Why is Nigeria broke if we can print our own money? why is it wrong for the CBN trto print money? can someone explain this?
Monday, October 02, 2023
Wordless Post
Why is Nigeria broke if we can print our own money? why is it wrong for the CBN trto print money? can someone explain this?
17 comments:
Disclaimer: Comments And Opinions On Any Part Of This Website Are Opinions Of The Blog Commenters Or Anonymous Persons And They Do Not Represent The Opinion Of StellaDimokoKorkus.com
Pictures and culled stories posted on this site are given credit and if a story is yours but credited to the wrong source,Please contact Stelladimokokorkus.com and corrections will be made..
If you have a complaint or a story,Please Contact StellaDimokoKorkus.com Via
Sdimokokorkus@gmail.com
Mobile Phone +4915210724141
Subscribe to:
Post Comments (Atom)
There are procedural measures and prerequisite before a country prints money. You don't just print money as a country.
ReplyDeleteI remember when dollar was N165 and today we are here. If time isn't taken, it will get to 1200 or even more.
The problem is that, a real economist or administrator hasn't gotten into the Nigeria seat of power. How can you float the naira without a defense mechanism or adequate supply?
I saw a video someone was shouting to their President, ''for modification of the naira, use casava.'' That really got me laughing.
Now let me quote what my principal H.E Peter Obi said and would have done if he is the one in power.
''We'd have revalued the currency to about N600 and managed the supply from there on. Not even in the developed world has anyone left their currency to pure market forces.
We would also have dealt decisively with the criminality side of things. The round-tripping of dollars and the illegitimate use of the USD in domestic transactions. We have to make Naira the preferred currency for transactions. Of course, if you earn your USD legitimately, you can use it as you like, but it's important that every decision is adequately thought through and crime is reduced.''
My principal should Stop giving them expo eeeh😡😡
@TeeJay. You probably should have passed post UTME and do your medicine and surgery. Not the accounting or Bus. Admin or whatever economics oriented course you claimed to have studied.
DeleteIt is dangerous for you to think your “principal” can revalue the naira willy-nilly. If it is that simple, all countries will start to do it.
You live in a country that is import dependent. Requesting and spending forex from our reserves anyhow on importation. We are spending forex faster than we are making it. As an example, foreign airlines have $783million as July/August 2023 trapped in Nigeria that they need to move to their home countries and you think they won’t buy forex at any suitable rates? Why do you think ticket prices are up? That is just an example.
Your “principal” should have spoken about how he will stop provision of forex to importers of goods/shut the ports to items we can produce and force things to be made locally. That way, we keep most of the little forex that we make and export our homemade goods even if they are substandard. That was how Taiwan & China started but your “principal” dare not say it or do it for reasons we all know.
@Stella, you can’t print more money as you like because it will likely lead to hyperinflation soon. More money means more liquidity in the hands of people which will lead to more demands for goods and services which then leads to higher price (highest bidder takes all) and then inflation and the cycle will continue. The cost of the currency printing paper will eventually surpass the printed currency value itself.
Y….
TJ the question wasn’t about ur political sentiment or ur ‘principal’ it is purely academic, she asked a question that needs people in the field to give her answers both theoretically and practically. If you don’t know the answer, you can just wait and read from economists that would break it down for all of us to know. Nobody is asking what Peter Obi or Agbado master have done or what we wish they did, we want economic analysis please. Thank you
DeleteOh wow Teejay, you are very brilliant......(in your dreams)
DeleteLol.
I won't use the word ignorant to describe this your write-up. Let me call you a joker instead.
But please stop embarrassing yourself so publicly.
😂😂😂😂
DeleteWhy una dey cry cos I mentioned my principal. Honestly, even me too if I be APC I go so hate Peter Obi. The man dey press neck wetin no good.
Oya Oya una don catch me!!! Make una no vex. I no go mention my principal again.
The comments on this thread is so laughable that I had to come back to read and laugh again.
DeleteOkay let me be serious.
You guys and I are not responding to the same issue even though in my first paragraph I responded a bit on Stella's question. You guys are responding purely to Stella's question whereas I'm emphasizing on the need the naira floating isn't working going by the post of Obaseki revelation last year.
This I did by quoting H.E Peter Obi. So why are you guys crying?
I'm responding to the wordless post and you guys are responding to Stella's question. So what's the bitterness or crying for?
Please you all should ignore Teejay.
DeleteAnd as expected, he'll try to throw in a diversion rather than discuss/ learn intelligently.
Teejay, I read your comments and I really do feel sorry for anyone that will associate with you permanently.
You are ignorant. But that's not a bad thing. We can't know everything.
What baffles me, is how a person can so boldly display it.
Tj but even Obaseki did not talk abt floating the naira, he talked about printing more naira notes which leads to devaluing the naira, thereby causing the dollar to appreciate against the naira, hence Stella’s question about the effect of printing more notes.
DeleteSometimes just sit it out, you dn’t have to comment on every post especially if it is not ur area of expertise. I see your comments here sometimes about law and i smh, cos of all the blunder and misleading statements you put out there. Just watching lawyers argue for 10 mins on tv doesn’t make you a lawyer. Leave legal issues for lawyers and economic analysis for economists pls. It mks u look more intelligent if you simply say, i dnt know and would be glad to also learn, instead of misyearning.
15:31,
DeleteUnfortunately with Teejay, it's not that simple.
There's something that pushes him to expose himself.
Thanks for trying. He won't listen though.
Kai, the ignorance in his comment....
DeleteAs if the value of naira is on a scale that Obi will just push down. That's why Obidients sound like like they are in a cult. Echo chamber delusion that a man who made his money from weakening the naira by importing salad cream and toothpick will make the naira cheaper so you can further weaken it by buying more dollars to import Rich tea biscuits.
No basic understanding of how increased supply leaches value. No understanding of the link between printing money and inflation, no knowledge on basic demand and supply and it's link to price. Just bring naira down like it's a mango on a tree. No knowledge of the Malaysian, Russian, models of comodification that have clearly worked. Someone learning about electricity supply chain 8 years after leaving office as governor is the one the less than bright masses with sectionalist and bigoted sentiments have let deceive them like this. Dumb is dangerous and when there's no awareness of this, it's even worse.
In simple terms, printing more money increases the amount of money in circulation. This causes an increase in demand or purchasing ability of the people. However, companies and manufacturing firms can't increase production over night. This causes prices of goods to rise further. It is a vicious circle.
ReplyDeleteAlso, in an import dependent economy like Nigeria, easy access to liquidity puts a lot of pressure on the naira as more things are imported. The demand for the dollar is high and people are willing to pay higher amounts in naira for the dollar. This is why there has been a marked depreciation in the value of the naira.
This is just the surface of it.
@Dogalmighty, more grease to your head for that little explanation jare.
DeleteY….
💯💯💯
DeleteWell written, Dogalmighty👍👍👍
Printing more money leads to serious inflation. Too much money in circulation chasing less goods.
ReplyDelete🤔🤔🤔
ReplyDeleteEconomics is a social science. There are rules. One of the major rules is to export more than you import. Another thing is to study how countries wrecked themselves financially and learn from their mistakes. The truth is, Nigerian has a large market to sustain itself economically but the incomes of the ppl are too low or nonexistent for them to participate at the level that they need to drive the economic engine of the country. Incomes need to be increased along with life expectancy. Too many people die in their 40s and 50s which are still working years.
ReplyDeleteThere are a lot of things that needs to be addressed. Printing money is a short term solution that comes with long term headaches. Most countries who go this route end up in far worst situations, it is almost never advised.
Hmmmmm
ReplyDelete