₦airaland Forum

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Because that would cause very high rate of inflation. Mugabe printed money in zimbabwe and it resulted to the highest rate of inflation in human history. People carried money in wheel barrow just to buy a loaf of bread.

junketer:
Because that would cause very high rate of inflation. Mugabe printed money in zimbabwe and it resulted to the highest rate of inflation in human history. People carried money in wheel barrow just to buy a loaf of bread.

So who print for USA?

Naira is useless outside Nigeria.

FG borrows in international currencies like dollars

Ekemeze:
You are very free to mock me, but I do not care. I just want to know because the issue doesn't make any common sense atall.

We have CBN to start with, why can't they get a money printing machine and produce money locally and give to the FG? O.o Instead of going out to borrow unbelievable amounts from China always?

This is the funniest thing I have heard this year

China in the past decade printed lots of money and it didn't go the path of Zimbabwe. A country can print more money or inject more funds into its economy proportionately to its projected estimated economic value. I.e if a country can make one trillion in five years, it can have one trillion printed in the hope that it's economic potential over the time line matches the value of the printed money.

Deflation. The naira will become as good as sh*t paper. Thank you!

Ekemeze:
You are very free to mock me, but I do not care. I just want to know because the issue doesn't make any common sense atall.

We have CBN to start with, why can't they get a money printing machine and produce money locally and give to the FG? O.o Instead of going out to borrow unbelievable amounts from China always?

First you need to understand what naira means ....naira is a second level money meaning it is backed by first class money

Here is what I mean 100 naira is a receipt that I have 100 naira worth of dollars lodged with the CBN and can take it anytime

In Nigeria this receipt can serve as money ...but if I want to import u have to change it back to real money then import what you want

When you earn dollars , CBN gives u naira and keeps the dollars ....printing more naira means CBN owing more people

More people would demand dollars , based on the fact no equivalent dollar was earned the price of dollars would raise

The naira I your hands lose value so you lose money ..so printing more money is like robbing you of your hard earned money

It's simple

No international/foreign reserves...

Your money and your printing machine Automatically become Valueless and Useless leaving you and your economy on the mercy of Mr Deflation....

Ask Zimbabwe

They Borrow Because They Will Swap It With Oil.

Inflation

mrvitalis:
First you need to understand what naira means ....naira is a second level money meaning it is backed by first class money

Here is what I mean 100 naira is a receipt that I have 100 naira worth of dollars lodged with the CBN and can take it anytime

In Nigeria this receipt can serve as money ...but if I want to import u have to change it back to real money then import what you want

When you earn dollars , CBN gives u naira and keeps the dollars ....printing more naira means CBN owing more people

More people would demand dollars , based on the fact no equivalent dollar was earned the price of dollars would raise

The naira I your hands lose value so you lose money ..so printing more money is like robbing you of your hard earned money

Correct..
In addition.
There shouldn't be too much excess supply of money in circulation if not inflation will come in.

That's why CBN do use monetary policy and fiscal policy to control the economy.
Using expansionary policy and contractionary policy


And BTW,
I think we've seen the result of fiscal policy in Nigeria more than the monetary policy.

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mrvitalis:
First you need to understand what naira means ....naira is a second level money meaning it is backed by first class money

Here is what I mean 100 naira is a receipt that I have 100 naira worth of dollars lodged with the CBN and can take it anytime

In Nigeria this receipt can serve as money ...but if I want to import u have to change it back to real money then import what you want

When you earn dollars , CBN gives u naira and keeps the dollars ....printing more naira means CBN owing more people

More people would demand dollars , based on the fact no equivalent dollar was earned the price of dollars would raise

The naira I your hands lose value so you lose money ..so printing more money is like robbing you of your hard earned money

I really wish you can further break it down for “economics ignorant” people like us. Where is the US getting the billions of dollars continuously released as economic stimulus? Is it the savings they made over the years, or they are printing dollars? I really wish to understand. Thanks.

Zimbabwe and Venezuela comes to mind.

In this corona pandemic, USA, UK, I know have printed billions to cushion the effect on their economy.

They are the first world countries. Not all first world countries printed .
But us, being 4th world printing money, we will end up trading by barter again cos we don't even have the economic muscle to control ordinary demand and supply without printing money not to talk of when we print.

The veggies in the market will have more value.

Had the govt not been injecting enough in forex since Mr robot came to power, by now we would have had 700naira to one dollar.

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bigerboy200:
I really wish you can further break it down for “economics ignorant” people like us. Where is the US getting the billions of dollars continuously released as economic stimulus? Is it the savings they made over the years, or they are printing dollars? I really wish to understand. Thanks.

Dollar is a first class money ... they have a gold reserve backing the dollar .....two the USA manufacturer alot so u just use dollar to buy from them

But here we import alot so we need dollar to trade internationally as no one would accept naira

bigerboy200:
I really wish you can further break it down for “economics ignorant” people like us. Where is the US getting the billions of dollars continuously released as economic stimulus? Is it the savings they made over the years, or they are printing dollars? I really wish to understand. Thanks.

This is because most of the valuable things that countries around the world buy and sell to one another, including gold and oil, are priced in US dollars.

So, if the US wants to buy more things, it really can just print more dollars. Though if it printed too many, the price of those things in dollars would still go up.

Sammy07:
Correct..
In addition.
There shouldn't be too much excess supply of money in circulation if not inflation will come in.

That's why CBN do use monetary policy and fiscal policy to control the economy.
Using expansionary policy and contractionary policy


And BTW,
I think we've seen the result of fiscal policy in Nigeria more than the monetary policy.

monetary police are weak because government don't control enough liquidity ( 7% instead of 30%) is it doesn't hold much water here

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mrvitalis:
monetary police are weak because government don't control enough liquidity ( 7% instead of 30%) is it doesn't hold much water here

Yeah.
Truth.

Economics
We borrow money rather than print more naira because Naira is only used in Nigeria
We are import dependent country we import vitually every thing including our money
However the dollars is the only currency that can be used in the international trade
How do we get the dollar without exchanging anything in return
The only product we have to exchange for dollars is oil ,mineral resources and farm product like cocoa ,which is not equal to what we import
however oil price has gone down
We need dollars to trade so we have no choice than to borrow.

it will be a criminal Act, it will cause inflation, it will give bubu and boys opportunity to damn all Nigerians, by then 1 egg will be sold for around #20k, end of lecture

The world power print and give to the 3rd world countries to get powerful , acceptible and be able influence their economy.

junketer:
Because that would cause very high rate of inflation. Mugabe printed money in zimbabwe and it resulted to the highest rate of inflation in human history. People carried money in wheel barrow just to buy a loaf of bread.

Funny jor

PHOTSEE:
The world power print and give to the 3rd world countries to get powerful , acceptible and be able influence their economy.

Off point.

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mekuso89:
So who print for USA?

Every country in the world is required to hold their reserve in us dollars

The American dollars is the global currency of choice.

You can't compare that to Nigeria.

Interesting discourse

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I've been meaning to ask this question...

Thanks to mrvitalis, sammy07 and skedman for the insight!!!





lalasticlala
Mynd44

Nigeria needs to be self sufficient first, reduce the importation of basic commodities, increase Exportation of other resources and Nigeria made products, build more working refineries, ban the importation of secondhand goods like cars and wears. We need to stop been a dumping ground for almost every used commodity. This way I think there will be more dollars in the country leading to an increase in the printing of more naira notes.