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Nairaland Forum / Nairaland / General / Politics / China Plans To Scam Nigeria - Max Amuchie (34194 Views)
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Re: China Plans To Scam Nigeria - Max Amuchie by jpphilips(m): 3:26pm On Apr 14, 2016 |
gbens2000: Village man, he just wants to talk because others are talking. 3 Likes |
Re: China Plans To Scam Nigeria - Max Amuchie by igwegeorgiano(m): 3:28pm On Apr 14, 2016 |
karimusa:unfortunately u re sounding like a half baked economist. you just based ur assertion of a lay man's understanding of a serious economic issue which is far beyond ur understanding. i think u are the one with a blurred malfuntioning brain here. soonest u will understand better the negative implications of what ur dullard president has done. |
Re: China Plans To Scam Nigeria - Max Amuchie by drss1(m): 3:28pm On Apr 14, 2016 |
enlightenedmind:wetin dis one dey talk. ![]()
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Re: China Plans To Scam Nigeria - Max Amuchie by TheGoodJoe(m): 3:29pm On Apr 14, 2016 |
olaztek: I wonder how true Federalism can turn around the economic challenges. I wish someone can break it down. 2 Likes |
Re: China Plans To Scam Nigeria - Max Amuchie by jpphilips(m): 3:29pm On Apr 14, 2016 |
maupe: Even those who are stuck with NTA are analyzing economy, subjects like this convince me better that either Nairaland is a beehive of kids or majority of Nigerians are M0r0ns 6 Likes |
Re: China Plans To Scam Nigeria - Max Amuchie by sinistermind(m): 3:30pm On Apr 14, 2016 |
How re you sure they understood the agreement, when the said agreement might have been written in Chinese. |
Re: China Plans To Scam Nigeria - Max Amuchie by Nobody: 3:31pm On Apr 14, 2016 |
ElCount: Nigeria gets huge advantages from this deal which by the way is a done deal. 1. China gets to reflate her economy without increasing inflation ( loan in exchange for purchase of goods and services) 2. Nigeria get dollar ( forget those people trying to confuse themselves. China is giving Nigeria dollar, repayable in dollar. China dominates the U.S Treasuries market so dollar isn't an issue for china - they have loads of it 2. Nigeria pushes project risk unto China. Each project must meet specified performance milestones ( nothing like abandoned project) 3. This is the part confusing the writer - Nigeria has held even during GEJ time 7% o it's fx in Chinese Yuan. This has gone up to 10% and nigeria's CBN becomes the Yuan exchange/ access point for Africa. This is huge because 70% of our important are from China so instead of suffering exchange rate loss going from weak dollar to strong Yuan, traders can buy Yuan direct from CBN. In view of the extensive use of this currency in Africa today t provides excellent arbitrage/ commission income to nigeria's CBN 4 yes federalism and diversification are good concepts but Nigeria also needs to bridge it's massive infrastructural deficit and in China it has a good Partner. All in all, this is a great deal for Nigeria and China and the beginning of an alternative world financial market not solely based on dollars. Fear not. It's a done deal. Wait for the impact. Tops next 12-18 months. Respects 5 Likes 1 Share |
Re: China Plans To Scam Nigeria - Max Amuchie by Larryfest(m): 3:32pm On Apr 14, 2016 |
Wen dem no scam us weytin we acheive?abeg leav mata as e dey joor.....we need serious assistance in dis country nt all dis ova analysis. 1 Like |
Re: China Plans To Scam Nigeria - Max Amuchie by jpphilips(m): 3:33pm On Apr 14, 2016 |
manny4life: China's cheap commodities are already dominating the Nigerian market long before the dollar crunch, turn the back of your TV set and tell me where it was made with proof. 4 Likes |
Re: China Plans To Scam Nigeria - Max Amuchie by TheGoodJoe(m): 3:34pm On Apr 14, 2016 |
igwegeorgiano: Please, as a full baked economist, tell us how we should relieve the pressure on the dollars in our reserves, apart from doing these deals. How are we going to develop our infrastructure? How would we boost job creation and diversify our economy? These deals kills all these birds with one stone. So, proffer your alternative. 2 Likes |
Re: China Plans To Scam Nigeria - Max Amuchie by Chukzyfcb(m): 3:35pm On Apr 14, 2016 |
Everyrone keeps talking about how this move will reduce pressure on dollars. Even the report says 90% of Int'l trade in Nigeria is done in dollars, but nobody is asking Why then has pounds and euro risen this high? Coz despite the fact we'v been dealing with dollars, the exchange rate of Euro"s and Pounds has also gone wayyyy High. How does this move help euros and pounds? Coz everybody is just mentioning dollars! Dollars!! Dollars!!! |
Re: China Plans To Scam Nigeria - Max Amuchie by jpphilips(m): 3:36pm On Apr 14, 2016 |
TheGoodJoe: $16T if you add bonds |
Re: China Plans To Scam Nigeria - Max Amuchie by manny4life(m): 3:36pm On Apr 14, 2016 |
TheGoodJoe: It gives their currency massive strength, how about the Nigeria currency? Please explain how this deal strengthen Nigerian currency or yet, be beneficial to our currency considering that Nigeria's "import" doors would be wide open. I don't have a problem with the construction benefits but I believe that any successful nation can get any of this which makes be believe that this is NOT about benefits, rather an internal problem. Even without this deal, Nigerians have always imported from China, I fail to see what difference this is gonna make. I mean ask yourself, why would I import raw materials whereas it's cheaper to import it "by pennies" from China? Exactly, even without this deal, most of our products will come from China, the only difference is that (1) It's official and (2) products will no longer be bought using $$$$ but rather, in Yuan. Anyone can now import from China because even our banks will now be trading in Yuan. Heck, Yuan is about to be the second currency after $$$. I'm yet to be convinced this is good for Nigeria. |
Re: China Plans To Scam Nigeria - Max Amuchie by gbens2000(m): 3:38pm On Apr 14, 2016 |
TheGoodJoe:brotherly I can bet you China will Neva build a refinery in nigeria.china had been doing projects in this country before u and I were born.i AV worked with the Chinese many honestly those guys are worst than us they see us as slaves am never shy or afraid to air my views against them and NOTE.the US AND CHINA ARE STRONG ALIES.gbam I rest my case here. 1 Like |
Re: China Plans To Scam Nigeria - Max Amuchie by jpphilips(m): 3:38pm On Apr 14, 2016 |
igwegeorgiano: After typing 3 lines you still have no clue what the phantom implication is, damn you guys! |
Re: China Plans To Scam Nigeria - Max Amuchie by heo88(m): 3:39pm On Apr 14, 2016 |
ticker: With much respect to Max Amuchie, he said it himself, he is no financial expert and his contribution should be taken with a pinch of salt. Unfortunately the full terms of the loan aren't revealed which naturally will give rise to plenty of speculation. Consequently, I will try to keep my own assessment as brief as possible (please be patient, it is a worthwhile read). China and the US have a rather interesting relationship in the sense that China's growth in the past 30 or so years and their population size, poses a threat to the US' erstwhile hegemony in global politics. Part of this can be seen by China wanting the dollar as the World reserve currency to be substituted with a basket of different reserve currencies i.e. the dollar, yuan, euro, dirham etc. For a truncated history on why the dollar is the reserve currency globally, this happened courtesy of a conference at Bretton Woods, New Hampshire, yankee, between the 1st and 20th July 1944. At the time the likes of France, UK, US, Germany etc were recovering from the Great depression of the 1930s and as a result had resorted to playing games with each other to have stronger economies, such as repeatedly devaluing their currencies to make their exports cheaper (otherwise known as a race to the bottom). For any of you that know a bit about modern history (i.e. past 300-600 years), Nigeria, Ghana, Sierra Leone, Gambia etc, were part of Britain and so their agric output and other commodities counted as part of Britain's collective output. The US was the strongest economy globally at the time and this meant they exported more than they imported, also known as a trade account surplus. Through Henry Morgenthau (US Secretary of the Treasury/modern day equivalent of Kemi Adeosun), they forced through the dollar as the world reserve currency, fixed the exchange rate of all the western countries and pegged to them to the dollar then this was pegged to the price of gold (until the oil crisis of 1973), meaning that if any country had problems funding their budgets and/or were importing much more than they were exporting, then the IMF (International Monetary Fund), would bail them out with certain conditions, using the dollar. The reason I typed the above was to state that much of the actions of 1944, still hold until today. China's arrival as a global power challenges this, and by providing funding to Nigeria using Yuan as the method of repayment, they're using this to gradually increase the circulation/dependency of the yuan globally in the hope that a reliance on the dollar will reduce at the same time. Time will tell if this strategy will work, but yes the demand for the dollar is still relatively constant because ALL countries around the world are invariably dependent on it as part of the management of their imports/exports and/or receiving bail out funds/loans, but this doesn't mean that the status quo will remain going forward. On the contrary, if this works, Nigeria's dependence on the dollar will contract and China, I believe will be offering Nigeria more favourable terms that the US wouldn't or couldn't (to maintain their global power). Honestly, I am awaiting developments with baited breath but if this works, it may well be a good thing for Nigeria and an economic recovery can happen quicker. For the avoidance of doubt, I am politically non-partisan and only offering a balanced Economist's view. 7 Likes 2 Shares |
Re: China Plans To Scam Nigeria - Max Amuchie by TheGoodJoe(m): 3:40pm On Apr 14, 2016 |
jpphilips: I did not know that. That is crazy. |
Re: China Plans To Scam Nigeria - Max Amuchie by Austin234(m): 3:40pm On Apr 14, 2016 |
The positive side is only for d time being. I see doom on d long run Oma307: |
Re: China Plans To Scam Nigeria - Max Amuchie by Godmann(m): 3:40pm On Apr 14, 2016 |
ElCount: China benefits by pushing their currency to the world. China and Russia want to stop Dollar from being the world major currency reserve. They also Benefits by displacing the West from the Businesses in Nigeria. They are in competition with Europe and America. That is why they are coming with better offers. Also China don't have no colonial or Neo-colonial goals like Europe and America. China don't interfere in other countries political affairs like teh West who go about killing other people's leaders and manipulating elections in order to be incharge. |
Re: China Plans To Scam Nigeria - Max Amuchie by BrainnewsNg(f): 3:41pm On Apr 14, 2016 |
sammyj: imagine. Thank you |
Re: China Plans To Scam Nigeria - Max Amuchie by manny4life(m): 3:41pm On Apr 14, 2016 |
jpphilips: It has, and I am not disputing that... My argument is weighing the pros and cons. Yes we have seen the pros, are you saying there are no cons? |
Re: China Plans To Scam Nigeria - Max Amuchie by adeade2016: 3:41pm On Apr 14, 2016 |
Kylekent59: PDP are laughing they meet $1@#20 left it @ #200 this are the people who manage Nigeria when we earn the highest revenue in our history still no major infrastructure built for 16years,but average pdp member becomes millionnaira yet the people are suffering.however not that l agree with every action of the present govt but at least we are making a paradigm shift from where we to try something else,like the popular saying does thing the same way and expected different report is stupidity so let try another way,if the result is worst then we can revert ,but don't condemn what you have not tried let the result speak |
Re: China Plans To Scam Nigeria - Max Amuchie by george4CHRIST(m): 3:42pm On Apr 14, 2016 |
SamuelAnyawu:which we igbos my friend speak for yourself, the igbos are not interested in buhari issues. |
Re: China Plans To Scam Nigeria - Max Amuchie by Barcholder: 3:43pm On Apr 14, 2016 |
jpphilips: You should be careful about insulting others and their understanding of economic matters, because, I can tell you that his post is absolutely on point. That's exactly what's happening here. This is a terrible move on the part of our Government, and I'm very happy to debate this point with anyone. This is a field of expertise for me, and I dare say that I understand far more about it than post. There, so challenge my assertions and lets have an open debate. 1 Like |
Re: China Plans To Scam Nigeria - Max Amuchie by DedeNkem: 3:44pm On Apr 14, 2016 |
That was my point earlier! China is digging Nigeria into a big hole because we've id*iots in leadership positions. China is gradually taking over Nigeria. Where is Nigerian Jerry Rawlings when we need him. Things are getting worse by the day! |
Re: China Plans To Scam Nigeria - Max Amuchie by george4CHRIST(m): 3:46pm On Apr 14, 2016 |
SamuelAnyawu:which we igbos, my friend speak for yourself igbos are not interested in any buhari issue. |
Re: China Plans To Scam Nigeria - Max Amuchie by Guyman02: 3:46pm On Apr 14, 2016 |
worksmart: You make sense. The West has actually scammed us for years, my suggestion should be for us to really shine our eyes and not TRUST China fully on this loan. The devil is always in the details. |
Re: China Plans To Scam Nigeria - Max Amuchie by Nobody: 3:49pm On Apr 14, 2016 |
TheGoodJoe: 1. You can not see logic, because there is no logic is applying for a loan, that you can not diversify the expense. The chinese government, will present list of chinese companies to handle the construction jobs in Nigeria and Chinese Citizens will handle the field jobs except labourers. The materials for the construction will be shipped from China, shipping paid to China and money remains in China. Lets say, Chinese company buy steel 5 Yuan and chose to capture 10 Yuan in the quotation, is there an independent auditor ? Must be chinese. So your $2b might actually mean $1b in real cost. So, China takes the away $1b in profit, plus interest, plus added employment to her citizens. What does Nigeria get ? Chinese infrastructure that is worst than Julius Berger can construct. That is logic, I hope you see it. 2. Do I need to explain further that Chinese government consistently devalue their currency, manipulates it in such a way that it favors them, so your 30 Naira to Yuan today, might become 300 Yuan tomorrow, the sharp increase in value will attributed to high demand in Yuan even though no physical money moves in this trade deal. I love the fact that USD to Naira rate will fall due to less demand, but then, that is a mirage if the value of Yuan will go up. Except value of Yuan stays low, then the purpose is defeated, cos importers wouldnt be needing dollars. This is logic, see it. 3. The Chinese are at trade war with America, Yes. And we have become another pawn in the games of Chess, I hope we survive. 1 Like |
Re: China Plans To Scam Nigeria - Max Amuchie by manny4life(m): 3:52pm On Apr 14, 2016 |
If Nigerians cannot see beyond the pro, then we have a serious problem ahead. Yall should brace up, in the next three years, the Yuan will be Nigeria's official currency. |
Re: China Plans To Scam Nigeria - Max Amuchie by TheGoodJoe(m): 3:52pm On Apr 14, 2016 |
manny4life: The question is, how does this deal diversifies our economy. Without much made public about the deals, the most important thing is the development of our Refineries. Some people will not notice that if we produce refined products in large capacity, we can become a Petroleum products exporting country. We also have a large demand for Petrol in our country and when the refineries are functioning, our dependence on Petrol importation will reduce. We are also going to have partnership deals that will boost our exportation of solid raw materials. |
Re: China Plans To Scam Nigeria - Max Amuchie by peacecoy: 3:52pm On Apr 14, 2016 |
BiafranNigerian: |
Re: China Plans To Scam Nigeria - Max Amuchie by TheGoodJoe(m): 3:55pm On Apr 14, 2016 |
BiafranNigerian: From which report did you derive that Julius Berger have produced better infrastructure than Chinese Construction companies? |
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