A-ZeD:

I'm willing to bet a vast majority of Americans would pay the 100 dolls with their card not cash.

oradee:

The world’s biggest economy, the United States, used to have $1,000 and $500 bills but they have gradually been phased out and their current $100 bill is their highest dollar denomination. The distribution of the $1,000 denomination was discontinued in 1964, and the $500 bill in 1969. The reason that was given for stopping these denominations was that they aided drug traffickers in their trade. This would be like saying that the N5,000 denomination will aid corruption and election rigging in Nigeria.

i doubt if u can explain the highlighted above...the same way Americans see their $1,000 and $500 bills is the same way we Nigerians see our N1000 and N500 notes...its people like you who have devalued the naira in the mind before it takes effect literally.

u argue using coins in '89 but yet u havent explained where Soludo's coins went. u argue N5000 wld make biz easier and cheaper but u havent said how the cashless policy augments the N40bn to be used to print notes that are rejectable but u forget it wld still cost more to transact wif cos divisiblity of money has its cost implications (u print more lower denominations to support its divisibility).

and i did notice ur eluding the point of printing the N5000 in COINS (or isnt it possible)

Chykenet:
Let me understand your arguement... Efficiency of transaction and easier movement of cash? Is the reason you back the 5k note? Well, thats not enough. Do you know how much a full frozen chicken costs in UK? £2:50. Does it cost the equivalent in Nigeria? How many average Nigerian earn more to afford to spend multiple #5,000 at a GO?! Why would the poor masses worry about the convinience of 'a payment' they can't benefit?

Can you tell me any sector of anything in Nigeria that is working about 95%? With this coins introduction, traders will try to round most things and their prices to the nearest note! (i remember during Soludos coins when a candy sells for 2 #5 but sells for 1 #5 instead of 1 #2:50. There was coins then but still they didn't accept it) that won't happen in US. We as a nation, don't have any price regulation protocol.

i don't think this is our priority for now. And even if they will go for the 5k note, let them leave other lower denomination in note as coins will do more harm than good. They should change the polymer back to notes and this time, i prefer the old #1 note. The design is fantastic.

talk true: Imagine you rejecting N5000 notes from a cashier, the cashier will just enter the bulk room and pack N10 coins and give to you in a brief case
You have to bribe him to give you back the N5000 note

faithin9ja:


Frozen chicken in UK is £2.50, £2.50 is approx N750. Chicken in Nigeria is between N500 - N1000. Almost the same price. whats your point?

In UK I can pay for the chicken £2.20 in coins, what is wrong with me paying for Chicken in Nigeria with N100 or N50 naira coins?

oradee:

But u aren't gonna use coins to pay for it...thats our point!
the focal point here is if the N5k notes and coins are introduced, the notes stay and the coins dissapear for obvious reasons. This isn't UK so lets not delude ourselves. ur paper theory is true but u havent accepted the reality part of it...
ok,lets analyse bread and sachet water (which i doubt is in UK)...an increase in fuel then caused water to double in price and we know that in Nigeria,prices of things dont go down.
Now ask ur self where the coins went? Did the apex bank stop production and didnt announce it? why did banks stop issuing it to customers? did CBN instruct them to? u claim to own a shop that accepts POS etc, why did u stop receiving coins from ur customers? did CBN tell u to? When ur customer gives u N5000 to buy things worth N2,500,wldnt u give him back the same change ur complaining of paying when ur paying for ur fast foods meals? (has it truly made transaction easier? cos more money wld still exchange hands when it comes to issueing change).
We know cbn means well but seriously,its time we make our economy (which includes our currency)have value in the eyes of its citizens first before u start comparing it to other currencies. if the CBN of america cld faze out $1000 and %500 bills, and Ghana cld remove some zeros, i dont see why we cant do same to ours,after all.someone said removing those zeros from their notes didnt have an effect on their currency strenghth,but what they dont know is that it Psychologically does. if bread is $1 in US,2 ghana cedi in Ghana,N200 in Nigeria and 1million zimbabwean money in zimbabwe,they all have the same price value abi?(they can all buy the same quantity of bread) but we see $1 as cheap and 1million zimbabwea money as expensive...get it

faithin9ja: [/b]


Unfortunately I have your time.

$1 is not cheap if you do not earn $1, 1 million Zimbabwe dollars is cheap if you earn one trillion zimbabwe dollars.

It is simple economics on value of money - not perceptions.
Value of money depends on the earning capacity of the people. All those protesting the introduction of N5000 note, how many of them earn or spend less than N5000 a day?

A previous example, daily paid labourer earns N1500 a day, he spends N1300 on food and transport.
in US a daily paid labourer earns $20 a day, he spend $17 a day for his transport and food. For that US Labourer $5000 is equivalent to 125 days works, whilst the Nigerian labourer N5000 represents only 3.5 days work.

hence N5000 is not equal to $5000 but equal to $75 (ie 3 and half days work).

Thus in Nigeria it is easy ask somebody to lend N5000, if you ask somebody for $100 in America, they won't answer, because to them that is like asking somebody for N16,000.

This one problem Nigerians in diaspora have with their people back home, their people will be asking for money because like your example they think $1 is cheap!! They will be phoning 'brother send my $500 because they think $500 is easy like N500.


You go into fast food, they charge N2500, you give them N5000, they give your change - N2500 (in different denominations)
Coins are good for small amounts like N20, N50 and N100. Small demoniations most places in the world are in coins becasue they are most widley used and last longer. See all the N10, N20, N50 notes in circulation, by the time market women with Palm oil stain them, Okada and pure water sellers stuff these notes into their pockets the notes become defaced and the same market women and petty traders will refuse to accept the notes. Most countries use coins for small transactions.

Nigerians used coins for many transactions for over 50 years right up to 1989, it was the massive devaluation of the naira in the lates 80's and 90's that caused the disappearance of coins.

The Nigerian naira has depreciated from N150 to the dollar to N160 to in the last 3 years. In the 1990's when we started business, we would go to Europe, buy tokunbo cars when naira was N30 to one dollar, by the time our vehicles arrive in 6 weeks naira would be N55 to one dollar. Those were the tough days of business. Right now naira has been more or less stable for over 5 years compared to the bad old days.

This is what will happen;

Small transactions between N10 - N500 will be carried out with coins.
Most day to day larger transactions will be done with notes up to N1000
if you come to shops like mind you will pay with your card and POS.
when you pay your yearly rent or buy a car, you will pay by bank transfer, cheque or with N5000 notes.

That's how it's done around the world and will be done like that in Nigeria. This is how people complained about N1000 note, don't we use everyday now? I remember 1996, Nduka Obiagana writting in this THISDAY that GSM phones would be too expensive for the masses.

oradee:

yeh, true...the same humans in America are the same in zimbabwe,ghana,nig and world wide...so cos its in "dollars" its allowed to be $1 for bread abi while our bread shld be N200 and above? no wonder everyone wants dollars.

i take danfo bus to commute ajah and out and at the toll,the driver gives the highst cash at hand btwn N1000 and n500 so as to source change for his passangers and to pay road tax collectors...u dont think the same wld happen if he has N5k given to him by a passenger who got his from the ATM? and how much change wld the conductor be receiving then at the toll? isnt that more money in his hand?

u sound like the N5k notes wld be made from material other than the usual.I have seen filthy N100,N200,N500 and N1000 so i doubt if ur N5k wld be an exception...and i hear ur guy SLS wants to make it usuable for the visually impared (like its a trophy ) is he gonna put devices on the lower denominations as well so they can be sure their change is complete? (abi they must spend the note in one sitting so as to avoid change? )*rolling to zambia lol*

faithin9ja:

My friend

The market is a very powerful force which creates it's own laws with or without government intervention.

In the 1990's as I said I used to buy tokunbo cars from Germany and Holland. We would change naira with Mallam in Lagos for Deustchmarks (DM) this was before the Euro. We would take 1000DM notes to Germany. We could only use these notes when buying our tokunbo cars, they did not accept the notes in fast food or petrol stations as the notes were too big and the sellers wouldn't have change. In my Nigerian ignorance in those days I would be arguing with them because i thought it was discrimination against me a blackman, until my German based Nigerians friends explained to me that those small sellers cannot change the 1000DM because of 7DM market.

The same happens today in UK, if I spend £2 (N520) Nobody will accept a £50 note unless a very big shop.

CBN is bringing coins and notes.

Coins is for Ajah to toll gate bus fare, pay your conductor with N100 in coins or N50 depending on your drop. Just like I used to pay Molue drivers with 10 kobo. Even today would you give bus conductor or Okada man N1000 for a N30 fare? No.


N5000 as I said before is when you are paying your landlord for one year rent instead of 'Ghana -must go bag' you hand over a small bundle of N5000 to cover maybe your N200k rent.

N5000 will not be used as widely as N1000, N500 or N200.

When you go into a bank in UK or US to withdraw depending on the amount the ask what denominations you require. Here in Nigeria if I withdraw money, I will complain if the give N50,000 in ten naira notes, Skype bank tried that with me once, I took the money to pay into GTB (a supplier account) and GTB refused the money, I took it back to Skype and Skype gave me my money in N1000 denominations, ie only 50 notes.

Like I said before; small transactions like bus fares, pure water, etc we will pay with coins - these are more durable than small denomination notes.
larger transactions N200, N500, N100 and maybe N5000
Larger shops will use POS.
Big transactions such as paying your rent or buying a car pay by bank transfer, or cheque or even N5000 notes - is that so difficult?

oradee:

hmm...where do i start wif the highlighted?

was it the same "market" that made u and ur bank stop issuing and accepting coins?

CBN has BROUGHT notes(N1000) and coins during the soludo era...pls enlighten us where they went? cos someone earlier said they were used to make jewelry cos it had a higher value than its face value...so coins and higher denomination aint new to us at all.

and in paying ur rent, u didnt even mention using bank cheques (or is it now more expensive printing cheques than new currencies?...or is CBN trying to faze it out?

and as most have said,Print the darned N5k in coins so u can pay ur rent,do ur domestic and international biz in it,pay for ur meals,laptops and fones etc wif it (after all,notes and coins mean the same thing)...

the US fazed out $1000 and $500 bills yet we are introducing N1000 and N5000...its funny how 1 Ghana cedi = our N100 and our N150 = $1...but our N1 doesnt equate to either of the two...lo(Giants indeed)

faithin9ja:


Frozen chicken in UK is £2.50, £2.50 is approx N750. Chicken in Nigeria is between N500 - N1000. Almost the same price. whats your point?

In UK I can pay for the chicken £2.20 in coins, what is wrong with me paying for Chicken in Nigeria with N100 or N50 naira coins?

faithin9ja:


Man,

You comparing N5000 to $5000 they are NOT the same. You need to understand that basic economic fact. N5000 is $75 period.

N5000 buy exactly(almost) what $75 buys. I asked you question yesterday; can N5000 buy a used car, of course not. but $5000 can buy a used car.

N5000 is equivlent to 3 days work. $5000 is equivalent to 2 months work (yes, even in America)
You need more lessons in exchange rates and value of money;

1 USD = 160 naira = £0.60 (UK) = 78YEN (Japan) = 1.90 Cedis (Ghana)

According to which is the stronger currency? does that mean Cedi is stronger than the Japanese Yen?

Solodu never made N1000 coins
Soludo made one naira coins at a time when there were no goods to be bought for one naira.

'Big transactions such as paying your rent or buying a car pay by bank transfer, or [b]cheque or even N5000 notes - is that so difficult?'
[/b]
You obviously are not reading my posts

millionairemind: Be your own Boss!

BIOLASUNKONMI:

[color=#006600][/color]
REG. PORTAL LIMITED NEEDS MASTERMIND AND INVESTORS TO ACHIEVE THESE GOALS.

1. REG PORTAL LIMITED DESIRE $14,230,769.23 OF NETWORTH.
2. REG. PORTAL LTD. INTEND REG. PORTAL ICT ACADEMY FOR SCHOLARSHIP AS GIVE BACK TO THE SOCIETY
3. OUR DESIRED NETWORTH IS INTEND TO BE IN POSSESSION BEFORE 26TH DAY OF AUGUST 2019.
4. REG. PORTAL DIRECTORS ‘VE DECIDED TO START A MINI REGISTRATION PORTAL ON 1ST DAY OF OCTOBER 2012 AT 15 ALIYU STREET, AJIJOLA ANOBI MOSQUE, KETU, KOSOFE,LAGOS STATE. WITH MINIMUM OF ONE PC. AND OTHER GADGET WORTH {#1,255,000.}.AND EXPANSION AND UPGRADING IS DUE TO TAKE PLACE EVERY 3 MONTHS OF BEGINNING OF EACH PORTAL, NATIONWIDE.
5. REG. PORTAL INTEND TO ACQUIRE FOURTEEN MILLION TWO HUNDRED AND THIRTY THOUSAND SEVEN HUNDRED AND SIXTY NINE DOLLARS, 23 CENTS.AND THE TIME LIMITS FOR IT’S ACQUISITION IS 26TH OF AUGUST 2019, AN ICT ACADEMY WITH FULL SCHOLARSHIP IS INTENDED TO BE GIVEN IN RETURN FOR THE MONEY. THE PLAN THROUGH WHICH WE INTEND TO ACCUMULATE IT IS BY MAKING A WELL SOPHISTICATED ONLINE CENTRE {REG. PORTAL OUTLET}. WHICH INTURN RENDERED ALL INTERNET ONLINE AND RELATED SERVICES TO CUSTOMERS.AFTER THAT IF THE CENTRE HAS BEEN MANIFESTED. WITHIN THE PERIOD OF TWO {2} YEARS WITH A FIXED INCOME. THEN THE SALE OF FRANCHISE WILL NOW BEGIN, FOR A PRICE OF FIVE MILLION NAIRA {5,000,000}. THE NIGERIA 36 STATES INCLUDING FEDERAL CAPITAL WILL HAVE EACH AVERAGE OF 12 REG. PORTAL OUTLETS TO SERVE ITS PEOPLE.
5,000,000 X 12= 60,000,000
60,000,000 FOR A STATE X 37 STATES = 2,220,000,000.

OLASUNKONMI IBRAHIM 08078113452
BABATUNDE ABDULHAKIM 08055400202