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The Chairman of the Committee, Sen. Bassey Otu (PDP- Cross River) issued the directive while speaking to newsmen in Abuja. Otu noted that the re-denomination of currency required the approval of the National Assembly, warning that the CBN must avoid sending the wrong signals to stakeholders in the economy.
He said it was vital for the CBN to discuss the implications of the currency re-denomination with the Senate before it was implemented. `` I believe that a project of this nature requires parliamentary approval because there are numerous fiscal implications on the entire economy.
``The CBN must be very careful in order not to send the wrong signal to the domestic sector and external partners that the Nigerian currency is valueless. ``So, we are sending a letter to them (CBN) to stop all further actions on this until the Senate of the Federal Republic is properly briefed,'' he said.
He warned that the conversion of some denominations into coins would lead to a waste of public funds as the previous exercise did not yield the desired result. ``In 2005, the CBN undertook a major currency restructuring to re-coin some denominations which ran into billions of Naira. ``It did not work at all because both the goldsmiths and the blacksmiths converted the coins to moulding bangles, earrings and so on,'' he added.
The Committee chairman said there were other mechanisms available to the apex bank to tackle the problem of inflation other than the re-nomination of the nation’s currency. Click to signup for FREE news updates, latest information and hottest gists everyday
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The senate shld nt only suspend dis useless and meaningless plan bt stop it completely. CBN shld use d money meant 4 producing new money in setting up agric farms or other ventures dat will benefit nigerians. Our leaders are clearly daring or provoking nigerians.
ReplyDeleteWell said. If this can be supported by well meaning nigerians,our economy & currency value will stand strong....Stanley Ovie.
ReplyDeleteThis is ᵃ good one! I think they need to think this process through because the disadvantages of this action outweighs the advantages
ReplyDeleteThe question is: has the National Assembly as a whole ever recorded any success stopping our sissy-voiced CBN governor? As expected, he would ride roughshod over them. Keep your eyes peeled.
ReplyDeletegover should forget it they shld use that 40.3b to do other not to pritin 5000 note.look at our( ret) soldier.civil serv.teacher useless gover'
ReplyDeleteInstead of N5000 note they should make it N20000 so that civil sevants can receive one note and bring balance at the end of the month. On a more serious note no body should introduce another coins which we never use.
ReplyDeleteI dont think the governor of CBN knows what he is doing.First, it is not at this time whereby the country is facing a security chanllenge and is looking ways to stop the sponsoring of such activities. The CBN policy will only make it easy for the sponsoring of this activities. Secondly, this will not have a long run positive effects on the economy of Nigeria. The CBN governor should know that Nigeria is not a producing economy or country but a consuming one and as such the short negative effects of this policy will persist in the long run. Sanusi should better dropped this idea, Soludo wanted to try it but later drop it. I dont know what the cordinating minister of the economy is doing, looking at sanusi to be palying with the nigeria economy.The current problem in the banking sector and capital market is caused by him. He has only suceeded in killing investors intrest up till now he has not restore it back,the capital market is still struggling with this problem. The market capitalization is still around 6 and 7 trillion.
ReplyDelete