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Nairaland Forum / Nairaland / General / Politics / Naira To Be Re-Denominated (27560 Views)
Poll: Do you support the redomination of the naira? Will we gain a lot from it? Is it worth the enormous cost?Yes: it's a step forward.: 70% (187 votes)No: what are they smoking?: 29% (78 votes) This poll has ended |
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Naira To Be Re-Denominated by azorjiu(m): 12:45pm On Aug 14, 2007 |
The naira will be re-denominated by august next year, according to Soluda. N1.26 will be equivalent to $1. Will this in any way improve the value of the naira? http://africa.reuters.com/country/NG/news/usnL14535618.html Nigeria aims for naira convertibility in 2009 |
Re: Naira To Be Re-Denominated by ubamu2029: 12:48pm On Aug 14, 2007 |
good news |
Re: Naira To Be Re-Denominated by azorjiu(m): 1:27pm On Aug 14, 2007 |
how is it a good measure? is it because ghana is doing same |
Re: Naira To Be Re-Denominated by desgiezd(m): 3:39pm On Aug 14, 2007 |
Then we'll be hearing less of millions, billions and trillions. Thats good. |
Re: Naira To Be Re-Denominated by smile4kenn(m): 3:46pm On Aug 14, 2007 |
I am seeing a new Nigeria in 2010 |
Re: Naira To Be Re-Denominated by Mariory(m): 5:29pm On Aug 14, 2007 |
Bad news for exporters though. |
Re: Naira To Be Re-Denominated by champredd(m): 6:36pm On Aug 14, 2007 |
If it's really true, I think it's part of the regional currency integration plan. With Ghana and Nigeria consolidating thier currencies, others will announce thiers soon. |
Re: Naira To Be Re-Denominated by naijaway(m): 9:29pm On Aug 14, 2007 |
very good news cuz if u make 20,000naira a month u are not far off from people in other parts of the world. It would encourage people to go back to Africa and also work . |
Re: Naira To Be Re-Denominated by azorjiu(m): 9:46pm On Aug 14, 2007 |
naijaway: No. It means that if you were earning N30,000 before, would be earning N30,000/100 = N3000 in the new regime. That's what I think - no reference material consulted though. |
Re: Naira To Be Re-Denominated by lovemajek(f): 9:48pm On Aug 14, 2007 |
standard of living will improved to better living. |
Re: Naira To Be Re-Denominated by Nobody: 10:00pm On Aug 14, 2007 |
good news generally, since we are net-importers of goods and services. The only exporter of note is the government (crude oil) so now they have to exhibit a lot more fiscal discipline to to ensure we have enough foreign reserves to shore-up the naira. soludo is reposing quite an incredible amount of faith in the private sector here. hope the Dangotes, Elumelus and the Jimoh Ibrahims do not let us down. |
Re: Naira To Be Re-Denominated by azorjiu(m): 10:12pm On Aug 14, 2007 |
Govt realigns the naira, phases out currencies next year http://www.guardiannewsngr.com/breaking_news/article01/140807 |
Re: Naira To Be Re-Denominated by MT: 10:51pm On Aug 14, 2007 |
@azoriju Point of correction. If you are earning 30,000 naira it will amoount to 30,000/100 = 300 naira come 1st august, 2008. Check the calculation please @naijaway How many pple do u think can earn that big sum, N20,000/month come 1st August,2008. Note that N 20,000 /month then is tantamount to someone earing 2 million naira /month now |
Re: Naira To Be Re-Denominated by Seun(m): 10:51pm On Aug 14, 2007 |
Ok, let me get this straight. Last year, new notes were introduced to replace old ones. The notes were supposed to be polymer notes, but because the polymer notes were too expensive, we ended up with the same kind of notes we had before - just a different design - and we were forced to switch to the new, uglier paper notes. Now, those same billions of notes that were almost too expensive to produce are going to be thrown away in a re-denomination exercise that has no effect on the value of the naira. Companies will have to spend trillions of naira updating their accounting systems and previous accounting statements to be compatible with this currency. And for what reason? In order to convert former millionaires into ten-thousand-aires, change the price of pure water from 5 naira to 5 kobo, and change the salary of an average graduate from 40,000 naira to 400 naira. Ahem. All the people who supported this idiotic government decision should be rounded up and shipped to Ghana. My worst fears about Professor Charles Soludo have been confirmed. He is not qualified to be called an economist. |
Re: Naira To Be Re-Denominated by azorjiu(m): 10:56pm On Aug 14, 2007 |
Faulty calculator. I meant N300. Thanks for the correction. I like the concept of 50 kobo coming back in note. |
Re: Naira To Be Re-Denominated by Nobody: 11:02pm On Aug 14, 2007 |
Soludo is a qualified economist- he has his string of degrees and professorship to prove it. Maybe he has been drinking a strange brand of coffee these days (apologies to Jimoh Ibrahim) |
Re: Naira To Be Re-Denominated by fuzek: 11:03pm On Aug 14, 2007 |
wow!!!!!!!!!!!!!! azorjiu: Seun: |
Re: Naira To Be Re-Denominated by fuzek: 11:05pm On Aug 14, 2007 |
ziddy: OMG, ROFLMAO |
Re: Naira To Be Re-Denominated by Seun(m): 11:17pm On Aug 14, 2007 |
Soludo is a qualified economist- he has his string of degrees and professorship to prove it. That may be so, but I learnt that he was initially opposed to the plan, but for some reason decided to change his mind. Perhaps he was forced to accept the plan? Perhaps he's bored and needs a new pointless project? |
Re: Naira To Be Re-Denominated by dachamp(m): 11:19pm On Aug 14, 2007 |
very good news because if u make 20,000naira a month u are not far off from people in other parts of the world. It would encourage people to go back to Africa and also work Hope it works lol cos you can never predict our govt. policies, how abt the standard of living? |
Re: Naira To Be Re-Denominated by debosky(m): 11:54pm On Aug 14, 2007 |
It is a pointless exercise in my opinion, is the benefit of reduced currency volume in circulation balanced by the tremendous cost and logistics involved in a complete denomination change? This is just ridiculous - those in Nigeria can remember the mad rush to change currency over in the last few months of the exercise, and that was for just a small fraction of the notes ( i could care less if they were polymer, plywood or another material), so imagine if each and every piece of currency out there has to be withdrawn and replaced! either some people are waiting to make huge loads of money off this thing through contracts to print money and such, or the CBN has finally lost it. Japan's currency is virtually at the level ours is right now, yet there is no whacky plan to re-denominate the currency, its only in adverse cases of currency devaluation as obtained in Russia in the early nineties and currently in Zimbabwe that would merit such a drastic step as is being contemplated by the government. It will create confusion, economic disruption and pure chaos. We find it difficult to distribute ~50million identity cards to a fraction of the population yet we expect to carry out this kind of action? Soludo is biting off more than he can chew this time. There is absolutely no economic benefit except the reduction of notes in circulation and a 'neat' looking exchange rate with foreign currencies. We will likely use our hard earned money to contract to foreign nations to produce the currency for us again, further worsening capital flight and reducing the value of the currency. the LOGISTICS alone of this project are mind boggling, not to talk of the economic cost, to a pure 'economist' the idea of this re-denomination may sound good, but I don't think it is wise at all. the other aspects of the announced policy of removing CBN from weekly forex trading and making the currency fully convertible (instead of converting to dollars before any other currency) is good, but I hope Yar'adua will step in and quash this unnecessary step. |
Re: Naira To Be Re-Denominated by son(m): 12:07am On Aug 15, 2007 |
Sounds good on paper but in reality, dodgy move. Pardon my analogy but its the best i thought of for now. In 2003 i got 10 rand in Jo'Burg in exchange for a Pound invariably £100 got me R1000. In that same year £100 got me N23,000 in Lagos. Honestly what i did with 23k in Naija was more than what R1000 made me do in Jo'Burg. Lets not be deceived about the zeros reducing if the intrinsic value of the naira does not go up. It may well pan out that boiz in Naija will earn nearly if not same figures as guys abroad, but trust me guys for obodo yonder no go show face for town like before, Virgin nigeria and BA go shock say boiz go bone all their offers to travel 6hrs to Lagos, lol Infact boiz for yankee go lost pata pata, e go do us like the days of our grand uncles wey no dey go house. PONDER ON THE ANALOGIES MADE AND You'D SEE DAT EVEN THOUGH ITS ON A LIGHT NOTE THE REALITY AINT NO JOKE, SOME SECTORS WILL SUFFER e.g MONEY TRANSFER , i just hope Soludo and his cohort know what they are doing. |
Re: Naira To Be Re-Denominated by debosky(m): 12:10am On Aug 15, 2007 |
son: Succinctly put my man! that is what the CBN should be worrying about, letting the $45 billion or thereabouts in reserves cause appreciation of the naira, not some harebrained dropping of zeros. Maybe to save money they'll start a public awareness campaign for people to burn all denominations lower than 100 naira and black out two zeros on all the higher currencies, along with a juicy contract for black markers for someone in government |
Re: Naira To Be Re-Denominated by MT: 12:36am On Aug 15, 2007 |
I'm always amazed at the position of some people shooting down ideas before it starts. Some people believe that nothing good can come out of a policy formulated by a Nigerian. I guess we need to correct this mentality. Soludo knows what he's contending against, the international communities, and I believe he's not a rookie in this area he is navigating. The guy is brilliant , and you should know that he must have raised some of the "fears" being raised on this forum with his team. I remember when he was talking about capitalization of the banks, a lot of people on this forum shot down the idea and gave it no chance. If that area is not 100% perfect now, at least we could still score him more than 80% now. There's a surge in the belief we have in our banks these days. While I will not say we shouldnt raise our "fears", we should try as much as possible to take a more optimistic stand and strongly hope it's going to bring out the desired result. This guy and his teams are not fools as some think, and I strongly consider this present action as a step in the right direction!. He must have his logistics to make it work and you should also remember that he's putting his integrity and career on the line here for the betterment of Nigeria. He deserves to be encouraged! |
Re: Naira To Be Re-Denominated by miky(m): 12:38am On Aug 15, 2007 |
it will put more value on local manufactured goods, cut down on corruption, less inflation. we will start usung 1 naira and 3o thousand to buy cars.its just a healthy economy |
Re: Naira To Be Re-Denominated by debosky(m): 12:42am On Aug 15, 2007 |
a step in the right direction? please share with us the reasons for this optimism, because apart from smaller currency volume in circulation, I see NO benefits whatsoever of this policy. mily what is healthy about what you just said? If a car costs 1,300 and i have only 200 naira is it different from when it costs 1,300,000 and i have only 200,000? and by the way, people like their local manufactured goods to be cheaper to compete with foreign goods, not more expensive, although even with that I see NO way this policy will assist local manufacturing at all, except we get to print new and incinerate old currency in house. |
Re: Naira To Be Re-Denominated by BlackMamba(m): 12:50am On Aug 15, 2007 |
Can someone please explain to me like a layman how re-denomination may improve the economy and standard of living in Naija? |
Re: Naira To Be Re-Denominated by MT: 12:56am On Aug 15, 2007 |
@seun I have read so many of your piece telling people to state the source of their information. Will you tread the path of honour and let's know where you got this information from as well.? He who makes the law is not expected to violate it. Rumours destroy. Dont get me wrong, I'm just trying to call your attention to this fact |
Re: Naira To Be Re-Denominated by nazzyon(m): 12:59am On Aug 15, 2007 |
Wait a minute. If Nigeria is planning to do this, what are the plans the government set aside in holding down every bits of the currency. If you sell your goods @ N1000 you cannot just wake up the next day that you are selling it @ the rate of N100. The people need to ask the FG this question. Even if it is possible, what kind of business is Nigeria going to be running to bring it down to that rate. If Nigeria is planning to implement it, then it should be Naira to Pounds and not to dollars since Pounds is almost up to twice a dollar. Strategist, Economist please call their attention to this. |
Re: Naira To Be Re-Denominated by nazzyon(m): 1:05am On Aug 15, 2007 |
Don't worry You who gets receive millions as salary before don't be supprised when it bounces back to hundreds of thousands. Well, I pray they consider the value of the currency, and what state the economy should be by then. Honestly, I am scared. Wait a minute if you own N15,000 in your account before after implementation what would you have. |
Re: Naira To Be Re-Denominated by mddude(m): 1:13am On Aug 15, 2007 |
son: It doesn't really change much in theory except perspection. For example if you are earning N1M in naija before, your salary will now be N10,000 naira =$8000. The difference before is that you have to take like that N1m to change to that $8000 but now all you do is taking your N10,000. This is based on the fact that things are going to cost same. Money transfer is not going to suffer because if someone sends you $100 from US and you get N125 in Nigeria, theoretically you will still buy the same thing you bought yesterday with the old N12,500 with the new N125, all things being equal. My problem with this is when inflation increase, will people increase their wares by 10 kobo which is the old 10 naira or in 50kobo which is the old 50 naira or even go ahead to increase it by 1 naira which is the old 100 naira? |
Re: Naira To Be Re-Denominated by Seun(m): 1:52am On Aug 15, 2007 |
Will you tread the path of honour and let's know where you got this information from as well.?NTA News. They were interviewing a Nigerian 'economist' who claimed to be the major supporter of the policy. |
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