Sunday, 26 August 2012

The New N5000 note and our economy

It is no longer news that CBN plans to introduce N5,000 note by January 2013 .

The crux of the matter is the implication that this will have on our individual lives and national economy. One of the indices of a GROWING INFLATION, is the creation of Higher Local Currency Bill, NO matter what CBN or the Managers of our economy say, they know too well in their minds.

The highest bill in the US is $100, Britain is €50, Ghana 50 Cedi, Have ever had a scene where you're forced to spend N100 or above for a service that's worth N50, all because the service provider claims ;"No Change"? This in itself is inflationary.

Ask them in Zimbabwe where the highest currency in circulation is $100 Trillion Bill, but no one spends it. Instead, people use the US dollars and South African rands for their daily transactions!

We will soon be buying things now sold for about N3,000 - N4,500; for N5,000.00!

It is terrible!

Why are we not emulating Ghana where they just re-denominated their currency? Why can't we do same to manage our economy?

The answer is clear; if we re-denominate THEY will lose the money already stolen and kept abroad. For instance if we re-denominate by cutting down two zeros, N1,000 becomes N10 while N100 becomes N1. In a similar way one dollar will exchange for N1.55k. Therefore $100m will be N1.5m. Naira will become stronger against many currencies and stealing money abroad will become unattractive.

Why are we going for higher denomination when CBN is spending billions to promote a cashless economy?

Join to say no to introduction of higher denomination of naira . Let's save our economy. If we have 2 re-occupy Nigeria or CBN (this time), let's do it....even if not for ourselves then let's do it for the future of our children and their unborn children!! Before they turns us to millionaires that can't buy bread
We don't need a higher currency. 
 
Please drop your comments as it strikes you in your heart...

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