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Rational Perspectives

The wrong way to defend the naira

Naira, CBN

A REPORT on Page 33 of the June 21, 2019 edition of The Punch Newspaper indicated that “between April 2018 and March 2019, the Central Bank of Nigeria injected over $42.3bn into the foreign exchange market to ensure liquidity in that segment of the economy.”

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Free-floating the naira is disobeying the law – CBN

THE title above is from Tuesday, June 11 edition of the Daily Independent Newspaper. In the related report, CBN Governor, Godwin Emefiele, engaged stakeholders, at an interactive session in Lagos, on why he has rebuffed the incessant calls by some ‘experts’ to deregulate and float the naira exchange rate, as a product of  the actual market dynamics of demand and supply.

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AFRICA LEADERS

Collegiate Presidency and national harmony

THE calls for restructuring of the national space have become unceasing in recent years. Therefore, the narrative below has certainly become increasingly relevant this year and may hopefully serve as a wake-up call to abort inevitable the dire consequences which will clearly jeopardize our relationship as a nation and forestall the frustration of the misplaced hope of Nigerians for a better life. I wish you Happy 2019 Democracy Day! Please read on.

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Naira, CBN

The inevitable choice between N10,000 note and redenomination

NIGERIA’s Currency   profile has, notably failed to serve the needs of our people and our economy. Arguably, lower denominations of primary kobo coins and low value notes have been largely rejected because of their extremely negligible purchasing power. Overtime, the Naira Currency has lost significant value, as the highest existing compact denomination of N20 (the popular Muri) in 1977 was equivalent to over $20.

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CBN

Polymer Currency: Waste, Deceit & Commonsense

IN April 2019, CBN made good it’s over a year old promise, to tackle the acute shortage of lower Naira denominations by flooding the market with fresh supplies of N50, N20, N10, N5 Polymer denominations, to facilitate settlements and restrain compelled higher off-the-shelf prices in millions of retail outlets, nationwide. It is not clear, if the N100 paper denomination, which is alleged to bear an offensive religious symbol, was included in the fresh currency profile.

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Naira, CBN

Kobo coins and failed monetary strategy

IN an apparent admission  of public rejection of lower Naira denominations for daily transactions, the CBN has embarked on a project designed to reportedly mop up, over-circulated and mutilated bank notes from the market. CBN Deputy Governor, Operations, Folashodun Ade Shonubi, announced, in April 2019, that the apex bank was putting in place strategies to enable “direct disbursement of lower bank notes to various market Associations and Merchants through their respective Deposit Money Banks (DMBs), in order to eliminate unfit and counterfeit currency from the system, to sustain public confidence and preserve the integrity of the National Currency, as enshrined in Section 2 of the 2007 CBN Act.”

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Inflation, terrorist

INFLATION: The invisible super terrorist

NIGERIANS know too well, that sinking feeling when all items on the household shopping list cannot be covered by the usual monthly budget. The options invariably become whether to cut down or do without some basic items, or alternatively make do with less preferred but cheaper substitutes. The depressive impact of a continuous price spiral on the average family’s welfare is, therefore, a very familiar theme. 

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Remove subsidy and die or keep subsidy and die ― Henry Boyo

The IMF Managing Director, Christine Lagarde, recommended, at the latest IMF/World Bank, Annual Spring meeting in Washington, that the removal of subsidy from petrol price would restrain Nigeria’s rapid debt accretion, so that erstwhile trillions of Naira, subsidy allocations could be deployed, annually, to improve the quality of health, education and infrastructure.

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