The New Naira Denomination

SOLUDO’s BIG BANG ON THE NAIRA
Economic team, CBN to finetune new monetary policy
By LUCKY NWANKWERE, Abuja
Thursday, August 16, 2007

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"When it becomes operational, the redenomination of the naira, according to the CBN will restore the value of the naira close to what it was before the introduction of the Structural Adjustment Programme (SAP) in 1986 as it will as from August 1, 2008, exchange at N1.25k to $1 with N20 as the highest denomination",

WWW.Sunnews.com

I have heard and read a lot of ill-thought out agenda and plans, this brainwave of Soludo's has to be the worst arrant nonsense anyone will ever think of.
Coming from the governor of Nigeria's apex bank (Central Bank) and from a seasoned banker, it becomes embarrasing!

No nation no matter how powerful or rich can peg its own exchange rate. I am talking about industrialised nations here. Nations with exports and vibrant economy. The nations economy and exports determines the rate at which the nations curency is traded on the open market .
For Soludo to now come annd decide that the Naira is now almost as strong as the dollar is the height of lunacy. Those days are long gone and will take a miracle and better fiscal management and better political leaders and stable economy to see a return.

What does Nigeria have to back up such a strong currency?
A near zero export and manufacturing!
Epileptic power generation which results in high cost of production!
Crumbling infrastructure!
Poor and largely illeterate citizenry!
Corrupt and desportic leaders!
Unsatble and restless polity!
The list of ills are endless, with the only plus being the oil reserves. Even this is threatened in the the restless Niger Delta!

Soludo must be really dumb and reckless if he thinks the rest of the world will simply fold their arms and go along with his stupid idea. He has been rubbing shoulders too long with Obasanjo, he has become dictatoral and autocratic!

Nigeria is getting better but it will take a lot to get it to the point where the Naira will be able to compete with the dollar!