Naira Re-Denomination: Suspended!

[octupus]I think lesser mortals should humbly listen carefully before commenting or acting
does that lesser mortals include the president of the country.

Its better to listen to distinguished experts than to listen to "lesser mortals".

I think it's awful that people should see the redenomination thing as minatory 2 development when it's actually the opposite.

Soludo could not have woken up one morning, scratched his butt and come up with it, it must had been clearly thought out and planned but I guess we may never know how it could go, no thanks to the president and all other rather conservative minds.

From the much that was said about it, I think the process would have been smooth in the 1st place, safe, sweet and apt in the race to save the Naira and Nigeria in general.

The fact that the N20 was to be the highest denomination could possible have meant that higher denominations would later be introduced in due course and with far better values then. But again, we may never get to know, ever.

I personally feel that those in support of extremely upholding the upper class syndrome stand to gain the most from the suspension of this scheme.

No hard feelings on my last entry

Please let's not start seeing this in terms of North and South and start seeing it in terms of Nigeria.
As I said before I am no economist but I know redenomination will not increase the purchasing power of
the Naira. Getting  1 Naira after redenomination will still be as difficult as getting 100 Naira of today.

Meristem Securities have published an analysis of the whole reform here http://www.meristem.com.ng/fileupload/MERISTEM%20RESEARCH%20ECONOMIC%20ANALYSIS-%20CURRENCY%20REFORM.pdf

It's a pdf file so you may need to download it. I believe we can consider them to be experts.
I got the link to the document from this page http://www.meristem.com.ng/detail.php?link=monthlyecoanalysis

Meristem's management team doesn't have a single Northerner, so all the North haters on this forum may wish to take the analysis without any bias.

like i said it will lead to chaos,its better not to start.

The suspension of the Naira redenomination by the apex bank is uncalled for. The apex bank has the statutory responsibilty of ensuring economic growth and development through its monetary and fiscal policies. Be it politics or power tussle, the soft spoken president should have allowed the apex bank go on with redenomination.
Prof. Soludo has proven beyond all reasonable doubt that he is competent to run the affairs of the apex bank.
Aside the achievements recorded with bank recapitalization, other amcro economic indices are there to show  that the apex bank is not slumbering. Exchange rate, inflation, GDP growth, price stability, job creation etc are among the economic papameters.
Our servant-leader please forgive him if he neglected your office, at least for the sake of national development. Remember no single individual is greater than the entity called NIGERIA.

Fellow Nigerians if Naira redenomination is a big problem that it has given Prof. Chukwuma a new national title that all big men in nigeria are angry then we should watchout for outburst of Ghana's economy. THIS IS UNBILIVABLE ONE CIDI IS EXCHANGING FOR ONE DOLLAR.
Read more here http://www.thisdayonline.com/nview.php?id=87894

So what if one cedi exchanges for one dollar.  How easy is it for an average Ghanian to earn one cedi?

How ever people will like to look at it, its important to say it again that its not easy to be an Igbo man in this country.

They suspended it because Soludo is an Igbo man. Soon they will frustrate him out of that office.  His name is missing in the Nationa Economic Team, that just the begining.

They did it before and thats why Iweala resigned.

I think it's high time we learn to overcome our tribal instincts and look at the big picture. Once we engage tribalism
then it's inevitable to suspend reasoning. The same way you think Igbos are being marginalized that's how some non-igbos think they are marginalized.
A single state in the North has more than 50 ethnic groups, how about members of those ethnic groups?, do we have to appoint people from each group just to make them happy ?.

Please, let's always remember that nobody chose his tribe, so it's not our faults that we belong to the ethnic groups we belonged to.

Back to the topic. All sensible expert comments I heard about the redenomination say that it's not needed. Why do we have to worry so much about it then ?. I believe there are more important issues like the Niger-Delta crisis and  PHCN to worry about.
Am also not convinced by Soludo's explanation of it's advantages. As a lay man all I can understand is that the Naira is stronger if things in the market are cheaper or I can make more naira easier than I can make today without prices going up.

That Man,Soludo have to be investigated,First of all how can he a Prof,just wake up one morning and what he thought about was to reprint naira for some purposes like durability, fine,but he could only achieve success in one (N20.00).The N20.00 has come to stay. God is my witness that i always congratulate him on that.What about the other denominations ,seems like no job was done,because they don't stand the test of time.He should give account why he has not Re-printed all the national paper currencies into the plastic-like nature. Ok,No body investigated him on that to know what actually happened.

The next time i saw him on TV, He was talking about Re-denomination. Very Funny,The country is exporting crude oil through OPEC,why can't we use our oil,Crude oil is not a commodity to sale to anybody.It is the Refined oil that the global masses need. " Oil is the need of the World" But govt is eager to be called the number 1 crude oil exporter and receieve award and charity and also Development Funds from OPEC. So we sell our crudeoil $80/barrel  and accept dollars at N125/$1 the remaining balance of $45 is loss to our economy.The country is import dependent and when He Re-denominate the naira to $1/N1.There is no infrastructure in nigeria that will gurantee vast oppurtunity of well paid employments, because the country is in a big loss while underselling their crude oil.Assuming Prof Soludo's salary is N13,000 so after redenomination he now gets N100 ($100 equivalent)  okay thats fine but if he travel to america to work ,he will find out that the time spent to make the N100($100 equivalent) in nigeria will be more,but working in america he will make $100 in shorter time frame.

So the result of the Redenomination will be that the masses will have psychological problem and there will be chaos and people will hate him and blame him,because they will like to believe that their money has been reduced,and that is the real impact me and you will feel.That move must yield negetive impact to the economy,Importers will make the country hell.

The best move for yaradua and soludo is to import 100,000 units  transfomers and a buy a Contemporary  town planning and development drawing from 5 countries and invite the Chinese or British to come and Rebuild Nigeria,The new Nigeria! with a consolidated Foundation for industry and global commerce. Even some people have not collect their monies form those banks soludo closed due to electioneering strategy.I forgot that self. We need Light,kero,gas oil not crude oil money.we need good roads ,water,employment and not robbery police killing armed robbers and armed robbers killing any how.

Anyway my own opinion is that any CBN Governor Must be Experienced in practical and not Theoretically.He should go to the bull market and learn to fight the Forex Bull before handling a national economy, it is more than the bull market. Listen,If you trade in the Forex market you will see how indicators will tell you the future,In this world of constant change of information it is vital that we work with indicators so that we can truly forcast what the future will be and be able to position ourself so as to benefit from our forcast.  That is what is called smartness.  The fund that will be used to print the Redenominated currencies, must be provided for refinery construction Fund. learn more on how you can use indicators to trade in forex market .You will get excitment and Cash. Check the site below and do currency biz to see yourself  how right or wrong soludo was. For me i mainted strongly that he made an un-informed move,which turned out to be a wrong move as well.But smart Yardua Put a stoploss oder on him.The president's Order was the good thing that happend to us, lets pray he will deliver some oil refineries and stop exportaion of crude oil.

u guys are not seeing it from other perspetive. u see in Japan no one is talking about redinomination. the exchange rate is 115-116 jpn to $1. but the economy is strong and capital utilisation is high. we should be talking about our to make the economy strong and the value of the naira will rise along that line. its not that the naira is now so worthless like the cedi in ghana before they redinominated the cedi.this same set of people just change the notes with billions of naira only to realise that we need to redinominate it. it shows that they are not on-top of the situation so i think wats best for them to do is to resign, which is a rearity in this part of the world. the only durable denomination is the N20  note others are already going the way of the old ones

Thank goodness.  Now we can focus on things that matter.  Like the under-funded police and legal system.

There was this interesting analysis I read on Daily Independent the other time - sorry I can't start searching to cite it right now.

In it, one Emmanuel Okoye said that what several people have failed to realise is that CBN's prerogative is fiscal policy. They can only effect changes in the value of the Naira, not in the price of things or in the minimum wage of the average Nigerian; that part is the government's prerogative.

So if N1,000 turns N10 in value and it's still not within reach for the common man, all eyes should be on the government, not CBN. Again, it does not make the improved value of the money useless. I mean check it out - improved value, what can be negative in a positive adjective?

Has anybody wondered how wise the reasons for the suspension of the re-denomination are?

One reason, I heard, was that the presidency thinks it an unnecessarily expensive and wasteful venture. Whoa! Sounds technical, I guess I can't see that part from outside the circle.

Another was that Soludo jumped protocols. He failed to follow due process- that's what they said.

Man, how can a CBN governor who did not get into the office yesterday, and who has implemented other schemes in the past (the institution of the new notes and coins, 4 instance) suddenly go preposterous, forgetting absolutely how to go about a new scheme like this one? Well, I guess it's human nature, right? We all make mistakes sometimes.

Okay, assuming they're right and Soludo did make such a grievous mistake 4 real, don't u think he should have gotten more than a mere suspension of his scheme? Perhaps some penalty, you know, no matter how mild.

If their strongest reason is his failure to follow due process, then the scheme may be continued with in the future, right? Let's watch.