I’ll only add (please read the article first) that Mr Corbyn always stresses that this has never been about him. He never even expected to win in 2015.
Right, that’s it, I’ve had enough. I’ve sat on my hands for long enough. I’ve spent months looking at conversations and threads on the internet about Jeremy Corbyn, about how he’s not a leader, about how all his supporters are lunatics, about how he’s the messiah and about why he’s unelectable. I still have no idea about what is truth and what is fiction from both sides of this really rather tedious debate.
In 20 days, Jeremy Corbyn will more than likely still be The Labour Party’s democratically elected leader. I like him, not because I think he’s a great public speaker or because he has all the answers I’m looking for.
Over the last ten years or so I’ve been to meetings. Committee meetings, business lunches, board meetings, political meetings, community meetings. Loads of them. At committee and community meetings, quite often there will be one guy that gets really…
View original post 1,568 more words
Please permit to join the bandwagon and talk about Nigeria’s present monetary policy.
The Central Bank of Nigeria has decided that scarce foreign exchange cannot be released for frivolous items which can be produced within the country. Concurrently, the CBN has artificially pegged the USD at N200 when banks and other exchange traders are selling at N300-N390. This disparity has created an official-to-market-exchange industry where people get USD at official rates and sell at market rates. I’ll illustrate with an example.
To my dad’s relief (and mine), the CBN has not added school fees to their list of wastages of foreign exchange, but there is now a need for an invoice and longer wait times. This security feature can be easily misled by official-to-market-exchange players.
Let’s say David writes an invoice of $4000 rent to his partner, John, with his $2 invoice slip. John then gets to a local bank and requests dollars at the official rate. Because the $4000 request isn’t too high and rent is not one of the banned expenses, CBN approves the transaction. If 3 such transactions are done, we see that David & John have a cool $12000 at the official N200 rate. Let’s say they cash this money and fly back to Nigeria individually with this cash. Say David & John are in Nigeria at a time when market rates are N370, they can sell their USD at the ungreedy price of N340. Imagining their flights do not cost more than $2000 and they spent $1000 in abroad before coming back, that’s a cool N1.2 million round-tripping profit.
Note that Forex trading is a legitimate and necessary business but the current CBN policies will likely remain ineffective and self-defeatist. I think the Naira should be allowed to float up to a higher maximum, say N300. This will reduce pressure and panic, universal economic drivers, and all but eliminates the parallel market discrepancy. It is then sensible for foreign investors to plough dollars into our naira economy. Right now, ploughing dollars adds at least 50% value loss to the already numerous list of obstacles businesspeople go through in we country.
As the saying goes, “all fingers are not equal”. While we the people justify our forex demands and swim through lava to get the official rate, Mr Dangote has been assured of getting $14 billion at official rates. This subsidy, half the current balance of our treasury, is just the latest example of unfair advntages Alhaji D gets. Apparently, these funds will be ploughed into the Dangote refinery in lagos scheduled to ome online circa 2018. This 600 000 barrel per day refinery is, in my view, trepidating at least and I will probably write about it in another post.
South Africa finds itself at a complicated crossroads of its energy development, and the direction many signals point towards force a questioning whether current and past experiences are lost upon the decision makers deciding the energy and economic fate of their nation.
Similar to sticking your face near the murky waters of the Limpopo to verify if a crocodile lies on the river’s bottom, so too is the precarious nature of discerning whether South Africa will lock a substantial portion of its economic future into the hereunto delivered promises of nuclear power at a cost of 1 Trillion Rand.
The numbers alone, originally estimated at USD $10 billion, shortly thereafter rising to 5 times that amount, and now sitting tenfold higher before any ink has dried, speak for themselves. It is almost a blatant absurdity that South Africa would pursue Russian nuclear at this cost, and there is limited evidence…
View original post 2,619 more words