In 2007 CBN under the leadership of Prof Charles Soludo announced the strategic agenda for the Naira which generated a lot of national debate especially on the issue of Currency Redomination. See below definition.



What is currency redenomination?

Currency redenomination is the process where a new unit of money replaces the old unit with a certain ratio. It is achieved by removing zeros from a currency or moving some decimal points to the left, with the aim of correcting perceived misalignment in the currency and pricing structure, and enhancing the credibility of the local currency.


The CBN cited alot of countries where it suceeded eg.


Country

Year




1.

Ghana

2007



2.

Croatia

1994



3.

Finland

1963



4.

Poland

1995



5.

Uganda

1987

A case of Ghana less than seven years down the line the cedi's is facing serious crises. Just learnt their MRR is 21%.

I just wonder what would have happened to the Naira today if soludo's policy was implemeted because i know that there is a correlation between purchasing power of currency, inflation rate and curerency redomination. Economist over to you


Pls read below thread to get more info.

https://www.nairaland.com/1966823/p-downgrades-ghana-cedi-junk/3#27874783



http://www.cenbank.org/redenomination/Newpolicy.asp