REDESIGNING OF THE NAIRA: IMPACT ON THE ECONOMY AND STRENGTH OF THE NAIRA

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(Edited)

The Central Bank Of Nigeria on October 26 made a public announcement of redesigning the naira notes to handle a lot of issues surrounding the fall in value of the naira, deep down I know they have a bigger motives.

They huge project undertaken by the Central Bank to revamp the naira notes of 200, 500 And the 1,000 noted respectively came as a shocker to many especially given such a short time to redesign the naira and put it up in circulation to run concurrently with old naira notes

According to the CBN governor Dr. Emefiele said about 2.73tn of the total cash in circulation was out of the bank vault and in circulation and these has had a severe consequence on the value of the naira and the economy at large

Ever since the big announcement by the apex financial institution in NIGERIA the commercial banks have been on their toes trying hard to Curtail the influx of the naira

Recently I read on the news how one very rich fellow brought in wax of 200 naira notes in bundles of over a hundred pieces for deposit and the shocking truth here is that these particular notes was printed and minted 20years ago that's exactly in 2002 an as not been spent meaning it has not been in circulation since printed,.....

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I know the target of these project is aimed at the politicians as much as I wouldn't want to make this sounds politicaly motivated I know the motives behind it, cause back here in Nigeria most of our politicians are prone to hiding huge sums of money in their private resident to avoid the consequence of the Economic and Financial crime commission (EFCC) to tracking them with their huge deposit in the banks ...and so the CBN in order to check this out had to come up with a plan.

The real motive behind all of these is to Curtail to an extend the intending vote buying by the politicians come the great 2023 General Election starting February, to ensure the election are credible, free and fair void of rigging which has been the yearnings of the people for a long time now.

BUT THERE ARE CONSEQUENCE
For the past week since the announcement and the short dateline given January 31 to stop the circulation of the old naira notes all the commercial banks have been up and down working tirelessly...

This will for the time devalue the naira even more due to excess cash deposit, increase in cost of living
Prices of commodities etc

The cost of redesigning the new naira is also another cost to be incurred and currently now the economy is wavering and needs a more serious strategy to revamp the economy, my opinion is that for now we should look forward to making our country to be a more productive state than consumption state this will strengthen the naira and increase it value in the international market

Thanks for coming thru and never backing out
Much APPRECIATED 💯👍

hivenaija ocd cent neoxian palnet proofofbrain finance economy dcooperstion
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8 comments
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Thanks so much for sharing your thoughts on this. I've been looking for places to read people's thought on this and I'm not so inclined to get these views from Media outlets in Nigeria or newspapers because these people are censored. They are owned by government officials and most of them will lose their job if they say how they feel. Haha.

But, seeing this is impressive.

given such a short time to redesign the naira and put it up in circulation

This is a reason for concern. The info I got is that this new design of the currency will be pumped into our economy from 15th December. What's the rush?

It's either they have already redesigned the banknotes without making it public or they are just trying to be reckless.

These guys are using their political power to pull strings in the monetary Economics and it's so weird to see that despite the degree of Independence our CBN has, they still can't stand against such plans.

Every player in Economics should be able to see that this redesign will not help Nigeria. Why are the policy makers not seeing it?

You know what? All the vote buying they are scared of will still happen. In fact, I don't think the old banknotes will be completely out of the system throughout the first half of 2023.

We know Nigeria and how slow paced things can be. The worst thing that will happen to our currency is to have both the old and new banknotes in circulation during election. Haha. I believe that will happen and Naira will be a complete mess when it happens. !PIZZA

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I'm still skeptical about that January 31st dateline because many private individual and corporate organization will be affected by it coupled by the restrictions on banks to only accept up to 5million on new account and 50million on corporate account not just that he also stated that those with multiple account will be monitored via BVN..

And so what they now choose to do is to diversify this monies into project, buying landed properties, buying cars and spending the money on frivolous things ...

Recently the Governor of River State has employed 200 special assistant to him on political matters...how will he pay them
..now you see these desperate Individuals do abnormal things....
Just to blow the bulk of money away ...
It is a pity that our naira will be close to nothing in it's purchasing power ....

but let just hope that the new government will realign things come 2023...

I Appreciate you!!

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Nice point. The money stacked in their private vaults will still be pumped into the economy. If bank doesn't want it, the currency will be blown away recklessly.

This is exactly why the current value of our currency is going to dip more and more. It's really going to be a chaotic experience for anyone that fails to prepare for what's in the way.

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