Ola one: Coins and notes would run side by side until coins gain acceptability. I mean, among Nigerians? Will Nigerians ever accept that when there are Naira notes? He knows this is the only part that can lead to inflation hence this tasteless attempt to coat it nicely, albeit a job badly done.

Aren't there rehabs in Nigeria? Help! Sanusi is on control cruise!









Time out, I will be back!

Alamutatalo: @jarus
I must commend U for trying to clarify issues before making comments but can't believe such policy by CBN will be based on such fallacious reasons,
1.I'm a banker and the introduction of N5K has no effect on ATM mgt as claimed by SLS,The amt loaded in an ATM machine is regulated by banks to reduce cost of insurance and not the size of the machine.
2.N5K notes will not reduce cost of money mgt by CBN cos it's a new currency with it's attendant cost wc include,design,printing,circulation etc.
3.Pls wen next u call him,remind him dat d polymer notes introduced by his regime failed to achieve it's aim as a lot of N20 and N50 notes is being destroyed daily due to the easy fading nature of polymer notes wen exposed to our climate for long.
4.Economic realities are peculiar,wy wld you rely on a study to formulate policies?Nigerians don't like carrying coins,we associate coins with beggers,fetish beliefs and children no jupiter can change that,d coins introduced earlier have all disappeared and no bank in Nigeria has coins in it's vault.
5.CBN is not mandated to fight corruption,but wy increase the burden of the police and EFCC?
6.European countries and the US highly regulate the flow of high denomination as counterfeiters find it profitable to duplicate.A criminal can afford to spend 2K to produce a high quality counterfeit of 5K
I can go on and on,but I suggest government shld invites stakeholders to a forum to discuss the new policy b4 implementation.
@Seun,I'm quite surprised but I take it ur view is based on certain info wc might not be too accurate.

AjanleKoko:

I would make a law that says, you reject coins, you don't get paid. Shikena.
Why should people be rejecting coins? Are Nigerians okay at all?

wasiudvd: To what extent will the effect of N5,000 note have on cash management? All banks have limit on all their ATMs, even though their is still space in the cassettes, u can't load more than the your limit.
Each branchs vault have limit too, this limit is not number of notes but figures, so as soon as d limit is reached, it does not matter if u are moving just a single note with bullion van, you will incure the same expense when u are moving hundreds.
Any time dis man wan do sumtin, he no dey think twice?

2ru-talk:


It is obvious that the interviewer is a novice in the field of Economics. How can you interview someone on a field you are completely ignorant of? It is totally unprofessional. I think there ought to be core specialization and division of labour in journalism, if we really want to make it result oriented.

coogar:

how is it risky?
how would you tell i have such amount in the left pocket of my jacket? one bundle of this 5000 note is N500k.....which is more convenient unlike carrying 5 bundles of 1000 note to carry the same amount of money!

High-Denomination Banknotes
The Subcommittee has asked for our views on the advantages and disadvantages of issuing U.S. banknotes in denominations higher than $100. We considered how a higher-denomination note could enhance the attractiveness of using U.S. currency and could provide savings by reducing printing, processing, and transportation costs. These benefits were weighed against the concern that high-denomination banknotes could facilitate money laundering and drug trafficking.

Demand for U.S. currency and for specific denominations is driven by many factors, including the needs for a medium of exchange and a store of value. Domestic demand for currency is largely transaction-oriented and is influenced by income levels, prices, and the availability of alternative payment methods. Increases in domestic demand for high-denomination banknotes ($50s and $100s) have been generally modest because Americans tend to use checks, credit/debit cards, or other noncash forms of payment for larger-dollar transactions. The introduction of a higher-denomination banknote saves printing and processing costs, but only to the extent that the public shifts its demand from $100s to larger-denomination notes. Even if such a shift occurred, any savings would likely be minimal without a substantial reduction in the demand for other notes -- $1s through $20s account for about 85 percent of the production of the BEP and over 90 percent of the Federal Reserve's processing.

International demand for U.S. currency is influenced largely by the stability of foreign currencies, the confidence in the U.S. dollar as a stable currency backed by a strong economy, and the lack of any recall of U.S. currency. As I mentioned earlier, approximately two-thirds of U.S. currency is held internationally, but about three-quarters of the $100 notes in circulation are held overseas. Foreigners use high-denomination U.S. banknotes primarily for savings, but we also find that countries with transitioning economic and political environments use U.S. currency as a medium of exchange. Ultimately, we believe the strength and stability of our economy will continue to be the primary factors influencing international demand for U.S. currency. Thus, the introduction of a high-denomination U.S. banknote would likely produce minimal increases in demand for U.S. currency.

Although there are some benefits associated with a high-denomination banknote, the law enforcement community has expressed concern about the disproportionate use of large-denomination banknotes for illicit activity including money laundering, drug trafficking, and tax evasion. In addition to making large-value transactions more efficient, a high-denomination note could inadvertently facilitate illegitimate transactions by making them more efficient as well. Such concerns prompted the Canadian government's recent proposal to cease issuing its $1000 banknote.

In weighing the marginal benefits of introducing a high-denomination U.S. banknote against law enforcement concerns about illegitimate activities, we do not foresee any immediate need to issue high-denomination notes.

Flexskillz: Picture this scenario, i buy an item worth N500, I present a N5000 note i recieve a balance of N4500 in other denominations, am i not gonna ed up with more cash in my pocket?

diluminati:
one word. Shutup

ANY-PEN :


Well, the quality of your jacket will tell & even if there's nothing in it, your life may have gone before they know your jacket isn't carrying such amount

Beync: clasic senario!! pls can any one explain how a balance of 4500 in other denominations say 200x22 + 100 note enhance cashless economy?
sanusi is high on kwunu

nl.official:
[size=20pt]Make all of una enter una banks go collect online banking and tokens.

STOP nagging like bi[i]t[/i]ches![/size]

niyooo: @ Jarus, You claim to be an Economist and I know you have some sense up there. How do you relate the cashless policy introduced by the CBN with the introduction of the N5000 note Nigerians love carrying cash, you want to discourage them, then you should be thinking in terms of cancelling the higher denomination so that the inconvenience of carrying too much cash forces people to make use of e-channels and not introducing higher denomination to make it convenient for them to carry such without being noticed. All that talk about withdrawal and deposit limit penalties are being circumvented by the banks for their high profile customers and I’m not talking from what I heard, it’s from what I know.
 
Jarus, use your brain and stop swallowing everything SLS tells you hook, line and sinker. That was how you were arguing with me the other time on the issue of CBN not advertising before employing and could not provide evidence of the adverts. Some people have already given examples of the effect of making the N5, N10 & N20 coins. Nigerians are not suddenly going to fall in love with coins. In order to ensure that you don’t end up with coins, you decide to sell things for 4 for N50 rather than selling for probably N10 each. Coining those notes is going to fuel inflation without gainsaying. SLS just wants to award contracts so he can get cut-backs.
 
In developed nations where higher denominations are rarely used, it’s because the e-channel systems are working well. Introduction of the N5000 note has absolutely no correlation with the cashless policy being championed by the CBN. The excuse of ATM loading has already been clarified as a lie. And the lie that it is a cash management thing is so lame. That is what the cashless policy is supposed to address.
 
Those who have brains should read between the lines.

cutievik: Must u always reply every remark dat someone makes?Must u use harsh words to hurt their feelings wen they r mature ways to go about it,must u.........,Ooops! Sorry i forgot to ask,"How are u?" i guess there lies my answer.GET A LIFE!

coogar:

can i carry 5 bundles of 100k on me without attracting the eyes of hoodlums? which is easier to carry around, 1 bundle of 500k or 5 bundles of 100k?

niyooo: @ Jarus, You claim to be an Economist and I know you have some sense up there. How do you relate the cashless policy introduced by the CBN with the introduction of the N5000 note Nigerians love carrying cash, you want to discourage them, then you should be thinking in terms of cancelling the higher denomination so that the inconvenience of carrying too much cash forces people to make use of e-channels and not introducing higher denomination to make it convenient for them to carry such without being noticed. All that talk about withdrawal and deposit limit penalties are being circumvented by the banks for their high profile customers and I’m not talking from what I heard, it’s from what I know.
 
Jarus, use your brain and stop swallowing everything SLS tells you hook, line and sinker. That was how you were arguing with me the other time on the issue of CBN not advertising before employing and could not provide evidence of the adverts. Some people have already given examples of the effect of making the N5, N10 & N20 coins. Nigerians are not suddenly going to fall in love with coins. In order to ensure that you don’t end up with coins, you decide to sell things for 4 for N50 rather than selling for probably N10 each. Coining those notes is going to fuel inflation without gainsaying. SLS just wants to award contracts so he can get cut-backs.
 
In developed nations where higher denominations are rarely used, it’s because the e-channel systems are working well. Introduction of the N5000 note has absolutely no correlation with the cashless policy being championed by the CBN. The excuse of ATM loading has already been clarified as a lie. And the lie that it is a cash management thing is so lame. That is what the cashless policy is supposed to address.
 
Those who have brains should read between the lines.

AjanleKoko:

That is a really dumb comment, ogbeni.
You're asking how it is the CBN governor's problem what banks load in their ATM?
You really said that?

niyooo: @ Jarus, You claim to be an Economist and I know you have some sense up there. How do you relate the cashless policy introduced by the CBN with the introduction of the N5000 note Nigerians love carrying cash, you want to discourage them, then you should be thinking in terms of cancelling the higher denomination so that the inconvenience of carrying too much cash forces people to make use of e-channels and not introducing higher denomination to make it convenient for them to carry such without being noticed. All that talk about withdrawal and deposit limit penalties are being circumvented by the banks for their high profile customers and I’m not talking from what I heard, it’s from what I know.
 
Jarus, use your brain and stop swallowing everything SLS tells you hook, line and sinker. That was how you were arguing with me the other time on the issue of CBN not advertising before employing and could not provide evidence of the adverts. Some people have already given examples of the effect of making the N5, N10 & N20 coins. Nigerians are not suddenly going to fall in love with coins. In order to ensure that you don’t end up with coins, you decide to sell things for 4 for N50 rather than selling for probably N10 each. Coining those notes is going to fuel inflation without gainsaying. SLS just wants to award contracts so he can get cut-backs.
 
In developed nations where higher denominations are rarely used, it’s because the e-channel systems are working well. Introduction of the N5000 note has absolutely no correlation with the cashless policy being championed by the CBN. The excuse of ATM loading has already been clarified as a lie. And the lie that it is a cash management thing is so lame. That is what the cashless policy is supposed to address.
 
Those who have brains should read between the lines.

phraze: Only people with foresight emulate the steps of Great Leaders. Mr. Seun has supported this, don't know why i should'nt. Ekù ishè Sir

logica:
You must be naive if you think hoodlums know you are carrying money just by staring at you. There is no robbery without information. Meaning they must have been tipped off (either by an employee of the bank or somebody present as you collected the money or the person you are paying the money to).

In any case, I don't see how this policy rhymes with the cashless policy. It's like speaking from both sides of the mouth. The 5k note simply encourages people to carry larger amounts of cash which they normally wouldn't due to bulk. I for one have never carried any amount of cash larger than 100k. Anything beyond that, I do a transfer.