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Nairaland Forum / Nairaland / General / Business / Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? (34530 Views)
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Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by sorextee(m): 12:57pm On Oct 11, 2017 |
Thats anoda angle sef. Back den in skool,I know it cost 8naira(or a Lil bit higher,) to print a single 20 naira bill. I dnt know how much the figure is now. If to say e easy like dat, no country will be in debt. USA did something similar, in 2001-2004, by printing so many dollars into the economy,which led to a geometric increase in money supply. It affected their housing sector, whuch led to a collapse in 2008. koladebrainiac: 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by koladebrainiac(m): 1:01pm On Oct 11, 2017 |
sorextee:Money can only be minted to augment the mutilated ones and maybe new denominations to increase circulation of it |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Ayokunlemi96(m): 1:11pm On Oct 11, 2017 |
Maybe you should read about the history of money and currencies. Gold is the real money in the world, currencies are only receipts of gold because we cant be carrying gold around cos of weight and other factors. To print currencies, there has to be its equivalent in gold somewhere. This is why gold is always a topic or subject of value everywhere in the world. The secondary reason is inflation. Just look at it logically, if countries could print their ways out of economic mess the world will be a paradise. You dont get money for nothing, it is money for something, something of value. 2 Likes |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Baronnaire: 1:18pm On Oct 11, 2017 |
You mean we should be like this 1 Like
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Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by tillaman(m): 1:23pm On Oct 11, 2017 |
Wow thanks a bunch, I learnt something new today Klington: 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by anyicash(m): 1:30pm On Oct 11, 2017 |
There are rules and conditions to printing money...do you know that it costs 200 naira in raw materials to print 100 naira?...lol |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by lovingyouhun: 1:31pm On Oct 11, 2017 |
thesicilian: Guy we are thinking inside the box things are like this, what if we start to think outside the box? |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by ericmor: 1:45pm On Oct 11, 2017 |
lonelydora: because you know, does not mean another person know, some are not opportune to good education so there for, we should try n educate ourselves and not insulting one another for asking question 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Nobody: 1:52pm On Oct 11, 2017 |
I understand what inflation mean but what is going on in Nigeria is what exactly |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Nobody: 2:05pm On Oct 11, 2017 |
[quote author=IamaNigerianGuy post=61310800]This is a good question. To answer it, lets start with two short definitions: 1. Inflation: Too much money chasing after too few goods 2. Money: A store of value and a medium of exchange Good reply, i have a Question..what value are yahoo boys bringing into the economy, all they do is push buttons and get millions of dollars into the economy.. how does it affect inflation at large? |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by seguun(m): 2:07pm On Oct 11, 2017 |
exlinklodge: The cheaper their goods, the more the world want to buy from them...especially the third world countries whose masses can't afford the Western more expensive goods. 2 Likes |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by samsard(m): 2:18pm On Oct 11, 2017 |
Ranchhoddas:And you think you made sense? You're seriously mad and you have no one to tell you. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by surddick(m): 2:22pm On Oct 11, 2017 |
chiefeconomist:the best have read so far, if the cost of importation is expensive and the government cud seize the opportunity to create such factory to create same goods, there will be employment and importation of such goods will be baseless. We might be exporter and more dollars for us, instead of spending we recieve. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by thesicilian: 2:28pm On Oct 11, 2017 |
lovingyouhun:Lol. Maybe the box is too small, we might have to get a bigger one. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by lovingyouhun: 2:33pm On Oct 11, 2017 |
thesicilian: That is exactly how this present Government think. I concur |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by IamaNigerianGuy(m): 2:48pm On Oct 11, 2017 |
[quote author=donbabajay post=61318100][/quote] Yahoo boys may contribute to inflation in the micro economy. In cities suburbs where they live, they can drive up rent or the price of cars and clothes for instance; this is mostly a localized effect however. One must also realize that demand for goods and services is depressed in most of Nigeria due to low purchasing power and high unemployment. Hence, the increase in demand fueled by 'yahoo' money is viewed in a positive light by vendors and the yahoo money supply they bring in is not enough to cause widespread or systemic or national inflation. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by OAUTemitayo: 3:00pm On Oct 11, 2017 |
Ebookmathswaec:What a dumb azz |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by DEADALIVE: 3:04pm On Oct 11, 2017 |
the origin of money is from trade by batter... there is no amount of money you acquire or print if there is no goods and services exchanged then it is just like a sticker or handbill used for publicity. A country that has refused to utilize its natural resources rather continue to orientate each generation the need to live a flamboyant and luxury life style with all citizens either trying to import or travel out of the country not knowing that the higher we pay for services the more naira becomes devalued thereby creating room for either borrowing or printing more.... like others have argued it will lead to inflation but I can tell you Nigeria has always trend on the economics of inflation even with the Harvard gurus handling the economy why? this is as a result of the problem earlier cited above. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Icon79(m): 3:09pm On Oct 11, 2017 |
Oh my goodness! Please somebody tell me that this dude is joking!! What kind of education do Nigerian students get these days? Na wao, this reminds of the story we used to hear about Field Marshal Idi-Amin Dada of Uganda. The Central Bank governor once informed him that the country is broke....that the country doesn't have money any more. And Idi-Amin was like "What do you mean, we don't have money? Isn't it your job to print money. Go and print more money." O pari Ebookmathswaec: |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by linusbnn(m): 3:12pm On Oct 11, 2017 |
sorextee: Abeg make them print half and borrow half. We need to dey see this money always. 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by linusbnn(m): 3:15pm On Oct 11, 2017 |
1freshdude: No be when we see the money 1st b4 to spent am on things become problem?. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Tecno66: 4:21pm On Oct 11, 2017 |
Ebookmathswaec:It will make the money worthless and inflation skyrocket. It is against basic economic principles to print money at will. Most governments will will even want to reduce the local money in circulation to shore up the value. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Klington: 4:22pm On Oct 11, 2017 |
tillaman:Anytime buddy 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by 1freshdude: 4:25pm On Oct 11, 2017 |
Truckpusher: Lol...its not about America! It's about relative scarcity. Even at the moment some businesses in Nigeria (local) prefer dollars, they won't take naira from you. Money is paper, it was created to solve the trade by barter debacle, it just facilitate the transfer of value, it's actually "Nothing" without output, if you have all the money in this world and there is no productivity or output will you eat the money? Currency manipulation is entirely different, it has to do with the FX (foreign exchange) control, even Nigeria does it, its the deliberate use of a countries foreign reserves to manipulate the value of it currency relative to other world currencies. The value of the naira should be about $=1000 or there about if government let's it float, but our government is manipulating the currency by buying $ and selling it at 400 (or there about). It's the reverse in China. The Chinese currency ought be just as strong as the $, because of their massive output and impressive trade volume. Almost everybody is buying from China So this ought to push the renminbi (the Chinese currency up), and this means there goods get more expensive relative to goods priced in other currencies, this will remove their competitive advantage (price). Now the Chinese government pegs it's currency so that the value does not reflect the actual demand and supply situation. The this hurts the U.S.A and other international producers because China retains that affordability advantage, making Chinese goods a preference for many over their more expensive goods priced in $. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by CioAngels(f): 5:54pm On Oct 11, 2017 |
Did'nt we read that CBN/MINT has been printing money for FGN to use? If it was right or wromg as long as the government found it proper to do before it went public, they should continue and continue to bring mockery to Nigeria and her Leaders. The ministry of finance once said Nigeria don't have the reason to borrow money, so why this desperation? Atimes, i want to think the cabals are desperately advising the president to bring his down fall. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by ELff: 7:15pm On Oct 11, 2017 |
The young man raised a thought, although it may appear leftist, it is worthy of consideration. Let us look at it again..... For those claiming borrowed money does not equal inflation but printed money would, how would you explain the same to a toddler if in the end, the economy is getting a boost of equivalent amount of money.....mind you before you rush to answer, in both instance, there are no exchange of goods. For those saying he doesn't understand elementary economics, haven't it occurred to you that you may be repeating the same thought train that has been ingrained in you, leaving you without the option to think through the challenge in another way? You see my friends, as much I understand the concept of money both the scientific and sentimental ideas of it, there are also other ways to see through things. The old ways might just have been wrong for so long. Let us ponder anew! You never know what we might come up with. 2 Likes |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by datjukunboi(m): 8:23pm On Oct 11, 2017 |
The last time I read anything about economics was about 20yrs in my SS2 and the more I reason these money theories the more it doesn't make sense. some of them are just ideal theorems (in life, nothing ideal is ever real or true). Remember what this administration started with their forex policy & hoarding of forex ($)? what did they achieve? Did the hoarding/scarcity of $ improve the value of the Naira? what happened to our inflation rate? was that policy not the textbook method of tackling dwindling resources? why did Buhari refuse to devaluate the Naira (answer = so called belief that it will increase inflation despite increased earnings)? Did that policy curb recession, inflation or devaluation of the Naira? bottom line: I tend to agree with the op or support CBN to selectively mint notes in such situations to fund capital projects, this newly printed money is not just shared to every Tom, Di*k & Harry but is earned for offering value & commensurate to effort, how will this now lead to inflation if the money shared is rightfully earned? #thoughts of a layman seeking answers |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by Ebookmathswaec: 8:26pm On Oct 11, 2017 |
ELff: Nice contribution! 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by datjukunboi(m): 9:04pm On Oct 11, 2017 |
Icon79: Also reminded me of the movie I watched in childhood (The rise and fall of Idi Amin). The Conversation went thus: Gov: We can't print more money, It'll make our currency as worthless as tissue paper Amin: What? you call uganda money shi*t paper? Mallam Mugu (calling his aide) take this man away and show him what we do with sh*t (Gov brisk away to be imprisoned /killed & new Gov appointed on the spot that agreed to print more money. Have you noticed that most of these dictators make decisions contrary to the west and despite international sanctions they achieve monumental advancement and development for their countries amidst Human Rights violations and their western friendly successors tend to underachieve? |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by datjukunboi(m): 9:25pm On Oct 11, 2017 |
anyicash:I beg to disagree with this assertion unless if you can proof with facts. You mean in essence that when I spend 100 Naira to buy/pay for a service it's actually worth more what am paying for? it doesn't add up and makes no economic sense for cost of production to surpass value of product. |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by datjukunboi(m): 9:58pm On Oct 11, 2017 |
ashiwajew: nice post, I was initially convinced with your point until this thought popped up. is borrowing cheaper than printing in the short term or long term? seeing that a large percentage of our national budget goes in merely servicing our debts from money borrowed taking donkey years to pay up such loans and invariably costing five times the initial borrowed amount. 1 Like |
Re: Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? by ponti93(m): 10:41pm On Oct 11, 2017 |
IamaNigerianGuy:please enlighten us more o the borrowing effects |
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