[b]Central Bank Governor, Prof. Chukwuma Soludo.unveil new naira reform


Under the plan, the current N1,000; N500; N200 and N100 notes will revert to N10, N5, N2 and N1, while fresh N20 note will be introduced.

Also, the subsisting N5 note will become 50 kobo, while coins will be reintroduced. These are one kobo, two kobo, five kobo, 10 kobo and 20 kobo.




The advantages of the plan are legion, according to Soludo. These include:


To better anchor inflationary expectations, strengthen public confidence in the Naira;

1).Make for easier conversion to other currencies;

2).Reverse tendency for currency substitution;

3) Eliminate higher denomination notes with lower value;

4).Reduce the cost of production, distribution and processing of currency;

5).Promote the usage of coins and thus a more efficient pricing and payments system; and

6).Lay the foundation for the convertibility of the Naira as well as make it the 'Reference currency' in Africa.


Apart from re-strengthening the naira, Soludo said the new agenda, which is the second phase of the Financial Sector Consolidation, will assist in inflation control. And that effectively at the prevailing exchange rate, US$1.00 will exchange for approximately N1.25 from that date onwards.


TELL YOUR PEOPLE WEY YANKEE AND LONDON AND ALL OVER THE WORLD TO START COMING HOME


YEMI
LEWISHAM ,LONDON

yemi_yemi:

[b]Central Bank Governor, Prof. Chukwuma Soludo.unveil new naira reform


Under the plan, the current N1,000; N500; N200 and N100 notes will revert to N10, N5, N2 and N1, while fresh N20 note will be introduced.

Also, the subsisting N5 note will become 50 kobo, while coins will be reintroduced. These are one kobo, two kobo, five kobo, 10 kobo and 20 kobo.




The advantages of the plan are legion, according to Soludo. These include:


To better anchor inflationary expectations, strengthen public confidence in the Naira;

1).Make for easier conversion to other currencies;

2).Reverse tendency for currency substitution;

3) Eliminate higher denomination notes with lower value;

4).Reduce the cost of production, distribution and processing of currency;

5).Promote the usage of coins and thus a more efficient pricing and payments system; and

6).Lay the foundation for the convertibility of the Naira as well as make it the 'Reference currency' in Africa.


Apart from re-strengthening the naira, Soludo said the new agenda, which is the second phase of the Financial Sector Consolidation, will assist in inflation control. And that effectively at the prevailing exchange rate, US$1.00 will exchange for approximately N1.25 from that date onwards.


TELL YOUR PEOPLE WEY YANKEE AND LONDON AND ALL OVER THE WORLD TO START COMING HOME


YEMI
LEWISHAM ,LONDON

I think you are missing the point the naira is not being revalued or devalued it is being redonominated. If a bag of cement for example sells for N1000 it will now be N10 and if you have a pound it will be worth about N2.50 so if you an item that sells for N250 it now becomes N2.50 and you 1 poound will exchange for N2.50. This redonimination will make the naira attractive to hold and hopefully strengthen the value of the niara relative to other currencies so on the long run it will attractive to hold the naira and consequently imports will suddenly become a lot cheaper and therefore increase the inflow of foreign direct investment (FDI) into the country and hopefully nigeria will become a more attractive to do business which means we have to now develop and revamp our productive/export capacity to make the exercise a worthwhile one

Time to invest in Nigeria i would say

Enough said

Soludo is definitely a gem. The point about effective pricing systems is a good one.
When coins are valuable, whole telephone booth systems, retail systems, transport systems can be built around coins. Plus if it is well managed with good economic reforms, with time the buying power of nigerians will increase significantly.

with this new trend is it advicable to invest ur money or save now.

as in who will gain, investors or depositors?

@ poster

pls is there a newspaper article i could refer to on this and pls who is likely to gain ie should i invest or wait till it has been revalued.

I think peeps are making a mistake this is not a revaluation it is a redenomination to the order of 100 if i may put it that way. A revaluation will occur if for example as it is now the value of the naira to the dollar is N125 or N1.25(by august 2008) a revaluation or devaluation will occur if nigeria were to depreciate the value of the naira by say 20% it means the dollar will exchange to the dollar for N100 or (N1.00 by august 2008)

We are playing with digits by this exercise of redenomination to prepare the naira for convertibility(more on this if you are interested:-)

Hope this is a bit more sensible

Hope this is a bit more sensible

Actually, this policy is 0% sensible. See Naira To Be Re-Denominated