The price of commodities are falling towards their cost price. A good thing in sane World. Yet we are told that if Countries are not able to charge scarcity rents for oil and minerals, this is a bad thing. The solution to the reduction of this free lunch is to carry it on by other means i.e IMF funding. Oil-producing nations face years of pain as prices remain lower for longer, the managing director of the International Monetary Fund (IMF) has warned. Christine Lagarde said the Fund stood ready to help struggling countries such as Azerbaijan and Nigeria cope with a renewed drop in oil prices, amid reports that the African nation has sought support from the World Bank. "Oil and metals prices have fallen by around two-thirds from their most recent peaks, and are likely to stay low for quite some time," she said in a speech at the University of Maryland. "As a result, many commodity-exporting emerging economies are under severe stress, and some currencies have already seen very large depreciations." Ms Lagarde called on policymakers to boost the global "safety net" to cope with future financial shocks. The managing director called for more co-operation between central banks as well as better planning for countries to access credit in times of stress. In separate comments on Thursday, Ms Lagarde praised Azerbaijan for taking steps to reassess spending and use its exchange rate as a "buffer". However, she said Nigeria was still wasting money on subsidies and suggested that the country's woes were being exacerbated by the naira's peg to the US dollar. Whatever Lagarde forecasts the opposite is guaranteed to happen. The idea of helping Nigeria with IMF money is absurd. It is a nation perpetually run by corrupt politicians who have lined their own pockets with its vast oil riches and who live like emperors whether in or out of office. If the Nigerians can't get the right people to run their country that's their problem. Not the IMF's.
Access Investments-Building Awareness - European Union-ROMANIA
Thursday, February 11, 2016
The price of commodities are falling towards their cost price. A good thing in sane World. Yet we are told that if Countries are not able to charge scarcity rents for oil and minerals, this is a bad thing. The solution to the reduction of this free lunch is to carry it on by other means i.e IMF funding. Oil-producing nations face years of pain as prices remain lower for longer, the managing director of the International Monetary Fund (IMF) has warned. Christine Lagarde said the Fund stood ready to help struggling countries such as Azerbaijan and Nigeria cope with a renewed drop in oil prices, amid reports that the African nation has sought support from the World Bank. "Oil and metals prices have fallen by around two-thirds from their most recent peaks, and are likely to stay low for quite some time," she said in a speech at the University of Maryland. "As a result, many commodity-exporting emerging economies are under severe stress, and some currencies have already seen very large depreciations." Ms Lagarde called on policymakers to boost the global "safety net" to cope with future financial shocks. The managing director called for more co-operation between central banks as well as better planning for countries to access credit in times of stress. In separate comments on Thursday, Ms Lagarde praised Azerbaijan for taking steps to reassess spending and use its exchange rate as a "buffer". However, she said Nigeria was still wasting money on subsidies and suggested that the country's woes were being exacerbated by the naira's peg to the US dollar. Whatever Lagarde forecasts the opposite is guaranteed to happen. The idea of helping Nigeria with IMF money is absurd. It is a nation perpetually run by corrupt politicians who have lined their own pockets with its vast oil riches and who live like emperors whether in or out of office. If the Nigerians can't get the right people to run their country that's their problem. Not the IMF's.
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