-prices-a-progressive-way-out/193976/
http://www.thisdaylive.com/articles/tinubu-thesis-keynesian-genius-and-reviving-the-nigerian-economy/209539/
This foolish people will kill our economy due to their incompetency, greed, selfishness and economic olodoness.

dexpendable:
Is it that the money we spend now have always been there? Or the CBN prints money regularly? What's more money? What's the money printed normally? Where did the bailout fund come from? There's already inflation in Nigeria, I think?

Please shed light.

the goverment does its own business by the help of apex bank. Business like Sales of crude oil

Firefire:
She/he is looking for Amaechi and Saraki news on goggle to copy and paste.

don't mind him, He won't see how our economy is nose diving, But any news about Amaechi, he'll see. Let them keep playing the ostrich.

Lol

SeverusSnape:
Where's NgeneUkwenu the Nairaland resident economist when you need "her"??

They are more interested in who becomes the Governors of Rivers State and Akwa Ibom state.

Talk of misplaced priority.

EternalTruths:
True federalism is the way out



When the states control a reasonable portion of their resources, this will speedup economic diversification leading to economic prosperity

Giving states more resources won't change anything most of our govonors don't think they are simply just share money. True federalism can only work when we have visionary leadership. Most states are filled with bankable resources but no govonor has taken the initiative in exploring these resources

Truckpusher:
They are more interested in who becomes the Governors of Rivers State and Akwa Ibom state.

Talk of misplaced priority.

... Even the aforementioned are 'white elephant' projects to me. Because I don't see them achieving their aim. They shall fail once more.

Me don't think we have scarcity of money and if we have, we can collect the one in the hand of looter to solve our problems, pay salary,electricity to boost of economic invest more in agriculture to create job,build more refinery and stop paying subsdiy is a fraud,collect all the oil bloc from individual and allocate it to each state to feed them self, and stop give them alocation,think of how you can be the importer of crude oil, refine it and sell white product to Neighbour country.God bless Nigeria

Nigeria stop importing tooth pick and other irrelevant stuffs. Even rice importation has been revamped by this administration - more inflation for us

it cost N1 to print every N1, ask any economist(you cant eat your cake and have it)

The last time an Economy try that(Germany), Cigarette became the new money. In Nigeria, maybe Cowry will become one.

ELGREF:
Me don't think we have scarcity of money and if we have, we can collect the one in the hand of looter to solve our problems, pay salary,electricity to boost of economic invest more in agriculture to create job,build more refinery and stop paying subsdiy is a fraud,collect all the oil bloc from individual and allocate it to each state to feed them self, and stop give them alocation,think of how you can be the importer of crude oil, refine it and sell white product to labour country.God bless Nigeria

True talk on oil blocks. Govern$ent shud take back oil blocks from individuals.

SeverusSnape:
... Even the aforementioned are 'white elephant' projects to me. Because I don't see them achieving their aim. They shall fail once more.

They are showing the change chanting zombies that it's not yet uhuru.

By the time they will finish with the economy , they will understand the message.

scofieldsimba:
I just want to know if it is right for our Central bank to print more monies in order to heal our wounded economy..


We are deficit infrastructural. I think it won't be a bad idea if there is a special fund created by CBN to build roads,improve power, improve health care, and create more industries..

I heard most countries at some point in time had to resort to this....

Seasoned economics in the House, I need your contributions..

OP, the link below should help answer your questions.

http://www.economist.com/blogs/economist-explains/2015/03/economist-explains-5

tsdarkside:
if you print more money,this will devalue the naira much more....your buy-power will reduce extremly....it will hurt those that import things from outside to make a living.,...your idea can only work,if all nigerians agree to only buy localy produced products.....
a very risky suggestion you are making here.....

and the igbos will get very unhappy with you...this is what they are specialized in,to make a living.....

What if the money is mainly use for infrastructures. ?
What if money is printed to build power plants? How will it affect the above you stated, having it in mind that either we print or not, we still going to import the material needed.

hmm. google Zimbabwe's money inflation.

scofieldsimba:
I just want to know if it is right for our Central bank to print more monies in order to heal our wounded economy..


We are deficit infrastructural. I think it won't be a bad idea if there is a special fund created by CBN to build roads,improve power, improve health care, and create more industries..

I heard most countries at some point in time had to resort to this....

Seasoned economics in the House, I need your contributions..

Good point. At a time asiwaju bola tinubu proposed this short term policy. It will help correct some deficits but in the long run, inflation will crop up.

It all depends on how it is driven by our government. If well handled, it will be a short fix that maybe handled long term.

inflation things on point.

buhari should hurry and diversify this economy otherwise Zimbabwe will be better o.

besides we need true fiscal federalism ASAP.

mazeltov:
the goverment does its own business by the help of apex bank. Business like Sales of crude oil

Okay.

Sales of crude oil means dollars.
Please enlighten me, is it that the government puts the sales profit into circulation? and since we don't spend dollars, print notes equalling the sales profit?

scofieldsimba:
I just want to know if it is right for our Central bank to print more monies in order to heal our wounded economy..


We are deficit infrastructural. I think it won't be a bad idea if there is a special fund created by CBN to build roads,improve power, improve health care, and create more industries..

I heard most countries at some point in time had to resort to this....

Seasoned economics in the House, I need your contributions..

It's tantamount to devaluation Sanusi talked about.

It has advantages n disadvantages, just like every other economic policy.

scofieldsimba:
I just want to know if it is right for our Central bank to print more monies in order to heal our wounded economy..


We are deficit infrastructural. I think it won't be a bad idea if there is a special fund created by CBN to build roads,improve power, improve health care, and create more industries..

I heard most countries at some point in time had to resort to this....

Seasoned economics in the House, I need your contributions..

Our dwindling economy is not due to lack of currency in the economy but lack of products to bring in money from outside.

You cannot use Naira to purchase things from international market. For that you need dollars and you can't get dollars unless you have something to sell in exchange for the dollar.

So if you print more Naira currency, it would create a false impression that the country is ok and people will demand more and be ready to pay higher price for the little product that we have in our economy thereby resulting in a demand pull inflation.

In spite of all these economical problems, our foolish Godwin Emefiele wants to freeze over 25 Million customers bank accounts just because of BVN that is supposed to be a continuos process as it is done in SANE countries. No need to print money. We need right thinking folks to handle our economy. Emefiele is not smart enough. He is still playing his cards according to dictates of his former boss, Jim Ovia. Emefiele must be sacked as a matter of URGENCY.

Nigerians know the truth but never admits it. This country will keep having problems until its foundational problem is resolved . We need to go back to been a true federal state ,with each state or region having control over its own resources and making the centre less attractive . But right now there is no Jupiter that can save the economy as from December,buhari and his team should start putting heads together now and come up with all the necessary austerity measures needed to put the nation bad on track