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"Strengthening" The Naira - Business - Nairaland

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"Strengthening" The Naira by Nobody: 7:51am On Mar 24, 2015
Any ideas on how to strengthen or reposition the currency for the benefit of everyone?

I would suggest the withdrawal of the N1000 and N500 notes, thereby making the N200 note the highest denomination. This could further encourage more people to key into the "cashless" policy of the CBN.
The N5 note would be the lowest denomination.

Moreover, as Nigeria is largely an import-dependent economy, the CBN shouldn't massively devalue the currency. A return to an exchange rate of N150/N120:$1 via market forces would lead to a reduction in the price of imports. This reduction in prices would enable more folks own stuff like tv sets, smart phones etc.

A massive devaluation could be done when a significant portion of the country's foreign exchange earnings are derived from non-oil exports.
Re: "Strengthening" The Naira by drajjay: 7:56am On Mar 24, 2015
So sad. Buying things online is now a nightmare. Just go to Jumia and see. The masses are the ones paying the price for this goof.

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Re: "Strengthening" The Naira by daveP(m): 8:22am On Mar 24, 2015
When i heard the introduction aof #500 note back then. I didnt like it at all, even if i didnt know much about inflation, etc. But all i thought would happen actually did happen. I think our Customs have a big role to play also.

There are better ways to honour "heroes past" than printing new notes as excuse.

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Re: "Strengthening" The Naira by Nobody: 8:37am On Mar 24, 2015
daveP:
When i heard the introduction aof #500 note back then. I didnt like it at all, even if i didnt know much about inflation, etc. But all i thought would happen actually did happen. I think our Customs have a big role to play also.

There are better ways to honour "heroes past" than printing new notes as excuse.
Right. The fewer the denominations, the lower the costs of printing currency.
The highest denominations of the Euro, US dollar, and British pound sterling are 500, 100, and 50.
Re: "Strengthening" The Naira by daveP(m): 8:44am On Mar 24, 2015
CFCfan:

Right. The fewer the denominations, the lower the costs of printing currency.
The highest denominations of the Euro, US dollar, and British pound sterling are 500, 100, and 50.
one can imagine- £50 still since then? Funny enough, some experts are there, but i just dont know why their advice never sees the light
Re: "Strengthening" The Naira by Nobody: 8:53am On Mar 24, 2015
daveP:
one can imagine- £50 still since then? Funny enough, some experts are there, but i just dont know why their advice never sees the light
The highest denominations enable politicians to launder money easily, and some of the so-called experts are lackeys of politicians..You can now connect the dots.

Soludo had an even more radical proposal-making the N20 note the highest denomination. He projected that such a move would result in a N1.25:$1 exchange rate. But the problem with that rate is that local manufacturing could be totally destroyed if ported goods are dirt cheap. That exchange rate would encourage the importation of all manner of goods, and lead to a negative balance of trade for Nigeria.
Re: "Strengthening" The Naira by daveP(m): 9:02am On Mar 24, 2015
CFCfan:

The highest denominations enable politicians to launder money easily, and some of the so-called experts are lackeys of politicians..You can now connect the dots.

Soludo had an even more radical proposal-making the N20 note the highest denomination. He projected that such a move would result in a N1.25:$1 exchange rate. But the problem with that rate is that local manufacturing could be totally destroyed if ported goods are dirt cheap. That exchange rate would encourage the importation of all manner of goods, and lead to a negative balance of trade for Nigeria.
Re: "Strengthening" The Naira by daveP(m): 9:04am On Mar 24, 2015
CFCfan:

The highest denominations enable politicians to launder money easily, and some of the so-called experts are lackeys of politicians..You can now connect the dots.

Soludo had an even more radical proposal-making the N20 note the highest denomination. He projected that such a move would result in a N1.25:$1 exchange rate. But the problem with that rate is that local manufacturing could be totally destroyed if ported goods are dirt cheap. That exchange rate would encourage the importation of all manner of goods, and lead to a negative balance of trade for Nigeria.
now that's a fix. We just have to settle for between 75 and 120 to be at least be on the safer side and then tougher import rules would do the rest. But i hope it fosters those manufacturing to produce quality long lasting goods as well.

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