Excuse me. How does large currency denominations cause inflation? I need to have some reasonable economists tell me. I am not one to shout when others shout without reason.

Reasonable and logical answers please.

change your username - do you know the meaning in Yoruba

blacksta: change your username - do you know the meaning in Yoruba

Old line - please say something better and reasonable.

Go ask anyone the meaning of werepe in yoruba. Why am I even answering? Even if its Were. Whats your damn business with what I chose to call myself?

Busy body in other people's matter. Mtcheewwww/

Yes mee too am waiting for explanations o! Cos I don't even know sh*t on the disadvantages of dis N5000 naira nor the advantage sef.

Exactly my mind too. I don't know jack about the economic anatomy of this introduction of 5000 Naira note and it's relationship with inflation.
I need tutorials seriously. I urge those crying foul to come and explain so we can understand.

I'm not an economist but a good student of history. Nigerian history is replete with this pre currency introduction criticisms but they turn out to be inconsequential to the value of the Naira at the long run. we heard it during the introduction of 100, 200, 500, 1000, and now 5000 Naira denominations.

There is no tangible proof that it is responsible for the growth or otherwise of our economy.

Tutorials please!

The only benefit to be gained in issuing out new currencies is convenience and nothing else.
However,the downside to this is that it might inadvertently affect our pricing structure and drive lower denominations out of circulation.

Here's my Take on This, I Hope it Helps out

1st of all according to news 10,20 et all would be replaced by coins and also the introduction of 5000 note

Putting Nigerian Factor into play.

There would be a creation of an illusion on Money and thus people would mix up the nominal and real values of money.

Good Example: the coins although having the same purchasing power as notes would be valued at a lower level...and thus encouraging people to push up prices(Not proven yet). The Bus conductor would have a hard time coaliating coins from passangers if u ask me.

On the other hand,The CBN Gov gave examples like countries such as Singapore, Germany and. Japan, the highest denominations are 10,000 SGD, 500Euro and Yen 10,000 and inflation is not an issue for them.

Finally people may say the 5k notes would encourage money laundering,but with the daily cash limits and other check by the CBN...indicators would come to play on the flow of cash from individuals et all.