I have heared people ask this particular question couple of times. I believe this thought might have crossed your mind ever since Nigeria's economy started retrograding. Below Are The Reasons Why Nigeria Cant Print and Circulate Naira Notes

Well, while it might seem a very easy thing to do, there is a huge repercussion that follows should Nigeria or any country in general, decides to overwhelmingly print money for the sake of its economic woes.

First of all, a country can print any amount of money they want. The main reason why countries wouldn't print huge money is 'Inflation'.

1. Lets take an African country as the guinea pig here -- Zimbabwe was called Rhodesia and It was the richest nation in Africa until 1980, when Robert Mugabe was elected as the Prime Minister of the country.

Zimbabwe's GDP was 10% and 20% in 1980 but it practically plummeted to just 2.6% from 1982-1989 when Mugabe decided to print a whole lot of currency notes thinking that would solve their problems.

That single act was what contributed the crash in economic growth of Zimbabwe. Their reduction in GDP was disastrous!

2. Germany did thesame thing during the world war II. They were having a huge debt as at that time and Its government thought of printing more money in order to offset Its debts; this created a serious crisis and left them with no option but to burn all the notes.

Now what does inflation
mean?

Inflation is simply a rise in the cost of goods and services. This means, If nigeria ever decides to print huge amount of naira notes to circulate to Nigerians, the aftermath effect would be worst off than the situation we currently are facing. What will happen is;

3. Everybody will have emough cash to spend; The man in Anambra who was growing crops to make money will stop doing it because he now has money. The Danfo driver in Lagos who was conveying people to their various work places will stop because he has enough money now. Likewise the tomato seller in Kano and so on.
Nobody will see the need in waking up at 4am every morning to face all that traffic in Nigerian roads when going to work. We will all stop work and this would be very disastrous to the country's economy.

4. The people who had been saving up until now would be made to look like they've just wasted their time. Because when money had circulated the country, prices of goods will become high and the value of those saved notes wouldn't be of any importance any longer.

I hope this has cleared the air now?

For more visit > https://9jaspot.com/2193/why-cant-nigeria-just-print-enough-naira-notes-get-us-out-recession-see-reason-why

A Zimbabwean selling stuff; see the prices of goods in Zimbabwe currency. Some of which would cost just a few naira notes. www.9jaspot.com

.

.

Ok

are you an economist? If you are not tell me, I will answer you. I am glad you even answered yourself

DRISKLEF:
I have heared people ask this particular question couple of times. I believe this thought might have crossed your mind ever since Nigeria's economy started retrograding.

Well, while it might seem a very easy thing to do, there is a huge repercussion that follows should Nigeria or any country in general, decides to overwhelmingly print money for the sake of its economic woes.

First of all, a country can print any amount of money they want. The main reason why countries wouldn't print huge money is 'Inflation'.

1. Lets take an African country as the guinea pig here -- Zimbabwe was called Rhodesia and It was the richest nation in Africa until 1980, when Robert Mugabe was elected as the Prime Minister of the country.

Zimbabwe's GDP was 10% and 20% in 1980 but it practically plummeted to just 2.6% from 1982-1989 when Mugabe decided to print a whole lot of currency notes thinking that would solve their problems.

A Zimbabwean selling stuff; see the prices of goods in Zimbabwe currency. Some of which would cost less than a few naira notes.

[img1]

That single act was what contributed the crash in economic growth of Zimbabwe. Their reduction in GDP was disastrous!

2. Germany did thesame thing during the world war II. They were having a huge debt as at that time and Its government thought of printing more money in order to offset Its debts; this created a serious crisis and left them with no option but to burn all the notes.

Now what does inflation
mean?

Inflation is simply a rise in the cost of goods and services. This means, If nigeria ever decides to print huge amount of naira notes to circulate to Nigerians, the aftermath effect would be worst off than the situation we currently are facing. What will happen is;

3. Everybody will have emough cash to spend; The man in Anambra who was growing crops to make money will stop doing it because he now has money. The Danfo driver in Lagos who was conveying people to their various work places will stop because he has enough money now. Likewise the tomato seller in Kano and so on.
Nobody will see the need in waking up at 4am every morning to face all that traffic in Nigerian roads when going to work. We will all stop work and this would be very disastrous to the country's economy.

4. The people who had been saving up until now would be made to look like they've just wasted their time. Because when money had circulated the country, prices of goods will become high and the value of those saved notes wouldn't be of any importance any longer.

I hope this has cleared the air now? Leave us a comment on what you think.

They simply can't. If they do, they will have to devalue the naira.

What I mean is, before Nigeria is given permission by IMF to print it's own local currency in the quantity they need, they need to supply something to the global market. Something valuable, like crude or gold, something the global market will buy. Then they will be permitted to print their own local currency in the amount worth what has been supplied.

So if they supply crude to the value of 1b dollars, IMF will then permit them to print naira worth 1b dollars. (the naira equivalent of it will be in trillion).

But in such a case we have in Nigeria, where our crude oil output is low, also with competition from other countries, the equivalent of naira printed will be low.

However, if the country wants to print more of their local currency without supplying something of value, they their currency is devalued.

dingbang:
Ok

Na wa ooo.. Space booking jati jati

Afriifa:
are you an economist? If you are not tell me, I will answer you. I am glad you even answered yourself

Hmmmm... You commented a bit too early. But thanks all thesame.

Hmmmm.. very nice thread. this question has actually crossed my mind oh. how pathetic

DRISKLEF:
A Zimbabwean selling stuff; see the prices of goods in Zimbabwe currency. Some of which would cost just a few naira notes. www.9jaspot.com

Lmao... this got me laughing... The CBN should print money for us o jarey...

Gwenevera:
Hmmmm.. very nice thread. this question has actually crossed my mind oh. how pathetic

Lalasticlala , seun

DRISKLEF:


Hmmmm... You commented a bit too early. But thanks all thesame.

the Country is suffering today because of government's poor economic policies

rottennaija:


They simply can't. If they do, they will have to devalue the naira.

What I mean is, before Nigeria is given permission by IMF to print it's own local currency in the quantity they need, they need to supply something to the global market. Something valuable, like crude or gold, something the global market will buy. Then they will be permitted to print their own local currency in the amount worth what has been supplied.

So if they supply crude to the value of 1b dollars, IMF will then permit them to print naira worth 1b dollars. (the naira equivalent of it will be in trillion).

But in such a case we have in Nigeria, where our crude oil output is low, also with competition from other countries, the equivalent of naira printed will be low.

However, if the country wants to print more of their local currency without supplying something of value, they their currency is devalued.

good point

rottennaija:


They simply can't. If they do, they will have to devalue the naira.

What I mean is, before Nigeria is given permission by IMF to print it's own local currency in the quantity they need, they need to supply something to the global market. Something valuable, like crude or gold, something the global market will buy. Then they will be permitted to print their own local currency in the amount worth what has been supplied.

So if they supply crude to the value of 1b dollars, IMF will then permit them to print naira worth 1b dollars. (the naira equivalent of it will be in trillion).

But in such a case we have in Nigeria, where our crude oil output is low, also with competition from other countries, the equivalent of naira printed will be low.

However, if the country wants to print more of their local currency without supplying something of value, they their currency is devalued.

Lies... what you said about the IMF.. does that mean a country cannot print its own currency without this body?

Check the world band code on currency disintegration. the nation who wants to produce notes can go ahead sunce its their currency

SmellyBoy:


Lies... what you said about the IMF.. does that mean a country cannot print its own currency without this body?

Check the world band code on currency disintegration. the nation who wants to produce notes can go ahead sunce its their currency

I didn't say a country can't. But Without IMF approval! The currency will not have any value. You know why? Because the global currency is the dollars controlled by IMF

Afriifa:
the Country is suffering today because of government's poor economic policies

Lol... a wailer spotted. The thread was createf to addressed the curiosity of whether Nigeria can print money to resuscitate the economy... so bros, what's ur point?

Afriifa:
the Country is suffering today because of government's poor economic policies

What is this one saying

Afriifa:
the Country is suffering today because of government's poor economic policies

What is this one saying

Gbemiie:

What is this one saying
What is this one saying

who are you to refute my point of view?

Gwenevera:
Hmmmm.. very nice thread. this question has actually crossed my mind oh. how pathetic

Hmmmm... Same here. but I still believe we can keep printing regardless the inflation.

DanJimmy:


Lol... a wailer spotted. The thread was createf to addressed the curiosity of whether Nigeria can print money to resuscitate the economy... so bros, what's ur point?

wailer or zombie or whatever you call me. You are still far from understanding my point, so let those who understand do the talking.

AmacoA:


Lalasticlala , seun

This thread should help you https://www.nairaland.com/3139407/why-cant-country-just-keep

Following...

Following.....

It will loose it's value.