₦airaland Forum

[quote author=Missy_B]Ola, where have you been hiding? [/quote]Missy B. How're you doing? Too many guys want you on NL, so I gave up the chase. They all know you're beautiful.



I've still got the rap song I composed for you though, beauty.


Please, hide this post from OAM4J oo

Chicken tastes better. That's the difference, baby!

In reality, the UK is the most ethnically integrated and tolerant country.

Very okay for black people.

The law is there to protect you

whizboi: From d little economics I know, lower denominations will bring abt a higher marginal propensity to save MPS and allow for more money in banks for investments and less money in circulation (cos wen u withdraw higher denomination, u just ve more money to spend), wich curbs inflation..

Nice one, man. In serious economies, policy makers hate it when people keep their money in wallets. They want everything in banks. The don't want parallel economy and higher denominations encourage this.

Let me say this again: most Brits have NEVER seen the 50 pounds note! And, this is just about #12, 500 in an economy that is far better that Nigeria's. Yet, most Brits don't know what this note looks like.

^^ The poor lad doesn't know that Seun supports this because he doesn't trust our banking system, and, as a result, keeps his money in his bunker. So, the higher the denomination, the better for omo Osewa.

You can't withdraw more than 300, 000/day as an individual. So, I would like to know if 300 wads of Naira seem too heavy to carry.

You intend to go cashless and, at the same time, you want to introduce a higher denomination. Isn't that counter-intuitive?!

Sanusi has become gaffe-prone!

They are having a rethink in India about their ridiculously high denominations. What good has it done in their economy? It has affected them adversely!

Iyalode

AjanleKoko: I bet I have travelled way more than you.
The UK may be tolerant by law, and well integrated. But how many other countries even come close?

It is just better in the UK. They are tolerant but it doesn't mean they like us. The are tolerant but at the same time, very very distant!

Katsumoto: Prof,

What caused the change of attitude to SLS?

Bros, Sanusi don fall my hands oo

Good job. This is democracy. It has to be halted to keep in check this self-perpetuating cycle of arbitrariness as championed by Sanusi..

Coins and notes would run side by side until coins gain acceptability. I mean, among Nigerians? Will Nigerians ever accept that when there are Naira notes? He knows this is the only part that can lead to inflation hence this tasteless attempt to coat it nicely, albeit a job badly done.

Aren't there rehabs in Nigeria? Help! Sanusi is on control cruise!









Time out, I will be back!

PapaBrowne: I ma not a Sanusi fan. But I totally agree with him on this. Higher denominations don't cause inflation except there is no other currency close by that could serve as interchangeability. All this talk about politicians and corruption and inflation. . . abeg una no sabi economics!!

The area that would have caused inflation is the lower denominations been changed to coins. But Sanusi addressed it succintly. The coins would run side by side the notes until we begin to value coins more. Thats brilliant!!

Side by side? And, you believe this ridiculously spun crap?
Would you accept #20 coin when there are notes?

coogar: how does this policy defeat the cashless policy? the withdrawal limit is still pegged at N500k! with the 5000 note,[b] i only need 100 notes to walk around with my maximum limi[/b]t.
that can easily fit into my pocket rather than needing bags that would attract hoodlums!

Why would you want to walk around with such a large amount? Isn't that odikwa risky in Nigeria?

BizBooks: while reading the contents of this interview, I thought it was recorded by the poster. But at
the end, he stated that he couldn't recall some of Sanusi's quotes. This will suggest that it
was not recorded and that the poster was writing from his recollection of the conversation.

[b]Is it possible to quote somebody at length in such a detailed manner from memory? Before
responding to this thread, [/b]one should first ascertain the authenticity of the statements
attributed to Sanusi.

It is possible.
The Offa chap is quite clever.

coogar: good job, jarus!
i can work with this piece rather than the sensationalised drivel i get to read on "saharareporters". i agree with the introduction of 5000 naira note, i wouldn't need a ghana-must-go bag to transport half a million naira anymore.

Thus defeating the whole 'cashless' idea

AjanleKoko: Nah. Don't work for MTN.
But I can take some of the credit, in retrospect

ok sir

^^Been reliably informed you're the brains behind MTN's win-a-plane promo

Alamutatalo: @jarus
I must commend U for trying to clarify issues before making comments but can't believe such policy by CBN will be based on such fallacious reasons,
1.I'm a banker and the introduction of N5K has no effect on ATM mgt as claimed by SLS,The amt loaded in an ATM machine is regulated by banks to reduce cost of insurance and not the size of the machine.
2.N5K notes will not reduce cost of money mgt by CBN cos it's a new currency with it's attendant cost wc include,design,printing,circulation etc.
3.Pls wen next u call him,remind him dat d polymer notes introduced by his regime failed to achieve it's aim as a lot of N20 and N50 notes is being destroyed daily due to the easy fading nature of polymer notes wen exposed to our climate for long.
4.Economic realities are peculiar,wy wld you rely on a study to formulate policies?Nigerians don't like carrying coins,we associate coins with beggers,fetish beliefs and children no jupiter can change that,d coins introduced earlier have all disappeared and no bank in Nigeria has coins in it's vault.
5.CBN is not mandated to fight corruption,but wy increase the burden of the police and EFCC?
6.European countries and the US highly regulate the flow of high denomination as counterfeiters find it profitable to duplicate.A criminal can afford to spend 2K to produce a high quality counterfeit of 5K
I can go on and on,but I suggest government shld invites stakeholders to a forum to discuss the new policy b4 implementation.
@Seun,I'm quite surprised but I take it ur view is based on certain info wc might not be too accurate.

Good job, man.

big deal 007: "Also note that, we are not cancelling the notes.
We are introducing the coins side by side. So you will still have N20 notes, for example, with N20 coins, until it gains acceptability."
I guess that should settle your worries about the coins issue

If you actually believed that, then you need a lesson on what they call 'spin.' I would advise you to contact Alastair Campbell. He's pretty good!

big deal 007: "Also note that, we are not cancelling the notes.
We are introducing the coins side by side. So you will still have N20 notes, for example, with N20 coins, until it gains acceptability."
I guess that should settle your worries about the coins issue

If you actually believed that, then you need a lesson on what they call 'spin.' I would advise you to contact Alastair Campbell. He's pretty good!

While they are busying dissecting the associated costs, have they thought about the fact that nothing less than 5% of this currency will be fake eventually? It is profitable for counterfeiters to print this note. An issue of this nature is still dangling over the head of Soludo. And, the Australian government had to investigate Securrency, the Australian company that minted our notes.
Read this:

http://traceblog.org/2012/06/09/former-securency-executive-set-to-plead-guilty-in-foreign-bribery-case/


And this: https://www.nairaland.com/426652/cbn-securency-bribe-scandal-australia-sacks


2.8 percent of currency in Britain are fake. We can only imagine what the percentage is in Nigeria.
With #5, 000 notes, we can say with certain reasonableness that the percentage will be significantly higher.

50 pounds, the highest denomination in Britain was introduced in 1725. They haven't bothered to introduce a higher one because they are aware of its negative impacts.

The highest denomination in America was first introduced in 1929. Well, up till now, they haven't introduced another one.

In fact, the US retired higher denominations, that is $500, $1, 000, $5, 000 and $10, 000 notes in 1969.


Who do they think they are fooling?

Effing wankers.

You are trying to go cashless and you, so thoughtlessly, come up with a new, higher denomination. How justifiable is that?


Crazy decision, that!

Lame! This is simply lame!
First, he's right on the inflation part of the argument. I, for one, didn't mention inflation in any of my posts on #5, 000 threads.

But, he shouldn't try to hoodwink us with this lame analysis. The main reason why they want this note is COST. It is expensive to print notes. And, this government has become thrifty in matters that concern the populace. But, the same government is not frugal when it concerns their allowances/estacodes/security votes. Sanusi is now a complete disappointment and his actions and inaction are a disappointing letdown.


Good job by Jarus, though.

AjanleKoko: Come to think of it . . . no point to this thread really.
Cos everybody hates the black man anyways

erico2k2: wrong assumption my friend

The assumption is 100% correct!

So, it is even worse than I thought.

They have 556, 000 counterfeit notes in the Britain. 95% of these notes are the nation's 2nd highest denomination.


There are 30-40 million fake 1 pound coins in circulation (2.8% of the total)

One in every 5, 000 notes is fake.

And, this is Britain!

So, fake currency is a big issue

Read more: http://www.bbc.co.uk/news/business-12578952

And, in Britain, thousands of 1 pound coins are fake. It is a big issue in serious economies. They can't even contemplate higher denominations

.

AjanleKoko: This is kind of a really stoopid thread.
And all the arguments make no sense either. There's nothing hypothetically wrong with a N5,000 notes. Price of goods won't increase automatically because people have to carry coins. Don't they spend coins in Europe and the USA?

Besides, there is the cashless policy. So what does it matter what notes are out there? Better get yourselves ATM cards or Mobile Money accounts, and stop carrying money around in Ghana-must-go bags.

Naijas

First, the issue of counterfeit currency is not something you can wave aside just like that. Even in well structured economies, fake currency is a big issue. I have been to many clubs and pubs in Britain. It may interest you to know that most don't accept 50 pounds notes. Being the highest denomination in the country, the note is preferred by counterfeiters. They are even very wary of 20 pounds notes. And, this is a highly regulated economy.
Also, why do we really need this high denomination currency? Most inter-bank transactions are done through what a layman would describe as IOU. Even central bank settlements. When economists talk about money in circulation, I consider it imperative to inform people on this thread that a good percentage of this isn't currency - as in its physical sense. They aren't notes. So, what are we talking about.




What you haven't done, however, is proffer benefits/advantages of a high denomination currency

Kobojunkie: Yes! Naira 5000 Notes are the solution to Nigeria's money problems as they will invigorate the economy with their newness and help push forward the cashless-economics we have tried so hard to implement.

Care to elaborate, ma?

mdsocks: And where did you get the bullshit stats from?

You don't just argue for the fact that you just feel like.

Even the so called developed countries are trying to devalue their currencies so as to spur economic growth and export. I ain't for or against the new

denominations but stop pelting this idea that an higher denomination automatically means a collapsing economy.

Maybe you need to look at money management and other indices.

After all, money is just a means of exchange and not a determinant of how strong r weak an economy is in the real sense.

Each country has its peculiar problems and comparisons won't augur well when arguing your points.

Why not tell us what is bullshit about the stats?

High denomination currency and its negative impact on the nation's economy:

It weakens formal economy and encourages parallel economy.
It encourages tax evasion.
It enables corruption.
It encourages non-traceable transactions. E.g. funding of terror plots - a social security risk.
It has adverse effects on banking system.
It slows GDP growth.
It affects capital formation.
It leads to poor credit and high import costs.
It makes trading uncompetitive and capital expensive.
It increases fake currency in the nation's economy. It costs more than #10 to print a fake #10 note. It costs more than #20 to print a fake #20 note. However, it is very profitable print fake #5000 notes.

In Britain, the highest denomination is 50 pounds sterling and many Britons, if not most, have never seen it. And, this is an economy with 40, 000 dollars income per head.





Country -- Per Capita Income [A] --- HighestDenomination[B] --- A÷B


USA ----- --- $48,000 ------- $100 ------- 480


UK ---------- £ 40,000 ---------- £ 50 --- 800


Japan -------------- ¥ 40,00,000 --------- ¥10,000 ----400


NIGERIA ---------- #439, 680 ----------- #5,000 --------88




The main benefit of high denomination currency is that it makes transactions involving large amounts easy.

more about high denomination currency:
http://www.arthakranti.org/analysis/economic-reality/effects-of-taxation-system-and-high-denomination-currency