Monday, August 20, 2007

The revaluation of the naira

I just don't get the brouhaha over Soludo's plan to revalue the naira (chopping of two zeros), as part of turning the naira into a convertible currency. Is it really that people with lots of zeros in their bank account think he is going to make them two decimal places poorer over night? Haba, such stupidity. Meanwhile, little Ghana went ahead and revalued a month or so ago (chopping off even more digits), with no such fuss..


Anonymous,  11:03 am  

jeremy use ur brain.

how can a country change their notes this year and again next year? does it make any sense?

if he had such great plans for our currency, why didn't he implement it this year? the incompetent idiot has to tell us how much commission he is payin himself and his cronies and how much this would cost our country seeing as we already spent billions of naira this year on a now pointless exercise.
the money could have been used in universities, to counter poverty, improve healthcare...the list goes on and on.
our economy just isn't growing fast enough to justify our monry being burnt like this.
naij person

Chxta 11:18 am  

You know that Naijas love the noise now..?

Anonymous,  12:48 pm  

all is shows is how cynical nigerians are about their government officials. despite the good policies implement by soludo, you still have people asserting that he is taking bribes is incompetent and the like.

Anonymous,  1:09 pm  

the "revaluation" of the naira..yawn. Lets call a spade a spade, a rose by any other name would smell so sweet. What? huh? Let's be blunt, what matters is what something IS, not what it is called.

Temi,  3:22 pm  

I agree with the first anon. What is the rationalisation for increasing the denomination up to 1000 naira etc earlier on this year... Only for them to now say 20 naira will be the highest note next year. It sounds fishy!

Anonymous,  4:10 pm  

introducing a 1000 naira note is the least he could have done. with that you still had the highest currency in circulation worth just $8.

with the introduction of coins, it seems the CBN was going to eventually revalue the naira. otherwise the coins had no place in our economy.

Anonymous,  4:10 pm  

Its the very fact that it will have very little real effect (negative or positive) on the economy that makes the policy so puzzling.
It may slow inflation down, but its not going to do anything for productivity.
It will also mean a multi billion naira contract to print new money, and we all know what contracts mean.
Its possibly an attempt at jockying for position in this debate about the single west african currency. Solundo is damned if he's going to sit around and let them peg it to the Cedi. Its an issue of national pride and personal ambition for soludo, he's thinking about his legacy (he's probably only got a few more months left before his term runs out and he's replaced by a northerner.)
It also has very sucessfully distracted attention away from another issue unveiled at the same press conference. part of the states monthly disbursements will soon be handed out in dollars. This is controversial because it opens up the possibility of corrupt officials getting their hands on hard currency straight away, and also has the potential to devalue the naira. If domestic contractors start demanding to be paid in dollars, then what happens? why would anyone want to be paid in Naira?

Anonymous,  4:11 pm  

Its not revaluation, its re-denomination, by the way

gungun 4:25 pm  

The redenomination of the naira coming so soon after new naira notes were introduced speaks volumes about the long term planning of the now 'independent' central bank. However, I suspect Soludo is biting the bullet and recognizes the likely benefits of newly announced currency policy, even though it makes him seem like "I'm with stupid." Therefore, I commend his courage in not waiting a few years before introducing the new policy just to avoid the flak. Besides, he's bought himself enough credibility and goodwill with the last consolidation exercise to warrant giving the new policy a chance. As for most nigerians, skepticism is our middle name.

negresse adoree,  5:24 pm  

Are we playing catch-up with "little" Ghana? And does this mean the demise of those ubiquitous "Ghana must go" bags of money?

Anonymous,  8:56 pm  

Negresse you are funny!(if a little nutty ( isay this with love and respect and total admiration)look forward to your posts!

Anonymous,  10:00 pm

DebolaLagos 11:12 pm  


DebolaLagos 11:13 pm  


Anonymous,  12:51 am  

yeah, he needs to slow down. we can have too much progress. we're used to being a backward country *sarcasm*

Soheb,  8:57 pm  


On redenomination, not revaluation says our Snazzy, see


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