According to the US Treasury Department, the largest currency denomination ever printed by the Bureau of Engraving and Printing was the $100,000 series 1934 gold certificate, which featured a portrait of President Woodrow Wilson.

But you couldn't find these in, say, J.P. Morgan's wallet. A limited number were printed at the end of 1934, and they were intended for government use only. By the end of that year there were several other big bucks, including denominations of $500, $1,000, $5,000, and $10,000. These were perfectly legal tender, but mostly used for bank transfers.

Production of these bills stopped around[b] 1946[/b], and in 1969 the government decided to cease using them altogether. The big bills are still around (though mostly in the hands of collectors), and can be used to make a down payment on a plasma TV. However, the U.S. government has made an effort to pull them out of circulation.

The biggest bill still in use is the classic C note -- the $100 bill. The Benjamin was the highest note to survive the 1969 repeal, because by that point electronic money transfer systems had rendered large paper bills unnecessary.

Your local convenience store may not accept bills larger than $20, but once upon a time you could have paid for your gum with a nice fresh $10,000 bill. What’s the story behind the large-denomination bills that the government used to issue?
What big bills has the U.S. issued?

high-denomination-currency


Why on earth was the government printing such giant bills in the first place?

Believe it or not, it wasn’t just to save space in fatcats’ wallets. When the Treasury started printing these giant bills, their main purpose was making transfer payments between banks and other financial institutions. Before sophisticated wire transfer systems were fully developed, it was apparently easier and safer just to fork over a $5,000 bill to settle up with a fellow bank. Once transfer technology became safer and more secure, there really wasn’t much need for the big bills anymore.

http://www.mentalfloss.com/blogs/archives/44861

I pray Mallam Sanusi is not taking Nigerians back to pre-independence era. The question is what's the opinion of Okonjo-Iweala and our president that had no shoes while growing up.

The Good Side:

Massive savings due to economy of printing the note: On average, it may cost the same amount of resources to produce a N10 note as a N5000 note.

Ease of high-value transactions: A large amount of money could be carried about with ease.
Conditionally, it also enhances operational efficiencies. The number of times banks load their ATM machines will also reduce. Banks can now load up to 5 times the value in their ATM and reduces rate of stocking and associated costs, but this will be true only if the maximum amount of N2m that could be loaded on ATM is reviewed upward.

The Bad Side:

Psychologically-induced inflation: As traders avoid coins, prices tend to become the next available whole note. For example, certain goods would have been, say, N2, but because of the reluctance of people to use coins, prices of
such items have become N5 - a note. IT IS NOT THE N5000 NOTE THAT WILL INCREASE INFLATION, BUT THE RELUCTANCE OF PEOPLE TO ACCEPT LOWER-DENOMINATION COINS.

Fake currency: Big business for counterfeiters. A fake N5000 note! Imagine. Just a bundle makes N2.5m.

Encourages black deal: Cash transactions, unlike bank transactions, are relatively untraceable. This attribute of high-denomination currency makes it the preferred currency for storing black money created out of tax evasion, and other illegal activities.

Reduced banking: Imagine. You have only one N5000 note. Where are you going to keep it? Home or bank? You are likely going to keep it at home to meet transactional and precautionary purposes. When this happens on a large scale, the result? poor capital supply to the economy.

The solution lies in diversifying the economy, and expansion of employment opportunities. That is the magic wand that will put Nigeria on
the path of real growth.

[size=14pt]When will SLS tenure come to an end?[/size]

IT IS NOT THE N5000 NOTE THAT WILL INCREASE INFLATION, BUT THE RELUCTANCE OF PEOPLE TO ACCEPT LOWER-DENOMINATION COINS. As traders avoid coins, prices tend to become the next available whole note. For example, certain goods would have been, say, N2, but because of the reluctance of people to use coins, prices of such items have become N5 - a note.

The truth is that Nigerians have this reluctance to handle coins, and that is why coining any currency is usually a waste of resources. It is high time the authorities understood the particular situation in Nigeria.

I am of the opinion that the authorities should scrap coins completely, and convert N1 and N2 to notes. That way, they will gain acceptance, and prices of articles that would have been say, N2, but currently priced at N5, would fall to the real price of N2.

Even if N5000 must be introduced, let 50k, N1 and N2 become notes.

THE INTRODUCTION OF N5000 IS NOT THE SOLUTION TO OUR PROBLEMS. OUR SOLUTION LIES IN BOOSTING THE PRODUCTIVE BASE OF THE ECONOMY AND CREATION OF EMPLOYMENT.

how does it affect the price of Garri

t-med:


I think u should mind ur speech...remember he's still d President of the country. U should criticize the policies but not insult the individual.Stop applying the principle of Ad hominem. That is what makes a scholar and an educated citizen

Say what? My reference 2 both of them as cattle rearer nd drunkard fisherman is only a figurative expression just like it was said by Abati about GEJ's schooldays of shoelessness.

Ijeoma Obasi:

Trader, who move money around, he said, would appreciate the need for the issuance of N5000 note while those at the low end of the transaction chain would also benefit from the new currency restructuring initiative.

How does this align with the cashless policy he is vigorously pursuing? I've always said this Sanusi is totally-confused. Hope you remember that in his consistent-inconsistency, he first asked banks to remove ATMs from offsite locations then turned around to push for massive deployment of offsite ATMs. For your information, it costs a bank at least N400,000 to securely install an ATM offsite. Decommissioning costs at least N100,000 for each site, then re-installation, another N400,000. Do you think the banks will out of the goodness of their hearts bear this costs? NO! They just pass it to customers in form of higher interests.

He wants lower interest rates, he's introducing higher denominations. Why doesn't he just re-denominate the Naira (divide by at least 100) and see whether we will use coins or not. M0R0N

Super1759: I am quite certain that they will introduce it. House of reps and senators are mere toothless dogs that just make noise for the masses to think they know what they are doing. I am yet to seee any invention they stopped

In a democracy power is given not appropriated. What powers have you given the national assembly. But with talk like this you threaten to undermine what little respect they have. Remember the N/A is the closest thing the common man can get to wielding power.

Most Nigerians don't understand how democracy works so they go barking up the wrong tree.

The Executive is like the father of the house: visioneer executor of principles and guarantor of developmental programs. The fine print in all these matters do not always sit well with the kids. Who loves to go to school, who wants to go to bed early, who doesn't want to drive at age ten, who wants discipline. That's where mum comes in. To cool things, to explain to the kids, to talk, debate and argue with dad with a view to tempering justice with mercy.

If you undermine the powers of one in favour of the other you risk any chance of development. Kids that play their parents pay for it.

Don't rejoice when one side is up and the other down, when one side is sick and the other is well or one side has all the resources of funding, law enforcement, authority and influence while the other has none. It is Nigerians who will suffer.

mmmustapha: how does it affect the price of Garri

Mumu! If this does'nt affect the price of garri,what will? F*o*o*L

If GEJ has givn them go ahead fo sensitisation campaign, then they wil surely introduce it despite senate's order to stop the plan. This okoroafor/sls guys are not aware of nigerians attitude toward coin. Right now, we have coins as legal tenders, but nobody uses them, i was embarazd when when the last coins were introduced, i collected them as change frm sombody, but nobody agree to collect them frm me. Majority of these people were igbo traders. I xpect SLS and his failed team to hav a look at their xistin policies, and ask themselvs how successfully they hav bin implemented. We hav restructurin of wat he (sanusi) describes as ailin banks, hundreds of billions hav bin pumped/injected into these banks, and arrested most of these banks' ceos, but we stil hav stil banks failin. There was a time he ordered the removal ATM machines frm public places, shortly he came up wit cashless policy, after dat, it was islamic bankin sys which he was so personal abut it, and described it as the best bankin sys in the world. Now it is all abut resctruturin currencies and redenomination. 5,10, and 20 change into coins, which obviously, its a failed mission already. 5k as d highest denomination as part of the plan also. I xpect sanusi to conduct opinion poll so as to sample the opinions of nigerians which i knw wil be against his plan. Beta stil, he shuld listen to wat som financial experts are sayin concernin his purposed plan. Personaly, i totally disagree wit okoroafor's xcuse that 5k note wil help biznessmen dat carry money abut, and i see that they are contradictin themselves. Havin told nigerians that u are opratin cashless sys, which we dont nid to carry money abut, now 5k note wil help biznessmen that carry money abut. Sanusi is notin but a prophet of doom, let wat happend to Prof. Barth Nnaji happen to sanusi too. The harship sanusi has lured nigerians into can never be campared to dat of Nnaji, fo Nnaji, som nigerians are beginin to testify of d stability of power in their areas includin my area. Wat has sanusi brought to us? Cries and complains everyday.

This aboki thick sha! We said we don't want it and the silly Arrow is still going ahead anyway as if we are kindergarten pupil whose opinion doesn't matter.
Do we have a president at all in this country? I really don't have faith in the national assembly to call this guy to order and the president is just adopting the siddon look approach too.
Imagine this guy saying he wants to introduce N20 notes and coins side by side, this guy must think he is talking to the dumb almajiris in the north. Who doesn't know that is a systematic way of gradually phasing out the notes. In essence, he wants to turn N20 to coins and on the long run give N1000 the equivalent of N5000 note.
I think the north has really tried for the economy of this country, they can't be trusted with sensitive posts, they don't fail to amaze me with their reasoning, both the educated and illiterate.

Billyonaire: I have decided not to feel bad about these coins issue. But I promise never to touch those fvcking coins with my hands. I hate coins.

same here, I remember in those days my pocket always has a hole because of one-one naira coin.

Makzylopez:
1. Are you aware that it will encourage hoarding.because if you have less cash that can be easily concealed,I see no reason for banking it.

Are u listenin to urself,hoard money when there isn't enuf.Go hoard ur salary & eat stones.I wonder the kind of life you pple want us to live.na wa 4 9ja

awesome_t: Ever been to Europe?

Fvck Europe. Why do you still keep comparing us to fvcking Europe. Is Europe the best place on Earth ? How many times will I keep repeating that I love Owerri more than New York and keep annoying me with your comparison of my Country with the West.

Reference:

In a democracy power is given not appropriated. What powers have you given the national assembly. But with talk like this you threaten to undermine what little respect they have. Remember the N/A is the closest thing the common man can get to wielding power.


Most Nigerians don't understand how democracy works so they go barking up the wrong tree.

The Executive is like the father of the house: visioneer executor of principles and guarantor of developmental programs. The fine print in all these matters do not always sit well with the kids. Who loves to go to school, who wants to go to bed early, who doesn't want to drive at age ten, who wants discipline. That's where mum comes in. To cool things, to explain to the kids, to talk, debate and argue with dad with a view to tempering justice with mercy.

If you undermine the powers of one in favour of the other you risk any chance of development. Kids that play their parents pay for it.

Don't rejoice when one side is up and the other down, when one side is sick and the other is well or one side has all the resources of funding, law enforcement, authority and influence while the other has none. It is Nigerians who will suffer.

so you want us to believe our executives should be tagged with your above statement. We all know that N/A have lost their pride and name. So no one give a dame about them

Acidosis:

Relax your muscle.
There wasn't any meaningful reason to stop the CBN in the first place. They only made that gullible move to impress some ignoramus. CBN allowed people to bring in any practical history where such lead to inflation..but nobody tendered any.
CBN ask you people to tender your details of the alleged billions of naira meant for printing, but you guys were scared to bring any since you don't have any true fact. Now give me one reason why CBN shouldn't continue with the process..

Which developed countries of the world are we emulating in this regard by senselessly changing our currency denomination every now and then? May i also ask you, does this not condradict the CBN cashlite/cashless (or is it less cash) policy? If the populace is sensitized enough, and they embrace the cashless policy payment/buying options, wont it have been the best option for the country to save printing money and other incidental costs, together with the other risks of carrying huge cash around?

THANK U BRO.SLS HAS ALWAYS BEEN A DISASTER

[quote author=yohanna zack]If GEJ has givn them go ahead fo sensitisation campaign, then they wil surely introduce it despite senate's order to stop the plan. This okoroafor/sls guys are not aware of nigerians attitude toward coin. Right now, we have coins as legal tenders, but nobody uses them, i was embarazd when when the last coins were introduced, i collected them as change frm sombody, but nobody agree to collect them frm me. Majority of these people were igbo traders. I xpect SLS and his failed team to hav a look at their xistin policies, and ask themselvs how successfully they hav bin implemented. We hav restructurin of wat he (sanusi) describes as ailin banks, hundreds of billions hav bin pumped/injected into these banks, and arrested most of these banks' ceos, but we stil hav stil banks failin. There was a time he ordered the removal ATM machines frm public places, shortly he came up wit cashless policy, after dat, it was islamic bankin sys which he was so personal abut it, and described it as the best bankin sys in the world. Now it is all abut resctruturin currencies and redenomination. 5,10, and 20 change into coins, which obviously, its a failed mission already. 5k as d highest denomination as part of the plan also. I xpect sanusi to conduct opinion poll so as to sample the opinions of nigerians which i knw wil be against his plan. Beta stil, he shuld listen to wat som financial experts are sayin concernin his purposed plan. Personaly, i totally disagree wit okoroafor's xcuse that 5k note wil help biznessmen dat carry money abut, and i see that they are contradictin themselves. Havin told nigerians that u are opratin cashless sys, which we dont nid to carry money abut, now 5k note wil help biznessmen that carry money abut. Sanusi is notin but a prophet of doom, let wat happend to Prof. Barth Nnaji happen to sanusi too. The harship sanusi has lured nigerians into can never be campared to dat of Nnaji, fo Nnaji, som nigerians are beginin to testify of d stability of power in their areas includin my area. Wat has sanusi brought to us? Cries and complains everyday

A mallam will always remain a mallam. All of His economic policies have never favoured the masses. He is just a confused man trying to destroy all of Soludo's work and legacy

Billyonaire: I have decided not to feel bad about these coins issue. But I promise never to touch those fvcking coins with my hands. I hate coins.

I mirror that feeling. I have no problem with the N 5,000 note. It won't affect inflation and is cashless compliant, however coinage remains the potential threat.

People simply won't accept what they cannot spend. And this acceptance starts right atop the food chain - the CBN. If they can get the banks involved then there may be more reasons to be optimistic.

Perhaps they could get banks to roll out new atm's that could dispense and accept coins and so on. I mean, whatever measure that will restore confidence in coins beyond mere rhetoric. Let government start by paying its workers and contractors in coins first.

N5000 note is not my major problem, the major problem is that if N5, N10, N20 are coined,then we won't be able to spend them again. Look at how the revival of the N1coin failed.

It's a welkom development, Politicians hav been prayin for this nd ar now happy as they ar favoured... Pls hold ur peace, 2015 is near and a reasonable note (#5,000) has to be introduced to ease handshake wit the right hand thereby reducing the effort to carry d load(new #5,000) in the (ghana must come) bag on the left hand...

Reference:

I mirror that feeling. I have no problem with the N 5,000 note. It won't affect inflation and is cashless compliant, however coinage remains the potential threat.

People simply won't accept what they cannot spend. And this acceptance starts right atop the food chain - the CBN. If they can get the banks involved then there may be more reasons to be optimistic.

Perhaps they could get banks to roll out new atm's that could dispense and accept coins and so on. I mean, whatever measure that will restore confidence in coins beyond mere rhetoric. Let government start by paying its workers and contractors in coins first.

COme to think of it. Our great grand fathers progressed from barter system. They used cowries, lead etc as means of exchange until we arrived at coins, before paper minting....NIGERIA MUST NOT USE COINS......COINS SHOULD BE DISCONTINUED.....SANUSI PLEASE THINK OUTSIDE THE FVCKING BOX......

awesome_t: Ever been to Europe?

is this europe?i'm so sorry Nigeria is about turning somalia

Makzylopez:
1. Are you aware that it will encourage hoarding.because if you have less cash that can be easily concealed,I see no reason for banking it.

and it will also encourage robbery *mstchew*

inspirenet:

Let's see how it goes

No need to wait and hope, 9ja is heading for Zimbabwe.. at least we all know she is going some where in 2020 latest, change is the only thing constant.. Mtchew.

I don't think Sanusi is acting alone on this, GEJ and also parliamentarians are all involve in this madness.
Leadership in this country is Fu.c.k.e.d Up.

I am tired of dis hypocricy being exhibited by d CBN.
Watz d pt going Cashless whn u want 2 introduce N5000 notes?
SLS,pls stop dis 'Copy n Paste' economy u r performing in dis country.

Kx: [size=14pt]When will SLS tenure come to an end?[/size]

Please will someone help me answer this good question.

Frenchkiss: What more should one expect from a cattle rearer 4 a CBN Governor nd a drunkard fisherman 4 a president. SMH!

don't mind them.

iykak47: Please will someone help me answer this good question.

his end is just around the corner. God will expose dem very soon

iykak47: Please will someone help me answer this good question.

his end is just around the corner. God will expose dem very soon

Frenchkiss: What more should one expect from a cattle rearer 4 a CBN Governor nd a drunkard fisherman 4 a president. SMH!

don't mind them.

Abeg this people should stop boring me with this their 5000naira stuff. I have had enough of it already.