In the past couple of days, weeks,months and years naira value has become a laughing stock considering naira value against dollar. The highest standard was in the past couple of days, which was 1$ to naira is #870. Just take a look at that wide margin.
So after many criticisms from home and abroad, also considering a country of over 200 million population, it's high time we think things shouldn't be going this way. It's an embarrassment if we all allow things going into that abysmal economy direction,it's better we take a turn.
In lieu of the aforementioned scenerio, federal government in conjunction with central bank of Nigeria came up with an idea to redesign the Nigerian currency, packing off the old currency and replacing it with the new designed notes. At first, I thought the reason for this love is to fight inflation and corruption because there has been steady increase in price of goods services and also most fiat notes printed are not in circulation, reason is that, most of these notes are being hoarded. We all saw, that move by the CBN brought out some positive impacts because those that hoarded these naira notes are bringing out the notes to deposit it in one or the other.
What are the impacts that this policy would have?
In development and support to that a new memo policy that was dished out by CBN that starting from 9th of January, 2023. The highest denomination at the Automated Teller Machine (ATM) would be N200, while the highest withdrawal at the bank counter would N20,000 per day which is about N100,000 in a week.
One of the impact this policy would have is to promote internet banking in such a way that holding cash at hand would be reduced to the bearest minimum. Hence, would improve economy security.
The new policy should also be able to regulate the value of naira currency in the capital market. If we have less physical naira currency in circulation, this should have effect on the naira value too.
What about the encouragement of cashless policy? This just opposite direction of encouraging internet banking.
I guess some of these moves by the CBN with the support of the Federal government, I guess this is a good move in a seemingly right direction.
Please note that, this isn't a cryptocurrency, financial or business advice,it's just an opinion. If you need a cryptocurrency, financial or business advice, consult a cryptocurrency or financial experts. Thank you.