₦airaland Forum

I read a lot of comment about the impact of naire redesign, I shake my head. Too many people in this country has little knowledge of economic and economy. This is the reason scammers are having field day.

The redesign of Naira has no major impact on the economy. Yes! It has little impact in the sense that much naira will be in the system for business transactions but it will add not value to our economy or money.

The reason naira is gaining against dollar at the moment is the news from the United States of America that they will phase out dollars minted before 2011.

According to the news, much of the US dollars are outside the shores of America and they are not in circulation. That means, they have been kept in out of circulation as savings.

Implications is that US prints money with their money. Other countries buys them with their worthless money and keep the dollar. US keep spending money printing more money.

So, the US wants to go digital. With 80% of their money in digital form, they will be less printing of dollars.

The US is facing out all dollars minted before 2011. So anyone who has saved any dollar minted before 2011 must bring it out now or loose his money.

This is the reason there is too much dollar in circulation. And because no one wants to have the dollar that will be phased out stocked in his hands. There are less buyers of such dollar.

Supply is greater than demand

Price must drop.

By December, if government of Nigeria has sense dollar can drop to 200 naira.