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Nairaland Forum / Nairaland / General / Business / Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation (16439 Views)
Naira Under-valued In Official, Parallel Forex Markets – Bismarck Rewane / Naira Fair Value Should Settle Between ₦640-₦680/$ – Bismarch Rewane / Bismarck Rewane Claims Naira Overvalued By 200%, Begs CBN To Set Currency Free (2) (3) (4)
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Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by GreyLaw(m): 12:26pm On Oct 28, 2022 |
CheapHomes1: I think I should say Nigeria doesn't print all her currencies. 1 Like
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Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by GeneralDae: 12:27pm On Oct 28, 2022 |
I think the CBN is actually trying to make Nigeria a cashless society even the local markets. They just had to make some radical decisions for this. Now more people would be forced to go cashless and market women/men may possibly adopt the E naira. When the CBN can locate market men and women through the E naira, then they can easily disburse cash directly without any middle man when there are things like COVID-19. 2 Likes |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by GreyLaw(m): 12:28pm On Oct 28, 2022 |
baralatie: I saw this somewhere online:
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Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by emmy4real94(m): 12:28pm On Oct 28, 2022 |
ever heard of deflation then? |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by GreyLaw(m): 12:30pm On Oct 28, 2022 |
GeneralDae: Yeah, in the UK almost everything is done via a card. Cash is still used but you know card is easier. Just swipe or do contactless and the transaction is done in few seconds. That way your life and transactions are easily tracked. Hahaha... In my school you canot even buy anything with cash.... everything card! 1 Like |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by baralatie(m): 12:33pm On Oct 28, 2022 |
GeneralDae:This is not a cashless policy nah! This is cash for cash transaction |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by baralatie(m): 12:37pm On Oct 28, 2022 |
Guys remember this is end of October oo And emiefele said January 2023? That is November December January To mole #3 trillion |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by GeneralDae: 12:44pm On Oct 28, 2022 |
baralatie:I said the CBN is trying to make people go cashless as fast as they can. Read my post again and ask for clarification where you are lost 1 Like |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by johnbd: 12:55pm On Oct 28, 2022 |
I talk am buhari is against thiefnibu. God forbid Bat thing. |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by babaijesha: 12:58pm On Oct 28, 2022 |
Dis CBN policy is directed at ... those politicians.. elites...etc that has cash locked up... in their vaults....for election... Everyone go bring out d cash by fire by force... More inflow and new account for the Banks... Btn now and December ... |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by VULCAN(m): 1:35pm On Oct 28, 2022 |
Coming from the man that supports even the most mind numbing policies of APC, we should know that sense will be far from this post. Bismark Rewane one of our most renowned economists says the impact of this policy reducing inflation will be negligible... ...But smartpolician knows better of course SmartPolician: |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by teepain: 1:43pm On Oct 28, 2022 |
Emman08: Honestly, I am not convinced that Naira redesign is what the country needs at the moment. This is even more so, when one considers that this government is in its twilight. So, the question is why the haste to redesign before the change of baton in Government. Let the incoming government decide on what to do after thinking everything through. 1 Like 1 Share |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by Emman08: 2:02pm On Oct 28, 2022 |
teepain: You're right sir. It sounds hasty and not well thought out. The next administration should carryout such a task if it is even necessary |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by IseOluwa777(m): 2:04pm On Oct 28, 2022 |
The real implication here that is already playing out is that the folks hoarding cash know they can not bring it to the bank legitimately.What will they do? They will exchange it for dollars and hold dollars until they can cash it into the new currency. As we speak,dollar is galloping to 780 per dollar. Before all this is over, we may see N1000 per dollar. After that, it is anybody's guess what will happen, but I think it will come down ,but not as much as it went up. You can ride the market up and down for a 40% gain in total by January. |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by Ijeoma660(f): 2:04pm On Oct 28, 2022 |
CBN will not produce enough of the new notes but rather encourage citizens to use their e-naira for bills and payment settlement. I believe this is the grand design to enforce it's use which Nigerians has refused to embrace. 2 Likes |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by InvertedHammer: 2:14pm On Oct 28, 2022 |
/ This is the best way to fight inflation so far. All those textbook approaches (eg increasing interest rates) will not work in Nigeria. / |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by GeneralDae: 2:17pm On Oct 28, 2022 |
teepain:CBN wants Nigerians to adopt E naira or at least key into some form of cashless policy. So they may limit the new cash notes in order to get most people adopting the e naira or going cashless with some fintech app at least. It's a bold move. 1 Like |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by coputa(m): 2:18pm On Oct 28, 2022 |
SmartyPants:On the contrary.;a fall in GDP will result to high inflation as the GDP is the monentary value of goods and services produced in a country.if this is low,i it will lead to mass importation of goods with the scarce resources, thereby reducing the value of the currency. |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by Nobody: 2:29pm On Oct 28, 2022 |
GeneralDae: I wonder why nobody is talking about e - naira that Nigerians have failed to accept because of poor rating by few Nigerians that have tried it. The first reason CBN gave why analysing the need to introduce e - naira is the cost of printing notes and the cost of maintenance. Many people are not even aware of anything like e - naira. I think apart from fall in GDP, the cashless economy drive will be accelerated the more. I just pity GTB, Zenith, Access and First Bank Staff, this is not a good December to work in Banks. I am sure most Banks CEO will suspend any form of leave this December and resignation may not be approved till February. |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by baralatie(m): 2:30pm On Oct 28, 2022 |
IseOluwa777:And guess what As the dollar goes up The possibility for inflation sets in |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by IseOluwa777(m): 2:45pm On Oct 28, 2022 |
baralatie: Oh yes, intense inflation is implied here. Nigerians are in for rougher times! |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by SmartyPants(m): 2:48pm On Oct 28, 2022 |
coputa: That is obviously wrong: - If GDP is low, it means producers haven't made much money. - When this happens it means less money flows into the home. - When this happens it means consumption will automatically drop. Not because there is nothing to buy, but because there is no money to buy it with. The money is tied up somewhere. That is the basic economic cycle. Now in this particular case, we are even talking about short-run GDP shortfall. Are you telling me we are going to start importing onions and pepper simply because market women aren't selling much for a few weeks? This is exactly what will happen: Limited inflation of the most essential commodities like food, with wider deflation on everything else, averaging into deflation across the board. |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by maste: 3:30pm On Oct 28, 2022 |
Honestly I find this analysis rather too simplistic. You cannot view micro and macro economics in insolation. Let is look at the political economy. Nigeria's economy is largely import dependent because of the unimaginative policy makers and greedy politicians who have failed to diversify the economic base all these years. There will be a spike in the demand for foreign currency as a store of value pending the introduction of the new notes for two reasons. 1. Those that want to avoid scrutiny because of the limited timeline who will avoid the banks. 2. Importation will continue so the demand by the importers will still be there. The effect of this will be a sharp spike in the price of foreign currency. Considering the fact that the supply of FX is limited the Naira will crash further causing the price of goods which are largely imported to rise against the Naira.. The first step would have been to diversify our source of FX thus increasing the supply. And capping imports. |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by Brian47(m): 4:52pm On Oct 28, 2022 |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by Brian47(m): 4:55pm On Oct 28, 2022 |
Michelle70: Bro pls can you educate me, I thought we are supposed to buy dollar cos our naria is deprecating |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by Michelle70(m): 5:10pm On Oct 28, 2022 |
Brian47:One reason why dollar appreciates is because it is difficult to find and the demand for it is high. In simple economics, the higher the demand, the higher the price. In few months now, the demand for the new Naira will be high. |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by Michelle70(m): 5:10pm On Oct 28, 2022 |
CheapHomes1:Well, i am talking about circulation |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by CheapHomes1: 5:15pm On Oct 28, 2022 |
Michelle70: These are your exact words: "CBN will produce much naira's but it may not match demand cos there will be naira rush as u have only 45 days to get enough Naira. U will go to the bank and hear that there is no money." Is this about circulation or production? |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by Michelle70(m): 5:17pm On Oct 28, 2022 |
CheapHomes1:Production could match demand but circulation is another thing entirely |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by BreakingNews21: 5:20pm On Oct 28, 2022 |
This is the first I've heard of this guy. Sounds like he is intimately knowledgeable of the naira parallel currency market that buys up all the notes and resells them at an inflated price. I wouldn't be surprised if he has some friends or partners in high places within the CBN. "Bismarck Jemide Rewane Mng Dir/CEO, Financial Derivatives Co Ltd CURRENT POSITION Mng Dir/CEO, Financial Derivatives Co Ltd TENURE AT CURRENT POSITION PRESENT PREVIOUS POSITION Treasurer/General Manager, First Natl Bank https://www.bloomberg.com/profile/person/16334164 |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by CheapHomes1: 5:28pm On Oct 28, 2022 |
Michelle70: That's not what I asked you. These are your exact words: "CBN will produce much naira's but it may not match demand cos there will be naira rush as u have only 45 days to get enough Naira. U will go to the bank and hear that there is no money." Is this about circulation or production? |
Re: Bismarck Rewane: Naira Redesign May Cause GDP Fall But Not Increased Inflation by GreyLaw(m): 7:46pm On Oct 28, 2022 |
Agbegbaorogboye: Inflation and debt and you burn through over 50bn from which savings? And this for a policy which may not work? Oga, all the times Nigeria changed the Naira, how did it help fight inflation. Please mention a case study. Thank you in advance. |
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