₦airaland Forum

post=118218648:
People will always talk,
No matter what you do in life.


Anything to move our darling nation forward is all we want at [/b].

Meanwhile,
[b]As seen somewhere on cyberspace.
Just imagine such wickedness!!

God bless our darling Daddy President Muhammadu Buhari and his amiable Vice president Prof Yemi Osinbajo for all they are doing to make this once battered and looted nation work again.
God bless Nigeria.

Peterobi90:
It actually would reduce inflation and strengthen the naira..

If you have over N2tr unaccounted for in the economy, redesign would force that out either into the commerce/economy or liquidating the banks.

The scramble for the new designed naira for restock both for ongoing campaigns and re-oiling the nation would see a less demand for dollar which reduces the rates.. so in essence, there is likely to be an imminent crash on the greenback sometimes between December and January..

It was a good move...

nlfpmod:
By FDC Limited.



https://twitter.com/FDC_ltd/status/1589683965463449600?t=feZ4tT3fVU57MtfJUBOyCg&s=08[/quote]Buhari and Emefiele are nonsense ingredients... Howbeit, you redesign naira at this critical time. Bullshit!

post=118218667:
It is very good you are asking your self this question.
And we hope you will have an answer to your question after reading from sensible members of the forum.
Have a nice day.
Shalom!



****************************************

More wickedness below.

May all politicians that raped our nation and took her 100 years back with blind looting and stealing never end well in life.
Including their supporters.
So shall it be as long as God lives....

miqos02:
so you see dollar going back to 500 naira in exchange for 1 dollar ?

Baffupdrizz:
From what research method did FDC arrive at this conclusion?

Hoarding of currency may not be the only reason for inflation but it is DEFINITELY ONE of the numerous interrelated but multifaceted reasons. Addressing one of the reasons is better than not addressing any at all. Thank you.

Peterobi90:
Thats a tall order, but there would definitely be an impressive crash

Peterobi90:
It actually would reduce inflation and strengthen the naira..

If you have over N2tr unaccounted for in the economy, redesign would force that out either into the commerce/economy or making the banks liquid..

The scramble for the new designed naira for restock both for ongoing campaigns and re-oiling the nation would see a less demand for dollar which reduces the rates.. so in essence, there is likely to be an imminent crash on the greenback sometimes between December and January..

It was a good move...

FreeStuffsNG:
Economics is a social science, do not let anyone decieve you by sounding authoritatively on what and what will not take place. In this case, just ignore FDC.The social media handler is playing to the gallery entertaining idle gists.

Money supply can reduce inflation if the money supply is reduced.That is why central banks raise rates.

If you use monetary policies other than interest rates to reduce money supply, you will reduce inflation ceteris paribus.

CBN will use the redesign to reduce physical cash supply and push more people to the cashless which it can track. Most of the illicit funds do not like to be tracked because they will be intercepted and confiscated.
check my signature for free stuffs!

Peterobi90:
It actually would reduce inflation and strengthen the naira..

If you have over N2tr unaccounted for in the economy, redesign would force that out either into the commerce/economy or making the banks liquid..

The scramble for the new designed naira for restock both for ongoing campaigns and re-oiling the nation would see a less demand for dollar which reduces the rates.. so in essence, there is likely to be an imminent crash on the greenback sometimes between December and January..

It was a good move...

lexy2014:
How is hoarding of naira notes "DEFINITELY ONE of the numerous interrelated but multifaceted reasons"?

Rilwayne001:
@SEUN Osewa, I see you have been going all about twitter trying really hard to play down the possible positive effect that we can eventually gained from the naira redesign.

But here is another PoV as I await your reply:

1). So many Nigerians have stacked Naira notes in their closets and are cut up with this policy of the CBN. There is a rush by ignorant Nigerians to convert their Naira to Dollars. Naira is at all time low against dollar and it's going to go even lower. For example a man converts #10m to 12,500 USD at the current exchange rate. It's easier to keep it with himself than to deposit in a Domiciliary account with a DMB because of the stringent policies around FX cash deposits. He hopes that by December when the new Nigeria is floated, he'd have his FX converted back to Naira from the Aboki guys he bought his USD from.

2)The Aboki man who sold FX to his customers at exorbitant rate excitedly goes to the DMB to deposit the millions of Naira he got the the FX swap he did. He knows he is getting richer in geometric proportion by this new policy by the CBN. He awaits the printing of the new Naira notes so as to reconvert the Naira he has in his account today USD and continue making more money.

3). All customers who deposited their Naira notes, those depositing and those who would be depositing are eagerly waiting for December 15. The DMBs are also waiting for the said date. Meanwhile there is a cashless policy waiting to hit all Nigerians by January 2023. On December 15th, customers would rush to the DMBs for new notes so as to withdraw as much as they can before January when the cashless policy would be effected 100%. The DMBS would rush to the central bank branches to withdraw new notes. The branches would go to the H/O for new notes. H/O would release just a little to branches based on cash management policies. CBN Branches would release in trinkets to DMB branches and tell them to go manage their customers. DMBs would revert back to their customers based on the low available new cash notes. There would be slight panicking as customers who deposited old naira notes cannot retrieve same notes from the DMBs anymore because of unavailability. Remember, digital money and paper money is still money and so customers would be advised to use electronic channels to make payments.

4) The Aboki guy who kept millions of Naira is also a victim of the shortage of new notes and so he cannot buy back FX from his customers who were hoping to return the ones the got earlier ones the new notes are in place. Aboki begins to panick as well. Those who have FX and need naira notes begin to sell their FX to people who have naira whether old or new just to cash in before January. In doing so, USD begins to crash as rapidly as it rose. Much of the FX becomes deposited in DMBs as carrying the raw cash isn't useful anymore. The CBN is happy because there is more FX in the banking system to give for Forms A, M and Q. Naira begins to gain rapidly against the dollar.

5). In January, cashless policy takes effect. So even if the CBN makes available more new notes to DMBs, customers cannot withdraw above the stipulated across-the-counter limit to avoid heavy charges. Customers are forced to use electronic payments, FX policy and transfer and withdrawal is so stiff that swapping FX and Naira is no more a gain. USD parallel and black market prices crash all the way down to CBN rate. Inflation based on importation of goods and services is checked as Naira becomes strong against dollar. People who have physical dollars would lose. There would be limited access to naira notes as electronic transfers become prevalent. Enaira purchases also become more as Nigerians look for most seamless methods to do payments. By June, whoever takes over power would have a soft landing as this policy by the CBN has controlled a whole lot of inflation, corruption and economic degradation.

6). If you have Naira notes stashed with you, return them back to the bank through your account. Don't try to play smart trying to beat the system, you may become the architect of your own loss. Your 12,500 USD may fall from #10,000,000 to #5,000,000 in June, 2023. Meanwhile if you put same #10,000,000 in Treasury Bills at the current 14.5%, you should be gaining about #725,000 at the same period.

Let's try and look at the bright side of things, Nigeria shall be great by God's grace

Baffupdrizz:
Except for the purpose of savings for later investment. It is wrong for anybody to store up money without using it when there are so many investment-worthy projects that one could deploy same money into in order to solve society's problems. It is a bit manageable if one saves his/her money in the bank in such a way that the money can be used by the bank and accrued interest will accumulate to make the money yield some returns. But storing it up without using it is morally reprehensible and even wicked to say the least. In the long run, if everyone stashed up all their monies, the long term implication on our national liquidity would be hyper inflation. Thank you.

lexy2014:
How does banks becoming more liquid reduce inflation and strengthen the naira?

How "scramble" for new naira notes reduce demand for dollar? Will the new naira notes do the work of dollars?

cromz:
This is a very bias and one sided analysis. FDC has ignored the fact that redesigning our naira notes will increase the strength of the naira as there will be lesser volume of naira in circulation.

Rilwayne001:
@SEUN Osewa, I see you have been going all about twitter trying really hard to play down the possible positive effect that we can eventually gained from the naira redesign.

But here is another PoV as I await your reply:

1). So many Nigerians have stacked Naira notes in their closets and are cut up with this policy of the CBN. There is a rush by ignorant Nigerians to convert their Naira to Dollars. Naira is at all time low against dollar and it's going to go even lower. For example a man converts #10m to 12,500 USD at the current exchange rate. It's easier to keep it with himself than to deposit in a Domiciliary account with a DMB because of the stringent policies around FX cash deposits. He hopes that by December when the new Nigeria is floated, he'd have his FX converted back to Naira from the Aboki guys he bought his USD from.

2)The Aboki man who sold FX to his customers at exorbitant rate excitedly goes to the DMB to deposit the millions of Naira he got the the FX swap he did. He knows he is getting richer in geometric proportion by this new policy by the CBN. He awaits the printing of the new Naira notes so as to reconvert the Naira he has in his account today USD and continue making more money.

3). All customers who deposited their Naira notes, those depositing and those who would be depositing are eagerly waiting for December 15. The DMBs are also waiting for the said date. Meanwhile there is a cashless policy waiting to hit all Nigerians by January 2023. On December 15th, customers would rush to the DMBs for new notes so as to withdraw as much as they can before January when the cashless policy would be effected 100%. The DMBS would rush to the central bank branches to withdraw new notes. The branches would go to the H/O for new notes. H/O would release just a little to branches based on cash management policies. CBN Branches would release in trinkets to DMB branches and tell them to go manage their customers. DMBs would revert back to their customers based on the low available new cash notes. There would be slight panicking as customers who deposited old naira notes cannot retrieve same notes from the DMBs anymore because of unavailability. Remember, digital money and paper money is still money and so customers would be advised to use electronic channels to make payments.

4) The Aboki guy who kept millions of Naira is also a victim of the shortage of new notes and so he cannot buy back FX from his customers who were hoping to return the ones the got earlier ones the new notes are in place. Aboki begins to panick as well. Those who have FX and need naira notes begin to sell their FX to people who have naira whether old or new just to cash in before January. In doing so, USD begins to crash as rapidly as it rose. Much of the FX becomes deposited in DMBs as carrying the raw cash isn't useful anymore. The CBN is happy because there is more FX in the banking system to give for Forms A, M and Q. Naira begins to gain rapidly against the dollar.

5). In January, cashless policy takes effect. So even if the CBN makes available more new notes to DMBs, customers cannot withdraw above the stipulated across-the-counter limit to avoid heavy charges. Customers are forced to use electronic payments, FX policy and transfer and withdrawal is so stiff that swapping FX and Naira is no more a gain. USD parallel and black market prices crash all the way down to CBN rate. Inflation based on importation of goods and services is checked as Naira becomes strong against dollar. People who have physical dollars would lose. There would be limited access to naira notes as electronic transfers become prevalent. Enaira purchases also become more as Nigerians look for most seamless methods to do payments. By June, whoever takes over power would have a soft landing as this policy by the CBN has controlled a whole lot of inflation, corruption and economic degradation.

6). If you have Naira notes stashed with you, return them back to the bank through your account. Don't try to play smart trying to beat the system, you may become the architect of your own loss. Your 12,500 USD may fall from #10,000,000 to #5,000,000 in June, 2023. Meanwhile if you put same #10,000,000 in Treasury Bills at the current 14.5%, you should be gaining about #725,000 at the same period.

Let's try and look at the bright side of things, Nigeria shall be great by God's grace

lexy2014:
I didn't ask you if it is right or wrong. I asked How is hoarding of naira notes "DEFINITELY ONE of the numerous interrelated but multifaceted reasons" responsible for inflation and the poor value of the naira?

Peterobi90:
It actually would reduce inflation and strengthen the naira..

If you have over N2tr unaccounted for in the economy, redesign would force that out either into the commerce/economy or making the banks liquid..

The scramble for the new designed naira for restock both for ongoing campaigns and re-oiling the nation would see a less demand for dollar which reduces the rates.. so in essence, there is likely to be an imminent crash on the greenback sometimes between December and January..

It was a good move...

Peterobi90:
Thats a tall order, but there would definitely be an impressive crash

Rilwayne001:
@SEUN Osewa, I see you have been going all about twitter trying really hard to play down the possible positive effect that we can eventually gained from the naira redesign.

But here is another PoV as I await your reply:

1). So many Nigerians have stacked Naira notes in their closets and are cut up with this policy of the CBN. There is a rush by ignorant Nigerians to convert their Naira to Dollars. Naira is at all time low against dollar and it's going to go even lower. For example a man converts #10m to 12,500 USD at the current exchange rate. It's easier to keep it with himself than to deposit in a Domiciliary account with a DMB because of the stringent policies around FX cash deposits. He hopes that by December when the new Nigeria is floated, he'd have his FX converted back to Naira from the Aboki guys he bought his USD from.

2)The Aboki man who sold FX to his customers at exorbitant rate excitedly goes to the DMB to deposit the millions of Naira he got the the FX swap he did. He knows he is getting richer in geometric proportion by this new policy by the CBN. He awaits the printing of the new Naira notes so as to reconvert the Naira he has in his account today USD and continue making more money.

3). All customers who deposited their Naira notes, those depositing and those who would be depositing are eagerly waiting for December 15. The DMBs are also waiting for the said date. Meanwhile there is a cashless policy waiting to hit all Nigerians by January 2023. On December 15th, customers would rush to the DMBs for new notes so as to withdraw as much as they can before January when the cashless policy would be effected 100%. The DMBS would rush to the central bank branches to withdraw new notes. The branches would go to the H/O for new notes. H/O would release just a little to branches based on cash management policies. CBN Branches would release in trinkets to DMB branches and tell them to go manage their customers. DMBs would revert back to their customers based on the low available new cash notes. There would be slight panicking as customers who deposited old naira notes cannot retrieve same notes from the DMBs anymore because of unavailability. Remember, digital money and paper money is still money and so customers would be advised to use electronic channels to make payments.

4) The Aboki guy who kept millions of Naira is also a victim of the shortage of new notes and so he cannot buy back FX from his customers who were hoping to return the ones the got earlier ones the new notes are in place. Aboki begins to panick as well. Those who have FX and need naira notes begin to sell their FX to people who have naira whether old or new just to cash in before January. In doing so, USD begins to crash as rapidly as it rose. Much of the FX becomes deposited in DMBs as carrying the raw cash isn't useful anymore. The CBN is happy because there is more FX in the banking system to give for Forms A, M and Q. Naira begins to gain rapidly against the dollar.

5). In January, cashless policy takes effect. So even if the CBN makes available more new notes to DMBs, customers cannot withdraw above the stipulated across-the-counter limit to avoid heavy charges. Customers are forced to use electronic payments, FX policy and transfer and withdrawal is so stiff that swapping FX and Naira is no more a gain. USD parallel and black market prices crash all the way down to CBN rate. Inflation based on importation of goods and services is checked as Naira becomes strong against dollar. People who have physical dollars would lose. There would be limited access to naira notes as electronic transfers become prevalent. Enaira purchases also become more as Nigerians look for most seamless methods to do payments. By June, whoever takes over power would have a soft landing as this policy by the CBN has controlled a whole lot of inflation, corruption and economic degradation.

6). If you have Naira notes stashed with you, return them back to the bank through your account. Don't try to play smart trying to beat the system, you may become the architect of your own loss. Your 12,500 USD may fall from #10,000,000 to #5,000,000 in June, 2023. Meanwhile if you put same #10,000,000 in Treasury Bills at the current 14.5%, you should be gaining about #725,000 at the same period.

Let's try and look at the bright side of things, Nigeria shall be great by God's grace