What is wrong with Soludo? After minting billions of coins that nobody uses with our hard earned money, and after spending billions of dollars printing new N5, N10, N20 and N50 only recently, he wants to give out another contract for minting and printing so soon?

Abeg we should use what we have till 2010 how can a country be printing new denomination of money every year?

To devalue currency is the easiest thing in the world compared to revaluing. It will most likely fail and even if it succeeds, it will make rubbish of our exports and trade surplus.


Then there is the issue that we will then be unconsciously experiencing massive inflation. After revaluing N1.26 to $1, by the time the currency depreciates a little to N2 per $1, we will not realise that what just happened is that exchange rate just went from N126 per $1 to N200 per $1 in terms of the old currency.

So revaluing the currency is actually devaluing our assets and in essence our lives.


Not to forget that Nigerian bankers are about the smartest in the world when it comes to looking for loopholes in government policies that can be used to rip people or the government off legally.


So please Soludo should leave our currency alone. Japanese Yen is almost equivalent to the Naira yet they have not died. In fact they are doing very well.

This may just be an attempt to please the ignorant masses that complain everyday that our currency has no value.

How The Big Bang?Will Affect You
From Paul Ibe in Abuja, 08.15.2007

THISDAY NEWSPAPER

How will the new monetary regime rolled out by the CBN yesterday affect Nigerians is the million Naira question resonating in the minds of its citizens and foreigners alike. Although the new monetary regime will be effective August 1, 2008, the days and months ahead will be crucial. A picture of how this new regime will impact on the lives of Nigerians, and how individuals, organisations and the system will respond to the challenges of this revolutionary policy will soon begin to crystallise.
However, one thing is certain: the Naira will shrink, but the value will go up one thousand per cent. On August 1, 2008 all currencies and coins will change with the highest denomination of currency being N20. All prices for goods and services including those for labour and food will move two decimal points to the left. What this means is that on that date, if you go to the bank to change N50,000, you will get N500. If you earn N200,000, your salary will translate to N2,000 while your house rent of N419,000 will now be N4,190. Your plate of meal at a restaurant, which used to be N2,000 will now be priced at N20 while the N130 price tag for your favourite loaf of bread will now sell at N1.30k.
A consequence of this is that the nation抯 billionaires may be downgraded to millionaires, its millionaires will now occupy the 憈hounsandnaire?spot, while the latter will now become 慼undrednaires.?nbsp; Effectively, Nigerians will be spared the ordeal of bulky sums, which before the advent of bigger denominations have been transported via all manner of means including cartons.
The new CBN policy will usher in a new regime of pricing of goods and services. By ensuring that the Naira becomes a currency of value and a currency to hold, the likely scenario is that people will stop pricing goods and services in US Dollars. Those goods and services that will be affected may include hotel room rates, house rents, airline tickets and a number of others things.
An immediate impact on the forex market is a run on US Dollars, as most people in the hope of getting more value for their money will begin to trade in their US Dollars. So, in the days ahead, the Naira may begin to firm up against the US Dollars. In the new order, if you store value in US Dollars, you will certainly lose value. In the same vein people who price goods and services in US Dollars will continue to get lower quantities of Naira. But may be we should have read CBN Governor, Prof. Chukwuma Soludo抯 lips last year when he said that Naira is the currency to hold. He had made the prophetic(?) saying against the backdrop of the convergence of the parallel and the official markets.
This will no doubt spell the final death knell to parallel market operators otherwise known as black market. It will no longer be profitable for them to trade in forex as the margin will not guarantee any meaningful gains. With time, CBN will gradually withdraw from its interventions in inter-bank market and proper trading in forex will evolve between banks and dealers.
Because the new currency regime will be simple to exchange, simple to denominate, simple to store and above all have value, it will become a reference currency to which other currencies can be benchmarked in the African region. To this end, the dream of making the Naira the currency of the West African sub-region may yet be realised.
There is no doubt that the Naira has for several years been insulated and shielded from all of these things that would have ushered a new dawn. But the realignment of the value of the Naira, the deliberate attempt to ensure its stability and convertibility would in great measure facilitate global integration.
On the take off date of the new policy, the Naira will nearly be at par with the US Dollars. N1.25k will exchange for US$1. This was what the exchange rate was before the advent of the Structural Adjustment Programme. It means that in nominal terms, nothing will change, but with inflationary targeting, the Naira will gain value.
But there may yet be a downside to this new monetary regime, as it concerns budgets for all tiers of government. Assuming the Naira appreciates so much against the US Dollars. The price of the nation抯 crude oil, which is still a major component of its earnings, will become expensive. If the product is too expensive, buyers may be forced to source for it elsewhere. Consequently, there will be less income and less money for the Federal Government, the states and local governments to share. This situation will certainly make nonsense of their budgets. So what is the way out of this scenario: recourse to internally generated revenue (IGR) and taxation. These two elements will not be subject to the volatility of the forex market and the demand and supply of crude oil. Experience has shown that in the new world order, taxation and improved fiscal regime and not recourse to export proceeds is the way forward.
The consequence of this new monetary regime on investments is that it will further attract foreign direct investments (FDI), as Nigeria will become a preferred investment destination following improved value on the Naira.

re-evaluation should be done gradually and not in spate of 1 year.

also, we should be selling half of crude in Naira

Those are the thing that can appreciate naira value

The guy is just raving mad! lets hope this mad scientists experiment works out

If u think he is ravin mad,then how do u expect his thought insane pecuniary dexterous experiment to work??

A-40:

The guy is just raving mad! lets hope this mad scientists experiment works out