CBN Revalues Naira, N20 To Be Highest Bill, Many Thanks To Soludo

[b]Central Bank Governor, Prof. Chukwuma Soludo.unveil new naira reform


Under the plan, the current N1,000; N500; N200 and N100 notes will revert to N10, N5, N2 and N1, while fresh N20 note will be introduced.

Also, the subsisting N5 note will become 50 kobo, while coins will be reintroduced. These are one kobo, two kobo, five kobo, 10 kobo and 20 kobo.




The advantages of the plan are legion, according to Soludo. These include:


To better anchor inflationary expectations, strengthen public confidence in the Naira;

1).Make for easier conversion to other currencies;

2).Reverse tendency for currency substitution;

3) Eliminate higher denomination notes with lower value;

4).Reduce the cost of production, distribution and processing of currency;

5).Promote the usage of coins and thus a more efficient pricing and payments    system; and

6).Lay the foundation for the convertibility of the Naira as well as make it the 'Reference currency' in Africa.


Apart from re-strengthening the naira, Soludo said the new agenda, which is the   second phase of the Financial Sector Consolidation, will assist in inflation   control. And that effectively at the prevailing exchange rate, US$1.00 will exchange for approximately N1.25 from that date onwards.


TELL YOUR PEOPLE WEY YANKEE AND LONDON  AND ALL OVER THE WORLD TO START COMING HOME


YEMI
LEWISHAM ,LONDON            

Soludo is definitely a gem. The point about effective pricing systems is a good one.
When coins are valuable, whole telephone booth systems, retail systems, transport systems can be built around coins. Plus if it is well managed with good economic reforms, with time the buying power of nigerians will increase significantly.

@ poster

please is there a newspaper article i could refer to on this and please who is likely to gain ie should i invest or wait till it has been revalued.

Actually, this policy is 0% sensible.  See Naira To Be Re-Denominated