Just yesterday, the news media was awash with news about CBNs attempting to redesign the 100, 200, 500 & 1000 naira notes. The premises behind this policy was to enable the apex bank, have a better grasp of the money supply as over N3 trillion is not within the financial framework. The aim of this policy is to make Nigerians exchange their old notes for the new ones, majority of which are unbanked. It is expected that this policy will
1. fight inflation- basic Economics has it that a monetary control measure for inflation is to raise interest rates, taxes. since majority of the funds would be captured by the system, monetary policy becomes very effective.
2. Contrary to the opinion the the CBN governor, Godwin Emiefele, commercial banks will make a lot of profit. But this time it will not be from bank charges, it will be from account opening. over 70% of Nigerians are unbanked, from the village farmer to the uneducated handyman. This policy will sweeping them into the financial system.
3. Increased Employment- we may see more employment in institutions like banks- more DSAs will be employed. Real estate and investment firms- The shady business man or politician may use these institutions to hide their ill gotten wealth.
4. Fight corruption, electoral vote buying, crime- a vast majority of the funds in the black money market are proceeds by fraud, drug peddling, kidnapping, corruption by thieves, bad politicians, fraudsters who have been hoarding the naira over the years to avoid surveillance. considering the fact that elections are just around the corner, it may reduce electoral malpractice by 70% are the corrupt politicians may be unwilling to exchange the old notes for the new one to avoid questioning and subsequently detention. But then my reasoning is that there will be a surge in the demand for foreign currencies e.g USD. BDC activites will increase tremendously. The corrupt elements will quickly convert the old naira notes to USD and then hoard the USD.

SOLUTION

1. The CBN should Implement strong regulatory framework for the BDCs or Abokis as people popularly call them. They should be able to keep track of those who change their naira for USD, their names, address, everything.
2. Mandate banks and BDC's to stop giving out USD and foreign currencies. All payments or remittances must be via transfer or digital platform.

Hmmm

good advice

BDC will be exploited by the Naira hoarders.

CBN should place a regulation on BDCs

Like seriously

Loop hole

paulGrundy:
Just yesterday, the news media was awash with news about CBNs attempting to redesign the 100, 200, 500 & 1000 naira notes. The premises behind this policy was to enable the apex bank, have a better grasp of the money supply as over N3 trillion is not within the financial framework. The aim of this policy is to make Nigerians exchange their old notes for the new ones, majority of which are unbanked. It is expected that this policy will
1. fight inflation- basic Economics has it that a monetary control measure for inflation is to raise interest rates, taxes. since majority of the funds would be captured by the system, monetary policy becomes very effective.
2. Contrary to the opinion the the CBN governor, Godwin Emiefele, commercial banks will make a lot of profit. But this time it will not be from bank charges, it will be from account opening. over 70% of Nigerians are unbanked, from the village farmer to the uneducated handyman. This policy will sweeping them into the financial system.
3. Increased Employment- we may see more employment in institutions like banks- more DSAs will be employed. Real estate and investment firms- The shady business man or politician may use these institutions to hide their ill gotten wealth.
4. Fight corruption, electoral vote buying, crime- a vast majority of the funds in the black money market are proceeds by fraud, drug peddling, kidnapping, corruption by thieves, bad politicians, fraudsters who have been hoarding the naira over the years to avoid surveillance. considering the fact that elections are just around the corner, it may reduce electoral malpractice by 70% are the corrupt politicians may be unwilling to exchange the old notes for the new one to avoid questioning and subsequently detention. But then my reasoning is that there will be a surge in the demand for foreign currencies e.g USD. BDC activites will increase tremendously. The corrupt elements will quickly convert the old naira notes to USD and then hoard the USD.

SOLUTION

1. The CBN should Implement strong regulatory framework for the BDCs or Abokis as people popularly call them. They should be able to keep track of those who change their naira for USD, their names, address, everything.
2. Mandate banks and BDC's to stop giving out USD and foreign currencies. All payments or remittances must be via transfer or digital platform.

E b like una dey reason only one lane.

CBN said naira not dollar is being kept out of the bank.

And you are giving them solution on dollar.

Na wa ooh

Bad energy

Ebubu:
good advice

BDC will be exploited by the Naira hoarders.

CBN should place a regulation on BDCs

This is a very valid concern.

The EFCC should watch BDCs closely at this time - that's if they are sincere about fighting corruption.

It will be implicative for any BDC's or Aboki to act as funnel. As par my calculations, about $3.8billion @ 700/$ will be required to exchange the 2.7trillion that is out of the banking system.

Past govt have done it before

What later happened at the end of the day?

Did it stopped those stealing our public funds to stop?

I am having headache, you buy new cap for me, will that cure the headache?

How much is one dollar to one naira now?

And cbn is printing new notes?

Are these guys doing comedy?

Redesigning the notes is unneccesary.

Looks like Emefiele is trying to do something for people to say "when he was CBN governor, he redesigned the notes".

This does not make sense. The legacy that he should leave is single exchange rate and single digit inflation.

it likely takes some years before the old note can be totally retrieve from the circulation so it has no effect in election

KunGioKehRah:
Past govt have done it before

What later happened at the end of the day?

Did it stopped those stealing our public funds to stop?

I am having headache, you buy new cap for me, will that cure the headache?

How much is one dollar to one naira now?

And cbn is printing new notes?

Are these guys doing comedy?

it is not about cap or headache or the fact that it has been done before. What is different now is that we have technology and banking tools that did not exist before. With the advent of NIN, BVN, SIM registration etc, you can't bamboozle the system just like that unless you have in-house support.

paulGrundy:


SOLUTION

1. The CBN should Implement strong regulatory framework for the BDCs or Abokis as people popularly call them. They should be able to keep track of those who change their naira for USD, their names, address, everything.
2. Mandate banks and BDC's to stop giving out USD and foreign currencies. All payments or remittances must be via transfer or digital platform.

Eagle eyes!

Your recommended solution is SMART.
Thanks!

paulGrundy:
Just yesterday, the news media was awash with news about CBNs attempting to redesign the 100, 200, 500 & 1000 naira notes. The premises behind this policy was to enable the apex bank, have a better grasp of the money supply as over N3 trillion is not within the financial framework. The aim of this policy is to make Nigerians exchange their old notes for the new ones, majority of which are unbanked. It is expected that this policy will
1. fight inflation- basic Economics has it that a monetary control measure for inflation is to raise interest rates, taxes. since majority of the funds would be captured by the system, monetary policy becomes very effective.
2. Contrary to the opinion the the CBN governor, Godwin Emiefele, commercial banks will make a lot of profit. But this time it will not be from bank charges, it will be from account opening. over 70% of Nigerians are unbanked, from the village farmer to the uneducated handyman. This policy will sweeping them into the financial system.
3. Increased Employment- we may see more employment in institutions like banks- more DSAs will be employed. Real estate and investment firms- The shady business man or politician may use these institutions to hide their ill gotten wealth.
4. Fight corruption, electoral vote buying, crime- a vast majority of the funds in the black money market are proceeds by fraud, drug peddling, kidnapping, corruption by thieves, bad politicians, fraudsters who have been hoarding the naira over the years to avoid surveillance. considering the fact that elections are just around the corner, it may reduce electoral malpractice by 70% are the corrupt politicians may be unwilling to exchange the old notes for the new one to avoid questioning and subsequently detention. But then my reasoning is that there will be a surge in the demand for foreign currencies e.g USD. BDC activites will increase tremendously. The corrupt elements will quickly convert the old naira notes to USD and then hoard the USD.

SOLUTION

1. The CBN should Implement strong regulatory framework for the BDCs or Abokis as people popularly call them. They should be able to keep track of those who change their naira for USD, their names, address, everything.
2. Mandate banks and BDC's to stop giving out USD and foreign currencies. All payments or remittances must be via transfer or digital platform.

ALL MALLAMS MUST STOP HAWKING NAIRA ON STREET LIKE GROUNDNUTS.

I wrote this article and guess what !! all my predictions are playing out.

https://www.bloomberg.com/news/articles/2022-11-02/currency-redesign-deadline-sparks-rush-to-buy-dollars-in-nigeria

2. Mandate banks and BDC's to stop giving out USD and foreign currencies. All payments or remittances must be via transfer or digital platform

EFCC should arrest them and their collaborators in the banks for prosecution.