By Chinwendu Obienyi
The move by the Central Bank of Nigeria (CBN) to introduce new designs of the N200, N500, and N1,000 notes by December 15 2022 is unlikely to bring down Nigeria’s soaring inflation, neither will it boost the nation’s Gross Domestic Product, financial experts have asserted.
The CBN Governor, Godwin Emefiele had told newsmen of the plan during a special briefing on earlier in the week.
Some primary reasons behind the decision include; significant banknotes hoarding, a scarcity of clean and fit banknotes and the increasing ease with which banknotes could be counterfeited.
However, financial experts who spoke to Saturday Sun, believe the latest move by the CBN to redesign the exchange rate has multiple implications for Nigerians and their money.
Executive Vice Chairman, HighCap Securities, David Adonri, said he was stunned on hearing the announcement and stated that the administration has not recorded success in tackling inflation, which he tagged “the elephant in the room.”
“Another way I see it is that this looks more of a political move but I might be wrong. But nevertheless, this is not the time to do that, considering the debts the country is owing because it takes money to print the new currencies,” he said.
Analysts at Nairametrics Research, said the desperation to immediately meet the deadlines of the CBN will force some people to convert their naira into dollars.
According to them, there will not be any major implications for cash-based businesses, especially for traders and market people.
“However, we expect them to be mindful of illicit money or counterfeited money as people rush to deposit their cash ahead of the deadline. Most businesses should consider receiving electronic money rather than physical cash between now and January ending.
“For money exchangers, especially those who sell new notes at weddings and parties, the implication might be dire for them. They will be under pressure to sell as many notes as they can or risk losing it to the bank’s deadline.
Their business will likely be at risk now that the apex bank is printing new notes that are likely traceable. Bankers who connive with money sellers should be more circumspect about the nature of this business post-January 2023”, they said.