Good morning

I came across a post on Facebook

https://m.facebook.com/story.php?story_fbid=10159131958657432&id=502177431

I then compared the cedi to the naira and its a big shame

Naira is 411 to a dollar , cedi is 4 to a dollar.

I remember when i was little sometime around 2004 we used to criticise the Ghanaian cedi. Cuz u would hear statements like 1 biscuit is worth 100000 cedis now how did they fix their currency and how can Nigeria fix theirs. Cuz its a big shame and the idiots in power are least concerned about it. They're more interested in twitter.

So what idea or clue can be used to reset the naira cuz them 2 no be mate.

You guys will just take everything you see online hook, line and sinker.. You better study economics

babyfaceafrica:
You guys will just take everything you see online hook, line and sinker.. You better study economics

Oga, i asked for ur idea on how to reset. Not ur negative response

gonkin:

I remember when i was little sometime around 2004 we used to criticise the Ghanaian cedi. Cuz u would hear statements like 1 biscuit is worth 100000 cedis now how did they fix their currency and how can Nigeria fix theirs.

By chopping off a few zeros with an ax.

After the February 1966 military coup, the new leaders wanted to remove the face of Nkrumah from the banknotes. The "new cedi" (1967–2007) was worth 1.2 cedis, which made it equal to half of a pound sterling (or ten shillings sterling) at its introduction. Decades of high inflation devalued the new cedi, so that in 2007 the largest of the "new cedi" banknotes, the 20,000 note, had a value of about US$2. The new cedi was gradually phased out in 2007 in favor of the "Ghana cedi" at an exchange rate of 1:10,000. By removing four digits, the Ghana cedi became the highest-denominated currency unit issued in Africa. It has since fallen to about 20% of its original purchasing power when the currency was redenominated.
https://en.wikipedia.org/wiki/Ghanaian_cedi#%3A%7E%3Atext%3DThe_Ghanaian_cedi_%28%2F%CB%88s%2Cone_hundred_pesewas_%28Gp%29.?wprov=sfla1

budaatum:


By chopping off a few zeros with an ax.

Thanks

So if we tried a 1:400 it would bring back the old denominations. From your view would it be favourable to the economy?

gonkin:


Oga, i asked for ur idea on how to reset. Not ur negative response

Redenomination.

Naira is 411 to a dollar , cedi is 4 to a dollar.

If you add back the 4 zeros they took away, 1USD= GHc40,000.

They rebased their currency by removing four zeros, so if you had 100,000 cedis in your bank account, it becomes 10 cedis.
Hope you get

What can 4 cedi buy? And what can 400 Naira buy?

That's the true measure of a currencies strength.

Don't be fooled by the 4 cedi narrative. Add four zeros (0000) in front of any cedi to get the actual value of it.

Redenomination is actually Nonsense what we should be more concerned is the actual earning and buying power we can push to the masses...if you redenominate it doesn't mean the 10k you have in your account can suddenly buy a car

Lifestone:
They rebased their currency by removing four zeros, so if you had 100,000 cedis in your bank account, it becomes 10 cedis.
Hope you get

Thanks
I do. What I want to know now is that: if the same was used on the NGN would it be better? What are the pros and cons

FarahAideed:
Redenomination is actually Nonsense what we should be more concerned is the actual earning and buying power we can push to the masses...if you redenominate it doesn't mean the 10k you have in your account can suddenly buy a car

Lol that's true. Now Nigeria has a N1000 and few years ago we received rumours on plans to begin printing N5000. What if the currency gets worse before 2025 cuz it certainly ain't getting better

coolcharm:
What can 4 cedi buy? And what can 400 Naira buy?

That's the true measure of a currencies strength.

Don't be fooled by the 4 cedi narrative. Add four zeros (0000) in front of any cedi to get the actual value of it.

That's true although all their currencies in circulation still have value. These days people reject N5 notes

gonkin:

Thanks

So if we tried a 1:400 it would bring back the old denominations. From your view would it be favourable to the economy?

It won't make a difference. Or do you think they will still pay you ₦30k after chopping off 2 zeros?

In your dreams, perhaps!

If you got paid ₦30k and they chopped off 2 zeros, your new pay will be ₦300, and a ₦500 loaf of bread will now be ₦5. And ₦500 to a $ will be ₦5 to a dollar too.

gonkin:


That's true although all their currencies in circulation still have value. These days people reject N5 notes

The old currency will be obsolete!

Go read about Zimbabwe's currency.

gonkin:

Thanks
I do. What I want to know now is that: if the same was used on the NGN would it be better? What are the pros and cons

In terms of the intrinsic value of the Naira, it will still be the same. In fact, Cedi has lost over 20% of its intrinsic value since the redenomination.

Naira is weak quite alright but it has not gotten so bad to the point where we need redenomination. Cedi was almost worthless when it was redenominated in 2007. Zimbabwe did the same repeatedly. The only advantage is that it reduces the cost of managing cash, printing money, and keeping records. Imagine having to carry N40,000 to buy a loaf of bread! That’s how bad Cedis was before 2007.

budaatum:


It won't make a difference. Or do you think they will still pay you ₦30k after chopping off 2 zeros?

In your dreams, perhaps!

If you got paid ₦30k and they chopped off 2 zeros, your new pay will be ₦300, and a ₦500 loaf of bread will now be ₦5. And ₦500 to a $ will be ₦5 to a dollar too.

You're the only one making sense here o


Say more nah.

seunmsg:


In terms of the intrinsic value of the Naira, it will still be the same. In fact, Cedi has lost over 20% of its intrinsic value since the redenomination.

Naira is weak quite alright but it has not gotten so bad to the point where we need redenomination. Cedi was almost worthless when it was redenominated in 2007. Zimbabwe did the same repeatedly. The only advantage is that it reduces the cost of managing cash, printing money, and keeping records. Imagine having to carry N40,000 to buy a loaf of bread! That’s how bad Cedis was before 2007.

How much does it cost to print notes cuz Nigeria switched to polymer notes for 5,10,20 and 50.
How can the naira be strengthened and why is it losing value. What and where is the source of the problem

gonkin:
Good morning

I came across a post on Facebook

https://m.facebook.com/story.php?story_fbid=10159131958657432&id=502177431

I then compared the cedi to the naira and its a big shame

Naira is 411 to a dollar , cedi is 4 to a dollar.

I remember when i was little sometime around 2004 we used to criticise the Ghanaian cedi. Cuz u would hear statements like 1 biscuit is worth 100000 cedis now how did they fix their currency and how can Nigeria fix theirs. Cuz its a big shame and the idiots in power are least concerned about it. They're more interested in twitter.

So what idea or clue can be used to reset the naira cuz them 2 no be mate.

Has ghana redenominate their currency?

gonkin:


How much does it cost to print notes cuz Nigeria switched to polymer notes for 5,10,20 and 50.
How can the naira be strengthened and why is it losing value. What and where is the source of the problem

The problem is a lack of productivity of we the citizens. We add no value to our currency so our currency has no value. If we were more productive, like say we actually made something, our currency will increase in value.

Its funny really. We Nigerians want to be paid more but fail to realise we actually get paid what the market determines we are worth. That's why, apart from politicians who award themselves more than they are worth, only the highly skilled get paid lots more while the low skilled earn ₦30k, if that, like the unemployed who get paid ₦0.

seunmsg:


Redenomination.



If you add back the 4 zeros they took away, 1USD= GHc40,000.

Haba?

gonkin:


How much does it cost to print notes cuz Nigeria switched to polymer notes for 5,10,20 and 50.

The value of a currency has nothing to do with its printing cost. Mass production of a ₦1000 note is likely no more than that of a ₦50 note.

https://www.quora.com/How-much-does-it-cost-to-produce-a-British-five-pound-note/answer/Frank-Martin-15?

gonkin:

Thanks
I do. What I want to know now is that: if the same was used on the NGN would it be better? What are the pros and cons

I don't see how it will help until we are able to consume less of foreign products, produce more locally and export more produce to generate foreign exchange.

gonkin:


How much does it cost to print notes cuz Nigeria switched to polymer notes for 5,10,20 and 50.
How can the naira be strengthened and why is it losing value. What and where is the source of the problem

In simple terms, we don’t earn enough foreign exchange to keep the Naira strong. We don’t produce anything that other countries require other than crude oil. The little forex we earn from crude oil, we spend almost everything to import refined petroleum products and sell in Naira at subsidized rates.

Political elites and even the citizens are not helping matters. Our elites steal money and horde them in foreign currencies. Citizens also have a very high taste for anything foreign. So, we keep using our little forex to meet all these demands.

There is, however, a green light at the end of the tunnel with Dangote refinery. Once it comes on board fully next year, we should be able to significantly reduce our importation bills. With other government policies in the Agric sector, mining etc, the Naira May start getting stronger by end of next year other things being equal. I’m just being optimistic.

budaatum:


The problem is a lack of productivity of we the citizens. We add no value to our currency so our currency has no value. If we were more productive, like say we actually made something, our currency will increase in value.

Its funny really. We Nigerians want to be paid more but fail to realise we actually get paid what the market determines we are worth. That's why, apart from politicians who award themselves more than they are worth, only the highly skilled get paid lots more while the low skilled earn ₦30k, if that, like the unemployed who get paid ₦0.

Tell them bro.
We only consume in the country we don't produce.
Na so so importation we dey do, look at all those ankara chinese, if the government decides to force the Chinese to come and buy and resuscitate our grounded textile factories, by banning the importation of those ankara factories, you will hear hue and cry as if heaven wan fall.
Yet they cry unemployment, things that we as a people should have rather try to produce, we prefare to import. We subject the little we produce, to unhealthy price competition by dumppers.
Give some artisans jobs they won't do it, they will eat your money and keep telling you stories.
The few who dare to produce will overprice their products and complain of poor sales.
Imagine a guy who went into animal husbandry, saying one ram is #300,000 because the rams are specially breed for Salah, I told him he will loose sales to cow sellers, the same mistake he made last year and blame Buhari, he's about to make it this year, these are rams that he fed with farm waste o, me I don already put our people matter for one side, I no get time for nonsense.
When our people are tired, they will use their heads.

seunmsg:


In simple terms, we don’t earn enough foreign exchange to keep the Naira strong. We don’t produce anything that other countries require other than crude oil. The little forex we earn from crude oil, we spend almost everything to import refined petroleum products and sell in Naira at subsidized rates.

Political elites and even the citizens are not helping matters. Our elites steal money and horde them in foreign currencies. Citizens also gave a very high taste for anything foreign. So, we keep using our little forex to meet all these demands.

There is, however, a green light at the end of the tunnel with Dangote refinery. Once it comes on board fully next year, we should be able to significantly reduce our importation bills. With other government policies in the Agric sector, mining etc, the Naira May start getting stronger by end of next year other things being equal. I’m just being optimistic.

So if we refined our own fuel the currency value would improve? Cuz i take it that strengthening the naira would be easy but why is it losing value.

Question? Would dangote refinery when fully functional help give our currency good value?

coolcharm:
What can 4 cedi buy? And what can 400 Naira buy?

That's the true measure of a currencies strength.

Don't be fooled by the 4 cedi narrative. Add four zeros (0000) in front of any cedi to get the actual value of it.

I think it should be what can 4 cedi buy and what can 4 naira buy


How can you be comparing 4 cedi to 400 naira

Compare 400 cedi to 400 naira and see weather shame no go kee you

Why don't we imagine what the upcoming SOUTH NIGERIA currency will look like against the North's naira and the Ghanaian cedi?

babyfaceafrica:
Question? Would dangote refinery when fully functional help give our currency good value?

The best and honesty answer is NO. Dangote is just a business man. But the refinery will boost production and add to the reputation of the country.
The poor value of Nigerian currency is because of corruption


Please check this thread
https://www.nairaland.com/6592021/80000-naira-loan
https://www.nairaland.com/6592021/80000-naira-loan

gonkin:


So if we refined our own fuel the currency value would improve? Cuz i take it that strengthening the naira would be easy but why is it losing value.

babyfaceafrica:
Question? Would dangote refinery when fully functional help give our currency good value?

Ordinarily, it should because we will be saving a huge amount of foreign exchange. But hey, this is Nigeria. Our political elites are very smart and crooked. They may crookedly find a way to squander the savings in such a way that it won’t end up strengthening the Naira. That is why I said I’m just being optimistic.

gonkin:


Oga, i asked for ur idea on how to reset. Not ur negative response

You did not asked hid India, if not you shouldn't have said idiot in power when actually you 're the real idiot due to your illiteracy cum ignoramus.

Very educative discussion. 1 dollar is 5.7 Cedis today. Don’t be fooled by the redenomination of the Cedis. Same goods and services you can buy for 100 Naira in Nigeria, you’re can’t buy same goods with the equivalent of the Naira in Ghana. We need a producing economy to keep the Naira strong.