₦airaland Forum

jomoh:
Guy you need to get a column in a financial magazine and write for them or you can just send this your article to a news paper company for publishing. This will make a very good reading.



I love it. Seem to share the same mind.


The present Government might not be saints cos i feel they were too slow in implementing policies to turning the economy around but at least they are far better than the last one and we need to raise the bar high for the next one. Before then i feel we should give this one the opportunity to consolidate on the few good projects they are doing underground like the diversification (rice production), infrastructure development etc albeit under weak economy. What this government has been able to achieve under this circumstances is highly commendable one can only salivate on what it can achieve in a stable economy. I fear if we are in too much haste to raise the bar, we might end up shooting our self in the foot cos we really don't know what the next govt. will bring.

The part i feel this government has done most woefully in is the national politics. The president in trying to convince the people of his change from dictator to a democrat has given too much freedom to people surrounding him to the extent that it is turning into impunity. Unfortunately this is where people tend to focus more on that it is overshadowing the achievement of the government in the face of the inherited calamities.

I will liken the situation of this country to that of Lagos state. Tinubu laid the foundation (between 1999 and 2007) on which Fashola improved and built one of the strongest economy in africa on before it was passed on to Ambode. My point is that if Lagosian were not patient enough for Tinubu's 8years, Lagos might not have been what it is today which is largely due to continuity.

I think we should give this man enough time to lay a solid foundation for this country that others can build on. Lagos state wasn't beautiful under Tinubu, in fact Oshodi was as rough as it used to be, until fashola came in and used the improved revenue to turn around the state.

Are you seriously saying that this administration is better than the former?
My goodness

So we still have sensible analysts on this forum *claps hand*

All of una try, and it means all hope is not lost on NL

But that guy posting Vote T Boss on this thread tho

Billyonaire:
My oh my, how can I live in a country where majority are so stupid ?

It's unfortunate I

aribisala0:
Central banks emerged later and sttarted isuing banknotes and eventually became almost monopoly issuers of money ,I use the word almost very deliberately because other banks too issue in effect what is money too. But CBN notes have a legal underpinning and the willingness and understanding that we talked about has a territorial underpinning so there is a willingness and understanding to accept Naira in Nigeria CFAs in Togo and so on . But we must not forget that those banknotes are essentially promises of the CBN . I have given away my goat for CBN paper based on the willingness and understanding that the CBN will continue to engage in activities to ensure that that paper is worth at least a goat. The moment the value of that paper starts to erode to say maybe a Turkey or chicken then my willingness and understanding to hold that paper erodes as does the willingness to echange future goats.Next time I will ask for more paper for my goat.

So the CBN has a duty to maintain value by ensuring the relative scarcity of its paper. If it engaages in more printing then its paer erodes in value and is worth less in terms of goats.
Human beings are not going to sit idly by and watch their wealth dissipated because the CBN is feckless.They will look for other places where they PERCEIVE that they can store value e.g gold or dollars.again this is a perceptual thing. THese two things hve no intrinsic value and are subject to the same erosion of understanding and willingness under the right set of circumstances.

In short money is a human creation with a very strong perceptual underpinning of what might happen in the future.Why don't lions have money? Well they don't contemplate the future.

I like the way you explained this..
You will make a good lecturer

olujastro:
Last screenshots

Continues....

When Nigeria sowed the seed that grew into a tree with ripe fruits of suffering and penury was when in 2012, then preferred to keep a subsidy that was gulping billions of dollars per annum, instead of doing away with it.
This is even ironic because today, we are paying N145 for a litre when oil prices has halved, and hunger has multiplied, as opposed to N141 when oil prices were still much higher
Nigeria ate her today yesterday and we are all paying for it.
In Sanusi's words back then, he said it clear that if this subsidy regime continues, the next government in 2015 will smell pepper, and as if he was a prophet, that is what is happening today.

Billions of dollars we would have saved wasted on subsidy.

That said, who were those who put the FG under pressure to share the ECA?
Wouldn't that have also been a saving for us? but in usual black man fashion, the governors squandered out today yesterday.

You also talk about the militant activities in the ND.
This to me is the bigger failure of the current admin. With his careless comments and bravado, he set the ND on fire, instead of him to extend an olive branch to all regions to prove that indeed, the elections are over, he decided to polarize the country and what happened after was a direct result of his carelessness.
And due to the avoidable attacks, Nigeria lost billions of dollars that we would have used for better things

One other thing that led to the massive capital flight we saw in Jan 2016 was due to the fact that our mumu president took six months to assemble a useless cabinet.
Which serious government takes six months to constitute a cabinet? The international community of investors saw an unserious admin in Buhari's presidency, and pulled out at least $40B out.

What excuse is there for this level of unserious behaviour?
And to further show you that the gov is useless, threepresidents were sworn in Jan 2017, Donald Trump, Adama Barrow and Akufo Addo, and they all had theircabinet in place and hit the ground running.

I'm not saying that the former admin did not have its faults, but this one is just a useless one, and a big disaster.
so leave matter

mrvitalis:
Am 24 now

LOL

olujastro:
Last screenshots

So I have read from the beginning, in the other page, and from the beginning, you made a lot of sense. Countries that are primary economy based(extractive) and depends on only one extractive resource for over 70% of its earnings is exposed to volatility.
The same way Zambia got into trouble when the price of copper fell, and Senegal, when the price of Groundout tanks, or even some countries in East Africa, if the price of Coffee tanks.

That said, let's move to the talk about reserves and how Jonathan was "dishing out forex to import all sort of things" according to you.
In case you don't know, the president has ZERO jurisdiction over monetary policies (which include forex) so saying He dished out money is wrong.

More to come soon.....

olujastro:
Last screenshots

Abeg that guy should stop talking rubbish....

I'm going to reply most of the poo he wrote soon.

Let me be done with the work in doing

Singapore1:
Purpose
First, countries use their foreign exchange reserves to keep the value of their currencies at a fixed rate. A good example is China, which pegs the value of its currency, the yuan, to the dollar. When China stockpiles dollars, that raises its value when compared to the yuan.

That makes Chinese exports cheaper than American-made goods, increasing sales.

Those with a floating exchange rate system can still use reserves to keep their value of their currency lower than the dollar, for the same reasons. Even though Japan's currency, the yen, is a floating system, the Central Bank of Japan buys U.S. Treasuries to keep its value lower than the dollar.


Like China, this keeps Japan's exports relatively cheaper, boosting trade and economic growth. For more, see How Foreign Exchange Markets Work.

A third, and critical, function are to maintain liquidity in case of an economic crisis. For example, a flood or volcano might temporarily suspend local exporters' ability to produce goods. That cuts off their supply of foreign currency to pay for imports. In that case, the central bank can exchange its foreign currency for their local currency, allowing them to pay for and receive the imports.

Similarly, foreign investors will get spooked if a country has a war, military coup, or other blow to confidence. They withdraw their deposits from the country's banks, creating a severe shortage in foreign currency. This pushes down the value of the local currency since fewer people want it. That makes imports more expensive, creating inflation.

The central bank can supply foreign currency, to keep markets steady, and buy up the local currency, to support its value and prevent inflation. This reassures foreign investors, who return to the economy. (Source: Haukur C. Benediktsson and Sturla Palsson, "Central Bank Foreign Reserves," Monetary Bulletin, Central Bank of Iceland, 2005)


A fourth reason is to provide confidence and assure foreign investors that the central bank is ready to take action to protect their investments, and prevent a sudden flight to safety and loss of capital for the country. In that way, a strong position in foreign currency reserves can prevent economic crises caused when an event triggers a flight to safety.

Fifth, reserves are always needed to make sure a country will meet its external obligations. These include international payment obligations, including sovereign and commercial debts, financing of imports, and to absorb any unexpected capital movements.

Sixth, some countries use their reserves to fund sectors, such as infrastructure. China, for instance, has used part of its forex reserves for recapitalizing some of its state-owned banks.

Seventh, most central banks want to boost returns without compromising safety. That's why they'll often hold gold and other safe, interest-bearing investments, to diversify their portfolios. (Source: Why Do Countries Keep Foreign Exchange Reserves? The Economic Times, November 22, 2004.)

Guidelines
How much are enough reserves? At a minimum, countries have enough to pay for three to six months of imports. That prevents food shortages, for example.

Another guideline is to have enough to cover the country's debt payments and current account deficits for the next 12 months. In 2015, Greece was not able to do this. It then used its reserves with the IMF to make a debt payment to the European Central Bank. For more, see Greece debt crisis.

By Country
The countries with the largest trade surpluses are the ones with the largest foreign reserves. That's because they wind up stockpiling dollars because they export more than they import. They receive dollars in payment.

Here are the reserves for the top countries with $100 billion or more of reserves as of December 2014:

While Nigeria is still struggling with $30b
Na wa

InvertedHammer:
/
Oyibo knows how to play Africans like ludo.

Even in conflicts, they sell weapons to both sides and watch brothers decimate themselves while they smile to the bank.

The saddest part is that they can repeat this game cycle as many times as they like. Only in rare cases do they show face. USA, UK, Soviet Union, Algeria, Egypt, Syria and Bulgaria clandestinely beat the Biafrans black and blue to secure oil fields in Nigeria but openly presented Nigerian troops as winner. Everyone knew that it was the hands of Essau but the voice of Jacob. Left at their own expertise, Nigerian troops cannot even defeat Boko Haram. They again looked up to their masters who gave them the middle finger because there is no oil in the North and the masters now have oil in their backyards.

I give it to oyibo people. African leaders brains are like specimens in their labs. I hope they swapped those cars for bugs.


//

What is this one saying about Nigerian army

Even without help, they would have beaten the biafran army blue black, which weapons did that dunce (Ojukwu) have?
My grand father and uncles just fought for nothing, high on euphoria, but never knew they were fighting for a coward that ran away.
As for BH, does boko fight conventional warfare?
That is what makes the fight even more difficult.
Even the American army after a decade plus are still tackling the menace of the Taliban.

But you are right on the others tho, African leaders need their head examined.

Hmmm
This is just pathetic. What is wrong with my countrymen

Na this kind thread you go find women aplenty

myking95:
He is 18 and inexperienced. At that age, ijeoma was using u to do heartbreakology practicals

Very funny

If Emefiele knows what is good for him, he better make $23b as the benchmark, then use the excess to defend the naira (which is over $7b)
Oil prices are above $45
It's not the best choice to make right now, but hey, at this point, Naiea cannot afford another nosedive.

Donald3d:
Just pray you don't experience it bro, and I am educated too.The oyibo people you want to copy know this things and spiritual forces exits,most just pretend not to believe it does.I just pray you wont experience it.

This is not about copying anyone

It's common sense

sirusX:
soo freaking wrong...and to her, for being praised about it...she did a right thing

If she felt the guy didn't spend enough, she could have walked away without throwing shades

But the mugu should have kept shut instead of ranting like a useless man.

See the derogatory terms he used on her


He got served and served well.
He deserves the disgrace and more

Yeue

Geezy4real:
I disagree with this post that M.I is the richest rapper in Nigeria. If he was, Y then has he never being featured on Forbes Most Bankable African Artistes (when the likes of his labelmate, Ice Prince & even Ghanaian rapper, Sarkodie, have being there twice!)? The truth is most on this list ain't really got much to flaunt, so be careful not to mistake lack with humility/modesty! Like they do say often - If u garrit, u are free to flaunt it! #Please

Exactly

These Nigerians are just jokers

Since when did it become a crime to flaunt what you have

It's a free world, if you want to flaunt, do so, if you are private, do you

It has nothing to do with Empty barrel or maturity or whatever

Mark Cuban and Donald Trump and Larry Ellison that are show offs, are they immature or empty barrels?

Rossikk:
SHUT UP. 12,000 Americans are shot on the streets each year. They are not ''at peace in their own country'' either. But I'm sure you have a lot of ''respect'' for them despite that. EWU Self hater.

Where have you been

Legon is still finer that KNUST imo tho...

But the pics are nice


And for the others taljubf rubbish to there, this is not a competition, just appreciate the school and move on
You don't have to start comparison again....


When will Africans learn

You better finish up your school, then use the transcripts to further your education anywhere in the world

Leaving halfway means you have wasted the time you spent in the school, and if God forbid, things don't go according to plan, you still have your B.Sc and you can further at a later time

Timbuktu14:
1000 to 1250 na die oo

I hear am no be small that time

martineverest:
u think whites are as heartless like africans?

Lol...
In a way they are more humane