Mayor of Housing, My-ace China States How To Make Naira Stable
– Charged Nigerians to think about how to turn their products to export goods.
Dez Mayorz News.
The 2022 DMOMA Awards brand of the year, a financial, business success strategist, and a real estate investor in Nigeria, My-ace China has revealed that investors are waiting at Nigeria’s financial gates, to get vital information and statistics to make investment decisions.
This he said in a radio interview with Nigeria Info and monitored by Dez Mayorz News in Port Harcourt where he
was speaking on how to make the Naira stable and what businesses should do in the face of a daily rise in prices.
He said the world investors want to know who is in charge of Nigeria’s monetary institutions, their body language, their background, etc. before investing.
To enhance the economy and strengthen the Naira, he said the government must have trust control, perception, and production baseline that follow the Guidotti-Greenspan Rule which states that a country’s reserves should equal short-term external debt (one year or less maturity).
He says countries should not borrow above their foreign reserve.
“It scares the people,”
Some of his excerpts are read below;
“Billions of Dollars are waiting but lack of trust is keeping them.”
“For now, Nigeria’s external reserve bar is indicating two figures, something very bizarre. It had hovered at $39bn but now, it is reading two figures: $30bn and $17bn. Digital or internet information is what the global investment world follows.
Two figures in existence are bad for the financial reputation of any country.”
“Nigeria should push its oil fortunes harder because non-oil export moved only 1.2 percent after so many years. “We should exploit our best opportunities in oil while we do non-oil. Our immediate saving grace is in the oil sector.”
“Laws are not obeyed. The law that the CBN should submit audited reports yearly has been ignored for seven years but no institution of government said or did anything.
The National Assembly that has oversight function kept mom.”
“Ngozi Okonjo-Iweala, Director-General of the World Trade Organisation (WTO) came to Nigeria to see how women products can join export. If Nigeria were fully productive, it would have covered up the need for forex arbitrage.
About 60 percent of agricultural products in Nigeria go rotten. Farmers don’t have the knowledge to process and preserve things. That’s why Ngozi came. Politics and oil have destroyed the economy.”
“My suggestion to business owners is to make sure your business is built around the blueprint.
Get your books right. That’s the right place to start. Figures don’t lie.”
“Get the oil wells flowing again. For now, we pump some two mpd and export about 900,000bpd.
There is no crude oil to cushion the forex shortage.
The economic crisis is an opportunity to produce more and earn more. When the crisis is over, you reap.”
“This principle is true anywhere in the world. In Nigeria, it is foreign exchange (forex) that drives prices of fuel most.”
“I suggest that the best brains can such as financial experts, analysts, business owners, and others can discuss this.”
“Superlative of crisis means compounding of crisis. The common man may call it ‘Shege pro-max’, which means that an increase in fuel is a ‘shege’, increase in education will lead to shege-pro-max.”
The mayor of housing, went ahead to suggest the solution as follows:
“I have three suggestions for the Naira to become stronger. One, if there is no evidence of somebody in control, there will be a loss of confidence in the forex market and there would be an exodus, and scarcity of forex. Thus, demand would outstrip supply. When control comes, confidence comes. It’s good they are cleaning up the list of companies and putting it in the news.”
“The most important issue in the financial market in Nigeria, for now, is the merging of all the windows (Parallel market, Importers/Exporters window) which are now a single rate. This week, scarcity of Dollars is the order of the day.”
He said Nigeria’s foreign exchange management has seen arbitrage. “The new Government made a mistake. Every currency must be backed by goods and services. Stashing cash trashes cash, unless goods and services back it.
“If Government had injected currency into the system, the confidence would have turned to something tangible. Also, the CBN ought to supply a statement of account every year but in seven years, this was not done, until just a few days ago when it was submitted to the National Assembly and the international community saw the naked truth, and that caused this panic you now see.”
“I must however state that there are three things that can help the naira: control, perception, and production. Baseline is production.”
Dez Mayorz report.