I have been following the mini brouhaha regarding the soon to be introduced N5,000 currency note. I am perhaps illiterate when it comes to economics (I did teach micro and macro economics at the college level for three years, so I should understand these things...) but I remain unconvinced by the arguments of those agitating against it. I must say that I have been appalled by the near lack of analysis on both sides. I have asked several people for evidence that the government has done a real communications outreach and have come up empty handed. The CBN's website is innocent of usable substance.
The opponents have responded with nothing but fury, Any attempt to ask questions that threaten their own beliefs has been shot down. This is of course understandable. We do have a Nigerian government that has no credibility, is widely derided by all and sundry and so nothing that comes out of them is taken seriously. Having said that, we all know that the unofficial currency of Nigeria is the dollar. People walk around the place with $100 notes (about N15,000). They are portable and easier to hide. I don't understand why the equivalent of $20 is giving my friends heartburn. And I do think comparisons with Zimbabwe etc are wholly inappropriate.
I personally do not have enough information one way or the other to weigh in on the matter. And it is the fault of both sides.
- Ikhide
Stalk my blog at www.xokigbo.com
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From: "orelikesdat@yahoo.com" <orelikesdat@yahoo.com>
To: usaafricadialogue@googlegroups.com
Sent: Sunday, August 26, 2012 9:29 AM
Subject: USA Africa Dialogue Series - Let's stop this together
It is no longer news that CBN plans to introduce N5,000 note by January 2013 .
The crux of the matter is the implication that this will have on our individual lives and national economy. One of the indices of a GROWING INFLATION, is the creation of Higher Local Currency Bill, NO matter what CBN or the Managers of our economy say, they know too well in their minds.
Ask them in Zimbabwe!
We will soon be buying things now sold for about N3,000 - N4,500; for N5,000.00!
It is terrible!
Why are we not emulating Ghana where they just re-denominated their currency? Why can't we do same to manage our economy?
The answer is clear; if we redenominate THEY will lose the money already stolen and kept abroad. For instance if we redenominate by cutting down two zeros, N1,000 becomes N10 while N100 becomes N1. In a similar way one dollar will exchange for N1.55k. Therefore $100m will be N1.5m. Naira will become stronger against many currencies and stealing money abroad will become unattractive.
Why are we going for higher denomination when CBN is spending billions to promote a cashless economy?
Join to say no to introduction of higher denomination of naira . Let's save our economy. Please tell others until it gets d necessary attention. If we have 2 re-occupy Nigeria or CBN (this time), let's do it....even if not for ourselves then let's do it for d future of our children and their unborn children!! Before they turns us to millionaires that can't buy bread.
Sent from my BlackBerry wireless device from MTN
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