KINDLY DISREGARD THIS INFORMATION AS IT IS FALSE


Below is the link to CBN website for the correct information.

The new ‘Strategic Agenda for the Naira’ was announced by the Central Bank of Nigeria, generating a healthy national debate. Before we undertake a nationwide enlightenment program (beginning November 2) to educate the public on the new policy, it is important to clarify some of the issues/questions that are emerging.

Needless to emphasize that to appreciate the full impact of the new policy on the Naira/national economy, we need to take the 4-point agenda as a package. As a package, the new agenda will:

better anchor inflation expectations,
strengthen public confidence in the Naira,
make for easier conversion to other major currencies,
reverse tendency for currency substitution,
eliminate higher denomination notes with lower purchasing power,
reduce the cost of production, distribution, and processing of currency,
promote the usage of coins and thus a more efficient pricing and payments system,
promote the availability of cleaner notes,
deepen the Forex market,
ensure more effective liquidity management and monetary policy,
convertibility of the Naira and hence greater confidence in the national economy and lead to greater inflow of foreign investment
position the Naira to become the ‘Reference currency’ in Africa.
However, most of the questions so far pertain to only one aspect of the agenda, i.e., currency Re-denomination. We have monitored the reactions so far, and note that the concerns/questions raised so far are similar to the ones raised in all the countries that have undertaken re-denomination, including Ghana that is still implementing it now. We clarify some of the concerns as follows:

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐜𝐮𝐫𝐫𝐞𝐧𝐜𝐲 𝐫𝐞𝐝𝐞𝐧𝐨𝐦𝐢𝐧𝐚𝐭𝐢𝐨𝐧?
Currency redenomination is the process where a new unit of money replaces the old unit with a certain ratio. It is achieved by removing zeros from a currency or moving some decimal points to the left, with the aim of correcting perceived misalignment in the currency and pricing structure, and enhancing the credibility of the local currency.

𝐇𝐨𝐰 𝐰𝐢𝐥𝐥 𝐭𝐡𝐞 𝐍𝐚𝐢𝐫𝐚 𝐛𝐞 𝐫𝐞𝐝𝐞𝐧𝐨𝐦𝐢𝐧𝐚𝐭𝐞𝐝?

It is by dropping two zeros from the currency or moving two decimal places to the left. The name of the national currency will still be the Naira. However, during the transition period, the existing Naira will be referred to as the “Old Naira”, and the new one to be called the “New Naira”. After the transition period, the word “New” may be dropped. For example, the following equivalents will obtain as we re-denominate:



https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.cbn.gov.ng/redenomination/newpolicy.asp%23:~:text%3DThe%2520CBN%2520announced%2520a%25204,the%2520conduct%2520of%2520monetary%2520policy&ved=2ahUKEwid46G1l9SBAxXaU0EAHYBLCk4QFnoECA4QBQ&usg=AOvVaw1w6N8g_DxEsC_0_yD9yxre

If the issue of electricity is not addressed to increase productivity then the naira devaluation is dead on arrival.
Electricity is the koko followed by good roads and refinery.
If all of these are not properly taken care of it will back to inflation nigeria need to be productive

Mcreloaded:
If the issue of electricity is not addressed to increase productivity then the naira devaluation is dead on arrival.
Electricity is the koko followed by good roads and refinery.
If all of these are not properly taken care of it will back to inflation nigeria need to be productive

It's not devaluation but Re-denomination... It's what they call it. It's a bit confusing.

If our refineries are working optimally then we can refine what we use and sell both the crude and refined products.

Massive investments in our agricultural sector to increase production for not only self sufficiency but exportation.

Electricity is very important as well and I don't even see any sense in supplying neighboring countries with electricity when we don't have.

Generally, we just need to do more of exporting than importing.

Ghana went this same route in 2007 and it worked for them. I believe this can still work if we're sincere and not have people who would be scheming to sabotage the system.

frankson1:





It's not devaluation but Re-denomination... It's what they call it. It's a bit confusing.

If our refineries are working optimally then we can refine what we use and sell both the crude and refined products.

Massive investments in our agricultural sector to increase production for not only self sufficiency but exportation.

Electricity is very important as well and I don't even see any sense in supplying neighboring countries with electricity when we don't have.

Generally, we just need to do more of exporting than importing.

Ghana went this same route in 2007 and it worked for them. I believe this can still work if we're sincere and not have people who would be scheming to sabotage the system.

You are absolutely correct so far we can export and earn dollars.
U nailed it