CBN: Here Is Why 80 percent of the nation’s currency notes outside bank vaults

Preponderance of POS Business.

Here is why:

Each POS business operator, hold an average #200,000 in their purse daily to ensure they satisfy their customers who may want to withdraw money through their business.

Let's do the calculation.

Some street can have about 10 POS business operators. If each of the operator has #200k in their purse, that will make about two Million Naira. Just for one street.

According to https://www.statista.com/statistics/1178109/number-of-pos-terminals-in-nigeria/ , there about 1.1million POS in operation as of june 2022. Now 1100,000 multiplied by #200,000 will give 220,000,000,000. There may be other contributing factors but I think this is a major one.

Also:

I also believe that CBN Should Also Phase Out #1000 and #500 Notes And reintroduce Nigeria coins, 50Kobo, 1 NGN and 2 NGN.


CBN Should Phase Out #1000 and #500 Notes And reintroduce Nigeria coins, 50Kobo, 1 NGN and 2 NGN.


CBN Should Phase Out #1000 and #500 Notes And reintroduce Nigeria coins, 50Kobo, 1 NGN and 2 NGN.

Nigeria will not be the first nation to discontinue with bank notes with high face values. The United State of America USA used to have $500, $1000, $2000 currency notes until December 14, 1945, when the high denominational bills were last printed and officially discontinued on July 14, 1969 by the Federal Reserve System. European Central Bank also phased out the printing and use of use of 500 Euro notes in 27 April 2019.

Top performing currency in the world make use of coins and the maximum face value for their bank notes is 200.

Here is a list of top performing currencies, their bank note value values and their coins:


--.Kuwait Dinar KWD: ( 1 KWD = 1,412.78 NGN )
Bank notes: 1/4, 1/2, 1, 5, 10, 20 Dinars
Coins: 5, 10, 20, 50, 100, 200 Fils


--.Bahraini Dinar BHD: ( 1 BHD = 1,159.41 NGN )
Bank note: BD 1/2, BD 1, BD 5, BD 10, BD 20
Coins: 5, 10, 25, 50, 100 Fils, BD 1/2


--.Omani Rial OMR: ( 1 OMR = 1,135.00 NGN )
Bank note: 1/2, 1, 5, 10, 20, 50 Rials
Coin: 50, 10, 20, 50, 100 baisa and rarely used 200 biasa


--.Jordanian Dinar JDD: ( 1 JDD = 616.44 NGN )
Bank notes: 1, 5, 10, 20, 50, Dinars
Coins: 1/2, 1, quirsh, 21/2, 5, 10 Piastras


--.British Pound GBP: ( 1 GBP = 507.29 NGN )
Bank notes: €5, €10, €20, €50
Coins: 1P, 2P, 5P, 10P, 50P, €1, €2


--.Caymanian Dollar KYD: ( 1 KYD = 525.03 NGN )
Bank notes: 1, 5, 10, 25, 50, 100 Dollars
Coin: 1, 5, 10, 25 Cents


--.Euro EUR: ( 1 EUR = 439.65 NGN )
Bank notes: €5, €10, €20, €50, €100, €200 and €500


--.Swiss Franc CHF: ( 1 CHF = 442.99 NGN )
Bank note: 10, 20, 50, 100, 200, 1000 francs
Coins: 5, 10 and 20 Rp/cts, 1/2, 1, 2 and 5 Fracs


--.United State Dollar USD: ( 1 USD = 437.05 NGN )
Bank note: $1, $2, $5, $10, $20, $50, $100
Coins: 1C, 5C, 10C, $1/4, $1/2, $1.

To stabilize Naira and reduce inflation, I believe that there are many economics to be considered but I strongly believe that my suggestion is one of major factor to put into place.

Mtcheeeeew

CBN Should Phase Out #1000 and #500 Notes And reintroduce Nigeria coins, 50Kobo, 1 NGN and 2 NGN.

CBN Should Phase Out #1000 and #500 Notes And reintroduce Nigeria coins, 50Kobo, 1 NGN and 2 NGN.

Nigeria will not be the first nation to discontinue with bank notes with high face values. The United State of America USA used to have $500, $1000, $2000 currency notes until December 14, 1945, when the high denominational bills were last printed and officially discontinued on July 14, 1969 by the Federal Reserve System. European Central Bank also phased out the printing and use of use of 500 Euro notes in 27 April 2019.

Top performing currency in the world make use of coins and the maximum face value for their bank notes is 200.

Here is a list of top performing currencies, their bank note value values and their coins:


--.Kuwait Dinar KWD: ( 1 KWD = 1,412.78 NGN )
Bank notes: 1/4, 1/2, 1, 5, 10, 20 Dinars
Coins: 5, 10, 20, 50, 100, 200 Fils


--.Bahraini Dinar BHD: ( 1 BHD = 1,159.41 NGN )
Bank note: BD 1/2, BD 1, BD 5, BD 10, BD 20
Coins: 5, 10, 25, 50, 100 Fils, BD 1/2


--.Omani Rial OMR: ( 1 OMR = 1,135.00 NGN )
Bank note: 1/2, 1, 5, 10, 20, 50 Rials
Coin: 50, 10, 20, 50, 100 baisa and rarely used 200 biasa


--.Jordanian Dinar JDD: ( 1 JDD = 616.44 NGN )
Bank notes: 1, 5, 10, 20, 50, Dinars
Coins: 1/2, 1, quirsh, 21/2, 5, 10 Piastras


--.British Pound GBP: ( 1 GBP = 507.29 NGN )
Bank notes: €5, €10, €20, €50
Coins: 1P, 2P, 5P, 10P, 50P, €1, €2


--.Caymanian Dollar KYD: ( 1 KYD = 525.03 NGN )
Bank notes: 1, 5, 10, 25, 50, 100 Dollars
Coin: 1, 5, 10, 25 Cents


--.Euro EUR: ( 1 EUR = 439.65 NGN )
Bank notes: €5, €10, €20, €50, €100, €200 and €500


--.Swiss Franc CHF: ( 1 CHF = 442.99 NGN )
Bank note: 10, 20, 50, 100, 200, 1000 francs
Coins: 5, 10 and 20 Rp/cts, 1/2, 1, 2 and 5 Fracs


--.United State Dollar USD: ( 1 USD = 437.05 NGN )
Bank note: $1, $2, $5, $10, $20, $50, $100
Coins: 1C, 5C, 10C, $1/4, $1/2, $1.

To stabilize Naira and reduce inflation, I believe that there are many economics to be considered but I strongly believe that my suggestion is one of major factor to put into place.

I will be glad if our mod consider this thread frontpage worthy. This will help to collect people's input about the topic.

Some simple stuffs as these doesn't need to be complicated

The entire point of a paper currency is to have it in circulation and not idling in vaults.

Paper currency as the word currency implies, is meant to circulate and is an instrument of debt owed an individual.

Paper currencies were designed to prevent carrying of real cash in the form of gold.

A paper receipt indicating the amount or volume of gold owed someone by a bank , govt or a third party is what paper currency signifies.

On it's own, it is worthless and just a note redeemable at the treasury or vault.

To now make paper currency appear more valuable when in the case of the naira is backed by an equally worthless paper currency in the form of the USD is by far the longest and greatest scam ever perpetuated on humanity and on such a grand scale and period.

Humans are stupid .

God bless you for this thread.
The suggestion that the 200 and 500 should be discontinued is the best idea.
These notes contributed a lot to inflation in the land.

UncleAyo:
CBN: Here Is Why 80 percent of the nation’s currency notes outside bank vaults

Preponderance of POS Business.

Here is why:

Each POS business operator, hold an average #200,000 in their purse daily to ensure they satisfy their customers who may want to withdraw money through their business.

Let's do tye calculation.

Some street can have about 10 POS business operators. If each of the operator has #200k in their purse, that will make about two Million Naira. Just for one street

Also:

I also believe that CBN Should Also Phase Out #1000 and #500 Notes And reintroduce Nigeria coins, 50Kobo, 1 NGN and 2 NGN.


CBN Should Phase Out #1000 and #500 Notes And reintroduce Nigeria coins, 50Kobo, 1 NGN and 2 NGN.


CBN Should Phase Out #1000 and #500 Notes And reintroduce Nigeria coins, 50Kobo, 1 NGN and 2 NGN.

Nigeria will not be the first nation to discontinue with bank notes with high face values. The United State of America USA used to have $500, $1000, $2000 currency notes until December 14, 1945, when the high denominational bills were last printed and officially discontinued on July 14, 1969 by the Federal Reserve System. European Central Bank also phased out the printing and use of use of 500 Euro notes in 27 April 2019.

Top performing currency in the world make use of coins and the maximum face value for their bank notes is 200.

Here is a list of top performing currencies, their bank note value values and their coins:


--.Kuwait Dinar KWD: ( 1 KWD = 1,412.78 NGN )
Bank notes: 1/4, 1/2, 1, 5, 10, 20 Dinars
Coins: 5, 10, 20, 50, 100, 200 Fils


--.Bahraini Dinar BHD: ( 1 BHD = 1,159.41 NGN )
Bank note: BD 1/2, BD 1, BD 5, BD 10, BD 20
Coins: 5, 10, 25, 50, 100 Fils, BD 1/2


--.Omani Rial OMR: ( 1 OMR = 1,135.00 NGN )
Bank note: 1/2, 1, 5, 10, 20, 50 Rials
Coin: 50, 10, 20, 50, 100 baisa and rarely used 200 biasa


--.Jordanian Dinar JDD: ( 1 JDD = 616.44 NGN )
Bank notes: 1, 5, 10, 20, 50, Dinars
Coins: 1/2, 1, quirsh, 21/2, 5, 10 Piastras


--.British Pound GBP: ( 1 GBP = 507.29 NGN )
Bank notes: €5, €10, €20, €50
Coins: 1P, 2P, 5P, 10P, 50P, €1, €2


--.Caymanian Dollar KYD: ( 1 KYD = 525.03 NGN )
Bank notes: 1, 5, 10, 25, 50, 100 Dollars
Coin: 1, 5, 10, 25 Cents


--.Euro EUR: ( 1 EUR = 439.65 NGN )
Bank notes: €5, €10, €20, €50, €100, €200 and €500


--.Swiss Franc CHF: ( 1 CHF = 442.99 NGN )
Bank note: 10, 20, 50, 100, 200, 1000 francs
Coins: 5, 10 and 20 Rp/cts, 1/2, 1, 2 and 5 Fracs


--.United State Dollar USD: ( 1 USD = 437.05 NGN )
Bank note: $1, $2, $5, $10, $20, $50, $100
Coins: 1C, 5C, 10C, $1/4, $1/2, $1.

To stabilize Naira and reduce inflation, I believe that there are many economics to be considered but I strongly believe that my suggestion is one of major factor to put into place.

there are about 200,000 pos holding 200000 k each =400bn less than 15 percent of the .3.7 trillion

Munamoqel:
there are about 200,000 pos holding 200000 k each =400bn less than 15 percent of the .3.7 trillion

1. I will not deny, there might be other factors responsible for hoarding of cash

2. I believe there will be much more than 200,000 POS operators in Nigeria because each of the 36 states (plus the FCT) has more than 5,405 POS Operators in the individual states. 200,000 ÷ 37(states) = 5405.

3. CBN cannot be trusted with their figures... although the real amount of the hoarded cash may be closer.

Charisma01:
God bless you for this thread.
The suggestion that the 200 and 500 should be discontinued is the best idea.
These notes contributed a lot to inflation in the land.

You are an idiot.

The money supply will continue to grow as long as both unchecked govt borrowing, spending and reckless money minting goes on in the CBN.

Denominations have nothing to do with the entire debt in circulation.

It only contributes to volume in notes and not its entire value.

So if given 100,000 naira in 100 naira notes or 100,000 in 1,000 naira notes, its value osmt based on volume but its purchasing power.

Do not confuse volume of currency to actual value .

You people are hopelessly illiterate on this forum.

UncleAyo:


1. I will not deny, there might be other factors responsible for hoarding of cash

2. I believe there will be much more than 200,000 POS operators in Nigeria because each of the 36 states (plus the FCT) has more than 5,405 POS Operators in the individual states. 200,000 ÷ 37(states) = 5405.

3. CBN cannot be trusted with their figures... although the real amount of the hoarded cash may be closer.

you don't trust the CBN and you don't have the data . Confused.

Munamoqel:
you don't trust the CBN and you don't have the data . Confused.

Help us here with data if you have any. We will be glad you did.

As of now, I still believe the amount is a suggested estimation, but if you have found any data online, please, share with us. Thanks.

UncleAyo:


Help us here with data if you have any. We will be glad you did.

As of now, I still believe the amount is a suggested estimation, but if you have found any data online, please, share with us. Thanks.

Nigeria Interbank Settlement (NIBSS) data showed there are about 307,000 Point of Sale (Pos) machines in Nigeria, 30,000 Automated Teller Machines, and over 6,000 bank branches. However, majority of the PoS machines, which are fast being accepted by cardholders are not active. Only 167,000 of the PoS are active and majority malfunction at the point of trial. Many merchants have continued to collect legal fees from cardholders who want to use their cards

GodHatesJews:


You are an idiot.

The money supply will continue to grow as long as both unchecked govt borrowing, spending and reckless money minting goes on in the CBN.

Denominations have nothing to do with the entire debt in circulation.

It only contributes to volume in notes and not its entire value.

So if given 100,000 naira in 100 naira notes or 100,000 in 1,000 naira notes, its value osmt based on volume but its purchasing power.

Do not confuse volume of currency to actual value .

You people are hopelessly illiterate on this forum.

What did you smoke this afternoon?

Did i say it increased the debt in circulation? When these notes were introduced, they caused the coins and lower denomination notes as 50 kobo, 1 Naira and 5 naira to disappear

As long as we run a cash based economy, 80% of cash printed will always be outside the banks no matter how many times you change the currency.

Charisma01:


What did you smoke this afternoon?

Did i say it increased the debt in circulation? When these notes were introduced, they caused the coins and lower denomination notes as 50 kobo, 1 Naira and 5 naira to disappear

I noticed the miscontrue too

This is not what is meant by money outside the banking system.

POS is in the financial system.

A POS operator is a mini branch of a bank.

Each of the withdrawal is from an account.

They dispense cash to bank account holders.

You should see POS operators as banks' ATM machine.

You cannot get money from the POS operator except you have money in your bank account.

They have to fund their accounts before they withdraw cash again, which means the money is still in the banks.

Money outside the financial system are the ones that do not go through any account.

They come from the POS, ATM, bank teller and never find their way back through any other transaction.

The OP doesn't know anything. God bless the commenter above me.

Money in POS is part of the circulating currency. Within a month, those money will find its way back into the bank and out of the bank.

We have Total Supply and Circulating Supply these supplies are supposed to balance each other but they are not.

In order to create the balance, CBN wants to introduce the cryptocurrency term which is known as Burning.

With burning, circulating supply will increase and there will be more value to the naira as excess notes will be taken off.

Remember, the lesser the supply, the more valuable the coin.

According to https://www.statista.com/statistics/1178109/number-of-pos-terminals-in-nigeria/, there about 1.1million POS in operation as of june 2022. Now 1100,000 multiplied by #200,000 will give 220,000,000,000. There may be other contributing factors but I think this is a major one.

kenny714433:


The OP doesn't know anything. God bless the commenter above me.

Money in POS is part of the circulating currency. Within a month, those money will find its way back into the bank and out of the bank.

We have Total Supply and Circulating Supply these supplies are supposed to balance each other but they are not.

In order to create the balance, CBN wants to introduce the cryptocurrency term which is known as Burning.

With burning, circulating supply will increase and there will be more value to the naira as excess notes will be taken off.

Remember, the lesser the supply, the more valuable the coin.

there is nothing like a total supply of money- the supply of money itself is infinite. that is because banks can create money

burning has been in existence before the crypto concept of burning, burning fiat is all about burning old currencies

An increase in the supply of money typically lowers interest rates, which in turn, generates more investment and puts more money in the hands of consumers, thereby stimulating spending.

a decrease in money supply slows down the economy

everybody has an opinion