A Nigerian newspaper and Online version of the Vanguard, a daily publication in Nigeria covering Nigeria news, Niger delta, general national news, politics, business, energy, sports, entertainment, fashion,lifestyle human interest stories, etc
Against the backdrop of sustained rumors about the introduction of the Naira re-denomination by the current government, economy analysts and corporate chieftains have painted a discomforting picture of what the policy may entrench on the economy if carried out.
Some experts who spoke to Saturday Vanguard also believe that it is either the apex bank is flying a kite to sample public opinion or they are actually about to announce the policy because ‘‘there is not smoke without fire’’. “Under present economic conditions, re-denomination will be an exercise in futility. It could further weaken the Naira and reduce the purchasing power of consumers as producers will lash on the opportunity to increase prices.”Reacting to the alleged plan by the CBN to redenominate the Naira, Tajudeen Olayinka, CEO, Wyoming Capital and Partners said: “Since CBN has continually denied the plan to embark on such a program, I also don’t find the rumor credible.
“Doing it at the wrong time, when the economy is in a prolonged state of disequilibrium could be counter-productive, as instability may soon return. “Good and careful planning of currency redenomination program, with timely implementation, could herald a new beginning for macroeconomic stability, especially, a new era of a very low or near absence of inflation, due to improved pricing mechanism in the economy.
‘‘Re-denomination can, however, contribute to price stability by simplifying price calculations and accounting which are usually impacted by high inflation rates. However, Azeez who is also the Chief Executive Officer of Obat Global Investment Limited, stated: “If such should happen, the government should first do the needful by providing enabling environment for business to thrive which would encourage foreign investors, promote small scale businesses and sizeable numbers of entrepreneur.
“This is different from devaluation or revaluation, which involves changing the real exchange rate of a currency. “I advise that Nigeria should consider redenomination only as part of a more comprehensive economic strategy aimed at addressing issues related to exchange rates, inflation, and overall economic stability.”Most of the experts spoke on the Ghana experience which has spanned 17 years now without any positive result.
Speaking on the Ghana experience with re-denomination, Mr Oyelaja stated: “When Ghana carried out the redenomination of its currency, the Cedi in 2007, it adjusted the nominal value of the currency by removing four zeros from the currency, making the currency more manageable. The real value of the currency did not change. The process only aimed to simplify transactions and accounting.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Experts Say De-dollarising Economy Will Halt Naira Free FallAmid rising free fall of the Naira both at the official Nigerian Foreign Exchange Market (NAFEM) and the unofficial market, financial experts have called on
Read more »
SMBLF urges Tinubu to address sliding naira, demands restructure of NigeriaThe Nation Newspaper SMBLF urges Tinubu to address sliding naira, demands restructure of Nigeria
Read more »
Friday Sermon: Palestine: The land of one of Islam’s three most holy mosques, By Murtadha GusauPremium Times - Nigeria'bs leading online newspaper, delivering breaking news and deep investigative reports from Nigeria
Read more »
Akinremi Victoria: Why parents should be blamed for social vices in NigeriaThe saying that you are a product of your parental upbringing is an established fact as portrayed in the quote by Brad Meltzer, American novelist and non fiction writer. According to America’s National Center for Biotechnology Information, children inherit pairs of genes from their parents.
Read more »
Why we constituted 134 committees despite Nigeria’s economic challenges — RepsSome Nigerians have voiced concerns over what they perceived as an excessive number of committees, contradicting President Bola Tinubu’s...
Read more »
Why investors are running away from northern NigeriaA public affairs commentator, Ahmed Bakare, has lamented that if bandits can enter a town and kill police officers, including a Divisional Police Officer in Zamfara State, then the northern part of the country is no longer safe. Bakare made these remarks in an interview with DAILY POST in Gusau on Friday.
Read more »