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Re: IMF: Nigerian Economy May Collapse If… by aribisala0(m): 11:21pm On Mar 25, 2017 |
GreatZaza:You really have no clue what external reserves are do you? You think they are some kind of savings? Do not be misled by the word reserve. Every single naira note including those in your pocket is A CBN DEBT. The Naira note is just a contract between the debtor the CBN and the creditor : Those holding Naira hold it because they believe that there is something behind it. The foreign reserves are asset s of the CBN used to balance its debts i.e bank notes that it issues. If the CBN has no reserves then the Naira it issues is not better that toilet roll. In effect the reserves belong to the creditors of the CBN If a person is in the habit of spending his salary before month end then his next salary belongs to his creditors and when it hits his account is like foreign reserves but is already spent. As long as he remains employed he will get credit from his landlord , tailor and so on.. Now Imagine he gets sacked but gets dressed every morning as if he is going to work he may tell his creditors he has not been paid and even get credit for a few more months but eventually the truth will out. In summary all the currency in circulation is CBN debt and that debt has value to the extent that the creditors trust the CBN. The greater the Foreign reserves the greater the Trust. By issue bank notes the foreign reserves have been accounted for(spent) it cannot be spent twice. Every time a Naira holder tries to buy dollars they are testing the creditworthiness of the CBN, They are asking the CBN the question. This paper that you issued is it worth anything. If the CBN can sell then evrything is fine. If it cannot the exchange rate starts to drop. 2 Likes |
Re: IMF: Nigerian Economy May Collapse If… by Kingbuhari(m): 2:57am On Mar 26, 2017 |
Dear God can you just get me out of this Egypt... buhari is too daft for my liking.... I'm just happy he succeeded in becoming Nigeria president, the famine have not started yet..... those useless slowpork from waste coast will still vote for him because Awo brainwashed them into believing in fulani pay masters... TUFIAKWA |
Re: IMF: Nigerian Economy May Collapse If… by Alajiki(m): 10:29am On Mar 26, 2017 |
deflover: Caught me in my lies? Really? ![]() Where did you insult me? I guess "Guy wetin u drink na" is a compliment. So, you expect me to give you the names of the schools and the individuals involved? C'mon! I give up! |
Re: IMF: Nigerian Economy May Collapse If… by dumodust(m): 3:06pm On Mar 26, 2017 |
aribisala0: I don't think your explanation completely pans out... the foreign reserve doesn't control the exchange rate... demand and supply does. If your explanation is correct, our exchange rate would have been more worse in the years we weren't saving up and building the reserves. Foreign reserves are savings and investments held in forex in other countries, it is not an imaginary money, its actually a fund, like an account sheltered in foreign banks and managed by cbn. Recently some local banks clamoured for and succeeded in forming partnership with these foreign banks to co-shelter the funds, usually the excess from our earnings... And I think the sovereign wealth fund of countries like saudi is a part of it. The cbn is pumping dollars from the reserve into our banks and bdcs. .. did the forex appear magically in bank accounts out of thin air? |
Re: IMF: Nigerian Economy May Collapse If… by aribisala0(m): 3:18pm On Mar 26, 2017 |
dumodust:I do not know what you by "CONTROL" , I did not use that word did I > There are many factors that determine exchange rete and demand and supply are importantt but please tell me what is the most important part of supply if not foreign reserves. Please do not put words in my mouth or attribute to me what I did not say. When the Government sells oil in dollars it monetizes it and shares it what does that mean? It means that it gives the CBN the dollars and the CBN issues naira to the FG ,this could mean printing new money.,the States ,LGA and so on . States do not spend dollars. T So these tiers of goverment now have naira which they spend giving it to workers and so on. So tell me who is it that owns the dolllars now? It is all those people who have accepted naira as salary and so on NOT the Government which have taken their "money" as naira. The CBN STILL holds those dollars as "FOREIGN RESERVE" They are nothing to do with Sovereign Wealth Funds What is money ? before we start talking about real money. If you have no understanding of what money is then really you are out of your depth. No one is saying foreign reserves are not real. The issue is who owns it and what can it be used for. Does it belong to the Governent ? Can they take it and use it to build roads? I have addressed all of this before and I am not about to repeat myself. I spent good money and time educating myself and I suggest you do the same 1 Like |
Re: IMF: Nigerian Economy May Collapse If… by dumodust(m): 3:38pm On Mar 26, 2017 |
aribisala0: Money has always been legal tender anywhere from time immemorial linked to bullion or gold somewhere... its like a promise, a certificate... but in your argument you always leave the dollar out like if it's not money too or legal tender of some other country. The naira is our legal tender... the foreign reserves is us investing and 'betting' on other forex like individuals with savings do. The money belongs to the individual too and his net worth and credit worthiness will be assessed as such... same way cbn is our bank account and the money it manages is our net worth. Cbn also regulates liquidity but whatever monetization of the dollar proceeds from crude oil sales done is at the prevailing exchange rate and not arbitrary. If lower, the cbn bridges the gap by paying for it ie pumping dollars. My problem is that you are making out foreign reserves to be some imaginary fund that dictates how the naira is issued. For your info, cbn holds money and accounts in naira too... simply put, the foreign reserve is the nigerian federation equivalent of my domiciliary account. Post a link with the info you are pushing forward about the foreign reserves. .. then i can counter |
Re: IMF: Nigerian Economy May Collapse If… by aribisala0(m): 3:53pm On Mar 26, 2017 |
dumodust:You and who? you better go and play and stop talking rubbish.I do not have your time |
Re: IMF: Nigerian Economy May Collapse If… by dumodust(m): 4:04pm On Mar 26, 2017 |
aribisala0:hehehe... yeah yeah back up your lectures or go play somewhere else too. nobody was insulting anybody here... just rational people discussing and trying to learn something new, learn to tolerate honest discussion even if its not going the way you want it |
Re: IMF: Nigerian Economy May Collapse If… by deflover(m): 4:24pm On Mar 26, 2017 |
Alajiki: So since u can't provide names of your imaginary schools We can now agree its a lie You guys are just funny You throw up dust And when caught U are forming i give up Try being smart by half please |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 6:07pm On Mar 26, 2017 |
bantudra: Hahaha hahaha see comment! The I.M.F is for the basket case economies. The countries that mismanaged there economy when things were good and they are now seeking cash now that there economy is in trouble. There is a reason they are called the lender of last resort and that's because they are the ones you run to when no one else is willing to lend you money anymore. 1 Like |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 6:10pm On Mar 26, 2017 |
oluwaahmed: Rubbish! The I.M.F is for the basket case economies. The countries that mismanaged there economy when things were good and they are now seeking cash now that there economy is in trouble. There is a reason they are called the lender of last resort and that's because they are the ones you run to when no one else is willing to lend you money anymore. 1 Like |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 6:17pm On Mar 26, 2017 |
caesaR2: Wrong! The I.M.F is there for the basket case economies that squandered there fortunes during the good times and are now desperately looking for money when things have gone sour. They are the lender of last resort. In other words, they are the ones who are willing to loan you money when almost no one else will. Thats one of the reasons they were created. |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 6:26pm On Mar 26, 2017 |
Tahtah: You truly don't understand the economics of devaluation do you? In other to keep your currency artificially high we have to burn through our reserves. How smart is that? That's why this people have been saying just leave it and let the market determine the value of the make a instead of the CBN artificially trying to do that because it comes at a significant price. |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 6:27pm On Mar 26, 2017 |
Earth2Metahuman: You truly don't understand the economics of devaluation do you? In other to keep your currency artificially high we have to burn through our reserves. How smart is that? That's why this people have been saying just leave it and let the market determine the value of the make a instead of the CBN artificially trying to do that because it comes at a significant price. |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 6:31pm On Mar 26, 2017 |
martineverest: Trust me, you need them. There is a reason they are called the lender of last resort and it's because they are they are the ones willing to lend you money when almost no one else will. The IMF is for basket case economies that squandered there wealth when things were good but now that things have gone bad are now running from pillar to post looking for funds. |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 6:37pm On Mar 26, 2017 |
chynie: Nigeria is doing almost the same thing Venezuela is doing and they are warning you and you are here making proclamations as if you know a thing or two about why nations economies crash. This imf guys have probably been there for a while and they have probably seen every basket case economy come and beg them for loans so they are most likely experience than you in this sort of things. |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 6:39pm On Mar 26, 2017 |
daneni1:You truly don't understand the economics of devaluation do you? In other to keep your currency artificially high we have to burn through our reserves. How smart is that? That's why this people have been saying just leave it and let the market determine the value of the make a instead of the CBN artificially trying to do that because it comes at a significant price. 1 Like |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 6:40pm On Mar 26, 2017 |
chukzyfcbb: You truly don't understand the economics of devaluation do you? In other to keep your currency artificially high we have to burn through our reserves. How smart is that? That's why this people have been saying just leave it and let the market determine the value of the make a instead of the CBN artificially trying to do that because it comes at a significant price. |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 6:43pm On Mar 26, 2017 |
wink2015: Gram! Gbam! Gbam! Finally someone who understands. The problem is that Nigeria does not have the bold leadership to implement those reforms that you suggested or to make rhe hard choices. They are most likely not courageous enough to do it or are not convinced of your solutions. |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 6:43pm On Mar 26, 2017 |
musicwriter: You truly don't understand the economics of devaluation do you? In other to keep your currency artificially high we have to burn through our reserves. How smart is that? That's why this people have been saying just leave it and let the market determine the value of the make a instead of the CBN artificially trying to do that because it comes at a significant price. |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 6:46pm On Mar 26, 2017 |
Champele: Yep. Sounds like it. Or you probably have them but don't listen to them |
Re: IMF: Nigerian Economy May Collapse If… by chynie: 6:46pm On Mar 26, 2017 |
davidif:Mr economy crashing professor. Since you know a lot about it, then go and get the loan. This kind of news also led to what they want. It sends bad signals affect the normal flow of dd & Ss in the market. Then ushers in their needed recession and ppl will start screaming they said so |
Re: IMF: Nigerian Economy May Collapse If… by Tahtah: 6:50pm On Mar 26, 2017 |
davidif: You devalue wen you have exports. This makes your exports cheap to the consuming countries, thereby having a surplus BOP, or to some extent balanced BOP. IMF wants market to determine the exchange rate while we have deficit BOP- our country is a consuming one. We mainly export primary products this will not give good value. IMF also wants us fix social n physical infrastructure which can not be achieved 20years time. This infrastructural devt will bring about economic growth n devt. Hence we will be able to maintain floating exchange rate. If we allow the market to determine the exchange rate, the poor will suffer as we are having now cos the economy is not developed |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 6:51pm On Mar 26, 2017 |
lagdmark: Ehn!!!!! Go and ask venezuela, argentina, Brazil, Russia, Zimbabwe and many others what happened to them. |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 6:55pm On Mar 26, 2017 |
signz: Abeg lecture this people jare. The ignorance on this thread is becoming annoying. |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 6:56pm On Mar 26, 2017 |
chynie: Read the quote from the guy above me.^^^ |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 7:02pm On Mar 26, 2017 |
NubiLove: The imf are the lender of last resort while the world bank is not. The world bank is for long term loans (mostly for capital projects like infrastructure spending etc) while the imf is for short term loans (mostly emergency funds) so you see that both organizations are not competing for each other as they have different goals. The imf is for basket case countries who have squandered there wealth in good times and are now desperately looking for cash. They are ones you run to when no one is willing to lend you anything anymore hence the reason they are called the lender of last resort. 2 Likes |
Re: IMF: Nigerian Economy May Collapse If… by Tahtah: 7:08pm On Mar 26, 2017 |
davidif:Nobody says that IMF is wrong, but we are saying our economy has an infrastructural deficit- not developed so things aren't going fine, we can't compete in global market. We can't keep a floating exchange rate. The economy is not developed. We have not got to fix things. And we can't fix things the next twenty years. And we have to keep moving. |
Re: IMF: Nigerian Economy May Collapse If… by Tahtah: 7:10pm On Mar 26, 2017 |
davidif:Nobody says that IMF is wrong, but we are saying our economy has an infrastructural deficit- not developed so things aren't going fine, we can't compete in the global market. We can't keep a floating exchange rate. The economy is not developed. We have not got to fix things. And we can't fix things the next twenty years. And we have to keep moving. |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 7:11pm On Mar 26, 2017 |
aribisala0: Bros, you truly don't understand the economics of devaluation do you? In other to keep your currency artificially high we have to burn through our reserves. How smart is that? That's why this people have been saying just leave it and let the market determine the value of the make a instead of the CBN artificially trying to do that because it comes at a significant price. |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 7:11pm On Mar 26, 2017 |
Tahtah: You truly don't understand the economics of devaluation do you? In other to keep your currency artificially high we have to burn through our reserves. How smart is that? That's why this people have been saying just leave it and let the market determine the value of the make a instead of the CBN artificially trying to do that because it comes at a significant price. 1 Like |
Re: IMF: Nigerian Economy May Collapse If… by davidif: 7:13pm On Mar 26, 2017 |
Alajiki: You truly don't understand the economics of devaluation do you? In other to keep your currency artificially high we have to burn through our reserves. How smart is that? That's why this people have been saying just leave it and let the market determine the value of the make a instead of the CBN artificially trying to do that because it comes at a significant price. |
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