Economists in the house I need your help, What if Buhari removes 3 or 4 zeroes from our "currency" just like Ghana did, what will be the effect on our economy?

Is #1=$1 feasible through this?

Help me out please.

He will not jst remove zeros but also divide 2 by itself to achieve $1=#1

Lalasticlala, seun

menix:
He will not jst remove zeros but also divide 2 by itself to achieve $1=#1

...is it going to have negative effect on our economy?

Then we operate an economy of illusion, change in currency without change in vaule.

Dis question got me wondering as well

Then we'll be deceiving ourselves(just like Ghana) because the purchasing power will remain unchanged. Worse of it, our economy at best will remain stagnant and at worst it will be moved to the thrash can overtime.

TonyeBarcanista:
Then we'll be deceiving ourselves(just like Ghana) because the purchasing power will remain unchanged. Worse of it, our economy at best will remain stagnant and at worst it will be moved to the thrash can overtime.

OK..thanks

Economics needs to be taught properly in schools so we don't have dullards roaming the streets.

They should not do that at all. The government need to put in place the right structure, system and policies. Once you strengthens economic fundamentals, Naira will adjust. We should not in any way toil the direction of Ghanaians by reducing the zeroes.

If we do that, we should be expecting similar challenges the Ghanaians are having right now; high inflation, high devaluation rate and others.

MrImole:
Lalasticlala, seun

To come & laugh at you?

It's Sean & lolo you should call!!!

Debtors will gain while creditors will lose
Billionaires will become millionaires
Bigger thieves in Nigeria will never let it happen
Soludo wanted to do it then..

Okay

modath:


To come & laugh at you?

It's Sean & lolo you should call!!!

I only asked a question, and why don't you Bleep off if you can't help with the explanation.

Soludo muted this idea at the twilight of his tenure as CBN governor

TonyeBarcanista:
Then we'll be deceiving ourselves(just like Ghana) because the purchasing power will remain unchanged. Worse of it, our economy at best will remain stagnant and at worst it will be moved to the thrash can overtime.

God bless you.

Nonsense..like saying tonto Dikeh got married as a virgin.

MrImole:
I only asked a question, and why don't you Bleep off if you can't help with the explanation.

No, you want FP....

You would have left it at the first post that has the question if all you want was enlightenment.

Nothing wrong with the question, there is no one that knows it all!!

Economics is to do with VALUE, if 2 zeros are removed, instead of a dollar being 225, it will become 22500 cos the Value of what Naira could exchange for didn't change.

handsomeclouds:
Debtors will gain while creditors will lose.

Can you offer more explanation on the quoted.

lordthree:
Economics needs to be taught properly in schools so we don't have dullards roaming the streets.

lolz!

What you are referring to is technically termed REDENOMINATION in Economics.

It is mostly applied in countries with hyper inflation or when citizens begin to lose confidence in their local currency because of its perceived lower value. (Expect Zimbabwe to do this soon)

It is more of a Symbolic Policy with limited economic benefits. It mostly seeks to provide "a sense" of pride and value in the currency. Infact the downside risks are more than the upside benefits of such policy.

MrImole:
Economists in the house I need your help, What if Buhari removes 3 or 4 zeroes from our "currency" just like Ghana did, what will be the effect on our economy?

Is #1=$1 feasible through this?

Help me out please.

I think that would cause inflation

Awon wailers mon keyi emma sookun

It change nothing.

The value of the currency remain the same.