Ken4Christ:


I do not agree. It will only limit looting but it will have no effect on the exchange rate. The countries you made references to didn't have a terrible economy like Nigeria does.

The major reason why out currency is low in values is because Nigeria is not a producing country. We import virtually everything.

If we want our currency value to appreciate, what we should do is;

1. Ensure all our refineries are working. It will save us lots of foreign exchange.

2. We need an industrial revolution.

3. We need to invest more in Agriculture.

4. Every local government chairman should be productive rather than administrative.

5. Corruption should be punished.

6. Our tax system should be made more effective.

7. Out railway should be developed to reduce cost of transportation of food items.

8. Our borders should be closed. If possible, fence the country round.

Export should exceed import if our currency must appreciate. After all these is done, then we can take away the high currency notes.

Samleen:


You raised some points too but

What I wrote up there is just a basic truth!

Ok, why do other african countries with poorer socio-political and business development have better performing currency than what we have here in Nigeria?

Ken4Christ:


I do not agree. It will only limit looting but it will have no effect on the exchange rate. The countries you made references to didn't have a terrible economy like Nigeria does.

The major reason why out currency is low in values is because Nigeria is not a producing country. We import virtually everything.

If we want our currency value to appreciate, what we should do is;

1. Ensure all our refineries are working. It will save us lots of foreign exchange.

2. We need an industrial revolution.

3. We need to invest more in Agriculture.

4. Every local government chairman should be productive rather than administrative.

5. Corruption should be punished.

6. Our tax system should be made more effective.

7. Out railway should be developed to reduce cost of transportation of food items.

8. Our borders should be closed. If possible, fence the country round.

Export should exceed import if our currency must appreciate. After all these is done, then we can take away the high currency notes.

1bunne4lif:
Good, makes sense. I knew this would make front page eventually. Shout out to all those aspiring to be FTC.........your time will come eventually, keep faith

nextstep:
Nice one and a decent argument, except of course that there are also strong economies with high denominations:
Japan: 10,000 Yen
Europe: 500 Euros
India: 1,000 Rupees
Russia: 5,000 Rubles
Korea: 50,000 Won
Mexico: 1,000 Pesos

anibirelawal:


EXACTLY! He proposed the DEVALUATION OF CURRENCY back then, But they (useless people) kick against it for their selfish interest.

bigpicture001:
..but all he wrote are simply rubbish...his base for argument are not sensible at all

XX01:


Redenomination and not devaluation. Meaning to knock off a couple of zeros.

Samleen:


sir, then profer a solution. Don't just condem an opinion.

like I earlier wrote, this is not a scholarly work. They are my opinion base on personal abservations

bigpicture001:
...First of all..the making of one naira equalling one dollar will be a very bad move for the central govt. if that happens..all our industries will close up. the only thing that we will hv to ourselfs is national pride.

Samleen:


Now I see where you are coming from

bloodmoneyspita:
there's no 100 naira right now and things hasn't changed, the CBN has silently withdrawn 100 naira in case you guys don't Kno.

Omololu2121:
he didn't promote it during the tenure of OBJ,but during the tenure of yaradua.

Even if we do all wat the op says,the naira will still lose value against the us dollar cause of our weak economy.

Ghana did it,and it has not really change anything

Ken4Christ:


I do not agree. It will only limit looting but it will have no effect on the exchange rate. The countries you made references to didn't have a terrible economy like Nigeria does.

The major reason why out currency is low in values is because Nigeria is not a producing country. We import virtually everything.

If we want our currency value to appreciate, what we should do is;

1. Ensure all our refineries are working. It will save us lots of foreign exchange.

2. We need an industrial revolution.

3. We need to invest more in Agriculture.

4. Every local government chairman should be productive rather than administrative.

5. Corruption should be punished.

6. Our tax system should be made more effective.

7. Out railway should be developed to reduce cost of transportation of food items.

8. Our borders should be closed. If possible, fence the country round.

Export should exceed import if our currency must appreciate. After all these is done, then we can take away the high currency notes.

Samleen:
*If government can stop the printing 500 NGN notes and 1,000 NGN notes and officially discontinue its use!

*Reintroduction of Nigeria coins, 50Kobo, 1 NGN and 2 NGN.


1
Welcome, lets get started by examinining the top 10 performing currencies in the world to gain necessary insights before drawing our conclusions.

*.Kuwait Dinar KWD:  (  1 KWD = 1201.9611 NGN  )
Bank notes: 1/4, 1/2, 1, 5, 10, 20 Dinars
Coins: 5, 10, 20, 50, 100, 200 Fils


*.Bahraini Dinar BHD: (  1 BHD = 956.3254 NGN   )
Bank note: BD 1/2, BD 1, BD 5, BD 10, BD 20
Coins: 5, 10, 25, 50, 100 Fils, BD 1/2


*.Omani Rial OMR: (  1 OMR = 936.2906 NGN  )
Bank note: 1/2, 1, 5, 10, 20, 50 Rials
Coin: 50, 10, 20, 50, 100 baisa and rarely used 200 biasa


*.Jordanian Dinar JDD:  (  1 JDD = 507,65070 NGN  )
Bank notes: 1, 5, 10, 20, 50, Dinars
Coins: 1/2, 1, quirsh, 21/2, 5, 10 Piastras


*.British Pound GBP:  (   1 GBP = 504.8154 NGN   )
Bank notes: €5, €10, €20, €50
Coins: 1P, 2P, 5P, 10P, 50P, €1, €2


*.Caymanian Dollar KYD:  (  1 KYD = 432.7622 NGN   )
Bank notes: 1, 5, 10, 25, 50, 100 Dollars
Coin: 1, 5, 10, 25 Cents


*.Euro EUR:  (  1 EUR = 448.2926 NGN  )
Bank notes: €5, €10, €20, €50, €100, €200 and  €500


*.Swiss Franc CHF:  (  1 CHF = 388.1395 NGN  )
Bank note: 10, 20, 50, 100, 200, 1000 francs
Coins: 5, 10 and 20 Rp/cts, 1/2, 1, 2 and 5 Fracs


*.United State Dollar USD: (  1 USD = 360.5000 NGN   )
Bank note: $1, $2, $5, $10, $20, $50, $100
Coins: 1C, 5C, 10C, $1/4, $1/2, $1.




Go back to the list once again and check what's the highest denominations of each currency (and population of users of each currency), You will discover that the top performing currency do not have high face value like we have 500 NGN and 1,000 NGN in Nigeria.

Also, you will notice that the top performing currencies have coins form of currency with denomination of very low face value.

The highest of the denominaton is 1000 Franc followed by 500 EUR. 1000 Franc is not in frequent use and the highest Franc denomination next to it is 200 Frank ( not like 500 NGN as we have here in nigeria ). Also the use of 500 EUR will discontinue this year 2018.

Get a hold on history of exchange rate in Nigerian, you will find out that every introduction of new high denomination currency note has averse advese effect on it.


Why High Denominational Currency Note Is Bad:
1. Increase in prints of currency notes with high face value e.g 1000 NGN makes other lower currency of less important and less usefull. This can gradually lead to upgrade of price of goods and services in market.

2. It makes stealing and loothing of cash easier as larger amount of money value can be packed into a very small space.

Why do CBN currently print more high denominational currency alone? Methink its in a bid to enhance hoarding of cash against the comming 2019 general election.

3. 500 NGN and 1000 NGN are no money for the common man, go to the market and examine what denomination are most in use.

4. It's in a way opposing the cashless policy by the federal government of Nigeria.


What The Wise Nations Did:
1. United State of Ameria used to have $500, $1000, $2000 currency notes until December 14, 1945, when the high denominational bills were last printed and officially discontinued on July 14, 1969 by the Federal Reserve System.

2. Europian Central Bank announced on 4 May, 2016 that it would phase out the 500 Euro notes by the end of 2018.



Other Factors That May Affect The Exchange Rate Of A Currency Include:
1. Ratio of goods/services importation to exportation

2. Availability of currency and number of complying users.

The Illegal illegal printing of currency by the CBN according to as reported by some news media outlets has a long way to desctroy value on our cash.

3. Inflation rate

4. Government debts and federal reserve.

5. Political policies and stability

6. And many more



My Recomendations:
Nigerian government should permanently discontinue and remove 500 NGN and 1,000 NGN currency notes from circulation. Reintroduction of 50 Kobo, 1 NGN and 2 NGN coins should also be done.

A serious government fighting corruption will yield to my advice as abundance of lower denomination currency will discourage looters from hoading and keeping cash in a safe instead of bank.

Caveat emptor:
This writeup is a personal opinion resulting from my many observations. It is not a scholarly work and should not be treated as one. Copy-and-paste bloggers should please reference the link and author of the article.