By FDC Limited.

New Naira notes will neither reduce inflation, nor make the currency stronger.

Our 2 cents on the currency redesign process!

All cash is money but not all money is cash!!!

In 6 weeks you will have new Naira notes.

In 10 weeks you will need to be counted in a new census.

In 12 weeks you will be voting for a new president.

But right now you are facing a dollar crunch, buying a bag of rice for N51k and you cannot fly to Dubai on Emirates.

You are probably asking what is the next surprise

As if Nigerians had not had enough economic jolts, they were further startled by the proposed guidelines for redesigning the Naira. There will be new N200, N500 & N1000 notes from December 15 this year.

Most Nigerians who are already embattled are asking one question “what will these new notes do to soothe our frayed nerves??

The answer is that the new notes will do nothing to address the burning issues but will only increase the level of uncertainty in an economy which is slowly facing a crisis of confidence.

The notion that hoarding of currency notes outside the banking system is the primary cause of inflation is absolutely wrong.

This is because cash and currency in circulation (N3.2trn) constitutes less than 7% of the money supply (N48trn) e.g. the N5,000 you have in your wallet is less than 10% of the balance on your bank account.

Whilst M2 average growth rate in the last 5 years has been 12.5%, the increase in cash has been minuscule compared to money supply growth.

The new notes will not reduce inflation nor will they make the Naira stronger in the forex market. It is already trading at N875/$. In supermarkets and department stores, there is already a sign of shortage of some goods, this is happening 6 weeks to Christmas day.

https://twitter.com/FDC_ltd/status/1589683965463449600?t=feZ4tT3fVU57MtfJUBOyCg&s=08

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...

Of cos it won't. They jus had to bring the whole angle of ppl hoarding cash to make it seem meaningful to the masses.. The pressure on the naira isn't from hoarding of cash, it's from the policy summersault of the clueless govt.. You closed your borders in an absurd move only to open it later. U restricted access to forex but yet maintain an official rate which only made the same persons in govt easy millionaires because it simply encouraged arbitrage. The further nail on the coffin of the naira was hammered in with the announcement of the new naira notes which was going to render old notes invalid afta a month. The same ppl in government who are the ones hoarding cash flooded the market willing to purchase forex at any rates thereby driving the price further high

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.

WAHALUR!!

Obviously

Ok

can anything good come out of Buhari and Tinubu?. we already know that it will cause more inflation.

chatinent:
And someone was saying it will expose corrupt politicians?
Are we this dumb?

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....

I disagree

Buhari and APC always scoring own goals! Instead of consulting media and all other organizations for constructive criticism and advice on making good policies that would favour the common man and at the same time help stabilize the naira, APC, Buhari and Tinubu would prefer to boycott the media and keep showing Nigerians shege by enacting anti people policies. Shame shame on APC and Tinubu

Terrible

Due to this Naira redesigning policy. PDP Presidential Candidate and his spoke man has gone on a hunt for dollars. Last week they met with Hush Puppy in USA to see how the billionaire fraudster can finance their presidential campaign by releasing some dollars to the campaign . As the guy is still very rich even though he is in prison and has promised to refund some millions of dollars to the US government.
Hush puppy was promised Kaduna Refinery in exchange for his support. Atiku said if he win he will order the privatising agency to sell the billions $ Kadune Refinery to Hush puppy with as low as $100K

Na wa anyway.

Ok

nlfpmod:
By FDC Limited.



https://twitter.com/FDC_ltd/status/1589683965463449600?t=feZ4tT3fVU57MtfJUBOyCg&s=08

Are you just knowing? This exercise is another scam riddled with corruption and an attempt to distract Nigerians from the incompetence of CBN and buhari

I no understand economics reach that level, make elders come shalaye to a lame man

Ok

It won't because it does not promote productivity. What ever improves productivity will strengthen naira.

Check this out and start producing any of the Chemical Based products even on a small scale.

Naija oh!!! My country's currency is fast becoming like Venezuela's currency. And at a fast rate. Smh.

Reducing inflation or naira strengthening is inconsequential, so long as it aids the corrupt politicians in last minute massive looting

And someone was saying it will expose corrupt politicians? Are we this dumb?

A simple forex savings advice for erry young smart man out there.

Buy and keep in Deriv etc

Naira is not coming down in the next 5 months

Withdraw on the 6th months and thank yourself for abiding to this intel

Stealing polithiefcians will not like this re design of naira notes

It's like telling a child to bathe only for the child to be washing the tommy.

If it won't clamp down on inflation and strengthen the naira, I Wonder why the redesign
The redesign will be funded by taxpayers, instead of trying to fix issues in the economy the CBN deem it wise to make the naira more beautiful..
Anyway Nigeria can hold on to the title of best/new currency

Buhari>

Jagaban >>

@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