Your Curreny and Your Power…
Every country’s currency is like her heartbeat, and reasonable leaders will never negotiate with World Bank or IMF to devalue their currencies with the disguise of attracting foreign investments.
In DSM monetary and fiscal conceptualized view on currency devaluation, the underlisted findings were observed:
> devaluation will not only reduce the price of your raw materials, it will encourage capital flights, because investors may no longer be comfortable with the international bargaining power of unstable currency.
> the national stock exchange rating will drop; thereby, increasing the rate of foreign investors funds withdrawals.
> Equally, it will encourage brain drifts, especially the youths and best brains. This is because, the value of the present money at hand will not be able to purchase the same quantum of item as in the past.
> It will equally encourage other countries using your country as their products dumping sites.
> It will create labour unrest as wages and salaries agitators will have the appetites of insatiablity in wages and salaries increase negotiations in order to meet up with the devalued currency.
> Somehow, the country will be at the mercy of foreign countries magnanimity in order to stay afloat, abroad. This happens where your citizens ATMs are denied access outside the shores of the country.
African countries should start forming an economic bloc, so as to stop the Western world’s conspiracy theory of forcing them into believing that their economic resurgence is based on constant currency devaluations.
Unfortunately, none of the African countries that was forced to devalue her currency has ever recovered.
That’s a wake up call for all African leaders to ask this pertinent question:
‘If a doctor prescribed a drug for your healing process and instead of getting better, you discovered that your condition is getting worse; as a rational human being, won’t you discontinue from such prescription?’
This is where one will ask again, ‘is Africa under a spell?’
The devaluation of any country’s currency should be predicated on her internal economic and fiscal configurations, and not based on external capitalist and economist theories, that are well packaged and patterned to protect the Western world at the detriment of developing countries.
‘The moment your heart is being manipulated by any external influences, your life is half dead.’
There’s nothing like using the market forces to determine the value of your currency.
I have to reiterate the above here again.
It’s all about what America and Europe, with the World Bank and IMF caged theorists collaborators want us to believe.
If you’re a recent visitor in any American state, you will find it difficult to exchange the pounds or euros in some Bureaux De Change outfits.
But what do we have here?
The dollarised colonial mentality that has twisted our leaders budget estimations, based on side by side comparison of Naira with the dollar.
The value of Naira is mostly determined by the value of dollar in international crude oil markets.
And to worsen the situation, our leaders treasure pounds, euro and dollar, more than our domesticated Naira.
It’s no more the postulation of market forces, but a clear colonial mentality of our political leaders stupid appetite for foreign moneys.
We are about entering the election year in 2019, and you will soon start to notice the foreign currency mopping by our politicians, as their best currencies for the pacification of their godfathers, and the gullible party chieftains, who are mentally deranged at the site of dollars, euros and pounds.
The day our leaders will respect Naira and treasure it as the only exchange instrument of Nigeria, Naira will be exchanged at N100 for $1.
That is the true exchange rate of Naira, if we have patriotic economic planners in Nigeria financial management team.
As at today, what we have are all World Bank and IMF impositions, and they must listen to their foreign masters for directives.
PMB has a limited knowledge about the World financial intrigues and diplomacies, and hence, we are erroneously asking for the recommendations of World Bank and IMF for any would be Finance Minister, Economic Adviser, CBN Governor and other portfolios within the economic structural adjustments program.
And pitifully, their recommendations for many years have not stopped the looting spree, economic quagmire or our Naira instability.
Most of our financial and economic policy standards, principles and methodologies are all foreign inventions and we are compelled to accept them as international accepted accounting procedures and best practices.
The Asians have their peculiar accounting terminologies that suit their peculiar financial and economic policy standards, and with stiff penalities for any offender of any of their accounting procedures and practices.
Are Asian Tigers not doing well?
Do we hear of much fraudulent activities within the Asian Tiger’s economic policies’ formulations and implementations?
Why can’t Africa evolve theirs?
Africa can’t because, we have been impliedly brainwashed into believing that we are second rated citizens.
Any leadership that believes in the country’s currency valuation and acceptability, the quest for foreign currency mad rush will be viewed by such leadership as insanity.
The issue about your currency valuation is about how the leaders value their currencies, irrespective of its deformities.
Remember, ‘America First’ and other second; and probably with Africa, as last.
‘If you don’t have respect for your national currency, how will outsiders or even the citizens have confidence on such currency?’
Have you asked why Okonji seat at World Bank was restored after GEJ’s regime?
Have you asked yourself, why some countries without strong economic and resource backbones as Nigeria, never have their currencies devalued as Naira has been battered in the last ten years?
Did you think that your currency valuation is based on your foreign account reserve?
Then reflect, how many countries in Africa can challenge the economic buoyancy of Nigeria in terms of foreign account reserve, and still never got their currencies whacked as Naira?
If anyone tells you that Naira’s devaluation is based on our foreign account reserve, just know that such a personality is under the monitoring eyes of the America government and her cooked up agencies.
Nigeria is not a poor nation and should stand shoulder to shoulder with many countries in the world to determine her currency valuation.
Back To the Basis:
The plot to bring down Nigeria to her knee was intensified and because Nigeria love foreign goods and services, the Shagari regime became the targeted flood gate, as rice, stockfish, exotic cars and other unnecessary products were dumped in Nigeria.
The dumping was deliberately targeted to ensuring that our foreign account reserve is depleted. A long term tactical planned program was initiated, and the basis for such program was to centre on the Naira devaluation.
It was argued that before the Western world will assist further, the debate on foreign account reserve balance must be intensified.
For once in Nigeria, between 1980 and1982, Nigeria’s foreign account reserve was deliberately been propelled by the goods and services dumps and as planned, the foreign account reserve was fast coming to a point of zeroness, and for Nigeria to trade with the Americans or European countries, there must be a negotiation that must be centred on the devaluation of the Naira.
And the kingpins for this planned job were the World Bank and IMF.
Many foreign and Nigerian Professors were on their payroll and like the invasion of locusts, many theories were propounded, elucidating on the benefits of the Naira’s devaluation.
Most World Bank and IMF Economists were focusing on African economic policies’ formulations and implementations; and of course, all their research ended up with the same recommendation of the over valuation of the Naira.
As negotiations were ongoing between 1982 and 1983, the World Bank and IMF came up with varying degrees of conditionalities.
The term, conditionalities was first coined by the populations of both the World Bank and IMF.
And to show sympathy, the American or European countries were still bombarding us with varying types of goods and services; and suddenly, put a string that further supplies of whatever we wanted will be subjected to the outcome of Nigeria acceding to both World Bank and IMF conditionalities.
Nigeria was at verge of accepting the IMF conditionalities, when PMB with Idiagbon struck.
PMB and Idiagbon halted the IMF conditionality carrots and decided to deal with each country as an entity, instead of the blanket cover up of the World Bank and IMF.
A renegotiation was embarked upon on individual countries cases to swap the debts with crude oil liftings, and just as the agreements were about to be signed, IBB and his boys came calling.
And here come the beginning of our open arms to the World Bank and IMF pre planned dagger hoisting, and without hesitation, the Americans and Europeans pierced their ego knives right at the heart of the Naira.
That singular blow flattened the Naira and till date, Naira has not recovered.
That’s why Africa needs the power of long term strategic brians in her leadership circle, who could match the strategic tacts and tricks of the Western world.
They have long strategic complex thought patterns, and until Africans start writing their own theories, based on their environment, the Americans and Europeans will always recommend those they have tutored to do their bidding.
Back to the Topic:
PMB won’t pay any Naira equivalent to China and the reason being that Nigeria doesn’t have the brains to play the international politics of currency diplomacy.
That’s why Naira has been relegated from international scene and unfortunately, the past Ministers of Finance and the present one are all products of western world tutelage.
And hence, Nigerians are shielded from the truth about certain international contractual obligations and agreements entered into via the script of the western world manipulators as handed over to Nigerians to cleverly execute.
The best reasonable and viable option for paying our Yan swap, and based on the antecedent of PMB’S 1983 near miss debt swap deal, will be hypothetically, crude oil lifting.
Let me conclude thus:
‘IMF not worried about Nigeria’s debt- Mrs Adeosun, Punch 31st May, 2018.
As far as Nigeria remains a beggar country and all her economic policies are tied to the serfdom manipulations of the Western world; World Bank and IMF won’t mind heaping the charcoal of indebtedness on us, just to keep the Naira, miserable.
If the Minister of Finance thought that such accolade from IMF is a pass mark, she should re-examine this phrasic question;
‘What exactly should be the power play of Nigeria sovereign state?
In the same vein, let’s ask ourselves;
who is the master of a country that depends on debt accumulations, borrowing and begging?
‘A nation without self-pride on her currency is not different from a beggar in the street’.
Thank you for being part of this exposition.
Happy New Month and remain blessed.
DSM…Born To Excel.
Sunny Oby Maduka, PhD, is a prolific writer and social commentator.