onatisi:
please talk with common sense and if you are a comedian go to the joke section and stop disrupting meaninful dialoge here.please this isnt a circus play or nollywood rehersal

PresGEJ:


The US has 7 paper notes, Nigeria has 9. What is the big deal?!

Is it a sin to lead the US in at least one area?

Young man, have you passed WAEC yet? You don't sound smart.

Long Live Nigeria.

Your Presido

Billyonaire: Apart from the inks and the mould there is no much difference, and the cost is not much different. But it saves CBN a lot of money if higher denominations are produced. DOnt get me wrong, I do not support conversion of low denomination to coins, but I say introduction of 5000 note will reduce the quantity of notes in the system because as soon as 5000 Note is introduced, equivalent amount of total notes introduced will be mopped out of the system by removing the lower denominations, and reduction of cash notes in the system is pro-cashless policy.

onatisi:
please talk with common sense and if you are a comedian go to the joke section and stop disrupting meaninful dialoge here.please this isnt a circus play or nollywood rehersal

onatisi: all these theories about cost of printing money is nonsense,are ppl telling me that nigeria cant afford to print her currencies?even the cbn and govt are not complaining and that is none of the reasons which they have given,the govt is having no problems with the cost of money printing so pls lets stick with the topic.the reason given which sounds totally ridiculous is that they need to change currencies every 5years ,does that mean that by 2018 we will be having 10000 naira note?

dorothy111: I feel otherwise, 1$, 5$, 10$, 20$, 50$, and 100$... Correct me if I am wrong, but it is 6

dorothy111:
The fact is, printing currency isn't expensive. The process is cheap, but keeping the printing process a secret is the only expensive part. Don't believe what the government says, they are lying cowshit

onatisi: here in ghana we have 50,20,10,5,1 ghana cedis note.to get the naira equivalent just multiply by 100.on the coins we have 50,20,10,5 peswas pls take note of something here the 50 peswa is equa to 50 naira and 20 is equa to 20 naira,they dont have 100ghc,so why do our own govt want to print higher denomination that will diminish the purchasing power of the ordinary nigerian man

Billyonaire: I do not agree with you on that. Actually, minting is expensive, its kept expensive because no Government in the world, will love to use cheap components that criminals can easily lay their hands on, to mint notes. Again, it is not wrong that its almost the cost of making 10 naira note that is used in making 100 Naira note. so in essence, its more profitable for Government to mint more 100 notes than 10 notes, and by extension 5000 notes.

Billyonaire: Apart from the inks and the mould there is no much difference, and the cost is not much different. But it saves CBN a lot of money if higher denominations are produced. DOnt get me wrong, I do not support conversion of low denomination to coins, but I say introduction of 5000 note will reduce the quantity of notes in the system because as soon as 5000 Note is introduced, equivalent amount of total notes introduced will be mopped out of the system by removing the lower denominations, and reduction of cash notes in the system is pro-cashless policy.

Billyonaire: I do not agree with you on that. Actually, minting is expensive, its kept expensive because no Government in the world, will love to use cheap components that criminals can easily lay their hands on, to mint notes. Again, it is not wrong that its almost the cost of making 10 naira note that is used in making 100 Naira note. so in essence, its more profitable for Government to mint more 100 notes than 10 notes, and by extension 5000 notes.

Billyonaire: I do not agree with you on that. Actually, minting is expensive, its kept expensive because no Government in the world, will love to use cheap components that criminals can easily lay their hands on, to mint notes. Again, it is not wrong that its almost the cost of making 10 naira note that is used in making 100 Naira note. so in essence, its more profitable for Government to mint more 100 notes than 10 notes, and by extension 5000 notes.

401kk:

You're just mixing up everything.
1. It costs the same amout of money to print all the polymer naira notes that is N5, 10, 20 and 50
2. To say that it saves the CBN money if the 5000 note is introduced is more ridiculous. Why?
All other lower denominations will continue to be printed because they have a higher demand. There is no demand for this 5000 naira note, if there is any demand, it is very negligable.
So, given that the lower notes will continue to be printed (even at a higher rate) and the 5000 will rarely be used by majority of Nigerians, I don't see how they are saving money.

manny4life:

So Mr Billynaire, under a sample cost benefit model, if you printed a N20 for N6, and the same cost applied to N5,000. Here's a scenario

There N1,000,000 of that amount in circulation, of that amount 20% of that amount is N20 bills, that's N200,000 AND 10,000 bills in circulation, with respect to with current prices and current inflation rate. Assuming you pull out that N20 and introduce N5,000 notes, that's 40bills @ same N200,000. Yes you save 10,000bills (N20) - 40bills (N5,000) which is about 9,960 x N6 is N59,760. You save that amount, but when you look at how that N5,000 will affect the prices of commodity, how the market will adjust their prices due to a larger denominator entering, do you believe, the prices increase ON ALL commodities wouldn't be 20x greater that N59,760?

PresGEJ:


Thanks for that thoughtful question - At least, you are thinking, unlike most posters here.

According to the renowned Journal of Public Economy (Published by Chicago Journals), the need for larger denominations in a well-functioning economy "arises every 5 or 10 years".

How long ago was the N1,000 introduced? 7 years ago! Can you see the calculated brilliance of my government? We are running the government by the book (or journal)...literally!

The Journal went on to say that big denominations are often (mis)interpreted by the unlearned public as "overissue of currencies, and the mere expectation of inflation may drive the price level up even though the total stock of money is held constant."

Did Sanusi say he is increasing money supply? No.

So, my dear centje, no cause for control - everything is under alarm (I hope I said that right)

Long Live Nigeria.

Your Presido

Billyonaire: Yes, it will not affect the prices of commodity by a kobo, as far as the lower denominations are not converted to coins. But it will save us a lot of money at the long run. Thank you for your analysis.

Billyonaire: You have tactfully ignored that the reduction of low denominations from the system once 5000 notes are introduced will reduce cash in circulation and this is pro-cashless policy. You have also tactfully avoided to accept that it will enormous savings to produce more of 5000 notes than lower notes like 50,10,20. What do we chose to gain by losing money to maintain the status quo?

manny4life:

So your argument is that the CBN will NOT decrease certain bills in circulation to add in the N5000, is that your theory? The reason I ask is because, based on my analysis, there's no how introduction of a larger currency will not increase prices. If you have to remove good portion of lower bills and introduce larger bills, it's no brainier that people will adjust their prices to insure themselves against rick. I have the perfect scenario, but I have to know this; will CBN just introduce N5,000 into the economy, from where will they get that slot from? Isn't it from other lower currencies? I need to know this because that's the root of other things.

401kk:

The lower denominations cannot be removed from the system because they are in greater demand. People and businesses use them more on a daily basis. Erasing them from the system will lead to inflation because prices of goods and services will change to reflect and adapt to the new situation.