The timing sounds interesting. Just before elections with short notice on the legal tender closing date. Some politicians and money launderers will be screwed and if they suddenly show up at the bank to deposit millions/billions of cash, they’ll have serious explanations to do. I sincerely hope the money laundering laws will be enforced.
The naira notes redesigning policy is to cure certain known defects in the country’s monetary system.
The first monetary challenge the CBN governor gave was the fact that 80% of the money in circulation is outside the banking system. Given this, how can any monetary policy function under such an abysmal defect?
However, we may commend the CBN and the Federal Government for the bold decision, bearing in mind though, the new notes may eventually be sabotaged & compromised; due to the criminal nature of the Nigerian!
To me, it is doubtful if the current policy will take the nation anywhere near its goals, for the following reasons:
(A) The redesign printing may not be done locally, hence money will be paid to foreign contractors and employment will be created in their country at our own expense.
(B) If the cost of redesigning is invested in other sectors of the economy, this will not only increase productivity and make goods and services cheaper but will also reduce the level of inflation in the country.
(C) The naira notes redesigning is not going to enhance the local and external values of the naira. Hence it is of no use at the moment.
(D) Lastly, I am of the view that CBN should focus on how to ensure naira stability and its global integration in West African countries.
