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FG Mulls Redenomination Option To Stabilise Naira - Business (6) - Nairaland

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Central Bank Interventions Will Stabilise Naira – Pwc / FG Mulls Unified Naira Exchange Rate Regime / $48b Forex Inflows, $45b Reserves Stabilise Naira (2) (3) (4)

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Re: FG Mulls Redenomination Option To Stabilise Naira by garfield1: 5:46pm On Aug 20, 2023
Penguin2:
And the trial and error continues…

We told them that this dude is senile and brainless but they said he’s first class Accountant. Is this what his body double learnt in Chicago State University?

So what happens if that doesn’t solve the problem? You further redominate?

It will never be well to all those who conspired to foist this disaster on us.

Boy,this is a rumour emanating from some of his team not him.borrpw commonsense
Re: FG Mulls Redenomination Option To Stabilise Naira by CodeTemplar: 5:47pm On Aug 20, 2023
From one error to another. Increase local production by all means instead of trying to regulate prices or printing money to buy costlier goods.

2 Likes

Re: FG Mulls Redenomination Option To Stabilise Naira by Faposky95: 5:47pm On Aug 20, 2023
....they better start explaining Emefiele's sins....oiiohhhhh¡!!!!!!!

1 Like

Re: FG Mulls Redenomination Option To Stabilise Naira by warlordd(m): 5:54pm On Aug 20, 2023
okeysoninv:
Absolutely, there is no way we can survive with out redenomination of naira. Once naira close the maximum threshold of #1000 per a dollar we can remove a zero . Making 100 naira equal to $1. As of 2013 rate.

You made a good point. I also believe this will force those that stashed dollars in their homes to bring them out to avoid being devalued.
Re: FG Mulls Redenomination Option To Stabilise Naira by Ilaje1: 5:55pm On Aug 20, 2023
So many useless, unintelligent, myopic and tribal bigots here. Always here abusing Tinubu etc calling drug user. Most of you guys are Igbo smokers. This platform should be a place to learn from each other. Instead of you to talk about why the policy will work or will not work, they busy talking trash. One idiot even saying they want to copy Soludo brilliant idea. Soludo was wrong then and it's wrong today. Redenomination will cause inflation. Govt doesn't have control over price of things. For example some earning 100,000 Naira a month and a bucket of garri is 4000 Naira. Last say redenomination takes 2 zeros away, his salary becomes 1000 Naira. And a bucket is expected to be 40 Naira redenomination but garri seller might decide to sell for 60. Hence reduction in purchasing power.

My point no guarantees the sellers, taxi cab etc will reduce prices accordingly. In most the prices tend to be higher than what it's supposed to be. Ghana is an example. I always laugh when says Ghana currency is better than naija.


Devaluation is actually not bad thing because it will boost export, which would have created more jobs. Unfortunately Nigeria is an Import based country hence the hardship.
Re: FG Mulls Redenomination Option To Stabilise Naira by linearity: 5:56pm On Aug 20, 2023
okeysoninv:
Absolutely, there is no way we can survive with out redenomination of naira. Once naira close the maximum threshold of #1000 per a dollar we can remove a zero . Making 100 naira equal to $1. As of 2013 rate.

hmmmm, that how the end effect would be with foreign currencies but, that is the sweet part on the surface, but it is not actually how currency Re domination is done….

This how it is done using your above example:

The CBN will create another currency, let’s call it xNaira, they can also create this currency with other Africa countries or the whole of Africa and call it whatever name they like…

Now CBN will say, 1 xNaira = 10 Naira.

Automatically, if you are holding 1000 Naira notes, your bank will collect them and give you 100 xNaira notes.

Exchange rate is not affected technically because 100 xNaira notes will now exchange for $1.

The problem now become, if you are working and assuming you are making 10,000Naira/monthly, the next time you go to collect your pay, you will be paid 1,000 xNaira instead of 100,000 Naira.

This will lead to further devaluation, because some goods and services are not going to be reviewed down at the same percentage rate….eg market women that use to sell one modu of garri for 400 Naira, would be cheated if you give her only 40 xNaira, even after explaining the whole thing for her, she might be only willing to take e.g. 60 to 80 xNaira, etc xNaira from you, which represents almost 100% inflection.

1 Like

Re: FG Mulls Redenomination Option To Stabilise Naira by HBB1(m): 5:58pm On Aug 20, 2023
adecz:




👉Na you take your mouth call coup.

Na you go do the explanation 🗣️

You go esplain tire!

🤣
Re: FG Mulls Redenomination Option To Stabilise Naira by oxiide22(m): 5:58pm On Aug 20, 2023
FreeStuffsNG:
It should not even have been done then as well. It is just academic economics. The policy on ground now when effectively implemented, will stabilise naira. Dollars will not remain dominant for ever.
what are the policies?

1 Like

Re: FG Mulls Redenomination Option To Stabilise Naira by MRMRMR: 6:02pm On Aug 20, 2023
successmatters:
Redenomination ko, mumunification ni grin

They want to copy what Soludo suggested over 15 years ago today, copy and paste trial and error people.

When illiterates that forged certificate after damaging their brains with hard drugs are making policies grin

E go enter all una body for this country one after the other.
Too many deluded wailers. A team wants to present a policy to the great Jagaban for consideration, these political wailers are crying loud. Even Jagaban has not even been presented with the idea yet talkmore of approving it.
By the way wat it wrong if the policy is tried. This a default policy in countries with hyperinflation which Nigeria has been grabbling with for close to three years now, which isn't Jagaban's making but the making of Nigerians who have insatiable taste for foreign goods/services.
Re: FG Mulls Redenomination Option To Stabilise Naira by SpatialKing(m): 6:04pm On Aug 20, 2023
MT:


So, Tinubu is tantamount to the economic team that is saddled with the responsibilities of solving Nigeria's economic woes.

Tinubu has not even been presented with the option.

Are you having a comprehension problem?

Go and explain to hungry Nigerians on the street

This was how you guys kept shielding Buhari for 8yrs
Re: FG Mulls Redenomination Option To Stabilise Naira by jubrilELsudan: 6:07pm On Aug 20, 2023
INDEED THIS PEOPLE ARE EXTREMELY DAFT

IN 2007 ....DOLLAR WAS 120 NAIRA AT BLACK MARKET

BAG OF RICE WAS 4,000 NAIRA

PRICE OF FVCK WAS 200 NAIRA

Re: FG Mulls Redenomination Option To Stabilise Naira by Focusmind: 6:08pm On Aug 20, 2023
HBB1:


Obasanjo was the best ever.
He had everything needed to be a great president-- charisma, intelligence, strength/stubborness, competence...

He must sleep poorly at night seeing what Nigeria has now become.

God bless him sha.

Very apt.
Trust me, if one uninformed and backwards person was the president during obasanjo's time, he wouldn't have signed the presidential power, permitting the issuance of GSM licenses to mtn and Co. He would have regarded GSM as not being good for every body. Obasanjo beats all the presidents after him hands down.
Re: FG Mulls Redenomination Option To Stabilise Naira by diggindeep: 6:11pm On Aug 20, 2023
Confused FG with confused policies.

.
Re: FG Mulls Redenomination Option To Stabilise Naira by Nobody: 6:13pm On Aug 20, 2023
BenedictAbajue:
Is this really possible? So if naira becomes #1000 per a dollar and 1paint of garri is #1000.
After removing a zero from the currency, I will carry #100 note and give the garri seller for one paint and he will collect!. Its really weird.
This would mean that inflation is not really a threat. Since we can easily redenominate our currency when it loses too much of its value.

It's not possible. When you redenominate, you end up with two currencies, the old one and the new one. So the old 1000 naira note will be equal to the new 100 naira note. So to get one paint of garri, you either give the seller the old 1000 naira or the new 100 naira.

3 Likes

Re: FG Mulls Redenomination Option To Stabilise Naira by warlordd(m): 6:14pm On Aug 20, 2023
starstaz:


Really. If Professor Chukuma Soludo is foolish for projecting this idea and I support his foolishness, so be it . It's only a fool that will dream of flying a car to the moon as satellite. Elon musk too is a fool .

You're right my brother. Don't mind that scumbag. Prof Soludo is a first class brain anyday, anytime.

Now , back to a Nonetity like you, with your overwise, kindly project a five words economic model that can turn Nigeria around . Am waiting for your wise reply . Mr Wise.


You're right bro! Don't mind the scumbag. Prof Soludo is a first class anyday, anytime.

1 Like 1 Share

Re: FG Mulls Redenomination Option To Stabilise Naira by Fujiyama: 6:23pm On Aug 20, 2023
Eriokanmi:
I always shake my head each time I see people on nairaland attacking each other's tribes,.instead of coming together and seeking a means of moving Nigeria forward and taking over what belongs to them...the country. They'd keep throwing tantrums until one day when they'd watch a mirror and see grey hair on their heads. That's when they'd realise how short this life is and how much their so called leaders have mortgaged their entire lives. Then, it would have been too late to act.

^^^
There was a radio/TV advertisement by Airtel some years back with a line (or perhaps it was even the ad title) that said a man was expected to have made his first million Naira (or was it five million?) by age 30 or something like that. It was a big deal then because inflation wasn't the monster it has become today.

A very controversial thread hit front page because of that ad - so many young men felt very uncomfortable with the pressure being placed on their shoulders. Thirty wasn't far off and the economy wasn't smiling. Very few would have expected things to get a lot, lot worse. But they have. undecided

I didn't have grey hair then. I won't say if I do now. grin

2 Likes

Re: FG Mulls Redenomination Option To Stabilise Naira by XXCASH: 6:28pm On Aug 20, 2023
dre11:
• Economic team moves to table plan before President –Source

• It’s ill-timed, doesn’t address problem of rising inflation or depreciation of currency –Prof Uwaleke

• Only fresh injection of FX, extra revenues can check Naira’s fall –Idakolo


https://newtelegraphng.com/fg-mulls-redenomination-option-to-stabilise-naira/

Complete Madness. They shouldn't try it
Re: FG Mulls Redenomination Option To Stabilise Naira by Kaa4(m): 6:29pm On Aug 20, 2023
So many postulations for the beleaguered Naira.

The trial and error method will not work if things continue as has always been. Have Nigerian economists considers the problem as that of portfolio choice of rich Nigerians not necessarily to speculate against the Naira but to shift assets against the Naira. Those who are accessing the dollars now do not need it for trading or transaction purpose, but investment and assets issues. So rich people are mopping the dollar where they can find it. Because they see any hope for the currency. That’s is why the problem is stocking up and is not transactions.
I consider the solutions to be long term. No immediate term solution is feasible under the current situations without restrictions in the market. Therefore, the short term being proposed would be
(a) Documentation on why any buyer requesting for dollars, those who are buying for the assets purposes and investment would be spotted and that would allow those who need to for transactions to have a way in the market.
(b) A second issue is those who are assessing the market, who are they? what is their source of the Nigerian currency. Very few people earning low wages are able to access the market presently.
(c) Thirdly I would recommend the increase in the minimum wage to a minimum of 100k to empower the low income to earn and consume and firms can be profitable once again.
(d) Then the public office holders would have to give up a substantial advantage of their income to assure that everyone is on the same page.
This is what will give confidence to the economy otherwise. Redomination will only be beneficial to a section of the financial market and would eventually return worse at the end of the day.
There has to be sincerity and courage to give confidence to the investors and the people.


Increase income but keep the subsdiy in place
NB has anybody asked what happed to the cash borrowed by the Emefiele/Buhari regime. What was the money used for?
Re: FG Mulls Redenomination Option To Stabilise Naira by Fujiyama: 6:30pm On Aug 20, 2023
Focusmind:


Very apt.
Trust me, if one uninformed and backwards person was the president during obasanjo's time, he wouldn't have signed the presidential power, permitting the issuance of GSM licenses to mtn and Co. He would have regarded GSM as not being good for every body. Obasanjo beats all the presidents after him hands down.

^^^
No he doesn't.

The same ills that have bogged down this administration (and the one before it)...and the one also before that...also plagued the Obasanjo administration. Find out about his failed monetization policy in which officials bought their official residences (!!) such that their successors didn't have a place to live! undecided

The facts are there.
Re: FG Mulls Redenomination Option To Stabilise Naira by Bfly: 6:32pm On Aug 20, 2023
Nigeria is still in the kitchen.
The struggle to improve the economic is becoming intense.The problem is the trial and error approach we are using.
As for naira becoming Africa currency of reference is cool to me.
Re: FG Mulls Redenomination Option To Stabilise Naira by grandstar(m): 6:33pm On Aug 20, 2023
This isn't the best time to re-redenominate the currency.

There's a proverb that says "the broom that swept the first wife away is waiting to sweep the new wife away."

It simply means that if the underlying problem is not treated, expect a repeat of the present poor performance.

In Argentina, the country redenominated its currency in 1992 and made it $1- 1 peso. Today, it is $1-350 pesos

On 1st January, 2005 the Turkish Lira was redenominated and make $1-1 Turkish Lira. Today it is $1-27 Turkish Lira.

Ghana in 2007 redenominated the Cedi at $1-1 Cedi. The value now is $1-11 Cedi.

At a time like this when inflationary pressures are high, this is worst time to redenominate.

Rather, the government should tackle the underlying problems fuelling inflation and top of the list which is the currency substitution policy which was mentioned in the to-do-list of CBN policy of 2007 termed the ‘Strategic Agenda for the Naira.’

it would work wonders especially if implemented. It is also imperative that fiscal deficits are kept at the minimum. There's nothing that causes greater damage to a currency than inflation fuelling budget deficits. That is the primary reason the Cedi keeps performing poorly.

"2007 policy

According to information monitored on the CBN website, the ‘Strategic Agenda for the Naira’ announced by the Central Bank of Nigeria on August 14, 2007 generated a healthy national debate.

The CBN had announced a 4-point agenda designed to make the Naira the “Reference Currency in Africa”, as part of the Financial System Strategy 2020 (FSS2020), which included; Currency Re-Denomination, Adoption of Inflation-Targeting Framework for the conduct of monetary policy, sharing part of the Federation Account funds in US Dollars to Deepen the Forex Market and for Liquidity Management, and Current Account liberalization/convertibility and accession to Article VIII of the IMF.

The CBN had said that listed the advantages to include strengthen public confidence in the Naira, make for easier conversion to other major currencies, reverse tendency for currency substitution, eliminate higher denomination notes with lower purchasing power, reduce the cost of production, distribution and processing of currency, promote the usage of coins and thus a more efficient pricing and payments system, promote the availability of cleaner notes, [b]deepen the Forex marke[/b]t, ensure more effective liquidity management and monetary policy, convertibility of the Naira and hence greater confidence in the national economy and lead to greater in-flow of foreign investment, and position the Naira to become the ‘Reference currency’ in Africa."

The highlighted, especially the "reverse tendency for currency substitution" would boost the value of the Naira and stabilize it. Any time there's substitution of the dollar component of monthly allocation paid to the 3 tiers of government, it leads to excess money in circulation. If the money was instead paid in forex, it would strengthen the currency instead

1 Like

Re: FG Mulls Redenomination Option To Stabilise Naira by bigtt76(f): 6:34pm On Aug 20, 2023
These ones are mulling an option that does not make sense. You only redenominate your currency to offer portability if it is a necessity. We are not currently facing this now because aside the fact that we have a robust (side-eye) electronic transfer system in the country transactions in the country are not currently dollarized ...that is people preferring to be paid in dollars locally due to the bulkiness of the transaction in naira. Redenomination would not improve the inflow of USD but could rather lead to dollarization.


dre11:
• Economic team moves to table plan before President –Source

• It’s ill-timed, doesn’t address problem of rising inflation or depreciation of currency –Prof Uwaleke

• Only fresh injection of FX, extra revenues can check Naira’s fall –Idakolo



https://newtelegraphng.com/fg-mulls-redenomination-option-to-stabilise-naira/
Re: FG Mulls Redenomination Option To Stabilise Naira by XY23: 6:41pm On Aug 20, 2023
Saintinoo:


I followed the implementation of that policy by Ghana, at that time the Ghana cedi was far better than Nigeria naira, it worked for Ghana, just that, there was no follow up to strengthen the economy. Ghana economic problem was not as a result of that policy.

Nigeria needs an inflation targeting policy, inflation targeting is aimed at setting a particular inflation rate for the economy and work with that, this will check continues increase in prices in the economy.

What this policy is saying is that some higher denominations will have to go, this will help fight inflation, but like I said, it is not the ultimate solution.

With Nigeria's track record of greed, what makes you think they will continue on the path to stregthen our economy? People that are looking for the easiest way out that have no serious cost to them. We should be praying they don't take Nigeria further down, till we get selfless leaders.
Re: FG Mulls Redenomination Option To Stabilise Naira by symbianDON(m): 6:45pm On Aug 20, 2023
Isokotolopia:
Try your luck government
kalokalo government. Government of push and start. Scalar quantities. Only magnitude, no direction. Government of anywhere-belle-face.
Re: FG Mulls Redenomination Option To Stabilise Naira by Ombudsman1: 6:46pm On Aug 20, 2023
FreeStuffsNG:
It should not even have been done then as well. It is just academic economics. The policy on ground now when effectively implemented, will stabilise naira. Dollars will not remain dominant for ever.

REDEMPTION AT LAST.
SEEMS AS THOUGH THE ZOMBIFIED CELLS MAKING UP YOUR BRAIN ARE GRADUALLY BEGINNING TO TURN TO THOSE OF A HUMAN.


FUEL AT 620 NO BE YOUR PAPA MATE LWKMD grin grin
Re: FG Mulls Redenomination Option To Stabilise Naira by Tecnophone: 6:49pm On Aug 20, 2023
paste your aza
BoldBrainz:
Outside his undeniable intelligence and capabilities for running the cocaine business in the underworld, Bola Tinubu is a dunce on a normal day.
Re: FG Mulls Redenomination Option To Stabilise Naira by Tecnophone: 6:50pm On Aug 20, 2023
that guy is a domestic noun. Very useless and animalistic.
Ombudsman1:


REDEMPTION AT LAST.
SEEMS AS THOUGH THE ZOMBIFIED CELLS MAKING UP YOUR BRAIN ARE GRADUALLY BEGINNING TO TURN TO THOSE OF A HUMAN.


FUEL AT 620 NO BE YOUR PAPA MATE LWKMD grin grin
Re: FG Mulls Redenomination Option To Stabilise Naira by sonnie10: 6:53pm On Aug 20, 2023
BenedictAbajue:
Is this really possible? So if naira becomes #1000 per a dollar and 1paint of garri is #1000.
After removing a zero from the currency, I will carry #100 note and give the garri seller for one paint and he will collect!. Its really weird.
This would mean that inflation is not really a threat. Since we can easily redenominate our currency when it loses too much of its value.
True.
Even those houses listed for #200M at lekki, you will be able to buy them for #20M.
Nigeria we hail thee!
Re: FG Mulls Redenomination Option To Stabilise Naira by Vision101(m): 6:58pm On Aug 20, 2023
@Ofunaofu
When we are yet to come out of the Naira redesign debacle, they want to plunge this country into another disastrous policy of Naira re-denomination

This is after they had removed subsidy from petrol, floated the Naira masking it as exchange rate unification which has further impoverished Nigerians thereby moving over 180 million Nigerians into multi dimensional poverty

From one policy somersault to another. From one disaster to another


[b]Honestly, e no go better for those who supported and voted for this current calamitous Tinubu APC government.


@me
Talk is cheap. Every idea rather than holistically xray it and throw suggestions, no it must be condemnation and condemnation.

Mr brilliant what is your suggestion. State it clearly and let us examine them.
Re: FG Mulls Redenomination Option To Stabilise Naira by Fujiyama: 6:59pm On Aug 20, 2023
HBB1:
Obasanjo was the best ever.
He had everything needed to be a great president-- charisma, intelligence, strength/stubborness, competence...

He must sleep poorly at night seeing what Nigeria has now become.

God bless him sha.

^^^
This isn't a balanced picture of his administration.

His poorly disguised attempt at running for a 3rd term sums him up, despite his denials.

His government ran an unbelievable 'monetization' policy in which officials purchased their official residences undecided and rendered their successors homeless.

His administration removed 'subsidy' on fuel imports a record 6 times (this needs confirmation though)...instead of cleaning up the rot in the NNPC and building local refining capacity.

He deployed the military to kill defenceless villagers in Benue state. The effects of that invasion of Zaki Biam are still being felt today. He did the same thing in Odi, Bayelsa state. But when Sani Yerima and the Zamfara state legislature went against the constitution by establishing Sharia law statewide, he did nothing. He didn't take the matter to the Supreme Court - he did absolutely nothing.

He set up a bogus privatisation programme in which state assets were auctioned off in the most opaque of circumstances - in the worst kind of crony capitalism you could imagine. To this day, Ajaokuta steel plant remains supine because of this.

He is not what you make him out to be.
Re: FG Mulls Redenomination Option To Stabilise Naira by BoldBrainz(m): 7:00pm On Aug 20, 2023
Tecnophone:
paste your aza

2520917471.
Zenith.
Beer money don set.. grin.
Re: FG Mulls Redenomination Option To Stabilise Naira by Nobody: 7:01pm On Aug 20, 2023
Kaa4:
So many postulations for the beleaguered Naira.

The trial and error method will not work if things continue as has always been. Have Nigerian economists considers the problem as that of portfolio choice of rich Nigerians not necessarily to speculate against the Naira but to shift assets against the Naira. Those who are accessing the dollars now do not need it for trading or transaction purpose, but investment and assets issues. So rich people are mopping the dollar where they can find it. Because they see any hope for the currency. That’s is why the problem is stocking up and is not transactions.
I consider the solutions to be long term. No immediate term solution is feasible under the current situations without restrictions in the market. Therefore, the short term being proposed would be
(a) Documentation on why any buyer requesting for dollars, those who are buying for the assets purposes and investment would be spotted and that would allow those who need to for transactions to have a way in the market.
(b) A second issue is those who are assessing the market, who are they? what is their source of the Nigerian currency. Very few people earning low wages are able to access the market presently.
(c) Thirdly I would recommend the increase in the minimum wage to a minimum of 100k to empower the low income to earn and consume and firms can be profitable once again.
(d) Then the public office holders would have to give up a substantial advantage of their income to assure that everyone is on the same page.
This is what will give confidence to the economy otherwise. Redomination will only be beneficial to a section of the financial market and would eventually return worse at the end of the day.
There has to be sincerity and courage to give confidence to the investors and the people.

Increase income but keep the subsdiy in place
NB has anybody asked what happed to the cash borrowed by the Emefiele/Buhari regime. What was the money used for?

If Wishes Were Horses.

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