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Nairaland Forum / Nairaland / General / Business / Conversation With Sanusi On "New" Currency Policy (31817 Views)
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Conversation With Sanusi On "New" Currency Policy by Jarus(m): 7:16am On Aug 27, 2012 |
My Conversation With SLS On The New Currency Policy Aftermath of all the issues raised on my FB wall and elsewhere, I decided to hear directly from SLS on this issue of currency introduction and others. I am publishing these relevant parts and left out private matters ME: (by SMS) Sir, I wouldn't know if you're free now so I can call. I have some issues I want your clarifications on regarding this new currency policy. Suraj SLS: (called immediately) Suraj, I am very busy today but...(line went inaudible) ME: (by SMS) Let me raise my issues by SMS. MTN has been having reception issue here SLS: (called) Suraj, I am very busy today. I have Bleep meeting tomorrow and YYY meeting on Tuesday before travelling to ZZZ on Wednesday. But we can have the discussion by phone in few minutes ME: OK sir. I just needed your clarifications on some of the issues my friends have been inundating me on this CBN new policy. First, don't you think it is counter productive that at this time that we are advocating cashless Nigeria, we are introducing another currency, a higher one, N5000. SLS: See, Suraj. It is not. First, know that this is not a monetary policy but just currency management. Our cashless policy never says there should not be any cash at all. It only discourages heavy cash in the system. Whether in N5 notes or N5000 notes, the limit of N500,000 will still be N500,000. So what are we saying? It also enhances operational efficiencies. The number of times banks load their ATM machines will also reduce. Banks can now load up to 5 times the value in their ATM and reduces rate of stocking and associated costs. The cost of printing and managing currency will also reduce. We ME (cut in): But sir, don't you think this will ease corruption and movement of funds among our politicians? SLS: Well, is there no corruption now that there are no N5000 denomination? It is not the duty of CBN to fight corruption among political class, you know. We are trying our best to block all holes of corruption, but that doesn't stop CBN from introducing a currency management policy that it deems fit. Fighting corruption is the work of EFCC, Police etc ME: Sir, what of the issue of inflation. Is it not inflationary? SLS: All that are unproven talks. I have challenged people to bring any study or research that says higher denomination leads to inflation. Nobody has brought any. Look, it is inflation that brings about currency renomination, not otherwise. In the last 10 years we have been battling double-digit inflation in Nigeria. ME: What of this scenario: an item that is worth say N4,800 will be forced to be rounded up to N5000?. SLS: But we have not phased out N1000, N500, N200 now? So you mean it is only N5000 you can use to pay for a N4800 good? How have you been paying before? (laughter) On coins, Suraj, at CBN we are forward-looking. Look, in the next few years, even when I must have left as governor, people will look back and realize this is a good policy. We are looking at not only currency management but also modernization. A time will come, in very near future, when we will be paying tolls, paying for newspaper vending, with just coins at vending machine points. That is why we are promoting coin culture now. Also note that, we are not cancelling the notes. We are introducing the coins side by side. So you will still have N20 notes, for example, with N20 coins, until it gains acceptability. ME: Sir, have you been speaking to be the media on this issue? SLS: Suraj, you know I have been on this job for more than 3 years and most times when I talk to the media, the matter is sensationalized and controverted, so I have deliberately minimized my interface with the media in recent time. NB: He quoted some statistics at relevant points in time which I can't exactly recall and weeded out to avoid misquoting him. 25 Likes |
Re: Conversation With Sanusi On "New" Currency Policy by dplordx(m): 7:25am On Aug 27, 2012 |
Weak and f00lish justification. Why cant that monkey fire this CBN emir 9 Likes |
Re: Conversation With Sanusi On "New" Currency Policy by ektbear: 7:42am On Aug 27, 2012 |
Jarus: Yep. I don't think there is evidence for this hypothesis some have. In this matter, I agree with SLS 7 Likes |
Re: Conversation With Sanusi On "New" Currency Policy by Seun(m): 9:32am On Aug 27, 2012 |
I support Sanusi on the "new" currency policy. It's simply the most practical way to reduce the cost of cash management. I also support his decision to keep a low profile this time, since people won't understand that this has nothing to do with inflation. Uneasy lies the head. 8 Likes 1 Share |
Re: Conversation With Sanusi On "New" Currency Policy by Wizeboy(m): 10:28am On Aug 27, 2012 |
In as much as I agree with his decision to introduce the new N5000 note, where my worry lies is the introduction of N20 coin. Though COIN is been used in more advanced countries of the world as a means of transaction but I doubt if that will work in Nigeria. I remember when 50kobo and N1 was converted to coin, the price of sweet, biscuits and some other items quickly rise to N5 and had been like that since then. I strongly believe if N20 notes is finally converted to coin, hardly will the value worth what it is today (the price of Pure Water, Biscuit, Sweet and some other things will change drastically) because of Nigerians mentality. He should therefore, let N5, N10 and N20 remain paper note, in order not to cause hardship for Nigerians. 20 Likes |
Re: Conversation With Sanusi On "New" Currency Policy by alienware(m): 10:38am On Aug 27, 2012 |
Jarus: Aftermath of all the issues raised on my FB wall and elsewhere, I decided to hear directlly from SLS on this issue of currency introduction and others. I am publishing these relevant parts and left out private matterswho be this jarus or suraj self ? u dey show yourself for front page too much, i sure say u be moderator for here. u and cbn governor talk for dream or for imagination you come put am here ? 6 Likes |
Re: Conversation With Sanusi On "New" Currency Policy by Nobody: 10:38am On Aug 27, 2012 |
Seun: I support Sanusi on the "new" currency policy. It's simply the most practical way to reduce the cost of cash management. I also support his decision to keep a low profile this time, since people won't understand that this has nothing to do with inflation. Uneasy lies the head.Mr Seun get ready to buy a Sachet of water for #50 Only. There are Nigerians your so called friend is working for, seems Sanusi is more interested in Islamic Banking than Nigeria's economy....Read...http://www.gidilinks.com/2012/08/meet-people-behind-non-interest-banking.html 1 Like |
Re: Conversation With Sanusi On "New" Currency Policy by Nobody: 10:41am On Aug 27, 2012 |
I'm 50:50 on this one. On one hand it lessens the number of CIT, on the other hand it's a sure catalyst for inflation. 1 Like |
Re: Conversation With Sanusi On "New" Currency Policy by puskin: 10:45am On Aug 27, 2012 |
SLS: See, Suraj. It is not. First, know that this is not a monetary policy but just currency management. Our cashless policy never says there should not be any cash at all. It only discourages heavy cash in the system. Whether in N5 notes or N5000 notes, the limit of N500,000 will still be N500,000. So what are we saying? It also enhances operational efficiencies. The number of times banks load their ATM machines will also reduce. Banks can now load up to 5 times the value in their ATM and reduces rate of stocking and associated costs. The bolded part is a complete fallacy as at now. I say this because the maximum a bank's cash officer can load in any ATM is 2million. Anything above that is at the risk of the cash officer and that amount is the maximum NDIC can cover in the event ATM theft should arise. So the issue of loading more money into the ATM doesn't arise here......unless that policy is reviewed. 6 Likes |
Re: Conversation With Sanusi On "New" Currency Policy by mystikal(m): 10:45am On Aug 27, 2012 |
I like the fact about coins and vending machines. . . . about time 2 Likes |
Re: Conversation With Sanusi On "New" Currency Policy by toluxa1(m): 10:45am On Aug 27, 2012 |
SimonAndal: I'm 50:50 on this one. On one hand it lessens the number of CIT, on the other hand it's a sure catalyst for inflation. I guess you have prove for that. Let's see it. |
Re: Conversation With Sanusi On "New" Currency Policy by yuzedo: 10:46am On Aug 27, 2012 |
So while GEJ has a 40-man laptop squad, SLS also has Jarus heading his own Laptop squad (sensitization dept.)?? 3 Likes |
Re: Conversation With Sanusi On "New" Currency Policy by mikuz(m): 10:48am On Aug 27, 2012 |
Inflation knocking . . . |
Re: Conversation With Sanusi On "New" Currency Policy by Theben(m): 10:49am On Aug 27, 2012 |
Sanusi is just a mere politician who knows the best answer to give at any time. That is not to say all he said was right. Does he know better than the professors in Economics who are advocating against this new currency introduction? 4 Likes |
Re: Conversation With Sanusi On "New" Currency Policy by ayox2003: 10:49am On Aug 27, 2012 |
alienware: who be this jarus or suraj self ? u dey show yourself for front page too much, i sure say u be moderator for here. u and cbn governor talk for dream or for imagination you come put am here ? He is a Nigerian who uses his intellect to dissect issues, conduct interviews and make good contributions on this forum. Unlike some of you who howl "price of garri" on every posts. Read it and make your contribution because this subject might actually affect the "price of garri". Frawzey. 37 Likes |
Re: Conversation With Sanusi On "New" Currency Policy by apoti(m): 10:50am On Aug 27, 2012 |
alienware: who be this jarus or suraj self ? u dey show yourself for front page too much, i sure say u be moderator for here. u and cbn governor talk for dream or for imagination you come put am here ? I'm sure everyone that reads your post would first check the date you registered on NL, and then ignore you 8 Likes |
Re: Conversation With Sanusi On "New" Currency Policy by Flexskillz(m): 10:51am On Aug 27, 2012 |
Picture this scenario, i buy an item worth N500, I present a N5000 note i recieve a balance of N4500 in other denominations, am i not gonna ed up with more cash in my pocket? 15 Likes |
Re: Conversation With Sanusi On "New" Currency Policy by rodgers: 10:51am On Aug 27, 2012 |
IMHO, I think some of the issues surrounding the introduction of the N5000 notes are borne from past experience. It is not the N5000 note that will fuel inflation but the coins. People detest coins so much in this country and until that is resolved, goods and services for the value of those coins will be jerked up till the minimum note. Also whenever a higher denomination is introduced, it is more in circulation than the lower denominations and this leads to a lot of problems as well. Imagine you take a bus for N50 and three people dropping N5000 note each for the conductor 3 Likes |
Re: Conversation With Sanusi On "New" Currency Policy by puskin: 10:52am On Aug 27, 2012 |
ayox2003: It definitely will. 1 Like |
Re: Conversation With Sanusi On "New" Currency Policy by Rhino5dm: 10:52am On Aug 27, 2012 |
Now time to separate the men from the boyz. I can't wait to storm the next traditional wedding with these new notes. Dan banza!!! 4 Likes |
Re: Conversation With Sanusi On "New" Currency Policy by 401kk: 10:52am On Aug 27, 2012 |
Thanks Jarus for bringing this to nairaland. SLS made some points quite well but I don't agree still. First of all how will this reduce the cost of printing and managing currency? 2 Likes |
Re: Conversation With Sanusi On "New" Currency Policy by phraze(m): 10:52am On Aug 27, 2012 |
... |
Re: Conversation With Sanusi On "New" Currency Policy by cheddarking(m): 10:52am On Aug 27, 2012 |
Most people(Myself included) are yet to see the actual benefit of having a 5k note... Unless your name is Farouk Lawan...in which case 5k notes are a Godsend! 1 Like |
Re: Conversation With Sanusi On "New" Currency Policy by dplordx(m): 10:53am On Aug 27, 2012 |
Seun: I support Sanusi on the "new" currency policy. It's simply the most practical way to reduce the cost of cash management. I also support his decision to keep a low profile this time, since people won't understand that this has nothing to do with inflation. Uneasy lies the head. Coming from Seun, Im not surprised. Anyone can be bought. And besides, the last time I checked, Seun is still a Nigerian 3 Likes |
Re: Conversation With Sanusi On "New" Currency Policy by lafuria1(m): 10:53am On Aug 27, 2012 |
well, me no sabi economics, so economist on nairaland help us out, we nid inteligent response, see hw jarus just quiet, lol. 1 Like |
Re: Conversation With Sanusi On "New" Currency Policy by Fourcade(m): 10:54am On Aug 27, 2012 |
apoti:True talk |
Re: Conversation With Sanusi On "New" Currency Policy by Olaone1: 10:57am On Aug 27, 2012 |
Lame! This is simply lame! First, he's right on the inflation part of the argument. I, for one, didn't mention inflation in any of my posts on #5, 000 threads. But, he shouldn't try to hoodwink us with this lame analysis. The main reason why they want this note is COST. It is expensive to print notes. And, this government has become thrifty in matters that concern the populace. But, the same government is not frugal when it concerns their allowances/estacodes/security votes. Sanusi is now a complete disappointment and his actions and inaction are a disappointing letdown. Good job by Jarus, though. 6 Likes |
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