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Nairaland Forum / Nairaland / General / Business / Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? (34377 Views)
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Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by ajl: 10:17am On Oct 11, 2017 |
1freshdude: Makes sense because America continuously prints more money because it can afford to do so as a very productive country unlike Nigeria. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by ashiwajew: 10:18am On Oct 11, 2017 |
The reason is simply. It is just one reason. You will need quality of materials to print money. Thus, you will have to spend a huge sum to print that amount of money so it is better to borrow. As against what most people have said about inflation. It is not because of inflation as you can print and not put into circulation. It is simply because of the cost associated with printing Ebookmathswaec: |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Meel: 10:19am On Oct 11, 2017 |
PeeDaVinci:can you please shed more light on dis 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by sorepco(m): 10:19am On Oct 11, 2017 |
Chinas manipulation is different in that they dont print more money..instead they devalue their currencies to make it cheaper to export but more expensive to import. As such it attracts foreign investments since they will be export foucus while at same time discouraging imoortation of those same products! Haven't you heard about currency manipulation by China that America keeps crying about while they are the chief currency manipulators. [/quote] |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by tolufase: 10:20am On Oct 11, 2017 |
No sane country will just wake up and start minting currency. Nigeria is signatory IMF & World Bank which oversee some of the activities of the cbn. Therefore, it's practically impossible for any country to mint her currency the way she wants it without recourse to these organizations. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Nobody: 10:21am On Oct 11, 2017 |
Ensquare: Right now, the only way Nigeria can earn dollars is via export revenues (and tariffs on imports) as well as loans. We cannot just print naira and exchange it for the dollar equivalent. For starters it costs money to print naira in the first place...and printing naira equivalent of $5bn would drain our forex reserve drastically. Only way to earn dollars? Diversify the export base....or take a loan from IMF (and IMF won't lend us money to print naira....their economists would scream in horror at the proposition) 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by ivolt: 10:22am On Oct 11, 2017 |
Truckpusher: Don't try to save face, accept that you know nothing about economics. That is why you tried mixing two unrelated issue of national fraud and currency manipulations. You won't die by accepting that you are wrong. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Pinkfriday(f): 10:22am On Oct 11, 2017 |
@Ensquare, I don't know if printing to pay debts and service loans will affect d economy, but printing to take on projects in Nigeria will definitely affect d economy... Besides, d purpose of taking a loan is to use it for profitable projects whereby d profit gotten from d project can be used to pay d debt.. but Nigeria borrows to embezzle dat y we keep servicing debts.... if d loan borrowed is used for wat it is meant for, dere will be no need to print money to pay back or service loans. My own opinion tho |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Nobody: 10:23am On Oct 11, 2017 |
sorepco: Correct...and the thing is ....China has a lot of things to export...being a strong manufacturing nation with a large export base. 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by sorextee(m): 10:23am On Oct 11, 2017 |
i already did.(summary) wanted to expand further, but noticed some guys below have done all that. so no need. johndwayy: |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Nobody: 10:27am On Oct 11, 2017 |
Truckpusher:You meant to say persona non grata. But, who cares! So long Nigerians get all the monies & investments we ever wanted as you remain on the saddle. Lol |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by VictorEkwere: 10:30am On Oct 11, 2017 |
Ebookmathswaec:Oga when you have so much money in circulation it will result to more money buying few goods and services this is because every body will have money and when u have money what happen u will never like to stress your self to work and to farm and any body that will work for u will charge u high because there is money at the same time is only few people that will be willing to work and few people will farm so those few people that will be farming will charge very high because there are many people waiting with money to buy the farm produced at this time you will see so many people with money but no goods to buy because goods and services will be scarce while money will be every where and when money is every where without seeing what to buy with the money the money automatically becomes useless in your hand. Its the worst thing that can happen to any economy pls dont pray for it. 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by profbayo: 10:32am On Oct 11, 2017 |
Ebookmathswaec:you r too dull to ask such a question. even if it's our money, don't u know what happens wen too much money is in circulation. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by samofson: 10:34am On Oct 11, 2017 |
It is possible to create more money without causing inflation . The US used quantitative easing in 2008 to help get them out of the recession. CBN would have to be very smart in doing so . The problem for me is I don't trust CBN has the intelligence to do this. QE is when the central bank creates more money electronically and uses it to buy up financial assets like bond etc. This helps to stimulate the private sector and control inflation cause the money is not being flooded into the open market. So in a way creating more money for a particular use can help but like I said I don't trust the CNN to do it properly . It may become another way to loot 2 Likes |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by ajil(m): 10:36am On Oct 11, 2017 |
Pinkfriday:But government would not spend the borrowed$5.5bn? 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by raymytech: 10:36am On Oct 11, 2017 |
Economics just making life harder for the masses. Poor people don suffer |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by kiddkash(m): 10:37am On Oct 11, 2017 |
Ebookmathswaec:you obviously didn't do economics in secondary and university |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Originalsly: 10:40am On Oct 11, 2017 |
If tomatoes are 4 for N100 and Dangote plant tomatoes on all available land and flood the market with tomatoes.... how much will tomatoes worth? Wouldn't it lose its value? Zimbabwe printed and pumped money into their economy... the value dropped so much and so fast that kt became worthless.... including one's life savings. US did the same for a time under Bush... the currency of the dollar began to plunge... on the way to becoming worthless. Yes...they can print money...but it will lose its value and become worthless. But why the urgent need for such loan?...that's bad news. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by francotunsco: 10:40am On Oct 11, 2017 |
IamaNigerianGuy:. While I understand you very clearly, I state that once the printed money is used for production of services like building bridges, schools, hospitals etc, there won't be inflation. 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Nobody: 10:41am On Oct 11, 2017 |
sorextee:Is Nigerians not currently experiencing the worst inflation ever? |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Nobody: 10:41am On Oct 11, 2017 |
Ebookmathswaec: Shey u want 1 dollar to become 16,000 naira abi... |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by AliHandsome(m): 10:42am On Oct 11, 2017 |
lonelydora:Chisos Khrist my chest.... pure savagery |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by StilTouchy(m): 10:45am On Oct 11, 2017 |
Like seriously........ If every country should be pretty excess money, where do you think we will all be heading to..... Inflation man. Even passport booklet is not easy to print. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Nobody: 10:45am On Oct 11, 2017 |
Did you do Economics in Secondary school... or you were NOT listening in class?.... GOOGLE IS YOUR FRIEND! Ebookmathswaec: |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Truckpusher(m): 10:47am On Oct 11, 2017 |
ivolt:Sooth yourself. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Truckpusher(m): 10:49am On Oct 11, 2017 |
TimeMod3:And you had to point out a typo this Wednesday morning ? I killed five people in Aba because of this |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by donhils: 10:50am On Oct 11, 2017 |
Inflation will NOT kill Nigeria if the Central Bank prints more money, they'll just have to be smart in doing it. It is called Quantitative Easing (read it up), during Obama's regime it was used to bring the US out of economic distress. 1 Like 1 Share |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by micstevo56(m): 10:51am On Oct 11, 2017 |
pls learn so that you will not make such mistake if u find yourself in power tomorrow If you print naira of such equivalent, where then is the dollar to exchange it with? Have u forgotten that most of the goods and services Nigerians enjoy today come from other countries. it will then result to too much naira chasing one dollar, eg 850 naira to one dollar. imagine if such is the exchange rate now, do u know the quantity of hardship you have inflicted on the masses coupled with hardship already in place. this automatically will increase the general price level more than double. I believe one of the major causes of the problems we are facing in this country is printing naira in excess of our GDP and borrowing foreign money only to use it for consumption purposes, no capital investment both locally and internationally. if only we will have investment(multinational companies) in Europe that will generate this dollars, we won't be after borrowing since our crude oil export is not generating enough dollars. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by dederocs(m): 10:55am On Oct 11, 2017 |
You use money to print money, printing of money in Nigeria is under the mint and printing, its not that simple bro, a lot of bottlenecks are involved, if they print a lot of naira to that tune, it will cost a fortune in naira, and we still need to buy dollars, so a lot of cost will be incurred. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by dljbd1(m): 10:55am On Oct 11, 2017 |
Do you think we should still go ahead and print the monies? 2 Likes
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Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by IamaNigerianGuy(m): 10:56am On Oct 11, 2017 |
francotunsco: You might face the unwanted attention of the international community as to how you raised the money. Remember that each country has an account operated by the world bank, Bank for International Settlements and other financial institutions. You would also 'pollute' your legitimate funds with the fraudulent ones and cause your viability to be called to question. Some countries practice what you advocate but they do so as a last resort and need to be very smart about it. It's just much safer and foresighted to create value through production in the long term and borrow in the short term. 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Itulah(m): 10:58am On Oct 11, 2017 |
itiswellandwell: You do not have signature |
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