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Nigerians unimpressed with resigned Naira banknotes

Nigerians unimpressed with resigned Naira banknotes

Abuja, Nigeria
CNN business

Nigerians have criticized the “redesigning” of the nation’s native foreign money proposed by its central bank to rein in counterfeiting and hoarding of enormous sums exterior the banking system.

President Muhammadu Buhari unveiled the redesigned 200-, 500-, and 1,000-naira notes on Wednesday, saying “the new Naira banknotes have been fortified with security features that make them difficult to counterfeit.”

The brand new notes look similar to these at the moment in circulation. The design of the highest-value 1,000-naira be aware, which incorporates the nationwide coat-of-arms and the headquarters of the Central Bank of Nigeria, is basically unchanged. The one vital distinction is the colour — it’s gone from a largely brown underprint to blue.

The Central Bank of Nigeria (CBN) says that the redesigned notes will exchange notes at the moment in circulation by Jan. 2023.

However many locals will not be impressed, describing the supposedly redesigned banknotes as a mere shade revamp, given their similarities to the previous notes.

“Snapchat filter, waste of time and resources, so a whole CBN cannot employ experts to redesign the naira notes. This is a revamp not a redesign,” one Nigerian tweeted.

“What a waste of time and resources … what is the difference?” one other questioned.

CNN has requested the CBN for remark.

Main economist Bismarck Rewane tells CNN that altering the foreign money’s look provides nothing to its worth and is insignificant in curbing counterfeiting.

The federal government says new security measures had been added to the brand new notes, however Rewane says the adjustments to the foreign money will not be vital sufficient to curb counterfeiting.

The worth of the Nigerian naira has been in a decline in recent times, falling to a document low on the black market the place it traded at practically 800 to the US greenback as of Friday.

“It doesn’t change anything,” Rewane says of the redesigning of the naira. “It doesn’t increase the value,” he additionally says, including: “There was no redesign. The color of the currency changed that’s all. The change is not significant enough to stop counterfeiting.”

Nigeria’s 1000- and 500-naira denominations are essentially the most counterfeited, based on the CBN’s annual report final yr.

news of redesigning the naira — first introduced final month — generated blended emotions amongst Nigerians, a few of whom questioned the price of printing new banknotes at a time the nation is grappling with dwindling oil revenues, its principal supply of revenue.

Central Bank Governor Godwin Emefiele expects the introduction of the brand new banknotes to assist management inflation, which lately rose to its highest stage in 17 years, and likewise battle corruption.

These targets, Rewane says, might not be achieved.

“It’s just a change in color. I cannot see the correlation between the color of the currency and the desired goals. If the goal is to reduce inflation, it will not achieve that. [Changing the look of the currency] has no macroeconomic impact whatsoever,” he tells CNN.

On the unveiling of the brand new notes on Wednesday President Buhari stated it had been practically 20 years because the nation did a significant redesign of its banknotes.

The Nigerian chief added that changing the present foreign money with the redesigned notes will assist to fight the hoarding of funds exterior of the banking system.

“It is on this basis that I gave my approval for the redesign of the 200, ‎500, and 1,000 banknotes,” he stated.

Previous naira notes will probably be utterly phased away by the top of January subsequent yr, the CBN says, as locals scramble to deposit their previous notes at business banks.

Editorial staff
Editorial staff
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