Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by godoluwa(m): 4:01pm On Dec 30, 2015 |
Enangson: Nigerians should also be ban from schooling or embarking on any kind of trip abroad so as to boast the economy. while buhari daughter school abroad? clap for yourself |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by Amberon: 4:01pm On Dec 30, 2015 |
If you read marketing like you claim then you should know better, that this indeed is a way forward for Nigeria. This restriction will also affect me, but it is for the greater good. Do you know Nigerians are the biggest spenders in Dubai? and also UK along with the Arabs? I'm not an economist but the day I heard of this development, I knew the reason why and I called my sister who is an economist and got a brilliant explanation from her. If you know how much Nigerians spend overseas and the ripple effect it has on our economy, you'd commend PMB. Naira is at a free fall and only policies like this, along with others can deliver us from this nightmare. The op is correct. with billions of dollars going out and nothing other than peanuts coming in as crude oil revenue, I tell you the naira will be towing the part of the Zimbabwean dollar. Believe it or not, this is a step in the right direction. Atmmachine: Bullshit. I repeat again, Bullshit.
Banning the use of ATM cards abroad ain't the solution to Naira's problem. You can't send Western union out from Nigeria to other countries, when Nigerians abroad get low on cash and decides to steal, Una go say them dey bring us bad name. Another bullshit. Who are you gonna deceive with that pile of steaming shiit you just wrote. I have a degree in Marketing. You're making Nigerians look uneducated. Have you heard of Pegged Exchange Rate ?? It's a type of Exchange Rate regime where a currency's value is fixed against either the value of another single currency. In a fixed exchange-rate system, a country’s central bank typically uses an open market mechanism and is committed at all times to buy and/or sell its currency at a fixed price in order to maintain its pegged ratio and, hence, the stable value of its currency in relation to the reference to which it is pegged. The central bank provides the assets and/or the foreign currency or currencies which are needed in order to finance any payments imbalances. The last large economy to use a fixed exchange rate system was the People's Republic of China which, in July 2005, adopted a slightly more flexible exchange rate system called a managed exchange rate. The European Exchange Rate Mechanism is also used on a temporary basis to establish a final conversion rate against the Euro (€) from the local currencies of countries joining the Eurozone. Jamaica, United kingdom and the United States of America also used the method.
I wish i can see you face to face so i can seize your degree and send your ass back to primary school 1 Like |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by ojuolu(m): 4:05pm On Dec 30, 2015 |
erico2k2:
U think you are clever now abi.U just exposed ur ignorance the more.try and travel out for mayB 2 weeks mayB you might see more sense who told you Naira ATM is for school fees and minor sundry expenses. Y do you think we have atm machines the dispense Dollars. Euro and Yen at Heathrow. JFK and Frankforth? Most shops abroad are more con for table with your Atm than cash.Holiday makers use their plastic not cash.can I use my barca us card in Nigeria No cos of our wack exchange get rate what do I do? I wire my no eye to my 1st bank account at higher rate via 3rd party age t and pay the fees.it takes 1 minute. Mr wise man, don't be too myopic. You are looking at it from your own personal perspective, the impacts and effects on you and the inconvenience you tends to experience (albeit in the short run). The policy is not targeted at simple users like you and I (i travel out too for more than two weeks atimes). The targeted impacts are on the aggregate economy and the exchange rate. I won't go deeper than this. But please note that Nigeria is not utopian in nature. Other economies are not too. We are all praying for a better and more robust economy. We as a people have a very high MPC (marginal propensity to consume) as displayed by the irresponsible way in which the past leaders and managers managed the oil windfall of the past years. We all need to sacrifice now to correct these anomalies and help the country on it way to greatness. I will implore you to please research the "Impact of International Trade on Economic Growth in Nigeria" in the face of a monoculture export commodity with dwindling revenue that face us now. God bless Nigeria. God bless us. |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by macklef(m): 4:06pm On Dec 30, 2015 |
erico2k2:
Wetin concern me.I only get 10 more days 4 9ja after that Holiday ova bck to UK so wo nor fit read wetin I type shud go n diee ![grin](https://www.nairaland.com/faces/grin.png) Hahah. Sheyb na d reason wey u dey argue one sided b dat na. Hope say dem nogo ban flights out from Niger before then o cos una get moni to spend here other dan to go spend for obodo oyinbo |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by Amberon: 4:11pm On Dec 30, 2015 |
There isn't and WILL NOT be a total ban on the naira ATM. only restrictions on the daily limit. dumo1: Oga op u were just blabbing and comparing amount of money spent. No solution in sight to the pending problem cos I school in Ghana most of your points were reasonable tho, and I have no problem with the limit of cash to be spent in a day but there shouldn't be a total ban on the card totally. |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by Amberon: 4:14pm On Dec 30, 2015 |
Dear Musa, you're mistaken. there isn't a total ban on the naira ATM. there's only restrictions on the daily withdrawal limit which is $100 currently. There also isn't a ban on schooling abroad. MusaIbrahim1: OP na big Mumu, so nobody should go outside to study again, abi? Because the dollar is nose diving....
This is lame
What happens to those that studied outside the country, got a job outside the country and still sends money to their love ones in Nigeria? We have learned people outside the country that still have a lot of investment in this country... Is that not money coming in?
By stopping ATM and stopping abroad study, do you know the number of knowledge and money that will be lost? I see a future where Indian doctors will take over everything... |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by Nobody: 4:15pm On Dec 30, 2015 |
godoluwa: to be honest, these will affect a common man negatively. lets just wait & see how the event unfolds from friday. btw, wetin make u deactivate ur account abi u don use am scam ni? lmao! Nope. I no want followers. |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by erico2k2(m): 4:15pm On Dec 30, 2015 |
rottennaija:
For naira to increase in value, Nigeria have to export. Exportation comes from production. Do you think it is what can happen in a month or two? Guy you are asking me a question. I asked you a simple question what policies did the FG put in place e that ur related or relivant to the OP'S write up.so I know me and U r on same page. |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by erico2k2(m): 4:18pm On Dec 30, 2015 |
Amberon: Dear Musa,
you're mistaken. there isn't a total ban on the naira ATM. there's only restrictions on the daily withdrawal limit which is $100 currently. There also isn't a ban on schooling abroad. Guy wake up U r in a very bad dream.people lime U just wake up and post crap online .U are 2 mo ths backward. DI'd you not read or listen to the news?where all the bank said they cannot back your forex transactions.so s action ie or naira dominated Atm card wont wrk outside Nigeria? Stp taking us bck |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by Stanbeto: 4:19pm On Dec 30, 2015 |
This is guy is right |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by erico2k2(m): 4:20pm On Dec 30, 2015 |
macklef:
Hahah. Sheyb na d reason wey u dey argue one sided b dat na. Hope say dem nogo ban flights out from Niger before then o cos una get moni to spend here other dan to go spend for obodo oyinbo Ahah Bad belle holy ghost fire for that suggestion. Lol in other news I work abroad and repatriate my earnings back to Nigeria. So I actually help Nigeria than it does to me. |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by nairayouthcom(m): 4:22pm On Dec 30, 2015 |
njikoamaka: Nigerians will soon be restricted on the amount to withdraw maybe, 10k max in a day. Receive Sense In Jesus Name |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by godoluwa(m): 4:22pm On Dec 30, 2015 |
Vikings007: lmao! Nope. I no want followers. alryt, its gud. |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by ImpactWorld(m): 4:27pm On Dec 30, 2015 |
This is ridiculous. Does this mean Nigerians are no longer free to spend their OWN money as they deem fit? |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by erico2k2(m): 4:29pm On Dec 30, 2015 |
ojuolu:
Mr wise man, don't be too myopic. You are looking at it from your own personal perspective, the impacts and effects on you and the inconvenience you tends to experience (albeit in the short run). The policy is not targeted at simple users like you and I (i travel out too for more than two weeks atimes). The targeted impacts are on the aggregate economy and the exchange rate. I won't go deeper than this. But please note that Nigeria is not utopian in nature. Other economies are not too. We are all praying for a better and more robust economy. We as a people have a very high MPC (marginal propensity to consume) as displayed by the irresponsible way in which the past leaders and managers managed the oil windfall of the past years. We all need to sacrifice now to correct these anomalies and help the country on it way to greatness. I will implore you to please research the "Impact of International Trade on Economic Growth in Nigeria" in the face of a monoculture export commodity with dwindling revenue that face us now. God bless Nigeria. God bless us. Here we go again we ja e to blame the past FG. Look I'm in a position to judge from both sides as I live an work a road but repatriate my 3 arnica gs into Nigeria. I have biz in Nigeria as well.This es policies are meant to help the rich richer and the poor poorer..U traveling for up to two weeks is not enough to mesure the economic scope of a foreign FG.live work er an and pay tax then Yeh. The Ban on ATM did you think it was do e by PMB or CBN? In other news talking about our money frm crude that was wasted.what waste?did U 4 get it was 3 APC govt that took the then FG to court for them to share the ECA are they not now in power? ?ie Fashola and Oshe? ?.if these milon of $ was there wo t we have sufficient forex to back these payment ?I'm nt an Economist but this is so simplease to see through.I manage a small team of 34 people at work and I have a budget to manage too so I can relate to what is going on. |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by erico2k2(m): 4:31pm On Dec 30, 2015 |
ImpactWorld: This is ridiculous. Does this mean Nigerians are no longer free to spend their OWN money as they deem fit? That's wassup.I'm soo angry .if U live abroad yu can't withdraw rent money paid into ur Nigerian account by ur tenants no more. |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by GreatManBee: 4:35pm On Dec 30, 2015 |
IbXavier: By : Apena Ibrahim Adeboye
This is a personal analysis which is subjected to empirically backed criticism.
As at 7th of December 2015, Naira to dollar stood at ₦250 to $1, which was the highest fall of Naira to Dollar in history (Reference 1). As at today 28th of December, 2015, Naira to dollar stands at ₦197 to $1 (Reference 2), this shows there is an improvement.
All the same, have you ever asked why the value of Naira keeps dropping its value, Have you ever imagine if exchange rate of naira to dollar stands at ₦500 to $1, Did you make research on why use of NAIRA ATM abroad was ban ? (Kindly read reference 4 to know why). All these will help us understand the effect of the Ban of Naira ATM usage outside Nigeria.
It’s no news that some Nigerians in Diaspora are working towards protesting against the ban of Naira ATM abroad, especially those studying. With due respect, it's shameful that some Students who schooled or are schooling outside the country, especially those who offered or are offering business related courses do not understand why the inability to use Naira ATM outside Nigeria will be better off in the long run. Let’s kindly visit Economics as a course before complaining, though I am not an economics expert but I will apply the fair knowledge I have by the grace of God.
Let’s start with a simple analysis, this analysis will focus mainly on those schooling outside Nigeria;
SCENARIO ONE Schooling Abroad and its effect on Naira. (Nigerians Schooling in Ghana as a case study) The case study below is used for about 200,000 Nigerians schooling in Ghana, according to statistical fact (Reference 3) Scenario Effect on Naira & Nigeria economy 1. Average School fees for a student per year ₦400,000_ Naira Out , Nothing In , 2. Accommodation for about ₦100,000_ Naira Out , Nothing In, 3. Living expense of about ₦300,000 _ Naira Out , Nothing In, Total expenses incurred by a Foreign trained Nigerian annually _₦800,000 Out, Nothing In.
Cost for 200,000 students per year ₦160,000,000,000 (₦160B) Total expenses in 4 years ₦640,000,000,000 Out, Nothing In
Note: Living expenses of 200,000 foreign trained in Ghana alone for a year is about ₦60,000,000,000 (₦60B)
Over 200,000 Nigerian were schooling in Ghana as at 2013. (Reference 3) SCENARIO TWO 1. Mr Ade imports phone to sell in Nigeria with about ₦100,000 each. 2. A student who schools in Ghana left this phone to buy the same worth of phone in Ghana. EFFECT OF SCENARIO TWO 1. ₦100,000 gone out of Nigeria, ₦100,000 worth of Phone Imported (balanced) 2. ₦100,000 worth of phone ignored by student, yet such student took another ₦100,000 out of Nigeria to buy same phone in Ghana without any return to Nigeria. This means Nigeria has lost 100,000 to the Ghana Market despite having such product in Nigeria. Funny enough, if such phone is stolen before such student gets back to Nigeria, it means such student has made Ghana economy ₦100,000 better.
In one semester, an average Nigerian Schooling in Ghana must have spent about 800,000 of Nigerian currency in Ghana. Assuming we have about 200,000 Nigerians schooling in Ghana, it means about ₦160B is spent in Ghana education system within a year without any monetary return for Nigeria. Assuming this 160B is invested in Business , it would have been better because we would get goods in return for such chunk of money going out of the country , bear in mind that there are a lot of Nigerian students scattered around the world, Just imagine how much schooling abroad alone is taking out of Nigerian economy annually, imagine how much money spent on luxurious items , Health and so on in Ghana and other countries, Trillions of Naira. Have you imagined what it would look like if these monies are invested in our educational sector? That by the way.
After schooling abroad, some of the foreign trained do not even think of coming back to create jobs in the country, they rather think of coming back to earn from a white collar job, having used their certificate to bully home trained Nigerian Graduates. Does this really justify the huge amount spent on education outside Nigeria, Though, it’s a fact that knowledge must have been acquired and one can spend as much as possible to acquire knowledge.
As an average Nigerian Schooling outside the country, it’s normal to feel very bad when such news is broken (Ban of Naira ATM abroad). However, it will be a big disgrace to jump up to protest over it without understanding what is being protested about. The question is simple , 1. Do we prefer the value of naira to keep falling while we have access to spend naira anyhow outside Nigeria or we reduce the amount of naira going out and maintain a valuable naira. 2. The amount of Nigerians in diaspora are not up to 20% of those in Nigeria, thus , do we suffer those in Nigeria for the happiness of those in Diaspora or those who travel out to flex on vacation.
Imagine you wake up one day to see the exchange rate of naira to dollar standing at 500 Naira to 1 Dollar, Do you think it will be easy for parents to pay fees abroad.
SUGGESTIONS 1. Students schooling or intending to school abroad should rather think of how government can help in providing a means for students to transfer their school fees and money for upkeep. Though, this should be regulated, but not to protest over the Ban of ATM usage Abroad. NANS Excos and other student activist abroad should get to work on how to get alternatives for students to get money abroad. Who knows , students might be allowed to use Naira ATM abroad but lets consider the effect. 2. Most traveling outside Nigeria , especially within African countries should stop the habit of taking naira out to buy what can be bought in Nigeria , eg Phones , Laptop e.t.c 3. This is also the best avenue to challenge the government to work on the educational sector of Nigeria so that Nigerians will stop wasting chunk of money on schooling outside. In Ghana alone, Nigerians spends about 160,000,000,000 on education. The question is ; a. How many people come to Nigeria to study or spend such money? b. How many countries appreciate the monies spent by Nigerians in their economy. Thus, if government won’t allow free usage of Naira ATM for students, then, they should provide alternatives or better our education system by scrapping JAMB and POST JAMB.
RECOMMENDATIONS TO LEARNED COLLEAGUES Please let's apply what we learnt in school. When we spend more of our currency to import without Export, the value of Naira will keep dropping. So let’s plead to government to rather work on a policy to support fees payment and up keep money for students schooling abroad, also for business men. Also why are we not thinking of business we can do in abroad , afterwards , we send the little money you earn to Nigerian banks.
CONCLUSION This literally mean , we are giving out without receiving except from petrol which is our major source of income , NB , price of Petrol is also dropping. If you give out without receiving you must reduce in whatever you have. This is one of the reasons why naira is dropping value. Therefore, ban of Naira ATM use outside Nigeria is a good policy. I don’t care who the governor of Central Bank of Nigeria is but I salute him/her for this. At least , this Policy should be maintained till Naira can be equivalent to about ₦100 – $1 dollars. If buhari Claims to take ₦1-$1, Do we think he will just perform Miracles, these are some of the ways to achieve it. Lets think of what to do so that others will come and spend or invest in our economy, However, there should be a way out for those who genuinely need to use the ATM outside Nigeria (Businessmen, students and likes ) Surely Politicians and those who pay visit to other countries Should be totally BANNED from use of Naira ATM abroad, amount taken out of Nigeria should be regulated.
This write up is not in any way to support any political party but for the betterment of Nigeria. Change and betterment will not occur if we won’t pay the price, ABOVE ALL, THIS IS A TEMPORARY MEASURE FOR THE SAKE OF STABILIZING THINGS. It is mainly geared towards those who spend naira on luxurious stuffs abroad.
Thank you for reading, comments to enlighten me are welcomed.
Reference Referece 1 https://www.thecable.ng/finally-naira-falls-to-dreaded-2501
Reference 2 http://www.cenbank.org/rates/ExchRateByCurrency.asp
Reference 3 http://www.vanguardngr.com/…/nigerian-students-spend-n100b…/
Reference 4 http://thecitizenng.com/…/banks-blame-atm-card-ban-abroad-…/
Refeerence 5 http://ynaija.com/why-we-cant-reverse-ban-on-atm-card-use-…/ |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by Nobody: 4:40pm On Dec 30, 2015 |
Your analysis looks good but where u goofed was where u said dollar is 197, what you don't realize is that is the CBN regulated price, but buying dollar in the market is 280 presently. The more Cbn tries to control it, the more it skyrockets because we heavily depend on imports. |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by MakeMoves: 4:41pm On Dec 30, 2015 |
From the view of empirical evidence as stated your points are valid, however, it does not really affect the real Nigerians who are impoverished live a subsistence based existence. In my view it's a sound policy aimed at Nigeria's core interests. It's the policies which follow as regards Budgetary and policy implementation which needs focus and critics fierce input. If I can't do holiday in London, NY or Dubai. May peace reign in my calabar, abeokuta etc. for the record, the CBN still allows bidding for school fees and upkeep. Some will be worse off, but it's for our long term Good as a nation. |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by Nobody: 4:45pm On Dec 30, 2015 |
I think you're confusing exchange rate with parallel market exchange rate. Also, any improvement now has nothing to do with that as it hasn't come into effect until the first of January. Western union has a limit of $1000 usd in three months, how will that suffice? How do you propose students survive?
Like you said, you're not an expert in economics. |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by Nobody: 4:53pm On Dec 30, 2015 |
Amberon: There isn't and WILL NOT be a total ban on the naira ATM. only restrictions on the daily limit. Oga are you sure of what you are saying cos I was at the bank yesterday and even they are confused about the whole issue.
|
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by rildwanullahi(m): 4:57pm On Dec 30, 2015 |
Atmmachine: Bullshit. I repeat again, Bullshit.
Banning the use of ATM cards abroad ain't the solution to Naira's problem. You can't send Western union out from Nigeria to other countries, when Nigerians abroad get low on cash and decides to steal, Una go say them dey bring us bad name. Another bullshit. Who are you gonna deceive with that pile of steaming shiit you just wrote. I have a degree in Marketing. You're making Nigerians look uneducated. Have you heard of Pegged Exchange Rate ?? It's a type of Exchange Rate regime where a currency's value is fixed against either the value of another single currency. In a fixed exchange-rate system, a country’s central bank typically uses an open market mechanism and is committed at all times to buy and/or sell its currency at a fixed price in order to maintain its pegged ratio and, hence, the stable value of its currency in relation to the reference to which it is pegged. The central bank provides the assets and/or the foreign currency or currencies which are needed in order to finance any payments imbalances. The last large economy to use a fixed exchange rate system was the People's Republic of China which, in July 2005, adopted a slightly more flexible exchange rate system called a managed exchange rate. The European Exchange Rate Mechanism is also used on a temporary basis to establish a final conversion rate against the Euro (€) from the local currencies of countries joining the Eurozone. Jamaica, United kingdom and the United States of America also used the method.
I wish i can see you face to face so i can seize your degree and send your ass back to primary school you can send now |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by 19naia(m): 5:02pm On Dec 30, 2015 |
If the naira value falls to 500 to $1, it will regulate itself. Peoples naira will not reach far abroad and they will stay in Nigeria with their money and it will self balance. Same end result as the ban on ATM use abroad with naira bank cards. Nigeria depends so much on foreign influx right down to the very english spoken in the land. Nigeria will turn into a rural land of nomadic cow herders like buhari is, if foreign influence is restricted by restricting peoples ability to buy abroad. If naira value falls, the embezzlers will just embezzle more. I think the restrictions of Naira leaving nigeria is more useful in controlling the embezellers in cheif who theif am carry go abroad. The common man and woman spending abroad sees benefit especially when they bring back invaluable education and other life enhancing resources to Nigeria. Its still possible to keep nigeria and its naira all to itself, nothing out and nothing in, and nigeria still plumet because of its own cultured mentality that seems to do nigeria in no matter what the international influence or currency status of the day. The problems is within, start fixing it from within. Keeping all the naira in ,right where the problem is, wont help much until the market culture of nigeria changes. Its not possible to get a straight read on a price of anything in nigeria because every one is a price gouger at heart, and that is the root of the instabilty of the value of the naira. Go out and see the instability of prices quoted at the market daily. People have to fight tooth and nail just not to get overcharged at every point of sale, and so the naira loses its stability. Real estate Price gouging collapsed the world market back in 2007, and it collapses nigerian economy every day the same. How can you steadily move forward in constant inflation to gouge profit while expecting to move forward in bringing naira value up? The higher your prices go beyond international equity, the lower your currency value will fall. People want to sell nigeria for twice the price and half the quality of america but dont want their currency to be twice as low in value as american $. Deceiving themselves in blind glut for gain and status. Engage in fair market practices, higher wages and regulated price controls on all goods and services and watch the naira stabilize and follow uo with GDP growth which will further strengthen the Naira. Any attempt outside of this, is just cheating the truth and futile manipulation because the country is so steep in a culture of coruption and extortion, no one really understands that they are doing any thing wrong anymore or contributing to the problem by being an active part of the prevailing extorting market culture. ![shocked](https://www.nairaland.com/faces/shocked.gif) 1 Like 1 Share |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by MadCow1: 5:09pm On Dec 30, 2015 |
ironheart: well aticulated and valid point. you will still hear some jobless nairaland youth come here to bash this thread. instead of them to think of how to tap from the 6.08tri budget. funny enough this thread is still at the back when it should be a front page material. but if its about uneducated artist its on front page with a phd nairalander guy/girl screaming first to comment. i shake my head for our dullard youths Please stop being overly righteous. Make your point without trying to be too smart. This is a debate not everyone would tow the same logic with you and that does not mean they are wrong. The one thing I have learnt in Economics is that it is not a direct science. In a debate, I can bet you another Economic analyst can put up a different argument to kill this post dead. No country's economics exists in a vacuum. Saving 160 Billion Naira on cutting access to funds from Nigeria is just a small and negligible aspect of the implication of this ban. Have you wondered about the Business Men and Women who rely on Forex to do business? I am not speaking about boutique business, I am talking of Manufacturing and the likes that involve purchase of Raw Materials from overseas to function? Weather you like it or not, Students in Ghana must survive. Money will reach them one way or another. Economics is a biitch. I am not saying this approach wouldn't work, but it's not foolproof either. 1 Like |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by sholay2011(m): 5:15pm On Dec 30, 2015 |
nextstep: Nice analysis, OP, and I see sound reasoning in your argument, but we've seen this movie before, in 1983-1984 and we remember how it played out. I think you've also conflated the 250 (parallel) and 197 (official) exchange rates, which dents your argument.
Instead of directly stimulating our economy and enacting policies that would ensure that nobody wants to study abroad, govt is instead punishing those who choose to.
Parents who send their children to Ghana Turkey UK, etc are not stupid: our educational system is crap and the only way for their children to be competitive is for them to use their hard earned naira to train their children. The fact that these children return home and get all the good jobs is testament that our educational sector does not really train anyone.
Would you rather have ill-trained graduates - in our banks, at our phone companies, building our bridges, writing our software, working our hospitals - or people who have had the fortune to get better trained?
You say nothing in and so much out. Have you considered the longer term economic impact of a well trained graduate who comes back to Nigeria?
Instead of gradually improving the educational sector over 4-8 years with real long term thinking, we have a sudden ban that doesn't address the real issue. Of course, if government tries to raise tuition in order to improve standards, students riot, but that's another story. Here's a tip: don't double tuition on everybody overnight, just raise it 10-20% per year for new students only.
Now about traveling, again why don't we have a sustained long term policy that makes Nigeria a competitive travel destination?
Same thing goes for business: - solve the power issue - make sure entrepreneurs get low interest rates and long terms for manufacturing - properly use our agencies to regulate producers of substandard goods (like what Nafdac does for food) - media campaign to raise awareness for us to support Proudly-Made-in-Nigeria. I would happily put this on my products - raise tariffs on imported finished goods - invest in mining other minerals - improve and diversify our seaports so that getting equipment is easier - sincerely encourage small cottage industries (bring back FEAP)
I understand that "defending the naira" prevents a much worse scenario from playing out (e.g. we get to a point where we have no foreign exchange to buy essentials or service debt).
However, the short term draconian shutting off will send the economy into a downward spiral since people can't spend their money, businesses and banks will get more tight fisted, which means less hiring, which means less money, and so on. It's not rocket science, and it's not mere speculation: we've actually been through this scenario before and it took us 25 years to recover.
Government should not forget to attend to long term measures that fix our overdependence on imports. In fact, do only two things: solve power, low interest loans (strictly to buy equipment and build factories), and the rest will follow. This post is gold. Well said. |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by Stanbeto: 5:17pm On Dec 30, 2015 |
Thịs guy is correct |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by darqly(m): 5:21pm On Dec 30, 2015 |
Abbycite: @Op....I will excuse your line of thought because u said u are not an economist.....because your analysis is totally hogwash
Av u ever think what will happen if d US or d Japaenese govtd implement d same policy......because even d value of dollar n Yen is also going down... Before calling someone's analysis "Hogwash", are the US and Japanese economies import/consumption or export/manufacturing? Secondly what is the value of the dollar or yen globally, are they faring well or do they get bashed by oil prices like Naira? Compared to the naira, define what you mean by the 'value of the dollar is falling'. ![angry](https://www.nairaland.com/faces/angry.png) |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by ironheart(m): 5:30pm On Dec 30, 2015 |
bankylan:
It is obvious you are not educated. The OP said dollar was 250 in Dec 7 but it was 195 in Dec 28. The 250 wad parallel market rate and the official rate was 199. The official rate as st today is still 199 and the parallel market is about 265. Though it went to about 280, but it has come down to 265 as at today. I work in a bank. You spoke about the budget. It is also obvious u lack a deep knowledge about debt financing. Take time to read and speak to business leaders. Being a political slave will not help. if you work in a bank, i guess ur living in self denial cos i dont see ur point here. are u saying nigerian should keep spending more naira to buy dollar? |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by darqly(m): 5:34pm On Dec 30, 2015 |
MadCow1:
The one thing I have learnt in Economics is that it is not a direct science. In a debate, I can bet you another Economic analyst can put up a different argument to kill this post dead.
Have you wondered about the Business Men and Women who rely on Forex to do business? I am not speaking about boutique business, I am talking of Manufacturing and the likes that involve purchase of Raw Materials from overseas to function?
Businesses will no doubt be affected, but mostly SMEs and 'mom and pop' setups. I doubt any serious business that imports raw materials for manufacturing purposes will rely on a debit card primarily to fund it's operations. This is what letters of credit, Forms M and Forms A are designated for. The way i see it, allocate scarce forex to critical sectors to keep them running, at least. Even fees and medical bills can be offset with Form A. The vast majority of us use our forex for luxury goods and holidaying, which is not illegal by the way, but just not top priority either. |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by Atmmachine(m): 5:35pm On Dec 30, 2015 |
Amberon: If you read marketing like you claim then you should know better, that this indeed is a way forward for Nigeria. This restriction will also affect me, but it is for the greater good.
Do you know Nigerians are the biggest spenders in Dubai? and also UK along with the Arabs? I'm not an economist but the day I heard of this development, I knew the reason why and I called my sister who is an economist and got a brilliant explanation from her.
If you know how much Nigerians spend overseas and the ripple effect it has on our economy, you'd commend PMB. Naira is at a free fall and only policies like this, along with others can deliver us from this nightmare.
The op is correct. with billions of dollars going out and nothing other than peanuts coming in as crude oil revenue, I tell you the naira will be towing the part of the Zimbabwean dollar. Believe it or not, this is a step in the right direction. Ok. Let's watch out and see. I wish i knew you in real life, we would have placed a bet that $1 will be 400 naira by 2016 December even with the ban placed on Atm card usage outside Nigeria. |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by darqly(m): 5:48pm On Dec 30, 2015 |
Atmmachine: Bullshit. I repeat again, Bullshit.
Banning the use of ATM cards abroad ain't the solution to Naira's problem. You can't send Western union out from Nigeria to other countries, when Nigerians abroad get low on cash and decides to steal, Una go say them dey bring us bad name. Another bullshit. Who are you gonna deceive with that pile of steaming shiit you just wrote. I have a degree in Marketing. You're making Nigerians look uneducated. Have you heard of Pegged Exchange Rate ?? It's a type of Exchange Rate regime where a currency's value is fixed against either the value of another single currency. In a fixed exchange-rate system, a country’s central bank typically uses an open market mechanism and is committed at all times to buy and/or sell its currency at a fixed price in order to maintain its pegged ratio and, hence, the stable value of its currency in relation to the reference to which it is pegged. The central bank provides the assets and/or the foreign currency or currencies which are needed in order to finance any payments imbalances. The last large economy to use a fixed exchange rate system was the People's Republic of China which, in July 2005, adopted a slightly more flexible exchange rate system called a managed exchange rate. The European Exchange Rate Mechanism is also used on a temporary basis to establish a final conversion rate against the Euro (€) from the local currencies of countries joining the Eurozone. Jamaica, United kingdom and the United States of America also used the method.
I wish i can see you face to face so i can seize your degree and send your ass back to primary school Apart from informing us of your degree in marketing and being generally obnoxious, you added NO value to what the poster said. Share knowledge-IF you possess it, and if you can't explain it in simple terms, bros you don't understand it either! What has the pegged exchange rate you googled above have to do with reduced spending limits abroad? I was eagerly waiting for you to buttress your points further after defining it, instead you ended lamely by 'Sending someone's ass back to primary school' ![shocked](https://www.nairaland.com/faces/shocked.gif) Na wa oh!! |
Re: Ban Of Naira Atm Usage Abroad – A Perfect Way Forward. by u4nbl(m): 5:52pm On Dec 30, 2015 |
Young man, I totally disagree with you. I think your argument is myopic and ill-equipped. Have you ever considered the amount of Money Nigerians abroad send to Nigeria every year? Why are foreigners not schooling in Nigeria too? Why our Politicians seek Medical treatment abroad even for a simple headache ?
A single Nigerian Politician travels abroad for virtually every slightest opportunity. If National Assembly must spend over N4B on cars why not Made in Nigeria cars?
All these fiscal policies from CBN will not work. The solution to these problems is that Govt should spur manufacturing sector of the economy now the oil is no more. |