In an attempt to reduce the volume of cash baggage and security exposure in cash transactions, the Central Bank of Nigeria may be contemplating the introduction of new currency denominations of N2,000 and N5,000.

The bank has also made plans to convert N5, N10, N20 and N50 into coins which are all presently notes.

The policy would make it easier to move large quantities of cash around with little exposure to risk, but financial critics have suggested that it would be a contradiction to the CBN policy to migrate to a cashless economy.

Spokesman of the Central Bank Ugochukwu Okorafor, who spoke to LEADERSHIP SUNDAY, however, said he could not confirm that the bank’s governing board was thinking of introducing two new denominations in addition to the existing ones.

Okoraforwho made no outright denial that such a policy was being contemplated, said instead that he had to get further clarification from the bank’s leadership. And as at press time yesterday, the CBN spokesman was unable to reach any of the bank’s directors.

But a source who is a staff member of the bank told LEADERSHIP SUNDAY, under the condition of anonimity that, “The top management of the CBN have decided to introduce currency denominations of N2,000 and N5,000. This is being done in the best interest of the economy.”

The source who could not say when the policy would take effect or when it would be announced to the public said, “All the smaller denominations from the N50 downwards are also to be converted into coins.”

A financial expert and executive chairman of the Society for Analytical Economics, Nigeria, Dr. Godwin Owoh, has said that if the policy is carried out, it would not only lead to inflation but would increase the ability to carry out cash transactions.

He said the activities of the CBN were becoming more commercial in nature, suggesting that this was more of a fiscal policy than a monetary one and that it should be decided by either the minster of finance or the president.

Owoh said, “There has been no official pronouncement from the CBN on this policy but, if it is carried out, it will only give the bank’s management the capacity to award more contracts, making it a purely selfish and commercial endeavor. The CBN has been carrying out commercial activities, which are normal banking operations – they set rules on how to withdraw or not withdraw money.”

He said, “ The CBN has invested a lot into the cashless policy and point of sale terminals will suffer; 100,000 units of hardware for e- transactions have been installed in different places.

“The process of printing money is clearly a fiscal issue. Embarking on this policy would indicate a lack of harmony between the fiscal and monetary policies.”

http://leadership.ng/nga/articles/24507/2012/05/13/cbn_introduce_n5000_n2000_notes_n50_n20_n10_coins.html

Back to square one. This is getting as boring as fuel subsidy removal. Since I was born, it has been a cycle.

Our Naira will soon turn to Poo money - valueless.

Hope this is not true, instead of printing higher denomination the CBN could redenominate the existing face value eg, removing two zeros from the value so #100 becomes #1 etc. With that the use of kobo coins will be possible. Don't know what that mallam is up to, does he need a rocket scientist to tell him that could reduce the cash one can carry about?

This country is just bleeped dudes. I think ojukwu's face will be on the 5000naira note while rashidi yekini's face will be on the 2000 naira note. What a lawless country? Still thinking what cashless policy really mean

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Above people are just watching the show. They are dumbfounded.

na lie THIS NA RUMOR.... GOD FORBID!!! @op abeg weting dey do you get important topic to post abeg!

But a source who is a staff member of the bank told LEADERSHIP SUNDAY, under the condition of anonimity that, “The top management of the CBN have decided to introduce currency denominations of N2,000 and N5,000. This is being done in the best interest of the economy.

If this allegation is true, then they are all bunch of illiterates

jamace:

Above people are just watching the show. They are dumbfounded.

jamace:

Above people are just watching the show. They are dumbfounded.

You Try! Job Well Done... Kudos.

Nigeria deserves this. Next time we would appoint or vote based in competence not ethnicity or quota system.

*Almost in tears*

I will never listen to ecconomics jagons. Within me i know this is not right. It is irrelevant to introduce #2000,#5000 notes,when cashless policy has been introduced.

What about cashless society? Have they jettisoned it.

no c0mment

N5 and N10 and N20 for coins? If this is true then sanusi is a lunatic and needs medical attention. Well sha make una put Ojukwu head for that N5000.

[b][/b]

ollah1: This country is just bleeped dudes. I think ojukwu's face will be on the 5000naira note while rashidi yekini's face will be on the 2000 naira note. What a lawless country? Still thinking what cashless policy really mean

Imagine d picture- dose agbero runnin after danfo buses for coins

Buhahahahahahahahahahahahahahahahahahaha My belle oh !!!!

Well those that did wanted fuel subsidy to be removed without any other source of revenue are seeing it now.

Very soon it would be 1000000 note for ONE peak milk

Bunch of tribalistic iddeeiots. Maybe Asari and Ohaneze can explain this

Chai I miss Gani and Fela

Wack

Stupiid rumour....
Salusi abi na panusi wnt dare sumtin as stupid as that.... Its all just a rumour started by a jobless person... When nigeria is going cashless... How would he now print higher denomination when we are not even allowed to move above 1million naira around freely.... Just another stupid post

jamace:

Above people are just watching the show. They are dumbfounded.

Yes o !!!!! I voted for GEJ not PDP are now looking

gboss4sure: N5 and N10 and N20 for coins? If this is true then sanusi is a lunatic and needs medical attention. Well sha make una put Ojukwu head for that N5000.

keep dreaming... Who will put d face of a rebel on our naira note?
N:b ojukwu didnt fight 4 nigeria... He fought 4 Igbo... When u have ur biafra u can put his face on all ur currencies

Hahaha! Maybe the CBN governor wanted his signature to appear in the Nigeria currency especially the higher denominations.

[size=13pt]Shebi una talk say you no go learn, You go learn by thunder by fire.

Sanusi is just following the economy so stop blaming Sanusi

If you increase price of fuel in a mono economy like Nigeria, every commodity inflates, thus devaluing the Naira. eg what 10 can buy before would be less now

SO STOP BLAMING SANUSI !!!!!![/size]

Na more inflation be dis ooo!

2000 and 5000 ke?....where see change 4 dat 1?

And they say these guys are not members of illuminati .

Oh

If that hpns,then that mean's the illuminati boy's have seized controle of our economy....my heart bleed's 4 this country. Our leader's are monster's.

Do these guys listen to themselves at all......
even a 5yr old pikin knows that this ain't right in all ways

Jyde89: If that hpns,then that mean's the illuminati boy's have seized controle of our economy....my heart bleed's 4 this country. Our leader's are monster's.

LOL

[/color]Greedy bastards dats wot they all are cuz they keep creating loop holes in d guise of makin it easier 4 d cashless policy n d society at large. This is not new, they've done it b4. Thumbs down 4'em.

My guy i dnt kw wia u got de news 4rm bt if its goin to happen den we should be ready to cry cos one politician will steal workers 1 month salary nd hide it in his house. Lol