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THE SECRET REVEALED: 1NGN CAN EQUATE 1USD IF NIGERIA GOVERNMENT CAN DO THIS—BUSINESS—NAIRALAND

BY: SAMLEEN(M): 10:53am on February 15, 2018.

(Samleen is a username of a Nairaland Forum user. Nairaland Forum is the source of this article)

Welcome , lets get started by examining the top 10 performing currencies in the world to gain necessary insights before drawing our conclusions.

1. Kuwait Dinar (KWD): 1KWD = 1201.9611NGN
Bank notes: 1/4, 1/2, 1, 5, 10, 20 Dinars

Coins: 5, 10, 20, 50, 100, 200 Fils

2. Bahraini Dinar (BHD): 1BHD = 956.3254NGN
Bank notes: BD1/2, BD1, BD5, BD10, BD20

Coins: 5, 10, 25, 50, 100 Fils, BD1/2

3. Omani Rial (OMR): 1OMR = 936.2906NGN
Bank notes: 1/2, 1, 5, 10, 20, 50 Rials

Coins: 5, 10, 20, 50, 100 Baisa and rarely used 200 Baisa

4. Jordianian Dinar (JDD): 1JDD = 507.6507NGN
Bank notes: 1, 5, 10, 20, 50, Dinars

Coins: 1/2, 1, quirsh, 21/2, 5, 10 Piastras

5. British Pounds (GBP): 1GBP = 504.8154NGN
Bank notes: £5, £10, £20, £50

Coins: 1P, 2P, 5P, 10P, 50P, £1, £2

6. Caymanian Dollar (KYD): 1KYD = 432.7622NGN
Bank notes: 1, 5, 10, 25, 50, 100 Dollars

Coins: 1, 5, 10, 25 coins

7. Euro (EUR): 1EUR = 448.2926NGN
Bank notes: €5, €10, €20, €50, €100, €200 and €500

8. Swiss Franc (CHF): 1CHF = 388.1395NGN
Bank notes: 10, 20, 50, 100, 200, 1000 Francs

Coins: 5, 10, and 20 Rp/cts, 1/2, 1, 2, and 5 Francs

9. United States Dollar (USD): 1USD = 360.1395NGN
Bank notes: $1, $2, $5, $10, $20, $50, $100

Coins: 1C, 5C, 10C, $1/4, $1/2, $1

Go back to the list once again and check what’s the highest denominations of each currency (and population of users of each currency). You will discover that the top performing currencies do not have high face value like we have 500NGN and 1000NGN in Nigeria.

Also , you will notice that the top performing currencies have coins with denomination of very low face value.

The highest of the denomination is 1000Franc followed by 500EUR. 1000Franc is not in frequent use and the highest Franc denomination next to it is 200Franc (not like 500NGN as we have in Nigeria). Also the use of 500EUR will discontinue this year 2018.

Get a hold on history of exchange rate Nigeria, you will find out that every introduction of new high denomination currency note has adverse effect on it.

WHY HIGH DENOMINATION CURRENCY NOTE IS BAD

    1. Increase in prints of currency notes with high face value e.g. 1000NGN makes other lower currency less important and less useful. This is gradually leading to upgrade of price of goods and services in market.
    1. It makes stealing and looting of cash easier as larger amount of money value can be parked into a very small space. Why do CBN is currently printing more high face value alone? I think it is in a bid to enhance hoarding of cash against the coming 2019 general election.
    1. 500NGN and 1000NGN are no money for the common man, go to the market and examine what denomination are most in use.
    1. It’s in a way opposing the cashless policy by the Federal Government of Nigeria.

WHAT DOES THE WISE NATIONS DID?

    1. United States of America used to have $500, $1000, $2000 currency notes until December 14, 1945, when the high denomination bills were last printed and officially discontinued on July 14, 1969 by Federal Reserve System.
    1. European Central Bank announced on 4 May, 2016 that it would phase out the 500EUR notes by the end of 2018.

OTHER FACTORS THAT MAY AFFECT THE EXCHANGE RATE OF A CURRENCY INCLUDE:

    1. Rate of goods/services importation and exportation.
    1. Availability of currency and number of complying users.

The illegal printing of currency by the CBN according to as reported by some media outlets has a long way to value on our cash.

    1. Inflation rate.
    1. Government debts and federal reserve.
    1. Political policies and stability etc.

MY RECOMMENTIONS

Nigerian government should permanently discontinue and remove 500NGN and 1000NGN currency notes from circulation. Reintroduction of 50kobo, 1NGN and 2NGN coins should be done.

A serious government fighting corrupting will yield to my advice as abundance of looters from hoarding and keeping cash in safe place instead of bank.

CAVEAT EMPTOR

This write-up is a personal option resulting from my many observations. It is not a scholarly work and should not be treated as one.

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