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Prices Of Cattle Crash In Taraba Due To Naira Scarcity - Business (4) - Nairaland

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Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by Mboi: 8:44pm On Feb 01, 2023
thebosstrevor1:
It is expected.

Naira redesign will adversely affect transactions in the agriculture sector because this sector is heavily dependent on cash. Due to the scarcity of the new banknotes, many farmers will have insufficient cash to purchase seeds, fertilizers and pesticides needed for the plantation of crops. The shortage of cash might lead to plunging in demand which in turn led to a crash in the prices of crops and animals . Farmers will be unable to recover even the costs of transportation from their farms to the market from the low prices offered.
It's not true. Those who buy and sell agricultural products have bank accounts and today hardly can you see people that don't have smart phone. Also even if you don't have a smart phone, there's a USSD code to dial and make a transfer.
Nigerians do not just want to change.
I read on that passage that the cattle sellers rejected transfers. They should continue o..
Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by grandstar(m): 8:57pm On Feb 01, 2023
aboreofe:

If this move was not politically driven, I would have disputed The CBN Govs incompetence but this is how top developed countries deal with inflation. The scarcity of Naira is good but the timing is terrible as it is for most Nigeria policies

This is not how developed countries deal with inflation. What you said is offhand and inaccurate in regards to how rich countries attack inflation.

In developed countries, the central banks usually have an inflation target of 2%.

When it breaches the 2% mark, the central bank goes into action. It begins to gradually increase interest rates .

Why the increase in interest rates? Higher interest rates encourage people to save rather than spends. By saving, money is withdrawn from circulation. The higher the rates, the more money is saved.

Also, higher interest rates discourage borrowing, from both consumer and companies, reducing the amount of money that would have entered into circulation.

At times, the interest rates can be increased so high that many companies can not service their debt and go bankrupt. It usually leads to a downturn or an outright recession

Most often when inflation breaches the 2% mark, it is because the economy is overheated (growing too fast) and that's why inflation is high. High interest will cool the economy down.

Once inflation goes below the 2% and inflationary pressure is low, the central bank begins to reduce interest rates.

What if the president begins to scream that interest rates are too high and the central bank should bring it down?

In rich countries, the central bank is usually independent and will not be lectured to by anyone unlike here where president Buhari will be dictating exchange rates to the governor of the central bank.

The central bank will perform its duty as it deems fit as long as its within its power.
Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by Nobody: 9:03pm On Feb 01, 2023
SmartPolician:


This is FALSE
Don't take life too seriously man, no one is getting out alive grin grin
Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by grandstar(m): 9:04pm On Feb 01, 2023
DADYLEED:
Who gave him the first tenure, and what party did you voted for in 2018

I am apolitical. I dobt even vote.

Goodluck Jonathan appointed him a the governor of the central bank after suspending the former head, Lamido Sanusi for basically being a straight talking loud mouth.

It seemed the then president wanted someone who would be submissive unlike Lamido Sanusi

Sadly, it's the type of person that PMB needed. Someone who would not challenge PMBs nauseating interference into the CBNs policy implementations.

If Sanusi was there, PMB would have been found a rather stubborn CBN governor to contend with.
Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by Sammy5413(m): 9:34pm On Feb 01, 2023
Make them chop am, we no buy again
Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by Saintinoo(m): 9:53pm On Feb 01, 2023
thebosstrevor1:
It is expected.

Naira redesign will adversely affect transactions in the agriculture sector because this sector is heavily dependent on cash. Due to the scarcity of the new banknotes, many farmers will have insufficient cash to purchase seeds, fertilizers and pesticides needed for the plantation of crops. The shortage of cash might lead to plunging in demand which in turn led to a crash in the prices of crops and animals . Farmers will be unable to recover even the costs of transportation from their farms to the market from the low prices offered.

Who told you this, where has scarcity of cash ever caused agriculture product price crash? what economics us that, farmers are currently hoarding their grains and inflating the price, forget Nigeria junk newspapers, prices of grains are currently going up.
Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by dochenaj: 10:12pm On Feb 01, 2023
It looks like this cash scarcity is driving price inflation down.

To sustain it will be the major work now.
Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by President2001(m): 10:15pm On Feb 01, 2023
Deoo1125:
Mr ode, it's because of fake alert, bad network, lack of banks in rural areas, ur account can hacked and money stolen at anytime, as a matter of fact we are not ready and matured yet for cashless economy because we lack the structure to make it work.
Your grandfather and your incoming generation is ode they will all turn to slave when their mate is making it in life




Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by just2endowed: 10:51pm On Feb 01, 2023
BloomingDale:
They should go and open bank accounts na. Era of cash and carry is gone. Abi them dey dodge tax or use the money sponsor terrorism?

Almost all don't have a bank account but they have phone number.

They dont pay any form of indirect tax like Vat but they share vat collected from Southern part of Nigeria. Its about time, government force all to open bank account with their phone number and collect vat on each transaction.
Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by loganx: 12:50am On Feb 02, 2023
elementary economy: too many cash chasing too few goods leads to inflation.

Even the CBN governor and his bunch did not know that the number 1 consequence of their action will combat inflation.

Prices of goods will continue to decline to match available cash supply, at least for the small household food items you basically would exchange cash for.
Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by ChicagoBar(m): 3:55am On Feb 02, 2023
Treasure17:
Those responsible for the emergence of Buhari in 2015, 2019 and still stupidly campaigning for APC. Aye yin ma ba je ni.
Ogun go kill you.
Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by ChicagoBar(m): 3:58am On Feb 02, 2023
Vote Jagaban Bola Ahmad Tinubu

Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by PaNnamdi: 4:31am On Feb 02, 2023
thebosstrevor1:
It is expected.

Naira redesign will adversely affect transactions in the agriculture sector because this sector is heavily dependent on cash. Due to the scarcity of the new banknotes, many farmers will have insufficient cash to purchase seeds, fertilizers and pesticides needed for the plantation of crops. The shortage of cash might lead to plunging in demand which in turn led to a crash in the prices of crops and animals . Farmers will be unable to recover even the costs of transportation from their farms to the market from the low prices offered.
Ipob is definitely responsible for this hardship😎
Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by DaInferno(m): 7:30am On Feb 02, 2023
Olasyke:

I mean, what's the advantage of the new notes redesign when all we have is more issues and scarcity?
catch looters
Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by alphaNomega: 10:59am On Feb 02, 2023
Treasure17:
Those responsible for the emergence of Buhari in 2015, 2019 and still stupidly campaigning for APC. Aye yin ma ba je ni.
Two of them are fighting tooth and nail to enter aso rock this year.
Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by COMPAQ(m): 12:34pm On Feb 02, 2023
thebosstrevor1:
It is expected.

Naira redesign will adversely affect transactions in the agriculture sector because this sector is heavily dependent on cash. Due to the scarcity of the new banknotes, many farmers will have insufficient cash to purchase seeds, fertilizers and pesticides needed for the plantation of crops. The shortage of cash might lead to plunging in demand which in turn led to a crash in the prices of crops and animals . Farmers will be unable to recover even the costs of transportation from their farms to the market from the low prices offered.

Going by this analysis, then it is only expected to be a short term thing. Cos eventually in a few months, the cash situation should normalize then things go back to the way they were.
Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by COMPAQ(m): 12:39pm On Feb 02, 2023
Deoo1125:
Mr ode, it's because of fake alert, bad network, lack of banks in rural areas, ur account can hacked and money stolen at anytime, as a matter of fact we are not ready and matured yet for cashless economy because we lack the structure to make it work.





There is nothing fantastic about cashless economy that we are not ready for. How are these same people ready to use GSM, but not ready for cashless. Its just a state of mind. In time, they will get used to it. Yes it can be hacked, but let's not over glorify that. If you take the necessary precautions, then you are relatively safe. Same way you can be robbed of your cash.
Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by Nobody: 1:22pm On Feb 02, 2023
COMPAQ:


Going by this analysis, then it is only expected to be a short term thing. Cos eventually in a few months, the cash situation should normalize then things go back to the way they were.

It is a short term effect, everything will come back to normal, i am expecting that some withdrawal limitations will be removed in the future as we get back to normal.
Re: Prices Of Cattle Crash In Taraba Due To Naira Scarcity by iyerenath(m): 2:16pm On Feb 02, 2023
We all know who these is targeted at...

To be fair, the policy itself isn't bad but the TIMING and IMPLEMENTATION is all shades of wrong.

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