I have always been a Soludo fan.

Temporarily assuming that I am a "tribal bigot", it doesn't follow that I must hate every member of an ethnic group, lol

Regarding Ojukwu, someday I will visit his grave and urinate on it

So don't hold your breath waiting for me to be a fan

ekt_bear:

So larger note = people keep all their cash under their bed? Rather than just storing the large amounts of cash more conveniently and with less risk (armed robber, fire, inflation, etc) at the bank?

OK, so let's pretend that is true.

But, won't all that money effectively taken out of the system, INCREASE the value of what is remaining rather than decrease it? So if your assumptions are correct, then there will be a small amount of deflation rather than inflation from this move.

I did not go to school but i can pick holes in your points, the man who hoards money will trigger the inflation since he cannot have the discipline to hoard the cash forever, he will be spending uneccessarily and that is where the inflation will come from, not the banks.

ekt_bear:

So larger note = people keep all their cash under their bed? Rather than just storing the large amounts of cash more conveniently and with less risk (armed robber, fire, inflation, etc) at the bank?

OK, so let's pretend that is true.

But, won't all that money effectively taken out of the system, INCREASE the value of what is remaining rather than decrease it? So if your assumptions are correct, then there will be a small amount of deflation rather than inflation from this move.

Increase the value will mean higher prices, NO?

If the farmer that will normally fund at 1% from his local Microfinance bank is now forced to fund at 2% ---because the bank is now forced to hold more cash in its reserve since people are now keeping their billions in their pillow case without hassles --- For the farmer to break even, he'd be forced to increase the price of his cassava by at least 1%. This gradual but consistent rise in price levels is what some smart economics may term cost push inflation.

ekt_bear: Regarding Ojukwu, someday I will visit his grave and urinate on it

So don't hold your breath waiting for me to be a fan

Ojukwu is a warrior, dead or alive, he will just wake up and give you a sound slap that will crack your skull, and kick that your small prick into your tummy

violent:


So let's think about this ill conceived idea for a second from the perspective of the guy with little idea of economics.

The immediate effect of introduction of higher denominated currencies will be a massive dry up of liquidity from the financial system since people can easily keep their millions at home without hassles. Not only will this mean that capital can no longer flow easily from individuals with surplus (i.e those guys now keeping their billions in a brief case under their beds) to SMEs that require funding through banks, it will also mean that banks will in effect become squeezed to hold off lending and maintain their level of capital ratio.

The effects multiplies easily through the system along with the recent consistent increase in prices due to oil subsidy removal. This results into what some guys call cost pull inflation and and kaboooom, fast forward to 2025.....we are now Zimbabwe!

What percentage of funds from those people who would keep money under their bed make up the total credit in the system and what percentage of credit in the system is accessed by SMEs at the moment?

Sorry Sir, this your analysis is in the most elementary form.

So what difference does it make if he spends the money slowly now, or spends it all at once at some future point in time?

In the former case, I guess the amount of inflation per unit time is small but a constant. In the latter, it happens all at once.

But the same amount of money is being spent in both cases...

Anyway, this money-under-the-bed argument is not at all convincing

violent:

Increase the value will mean higher prices, NO?

No. Rather than X units of naira chasing Y units of goods, if Z units are stored under beds, we have less naira (X-Z) now chasing that Y units of goods. So the currency becomes more valuable, and the goods less expensive in terms of price per unit of good.

ballabriggs:

When it's time you get a proper education, he would introduce 100,000 naira notes for you to pay your fees. I laugh because I see a dolt like you running your mouth over what you know nothing about and in the process exposing your ignorance.

"and you support inflation" you say? How ignorant.

dude if u claim to have the 'almight' knowledge why nt share it rather than quoting ppl without additional input. Maybe its bed time...jst ma humble suggestion

Anyway, I don't know the habits of rich people in Nigeria very much.

But the ones I know in the US use banking pretty heavily...it is (for the most part) only poor people who avoid banks.

Storing your money under your mattress is a helluva lot more risky than storing it at a bank.

ballabriggs:

What percentage of funds from those people who would keep money under their bed make up the total credit in the system and what percentage of credit in the system is accessed by SMEs at the moment?

Sorry Sir, this your analysis is in the most elementary form.

no matter how small the percentage is, right now banks hardly lend, how much more when there is an incentive to hoard since you can easily hide it. Even 10 percent hoarding will wreck havoc in the system.

lagerwhenindoubt: Damn it.. my parole will cost much more these days

Na babes this whole thing favor.

ekt_bear: Anyway, I don't know the habits of rich people in Nigeria very much.

But the ones I know in the US use banking pretty heavily...it is (for the most part) only poor people who avoid banks.

Storing your money under your mattress is a helluva lot more risky than storing it at a bank.

guy, i tell you, many rich men have strong safes in their houses, corrupt officials with police protection keeps many millions under their bed and sleep on it. Do you know that I once had a friend that the most dreaded punishment his father gives him is to keep him in the warehouse counting cash from sales proceeds, most times this cash are not picked up by banks for weeks.

Confused CBN & confused FG of Naija?

van bonattel:

Ojukwu is a warrior, dead or alive, he will just wake up and give you a sound slap that will crack your skull, and kick that your small prick into your tummy

Dead or alive, warrior or not, there is nothing he can do to avoid being pissed on. Moreover, said prick has kept several of his ethnic sisters quite satisfied...it is a probably a mistake to underestimate its power

ballabriggs:

What percentage of funds from those people who would keep money under their bed make up the total credit in the system and what percentage of credit in the system is accessed by SMEs at the moment?

Sorry Sir, this your analysis is in the most elementary form.

It may be hard to tell. But it isn't entirely unreasonable. The Total credit in the system is an accumulated sum and if more people decide to hold on to cash then by logic, this will be expected to propagate through the system. Why should i find a reason to keep 50k in the bank when i can simple hold on to 10 notes?...My 50k and those of my friend will have to be replaced one way or the other by my bank if they are to maintain their capital ratio....that takes liquidity out of the system.

Confused CBN & confused FG of Naija? Imagine 5K note.. Chei..

ekt_bear: Regarding Ojukwu, someday I will visit his grave and urinate on it

So don't hold your breath waiting for me to be a fan

f.uck you!! A.sshole!!! Am sure thats a 1inch prick u hv there. Nansense!!

N1k note dey, yes?

So introduction of N5k note only cuts down the amount of space I need to store my cash by a factor of 5.

Is that going to make a huge difference in the habits and behaviors of these people?

centje: f.uck you!! Ass.hole!!!

Fvck you too, sh1tstain

Pillars of this great nation, what has happend to our low currency i:e #1,5k etc.Y hv u people decieded to creat more suffering to the poor masess,c let every nigerian reason very well b4 actn.

ekt_bear:

Dead or alive, warrior or not, there is nothing he can do to avoid being pissed on. Moreover, said prick has kept several of his ethnic sisters quite satisfied...it is a probably a mistake to underestimate its power

you must be a child, to be boasting of laying girls of a particular tribe, I have lost count of the number of babes I have laid, white babes, blue, black and yellow, slim ones, albino, orobo, fulani, housa, yoruba, edo, ibo, ijaw, twins, village virgin, ashewo, student, hawker, even the ones with red color bear bear for their v-junction, and you think you have seen anything go to bed child

van bonattel:

no matter how small the percentage is, right now banks hardly lend, how much more when there is an incentive to hoard since you can easily hide it. Even 10 percent hoarding will wreck havoc in the system.

Mr man please stop disgracing yourself with this you groundnut and garri analysis. Go to bed and stop wasting your time.

None of you point to any macroeconomic indicator, no assessment of the current position of the economy but you just jump ignorantly with a garri and groundnut "it will cause inflation" argument. What do you even know is inflation?

In your attempt to deride the man because "he is an aboki who knows nothing", you show how ignorant you are.

ekt_bear: Anyway, I don't know the habits of rich people in Nigeria very much.

But the ones I know in the US use banking pretty heavily...it is (for the most part) only poor people who avoid banks.

Storing your money under your mattress is a helluva lot more risky than storing it at a bank.

In the days of my grandfather, you will normally need a bullion van, arms wielding police support and some fetish support from Sango to transport a million bucks to the bank. In a couple of months, Nigerians will be able to keep 200 notes of 5000, equivalent of a million bucks in their homes without hassles. That's a million bucks that a bank will have to make out for in it's capital ratio to risk assets and will involve reducing lending activity.

If i don't spend this money in the next 3 years, it will probably remain in my pillow. In the bank, this money could have been learnt out to some SMEs who will now be forced to fund at a higher rate since banks have less cash.

Wow imagine 5naira 10 naira 20naira as coins imagine a conductor shoutin oshodi oke obalende cms with heavy coins jingling all d way - malin d work stressful hahaha

violent:

It may be hard to tell. But it isn't entirely unreasonable. The Total credit in the system is an accumulated sum and if more people decide to hold on to cash then by logic, this will be expected to propagate through the system. Why should i find a reason to keep 50k in the bank when i can simple hold on to 10 notes?...My 50k and those of my friend will have to be replaced one way or the other by my bank if they are to maintain their capital ratio....that takes liquidity out of the system.

Any analysis of the present position of the monetary system? How then did you come to the conclusion that it would contract credit in the system?

Oga please stop this your garri and groundnut analysis.

ballabriggs:

Mr man please stop disgracing yourself with this you groundnut and garri analysis. Go to bed and stop wasting your time.

None of you point to any macroeconomic indicator, no assessment of the current position of the economy but you just jump ignorantly with a garri and groundnut "it will cause inflation" argument. What do you even know is inflation?

In your attempt to deride the man because "he is an aboki who knows nothing", you show how ignorant you are.

getting worked up already? go ahead, burst an artery and suffer a stroke, it will add or remove nothing from nowhere

ekt_bear:

Fvck you too, sh1tstain

sure dude. Thats the kinda response i expected frm u...simply means u got my message!!

I will be in here tomorrow. Night, ppls

violent:


In the days of my grandfather, you will normally need a bullion van, arms wielding police support and some fetish support from Sango to transport a million bucks to the bank. In a couple of months, Nigerians will be able to keep 200 notes of 5000, equivalent of a million bucks in their homes without hassles. That's a million bucks that a bank will have to make out for in it's capital ratio to risk assets and will involve reducing lending activity.

The value of those two amounts is quite different, no? N1 million in your grandfather's day was $1 million+. Today, it is like $6k.

If i don't spend this money in the next 3 years, it will probably remain in my pillow. In the bank, this money could have been learnt out to some SMEs who will now be forced to fund at a higher rate since banks have less cash.

200 notes of 5k, 1000 notes of 1k. What difference does it make, if someone is anti-bank?

For people who are against storing their money in the bank, there is nothing you can really do I guess.

Oti o! this must be a joke, with all d noise on cashless economy. Where are my friends, all pro GEJ guys on d internet esp Mallamabdul? i hav told u guys its difficult to sell this govt, they jump from one blunder to another. make una go ask abati, oronto and all the internet guys? they don tire. no time to even spend the money oga jona is payin them. Cheii whats is our sin as a country for God to be punishing us with this type of leaders? Inflation is hitting the sky instantly, any coins introduced would fade away in a twinkling of an eye.

God where is your face in all these? Wil you just sit down and be watching us like this? Our ladies (graduates inclusive) have turned to prostitutes bc they cant secure a job, our men are taking to all sorts of vices to survive, our pensioners are dying bc they are being owed..the list is countless. In your hand i commit Nigeria

ballabriggs:

Any analysis of the present position of the monetary system? How then did you come to the conclusion that it would contract credit in the system?

Oga please stop this your garri and groundnut analysis.

did you drink garri and groundnut today?