How Nigeria And Other Developing Countries Can Eliminate USD Hoarding, Lessen Crime And Corruption, Increase Forex Regulation, Transparency And A More Stable Exchange Rate.

Developing countries around the world, Nigeria especially can digitize the USD by creating a digital currency with equal value to the USD. Let's call it digital dollars, this dollars can be sold to commercial banks or to citizens and interested buyers directly by the central banks. This way, all physical USD notes can be kept by the central banks only and physical USD notes can be declared illegal tender inside the country by the central banks.
Anybody, organizations or groups with physical USD notes can exchange them for the digital dollars or to its equivalent in naira or the local currency of the country in question. Developing countries with poor or unreliable infrastructures can opt for physical digital dollar notes, this physical dollar notes will be a local currency printed by the central bank of the country in question with equal value to the USD. The notes will be numbered with serial numbers and dates and also registered digitally, possibly with barcodes.
If in the future, the physical local dollar notes starts getting hoarded, the central bank can announce a submission or exchange of all local dollar notes of this number to this number or this date to that date. A specified amount of time can be given for all holders to return or exchange their local dollar notes, after that the central bank can declare the remaining notes out of its reach as illegal tender. Since usage of USD in a country outside the USA is usually at the embassies, organizations or by influential and exposed individuals. Organizations and individuals can scan the barcode of a local dollar note to check its validity.

(Anybody with better ideas, corrections, contributions or questions should please bring them on.)

Raphael Chidera
Social scientist 06/04/2024
(Civilization inspirations)

Cc: Hardmirror, deepsight, pansophist, seun, thebillyonaire. Every reasonable contributor is welcomed, open thread.

Deepsight, what do you say about this or you don't understand it?
Cc: Gerrald59, lordreed, benodic, mrvitalis.

fredwill1357:
How Nigeria And Other Developing Countries Can Eliminate USD Hoarding, Lessen Crime And Corruption, Increase Forex Regulation, Transparency And A More Stable Exchange Rate.

Developing countries around the world, Nigeria especially can digitize the USD by creating a digital currency with equal value to the USD. Let's call it digital dollars, this dollars can be sold to commercial banks or to citizens and interested buyers directly by the central banks. This way, all physical USD notes can be kept by the central banks only and physical USD notes can be declared illegal tender inside the country by the central banks.
Anybody, organizations or groups with physical USD notes can exchange them for the digital dollars or to its equivalent in naira or the local currency of the country in question. Developing countries with poor or unreliable infrastructures can opt for physical digital dollar notes, this physical dollar notes will be a local currency printed by the central bank of the country in question with equal value to the USD. The notes will be numbered with serial numbers and dates and also registered digitally, possibly with barcodes.
If in the future, the physical local dollar notes starts getting hoarded, the central bank can announce a submission or exchange of all local dollar notes of this number to this number or this date to that date. A specified amount of time can be given for all holders to return or exchange their local dollar notes, after that the central bank can declare the remaining notes out of its reach as illegal tender. Since usage of USD in a country outside the USA is usually at the embassies, organizations or by influential and exposed individuals. Organizations and individuals can scan the barcode of a local dollar note to check its validity.

(Anybody with better ideas, corrections, contributions or questions should please bring them on.)

Raphael Chidera
Social scientist 06/04/2024
(Civilization inspirations)

This is a good idea but it alone cannot stem the tide. If a solution to the trade imbalance is not found then any economy will experience the same upheavals. We really need to slow the flow of capital out.

LordReed:


This is a good idea but it alone cannot stem the tide. If a solution to the trade imbalance is found then any economy will experience the same upheavals. We really need to slow the flow of capital out.

Yeah, it will not reduce the exchange rate of naira to dollar to 500 naira, but the government if sincere and willing to work can actually restrict or reduce illegal capital flight out of the country especially by elected or appointed political office holders. This also means the EFCC no longer need to spend scarce resources chasing BDC operators. Forex will be digitized, transparent and more regulated.
Seems a good number of people I mentioned didn't understand the article or they are tired of political matters.

One of the permanent solutions is for us to be productive and export our goods to earn dollars.

fredwill1357:
Yeah, it will not reduce the exchange rate of naira to dollar to 500 naira, but the government if sincere and willing to work can actually restrict or reduce illegal capital flight out of the country especially by elected or appointed political office holders. This also means the EFCC no longer need to spend scarce resources chasing BDC operators. Forex will be digitized, transparent and more regulated.
Seems a good number of people I mentioned didn't understand the article or they are tired of political matters.

I agree it will but another challenge is infrastructure to support such a system. We have a lot of intertwined problems in this country.

Very good idea might work if implemented but wouldn’t bring down the value of Naira to dollar exchange rate due to the law of demand and supply. Dangote refinery instead of exporting to ease and boost naira will now import thereby adding more pressure on naira. Nigeria is import dependent and exports only crude primarily

LordReed:


I agree it will but another challenge is infrastructure to support such a system. We have a lot of intertwined problems in this country.

I proposed the solution for countries with poor or unreliable infrastructures. Physical local printed dollar notes with equal value to the USD can be produced by the central banks of the country in question with their own designs, logo and authorization.
This can replace USD inside the country, only the central banks will have access to the main USD.
Then again, creating a digital dollar doesn't require much infrastructure that Nigeria and most other countries don't have already, it will just be like the E-naira. With equal value to USD.
Moreover USD isn't the official currency of Nigeria, its legal usage isn't that frequent and usually in some specified establishments. People who use USD in Nigeria and other developing countries that USD is not the official currency are usually exposed and educated to an extent with access to Internet, smart phones and other gadgets.

rinzaugustine:
Very good idea might work if implemented but wouldn’t bring down the value of Nigeria to dollar exchange rate due to the law of demand and supply. Dangote refinery instead of exporting to ease and boost naira will now import thereby adding more pressure on naira. Nigeria is import dependent and exports only crude primarily

It will bring down the exchange rate because the central banks will have more USD in their vaults, that alone is a big advantage. Why does the EFCC bother pressuring BDC operators and banks to release dollars if it doesn't affect the exchange rate.
More dollars in circulation and within the reach of the central banks means a lower and more stable exchange rate.
I am an advocator of devolution of powers in Nigeria because that will make the states more productive and innovative. More exports means more forex, however let's protect the forex we have already, while devising means of getting more.

fredwill1357:
I proposed the solution for countries with poor or unreliable infrastructures. Physical local printed dollar notes with equal value to the USD can be produced by the central banks of the country in question with their own designs, logo and authorization.
This can replace USD inside the country, only the central banks will have access to the main USD.
Then again, creating a digital dollar doesn't require much infrastructure that Nigeria and most other countries don't have already, it will just be like the E-naira. With equal value to USD.
Moreover USD isn't the official currency of Nigeria, its legal usage isn't that frequent and usually in some specified establishments. People who use USD in Nigeria and other developing countries that USD is not the official currency are usually exposed and educated to an extent with access to Internet, smart phones and other gadgets.

Nah, no way the US will agree to that.

fredwill1357:
How Nigeria And Other Developing Countries Can Eliminate USD Hoarding, Lessen Crime And Corruption, Increase Forex Regulation, Transparency And A More Stable Exchange Rate.

Developing countries around the world, Nigeria especially can digitize the USD by creating a digital currency with equal value to the USD. Let's call it digital dollars, this dollars can be sold to commercial banks or to citizens and interested buyers directly by the central banks. This way, all physical USD notes can be kept by the central banks only and physical USD notes can be declared illegal tender inside the country by the central banks.
Anybody, organizations or groups with physical USD notes can exchange them for the digital dollars or to its equivalent in naira or the local currency of the country in question. Developing countries with poor or unreliable infrastructures can opt for physical digital dollar notes, this physical dollar notes will be a local currency printed by the central bank of the country in question with equal value to the USD. The notes will be numbered with serial numbers and dates and also registered digitally, possibly with barcodes.
If in the future, the physical local dollar notes starts getting hoarded, the central bank can announce a submission or exchange of all local dollar notes of this number to this number or this date to that date. A specified amount of time can be given for all holders to return or exchange their local dollar notes, after that the central bank can declare the remaining notes out of its reach as illegal tender. Since usage of USD in a country outside the USA is usually at the embassies, organizations or by influential and exposed individuals. Organizations and individuals can scan the barcode of a local dollar note to check its validity.

(Anybody with better ideas, corrections, contributions or questions should please bring them on.)

Raphael Chidera
Social scientist 06/04/2024
(Civilization inspirations)

Just earn enough simple

fredwill1357:
It will bring down the exchange rate because the central banks will have more USD in their vaults, that alone is a big advantage. Why does the EFCC bother pressuring BDC operators and banks to release dollars if it doesn't affect the exchange rate.
More dollars in circulation and within the reach of the central banks means a lower and more stable exchange rate.
I am an advocator of devolution of powers in Nigeria because that will make the states more productive and innovative. More exports means more forex, however let's protect the forex we have already, while devising means of getting more.

Look at it like this. Where does Nigeria’s dollar come from now? Highest is from crude oil sales, followed by foreign borrowings and diaspora remittances. What is the highest consumer of Nigeria’s forex ? 80% petroleum products importation followed by everything you see daily .. Nigeria imports almost everything even rice and toothpicks. If assuming Nigeria earns 20b dollars and importation is going to consume $15bn you think Nigerian government can beg Chinese or Indians or Americans to accept naira as payment? No …that is what creates scarcity and will make price of dollars go up. Economists call it market forces of demand and supply. Currently CBN pumped in borrowed billions of dollars into the forex market to stabilize the naira but what happens when the money is assimilated by the market? Government will have to pump in another money or naira will slide back to where it was

mrvitalis:

Just earn enough simple

Take care of the pennies and the dollars will take care of themselves. Let's protect the forex we have already, before talking about getting more. You still need forex for investments that will bring more forex.
I still think a lot of people don't really understand how this will work, we are gifted at different fields. So let me rest my case.

fredwill1357:
Take care of the pennies and the dollars will take care of themselves. Let's protect the forex we have already, before talking about getting more. You still need forex for investments that will bring more forex.
I still think a lot of people don't really understand how this will work, we are gifted at different fields. So let me rest my case.

Name a country in human history that has happened to before

mrvitalis:

Name a country in human history that has happened to before

A country that what has happened to?

fredwill1357:
A country that what has happened to?

That manager their forex the way u are proposing