The more effective solution to currency portage in Nigeria may not be to maximize currency denomination but to better manage the economy. If this is done, inflation will be better controlled and reduced, and larger currency denominations will be unnecessary.
The Central Bank’s proposed action suggests that the bank and the Federal Government accept continuing depreciation of the Naira as a monetary policy. How long before the Central Bank proposes N10,000 and larger currency denominations? Is the intention to keep Nigeria a cash carrying economy? Is there a political subtext to the proposal namely put more faces of dead Nigerians on new and larger currency denominations?
The Naira is pegged to the U.S. Dollar. Is it not instructive that the largest currency denomination in the United States of America is $100?
oa
From: usaafricadialogue@googlegroups.com [mailto:usaafricadialogue@googlegroups.com] On Behalf Of Ikhide
Sent: Tuesday, August 28, 2012 2:48 PM
To: amomoh2002@yahoo.com; Toyin Falola; USAAfricaDialogue@googlegroups.com
Subject: Re: Fwd: USA Africa Dialogue Series - CBN's new N5,000 Note, A step in wrong direction - Institute
Haba,
Abu, calm down, it sounds like you have anger management issues ;-) Take a deep breath and read my posts on this matter from the very beginning. I was not insulting Professor Agbaje, I don't know him from Adam and I am sure he is a nice man if you say so. I was saying our brightest minds cannot make informed judgements about these things because the data doesn't exist. It is not his fault that the data doesn't exist. It just doesn't exist. How's that an insult? I actually said here or somewhere else that his has been the most useful of all I have read but still suffers the shortage of data. It just sounds like you have been on top of a tree waiting for me to pass by so you can use your yeye catapult on me.
Abu, you need to take care of your blood pressure O, don't blow a gasket because of Ikhide, nothing is worth it. Professor Agbaje, I did not insult you, did not mean to, if it came across as a personal insult, here I am on my knees, I am begging you sir, do not be angry. I honestly did not mean to insult you. I was addressing the issues, haba.
Abu, abeg calm down O, Ikhide is not worth all that. Afterall the yeye man did not go to school. Why bother with him? LOL!
- Ikhide
Stalk my blog at http://www.xokigbo.com/
Follow me on Twitter: @ikhide
Join me on Facebook: www.facebook.com/ikhide
From: "amomoh2002@yahoo.com" <amomoh2002@yahoo.com>
To: Toyin Falola <usaafricadialogue@googlegroups.com>
Cc: xokigbo@yahoo.com
Sent: Tuesday, August 28, 2012 3:23 PM
Subject: Re: Fwd: USA Africa Dialogue Series - CBN's new N5,000 Note, A step in wrong direction - Institute
Ikhide,
You wrote inter alia, "It is hard to make an informed judgement about these things when even our brightest minds cannot use data to make their points"
I am beginning to come to the conclusion, that many before me have reached, viz you have a complex. I suspect you had a failed academic career in Nigeria before you sailed abroad.
Who are you to make such a misguided and frivolous remark? Do you know Prof. Adigun Agbaje? For your information, Agbaje is the first and only person ever to make a First Class (Hons) Degree in Political Science from the University of Ibadan and his record remained unbroken in 3 decades. He is a well- decorated and internationally respected scholar.
Prof Ogundimu's point is misplaced because Agbaje did not claim to be writing a technical paper but a position paper. Additionally, Economists are free to make technical input on "economic modelling" of the proposed N5000 note , if they please.
I urge you to stop abusing the privilege of the use of cyberspace to bad-mouth and ridicule people-many of who you do not know or have never heard about them. You have an over-exaggerated impression of your intellectual capacity. Anybody who is truly knowledgeable will be humble and respect other people. Abuse and insult are not synonymous with a good argument, neither are they a substitute for it. You find it difficult to make a point without insulting people. You could have been a tragedy, if you ever took scholarship as a vocation.
If you have nothing to say, don't constitute yourself into a busy-body and a nuisance. Enough of this nonsense, Just shut up!
Abu
Sent from my BlackBerry® wireless device
From: Ikhide <xokigbo@yahoo.com>
Date: Tue, 28 Aug 2012 07:41:25 -0700 (PDT)
ReplyTo: usaafricadialogue@googlegroups.com
Subject: Re: Fwd: USA Africa Dialogue Series - CBN's new N5,000 Note, A step in wrong direction - Institute
"I read the Agbaje OAIC paper, the arguments against the 5,000 naira-denominated note are cogent, with lots of useful examples drawn from comparative studies. What the paper lacks are substantive data drawn economic modeling of how the introduction of the 5,000-naira note could further accelerate Nigeria's hyper-inflation. We certainly have sufficient historical data from the Nigeria experience to now show much more persuasively how the rapid devaluation of the naira and massive public sector spending have consistently fueled runaway inflationary cycles ever since the Udoji Awards of 1973 and Babangida's SAP-inspired programs post-1985.
It is tragic that it now takes 160 naira to exchange for 1dollar as opposed to my 1Nigerian naira that exchanged for 1.85 US dollar when I first came to the U.S. in 1975 or for 1.70 when I returned in 1980. We need our public policy institutes like OAIC to use much more solid data drawn from their own economic modeling to show why the course being pursued by the CBN does not in any way serve the interest of the Nigerian state or it's people. It seems to me that as rational theorists and practitioners Malam Sanusi and the brainiacs at CBN are more likely to engage with other intellectuals of differing viewpoints only if we produce compelling data to dissuade them from their ruinous course."
- Folu Ogundimu
I agree 100 percent with this assessment. It is hard to make an informed judgement about these things when even our brightest minds cannot use data to make their points. The data is not there because we are averse to the hard work of producing it, preferring to loot the resources meant for mining them. We may be stuck.
- Ikhide
Stalk my blog at http://www.xokigbo.com/
Follow me on Twitter: @ikhide
Join me on Facebook: www.facebook.com/ikhide
From: Femi Segun <soloruntoba@gmail.com>
To: USAAfricaDialogue@googlegroups.com
Cc: Samuel Oloruntoba <soloruntoba09@gmail.com>
Sent: Tuesday, August 28, 2012 4:31 AM
Subject: Fwd: USA Africa Dialogue Series - CBN's new N5,000 Note, A step in wrong direction - Institute
Afolayan,
Please find the report from Professor Adigun Agbaje as posted on this forum. Good enough that the Senate has promised to stop it until they are fully convinced of the merit of the proposed policy, for which according to reports, a whooping #40billion has been voted of its implementation. Let's hope they don't get intimidated into submission by Mallam Sanusi's aristocratic display of intellect and his zombie economics' (apology to Ben Fine) statistics.
Best
---------- Forwarded message ----------
From: Adigun Agbaje <adigunagbaje@yahoo.com>
Date: Sat, Aug 25, 2012 at 9:03 PM
Subject: USA Africa Dialogue Series - CBN's new N5,000 Note, A step in wrong direction - Institute
To: "usaafricadialogue@googlegroups.com" <usaafricadialogue@googlegroups.com>
Attached please find a press statement as well as details of a Report
expressing the considered view of the Obafemi Awolowo Institute of
Government and Public Policy, Lagos, on the above subject.
Thank you. Warm regards,
Prof Adigun Agbaje,
Director-General
Tel: +234 (0)808 762 2560
+234 (0 806 024 3171
Other Email address: adigun.agbaje@obafemiawolowoigpp.com
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