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CBN Foreign Reserves Hits 3-Year High, Sures $40 Billion - Politics (4) - Nairaland 372n4c
CBN Foreign Reserves Hits 3-Year High, Sures $40 Billion (6835 Views)
| X21: 6:18am On Feb 27 |
PressMyButton: Best metric to measure is net reserve after lessing our external debt |
| Ojuntana: 6:56am On Feb 27 |
Biodun556:Says a lying APC zombie Check Nigeria's reserve in 2008-09 |
| professorPABX: 7:24am On Feb 27 |
PressMyButton: It is better to ignore them. Tinubu came to power and met $27 billion in reserve out which a little less than $7 billion is accessible with large forex backlog to settle for multinational and transnational companies and airlines. There was domestic financial crisis of new naira currency and cashless transaction where cash is being sold by POS operators at 5K cash for 8K transfer (it varies). To worsen the matter, there is DEBT Servicing commitments on the ground. They are confused that is why they don't understand what is happening. When Obasanjo came he met $5.5 billion in reserve. Our needs were extremely low as we were coming from military and democracy struggle. When things started to pick they said it was a Voodoo Democracy and that subsequent government cannot sustain it. Truly, they didn't sustain the tempo. They cannot sustain the tempo. It is not because it is a VOODOO Democracy but because it is not in their characters, it is not their system. 1 Like |
| NothingDoMe: 8:19am On Feb 27 |
Ijaya123:There's no hatred. The news will soon be debunked as fake. FX reserve is like pregnancy that cannot hide. https://www.bloomberg.com/news/articles/2025-02-25/nigeria-s-shrinking-forex-reserves-threaten-recent-naira-gains |
| Inception(m): 8:45am On Feb 27 |
NothingDoMe: It is fake news 1 Like |
| Free2Fly: 9:01am On Feb 27 |
PressMyButton: What a yoruboid mvmu! Read the article below, if the lies you've inherited from your ancestors will allow you believe it. https://dailytrust.com/nigerias-reserve-drops-by-2-2bn-as-fg-defends-naira/ |
| being(m): 12:01pm On Feb 27 |
Freshtruth:And u call yourself truth... hw can a wannabe thief be a truthful person.. change ur name to stale lies pls and buy APC form |
| aribisala0(m): 2:26pm On Feb 27 |
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Foreign reserves are funds that belong to the Central Bank of Nigeria CBN The fundamental thing to grasp is the CBN is a Bank. It is not the Federal Government. That is why it LENDS money to the Federal Government and the Federal Goverment MUST pay it back Let us examine this scenario The FG government sells $10 Billion worth of Crude where does that money go ? Does it go to the Foreign Reserves ? NO is the simple answer. The FG can maintain a dollar with The CBN or with any other Bank. In practice the dollar with the CBN is not a lot but it is NOT the Foreign Reserve. The FG tends to maintain its dollar holding with Ameican Banks like CitiGroup or buy US government Debt Now back to the scenario The FG sells $10 billion and wishes to spend that money in Nigeria. It SELLS the dollars to the CBN in exchange for Naira. Takes the Naira and SPENDS it. The $10 billion is now with the CBN WHO OWNS IT  That $10 billion is Now in the FOREIGN RESERVES as CBN asset. The Naira that the CBN gave to the FG which it spent is a CBN debt So any one holding Naira is a Creditor of the CBN. Such a creditor should be able to go to the CBN to say take your Naira and give me dollars. T The capacity of the CBN to honour that is what determines the rate of the Naira and so when you hear DEFEND THE NAIRA The CBN is merely honouring its debt. When excessive Naira has been printed that capacity is watered down Finally Just like the FG bringing in that $10 billion there are other big players coming in and the CBN might sigh a contract that when you are ready to exit you can do so and this is going to be the exchange rate. Again inability to honour that puts pressure on the Naira. It was that inability that brought talk of BACKLOG BACKLOG was not a debt but investors wishing to sell Naira and leave at the agreed rate. The CBN was struggling to meet this obligation and of course other potential investors were backing out Just like if all the Customers of Zenith Bank turn up the same day to withdraw all their money. The long and short of it is The CBN has assets and liabilities The Naira is a liability and its foreign reserves are its assets The less we import and the more we export the more the reserves grow but growing reserves do not mean the CBN is getting richer it just means those doing business in Nigeria are prospering abroad and have more dollars from that WITH the CBN Of course the CBN in a corrupt system can STEAL that by printing Naira without control as we saw under Emefiele and Nigeria see their buying power erode 1 Like |
| Ijaya123: 2:46pm On Feb 27 |
NothingDoMe: Yes you're right. It is not hatred. They are just been afflicted with the spirit of witchcraft. How can some people live everyday looking for negative news about their country to dance to like a mad man but positive news upsets and makes them sad. It is not hatred, more like a mental disorder. 1 Like |
| NothingDoMe: 5:43pm On Feb 27 |
Ijaya123:Agreed. Mental people see criticisms as hatred. It is obvious that certain people hate to be transparent with their dealings. I call those people fraudsters. |
| NothingDoMe: 5:44pm On Feb 27 |
Ijaya123:Agreed. Mentally challenged people see criticisms as hatred. It is quite obvious that certain people hate to be transparent with their dealings. I call those categories of people fraudsters. |
| KaptainAfrika: 8:47am On Mar 04 |
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Dollars is back to 1,510.00, I hope you bought dollars when it was down ooooooooooooooooooo KaptainAfrika: |
| Inception(m): 2:37pm On Mar 11 |
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Dem don go hide lol
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