Naira Redesign: Buhari’s Solution To Currency Crisis Insufficient – Expert Warns

Forum 1 year ago

Naira Redesign: Buhari’s Solution To Currency Crisis Insufficient – Expert Warns

An economist, Idakolo Gbolade, has insisted that President Muhammadu Buhari’s decision to allow only old N200 notes as legal tender for the time being is insufficient.

Gbolade was reacting to Buhari’s Thursday address to Nigerians over the currency crisis.

He stated that the feasible solution is for the Central bank of Nigeria to circulate at least N500 billion new naira notes in the bank system.

He said, “This move is insufficient as we all know that higher denominations of N500 and N1000 are the most used in the economy, and the approved N200 notes are very few in circulation. The value of the Naira also makes the president’s decision untenable because lower denominations of Naira notes have lower purchasing power and might not necessarily change the dynamics on the ground.

“The only feasible solution is for the CBN to make available at least an additional N500 billion of the new notes into circulation to ease the tension in the land and ensure strict monitoring of Banks to ensure they fulfil their obligations to the citizens”.

On Thursday, Buhari approved that the old N200 notes should co-exist with the new notes for 60 days.

DAILY POST had reported bloody protests over cash crunch rocked Edo, Delta, Oyo, Osun, Lagos and other states on Wednesday leading to the loss of lives and properties.