‘Money supply, naira value’ – How cenbank’s naira redesign will affect Nigeria’s economy | TheCable
The Central Bank of Nigeria , on Wednesday, announced that it redesigned some new naira notes.
He added that recent development in photographic technology and advancements in printing devices have made counterfeiting relatively easier.BAD TIDINGS FOR ‘MONEY STACKERS’January 31, 2023, the current series of naira bills is expected to be phased out. Sepaking on the development, Temitope Omosuyi, investment strategist, Afrinvest Securities Ltd, said the move will hugely discourage the culture of illicit money stacking.Advertisement
“First of all, what we want to do is mop up all these N3.32 trillion back into the CBN so we can take control of money supply again, and begin to see how this will help rein in inflation. No doubt, we believe it has positive impact on inflation.”But Omosuyi believes the CBN’s directive might trigger aggressive spending by people stacking money, which in turn, could spur inflation in the short term.
“Although, in the medium to long term , depending on the timing, it will ultimately enhance monetary policy,” he said, adding that it would help CBN manage currency efficiently.Before the old currency is completely phased out, a genuine question is how the transition would help stabilise the foreign exchange market.in the country.
However, Omosuyi argues that the FX crisis will worsen, saying “if you put more pressure on the dollars because you quickly want to exchange your money to keep it in dollars, that’s more pressure on the naira”.chief executive officer , Centre for the Promotion of Private Enterprise
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