₦airaland Forum

Cyberterror:
This is what I wanted to type now. Good to know you are thinking straight not like the other clowns in this thread. This is what countries like America, UK and Canada have been secretly doing for ages but they will tell Africans and Latin Americans not to do same using mumbo jumbo economic fear mongering and clowns will buy hook, line and sinker.

Bros
No comment

Interesting

I'm familiar with the effect of printing money in an economy without due process (productivity) but I think tingling with the idea isn't so bad sha.
Abacha and Abdulsalam was alleged to have done same even though it was looted, so we can do a trial and error with it too.
Could the effect be worse than widespread corruption in public and private sector of the economy/nation?

Cyberterror:
This is a very good idea. The secret behind America's prosperity is that their Federal reserve prints billions of dollars yearly to settle their foriegn debts.

The US debt that has grown by 200% since 2008...and is now $27trillion.

The US has a strong currency largely because it is a producing nation, not a over-importing nation like Nigeria.

Just like China , which went from being behind Sierra Leone in 1973 GDP wise...to being a strong nation with a strong currency by being a manufacturing nation.

And thus the US can afford to print money because its economic activity is commensurate with that activity. Nigeria isn't that productive enough.

Read about inflation, Zimbabwean economy and GDP

I do not think those Oxford and Harvard educated economists trained to destroy their fatherland have seen this topic yet.

OP, the problem is not printing money as USA, other Western and Eastern countries do.

The problem is the demand for what we do not produce and forced to buy in their foreign money.

The problem is what we produce and sold, not at our own price but at the price foreigners dictate to us. Especially when they buy them as raw materials and send it back to us as finished products like can meat, fish, chocolate, rice, pencils, toothpicks, used clothes, electronics and garbage.

Yes, unwanted garbage shipped to us! Check our environmental dump sites all over the country where people live and make a living.

I have not even said anything about crude oil, Structural Adjustments or Devaluation to buy our land for one dollar or euro.

Cyberterror:
You are wrong. The printed money will be used to settle foriegn creditors which means it won't circulate in the local economy.

Have u ever heard or read that Nigeria borrowed any amount in naira??
So when u borrow millions in USD you then print its equivalent in naira and use it to pay back?
Or CBN should also mint dollars?
Lwkmd

Claudiusdeux:
1.Printing money involves us using scarce foreign reserves to do the job (because most of our currency is printed abroad).

2.Out of the same scarce reserves, we also pay our debts and pay for the running of the country.

3.Also, printing more money=inflation, and eventually a fall in the value of the Naira.

4.Naira can only become more strong if we are more productive.

5.Our creditors want their cash in dollars, not in Naira.

(NOT AN EXPERT....someone can do better than me!)

Nice one

Cyberterror:
This is what I wanted to type now. Good to know you are thinking straight not like the other clowns in this thread. This is what countries like America, UK and Canada have been secretly doing for ages but they will tell Africans and Latin Americans not to do same using mumbo jumbo economic fear mongering and clowns will buy hook, line and sinker.

First nigeria has a minting company who do nothing cos our minting contract is handled by a Chinese firm because we don't trust ourselves. U can't buy dollars from CBN cos everything in CBN is held in trust for the FG. Its like saying u will sell ur father's land to ur mother.
Finally America sells stuff, technology, drugs, military and defense contracts etc. Same with UK u can't compare their forex with Nigeria.
Finally, when we are serious about developing Nigeria, of which only greed stops us, we will go into practical industrialization where every household can make forex directly via export and its just a matter of policy and political will

Import import import and more importation,
Even importation of the only major thing we produce crude oil as petrol.

The most annoying thing is the importation of used items from cars to cloth, why can't people import quality brand new item, because corrupt leaders have destroyed purchasing power.

Certificate, more certificate and certifications, and even much more expensive certificate and certifications from already developed countries.

Yet no productivity, even the agric productivity is
not taken seriously, just half mindedly.

Now they are now dumping the common wealth on destruction, insecurity and terrorism.

What do u expect?

U check the matter your self, will u allow such an unserious entity to print money to settle debt?

Op i think the answer to ur question is the same answer to this question
Why not instead of borrowing we print the money we need, exchange it with dollar, and use the dollar for what we want to use it for, like this we never need to borrow?

Sense will nt kill us

Cyberterror:
You are wrong. The printed money will be used to settle foriegn creditors which means it won't circulate in the local economy.

Why should foreign creditors accept naira when the debt is in foreign currency?

VeeVeeMyLuv:
Import import import and more importation,
Even importation of the only major thing we produce crude oil as petrol.

The most annoying thing is the importation of used items from cars to cloth, why can't people import quality brand new item, because corrupt leaders have destroyed purchasing power.

Certificate, more certificate and certifications, and even much more expensive certificate and certifications from already developed countries.

Yet no productivity, even the agric productivity is
not taken seriously, just half mindedly.

Now they are now dumping the common wealth on destruction, insecurity and terrorism.

What do u expect?

U check the matter your self, will u allow such an unserious entity to print money to settle debt?

My brother basic economics says u can't keep buying without selliing something. How after 60 years Nigeria isn't selling PMS, AGO cooking gas and aviation fuel to the rest of Africa and even Europe is a dilemma of huge proportions.
We ate still importing PMS after selling crude over more than 40 years... This country leaders should be made leaders also in hell

Claudiusdeux:
1.Printing money involves us using scarce foreign reserves to do the job (because most of our currency is printed abroad).

2.Out of the same scarce reserves, we also pay our debts and pay for the running of the country.

3.Also, printing more money=inflation, and eventually a fall in the value of the Naira.

4.Naira can only become more strong if we are more productive.

5.Our creditors want their cash in dollars, not in Naira.

(NOT AN EXPERT....someone can do better than me!)

but US printed more money during this pandemic

Rhapsodia:
Good evening Nairalanders

Please help me understand some things in governance.

Considering the huge debt the country is faced with under this Buhari's Government, why can't the government the print money in the CBN and pay the lenders??

Thank you so much.

.
You will use money to buy the materials you will use to print another money.

Sometimes it may cost 150 naira to print 100 naira. That's why some of our denominations are printed in nylon to minimize cost eg 50,20,10 naira

Just look at the effects of inflation on every day goods in Venezuela.

Source nairaland.com

PrinxArthur1:
but US printed more money during this pandemic

Because their economic activity is commensurate with the amount of dollars printed.

The US is not a massive over-importer like Nigeria, and is not a massive under-producer like Nigeria.

Printing Naira won't pay our debts, because creditors prefer to be paid in dollars, then it would directly and indirectly deplete the forex we use to do things like pay debt, import, etc.

Claudiusdeux:
1.Printing money involves us using scarce foreign reserves to do the job (because most of our currency is printed abroad).

2.Out of the same scarce reserves, we also pay our debts and pay for the running of the country.

3.Also, printing more money=inflation, and eventually a fall in the value of the Naira.

4.Naira can only become more strong if we are more productive.

5.Our creditors want their cash in dollars, not in Naira.

(NOT AN EXPERT....someone can do better than me!)

Your third point is the main reason, it can't work. Inflation will set in making things hard for Nigerians.

Effects of inflation on every day goods in Venezuela.

fykes:
My brother basic economics says u can't keep buying without selliing something. How after 60 years Nigeria isn't selling PMS, AGO cooking gas and aviation fuel to the rest of Africa and even Europe is a dilemma of huge proportions.
We ate still importing PMS after selling crude over more than 40 years... This country leaders should be made leaders also in hell

The simple reason why is because for decades we were subsidizing petrol, diesel (till 2012/13) and kerosene.....meaning that such things were being sold below the production price , and a subsidy was paid to make up the difference between the production price and sales price.

At the end of the day, because NNPC was not making a profit refining fuel at home....the refienreis went to the cleaners....which in turn affected diesel and so on. Private investors, until Dangote came along, refused to refine fuel in Nigeria.Who wants to refine fuel here at N180 and above...and sell at below N150 ? Without making a profit?

We could be an exporter of fuel , diesel and so on IF we allow the person refining the fuel to sell fuel to everyone at his price. Or her price. The problem is, this means fuel prices of N200 and above...which means political revolt.

Niger that we are buying fuel from, sells fuel from their refinery at N350 per liter. Thus they have enough profit to fund their refinery, and keep it working well. And Niger is poorer than we are.

Because they are the world currency. Others cant do it

Cyberterror:
This is a very good idea. The secret behind America's prosperity is that their Federal reserve prints billions of dollars yearly to settle their foriegn debts.

Too many dull people in NIGERIA ..I can swear this OP voted Buhari

And moreover some igbo guys living in Liberia are printing Liberian currency some of them was arrested some time back.

Cyberterror:
The CBN has a printing facility in Lagos. They can use it. The only problem is the paper needed which is sourced from abroad but we begin to source that locally if the CBN is serious.

Rhapsodia:
Good evening Nairalanders

Please help me understand some things in governance.

Considering the huge debt the country is faced with under this Buhari's Government, why can't the government the print money in the CBN and pay the lenders??

Thank you so much.

So some ppl still think this way?
Do u think some countries will remain poor if things are done this way?
Chai.....Nigerians need to learn more about governance because we'll reach the extent that we'll either hire expatriates or old cargoes.

VeeVeeMyLuv:
This means the people traveling out of the country for greener pastures have a higher intelligence quotient.

Now that naira has devalued, now u cannot see original perfume to buy again

Naso so pirated inferior perfume u go dey see.

So your problem na perfume lol

Cyberterror:
This is a very good idea. The secret behind America's prosperity is that their Federal reserve prints billions of dollars yearly to settle their foriegn debts.

The US will get away with it because the dollar is the world reserve currency. Nations pile their reserves into the dollar which means demand is perennially sustained.


For most other countries, especially those with limited export base, the result is inflation. Probably hyper inflation. The more money in circulation, the more the inflation risk. Hyper Inflation can decimate national economies.

Cyberterror:
This is what I wanted to type now. Good to know you are thinking straight not like the other clowns in this thread. This is what countries like America, UK and Canada have been secretly doing for ages but they will tell Africans and Latin Americans not to do same using mumbo jumbo economic fear mongering and clowns will buy hook, line and sinker.

Zimbabwe and Venezuela did it, guess what?? It crippled their economy!!

Rhapsodia:
Good evening Nairalanders

Please help me understand some things in governance.

Considering the huge debt the country is faced with under this Buhari's Government, why can't the government the print money in the CBN and pay the lenders??

Thank you so much.

the countries we owe don't need our naira what they will take in exchange are natural resources.

Rhapsodia:
Good evening Nairalanders

Please help me understand some things in governance.

Considering the huge debt the country is faced with under this Buhari's Government, why can't the government the print money in the CBN and pay the lenders??

Thank you so much.

Aswear I thought I was the only one with that question in my Head
So... Why can't they print money to settle up the debt