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As Oil Prices Plunge, Nigeria Exclaims It Is Not Zimbabwe
Having already raised rates and devalued the Naira (and widened its trading bands), the Nigerian currency continues to collapse to new record lows as crude crashes lower and lower. Having tumbled 11.5% since oil prices peaked, the Naira is holdinga round 184/USD - over 9% above the new peg and dramatically outside of the new trading bands of +/-5% as it seems capital flight is out of control. That is probably why, as Bloomberg reports, Finance Minister Ngozi Okonjo-Iweala has commented that Nigeria won’t resort to printing money or imprudent borrowing as it adjusts to lower prices of oil. “This is not the first time this country has gone through lower oil prices and it will not be the last,” she said - making it very clear that Nigeria is not Zimbabwe (yet).
Nigeria won’t resort to printing money or imprudent borrowing as it adjusts to lower prices of oil, the mainstay of its economy, Finance Minister Ngozi Okonjo-Iweala said.
“This is not the first time this country has gone through lower oil prices and it will not be the last,” she said at a conference in the capital, Abuja. “We should avoid the kind of fear that will paralyze us or make us do the wrong things out of fear and alarm.”
Nigeria, which is facing general elections in February, lowered its proposed budgeted oil price last week to $65 per barrel, the second cut in less than a month, signaling government revenue is set to plunge in Africa’s biggest crude producer.
Any borrowing will be done “judiciously,” Okonjo-Iweala said. Increased tax revenue and an expanding private sector would help the West African country offset the impact of falling oil prices, she said.
Global oil prices have plunged more than a third since June, prompting monetary policy makers to devalue the naira for the first time in three years, and threatening to erode public finances in a country that relies on crude sales for 70 percent of government income.
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So they better hope oil comes back soon...
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Trusting a Nigerian is like trusting a Kenyan.
A nigerian princess just emailed me..she has some inflation she wants to send back.
RIPS
Ich bin ein Zimbabwer.
Everybody knows Nigeria is not Zimbabwe...
They're actually Venezuela.
The new nigerian scam...
Nigerian benefit fraudster who claimed he earned just £700 a month as minicab driver owned £1million mansion in Africa
http://www.dailymail.co.uk/news/article-2205496/Nigerian-minicab-driver-...
Both Keynesian money printers.
Or trusting a Keynesian
Here come more 419s
419s...excellent premise for a movie... Maybe a Nigerian 419 bobsled team...
How about a Nigerian bobsled team w/ ebola that does internet scams?
Hyperinflations a bitch...and even worse when its global.
Quit exporting inflation BIS FED AND BOE!!!
Please Nigeria buy a billion or two in silver and stand for delivery...let them burn in a fire!!
Better yet...settle in silver for a month. That ll fuck em up real good.
RIPS
SELL OIL FOR GOLD .... SELL OIL FOR GOLD .... SELL OIL FOR GOLD .... SELL OIL FOR GOLD .... SELL OIL FOR GOLD .... SELL OIL FOR GOLD .... SELL OIL FOR GOLD .... SELL OIL FOR GOLD .... SELL OIL FOR GOLD ....DOHHHHHHHHHHHHHH....
https://www.youtube.com/watch?v=dO37Ql91qqM
Sell oil for gold? Import rockets...rapidly.
Better yet ..... call Russia & China for back up.
Anything to avoid looking at USDRUB, eh
No one is ignoring or avoiding it. Unfortunately, even when they free floated Ruble, speculators still attack it. Even though Russia produces significantly more than Nigeria or any other oil export nation in manufactured goods, Ruble is more heavily tied to oil for whatever reason (once again, speculators). So it is going to fluctuate. Probably fluctuate more than any other currency now. They could tie it to gold and it will skyrocket in value, but they would essentialy screw themselves due to lower oil prices and their budget being in rubles.
Should claim it ain't the USA
Don't care. Just want cheap gas. Want cheap everything. Want dollar worth same tomorrow as today.
Why am I talking like Tonto?
Kudos for trying to do the right thing. To bad its too late.
Wtf? Going against the central banking cabal? Finance minister Ngozi needs a nail gun.
I note another one found a new way. Jumped onto some railings from a few floors up
http://www.dailymail.co.uk/news/article-2866973/Banker-dies-impaled-rail...
That's fantastic. Falls 60 feet out a window and takes a fence post through the chest (the only way to kill a blood-sucking vampire) and Police are tripping all over themselves to label it "not suspicious" as fast as they can.
Was he impaled before or after he "fell"?
What if this is the last? What if oil prices are headed to zero?
Venezuela still sells gasoline at ten cents a gallon....
Maybe cuz only a few people have cars and nowhere to go?
Nigeria loses over 300K bpd due to theft and smuggling. Snuffing that out would sure help.
That's in all political systems, where crime pays big. Just call your congresscritter and they'll confirm along with your generous gift they will take with open arms,.... and spread legs.
This^.
More big talk from a Nigerian Government whose writ does not extend beyond its Capital and suburban Lagos.
They stole my laptop any time I went there. Fuckers.
What will happen if other nations also start endless printing ? What will be the consequences ?
That's the rub, banks print, nations can't. They be debtors like everyone else underneath the brown eye of control by chaos.
http://rt.com/news/212527-eye-sauron-moscow-scyscraper/
Sell OIL for Water, Sau Paulo will run out of water in 60 days, 20 million population. Nobdody even talking about this.
It's an old United Nations crib toybox chest pulling out Barbie & Ken. Latter day trick, they called it oil for food programme.
Nigeria would be Zimbabwe if they didn't have oil.