Redesigning Nigeria's Currency: The Pain and Truth
Recently, the federal republic of Nigeria's government has decided to redesign our denomination and there have been rants about it in many spheres.
Economically speaking, there may be some vital reasons why the government decided to take that decision. Even though it is not a good idea that nations should change the design of their currency from time to time, Nigeria has come at such a time when the nation has fallen apart.
The Central Bank Governor has announced that the national currency denomination will be changed and advised that individuals should begin to deposit their cash in the bank.
That singular announcement did not go down with the political class who have hidden a large portion of money in private vaults, some underground and in such places that cannot be disclosed by mere writing.
The Political Brouhaha
The sitting government most probably is digging out those who have depleted the economy of the nation using their dubious anti-people and government engagement
A sitting minister had faulted the move because the parastatals of government were not carried along. As posited in some quarters, the CBN has such powers of autonomy to carry out its activities without necessarily informing other agencies of government.
### Further Depletion of The Naira
Matters are getting worse as the volume of naira circulating is beginning to reduce as everyone is working hard to make deposits in banks. This has resulted in a further reduction in the value of the naira in exchange with the American dollar.
Although, one of the ministers pointed this out, and before long, the results are here for everyone to see.
The procedure is scheduled to last for three months during which the redesigning will be completed and all old notes in circulation would have to be taken back. The President did not mention, however, the benefit that would come from this action, he only mentioned that the economic team was able to convince him that the move would bring better opportunities for the nation.
Part of the duties of the Central Bank is the issuance and designing or redesigning, production, and circulation of our national currency.
Over the years, Nigeria's currency which used to be stronger than the American dollar has been redesigned from small to large, which some people think is the major cause for the drop in value of the Naira.
All coin denominations seem now like they do not exist.
From a reliable source, it is in the public domain that there will be #5,000 in one note. For me, that seems like a further plan to enjoin corruption and embezzlement of large quantities or volumes of money by public office holders.
However, the apex bank proclaimed that one of the reasons for the redesigning of the currency is to wage a war against counterfeiting the national currency. In recent times, there has been a new level of fake naira notes everywhere. This is to the extent that one may not be able to differentiate it from the original note except when looked at under a mercury light.
Naira's credibility and integrity have suffered a huge punch in the past years. This fight is hence to redeem one of the world's currencies from failing. What was the purpose of it? The international standard for redesigning currency is between five to eight years, it is however overdue in the case of the naira.
First Published Here
