Topic: Can A Redesign of A Countries Currency Note Improve Its Economy? - page 5. (Read 804 times)

Looking at the positive effect of it. Maybe the central bank is aware that there are lots of cash outside banks and they are looking for a way to bring them all together into the banks, to eliminate counterfeit money. Another strategy to there advantage is maybe this will prompt business traders to start asking for digital currency for transactions and this could lead some Nigerians to E-naira

The major disadvantage of it will be the cost of it. We all know its is kinda of expensive to redesign a currency. Considering the situation of the economy, this will surely affect it. There are other pressing issues to siphon this funds to most importantly the flooding issue here.

Another disadvantage is people hoarding cash might be pushing it out with some trying to exchange it with foreign currency and this hampers or devalue the Naira more.

Nonetheless the redesigning will surely lead to inflation and if they get wrong this is time then the current management will go down in history as the worse we have ever had

I remember reading about India redesigning her own to curb corruption and get people exchange their old designs that may be stashed or hidden somewhere for the new. I guess that is part of the reason certain governments occasionally redesign their own.
Fortunately for countries like that("third world" countries like Nigeria) , much of their people depend less on government. They are typically their own government, providing their own water, security, electricity, housings, roads etc. They hardly depend on government and its debt. They mostly run their own business and own farms... all these put together are supposed to add to cost of living and cause inflation, still their produce are relatively cheap compared to places that are highly dependent on government.
In regards flooding, I guess you may see disasters like that more in modern areas. They are usually man-made problems like blocked drainage system, dirty gutters, building on natural water ways, etc. It's mostly the symptoms of modernity. The modern world should work hard to keep the environment in order and learn to be independent of governments like people in countries like that who are hard to control or centralized through dependency. I have noticed how they easily create their own mobile/decentralized alternatives when the centralized system is impose on them.

Becareful copying the modern world. If you have problems with inflation, economy or flooding, you could go and live in rural areas or orderly places with less government Presence. Things produce by the locals should be cheap there. By the way, their economy is hugh and self-sustaining but the modern world don't always recognize it and may call it "informal" or something like that

The only benefit of redesigning the banknotes would be increasing the level of security and lowering the amount of counterfeit banknotes currently being in circulation. I'm not an expert on Nigerian economy and finances, but I don't think that there are that many counterfeit Nigerian naira in circulation. The criminals would be making way more money by counterfeiting US dollars and euro, not Nigerian naira.

What is wrong with the designs of the existing notes? When it is expensive to print new currencies. A newly designed note is the least of Nigeria's priorities right now. There are more pressing issues that need attention in the country.

My question is, can redesign increase the value of our currency?
Its beauty can't gain its value against other countries currencies. What we need is to let our currency compete against the dollar.

At this time, printing more currency will plunge to the highest inflation of the century

They cannot get any benefits upon doing it since its like replacing their old money to new one so maybe we can conclude if there's a changes happen if they back up with something good things which it can boost up there economy. So if redesigning without anything good back it maybe we can see the same thing with this.

It seems they are already done redesigning it, but just letting the general public know the new developments and when it won't start becoming effective. They claim that a new design will help to stop counterfeiting as a benefit, but the question is for how long will it be effective? What stops counterfeiters from counterfeiting the new design. Are there no other effective ways to curb counterfeiting without spending massively on redesigning a whole national currency. IMO, this is a temporary solution to a problem that is long term.

I think the government has been strategic and is now doing this for a purpose. The redesigning of the currency notes isn’t to improve its economy, It’s to eliminate counterfeit currency and perhaps to mop up cash in the hands of some certain individuals(politicians).

All old notes would cease to be worth of any value by the 1st of February 2023 while the general election to elect a new president is holding on 25th of February 2023. So, perhaps this is a way to prevent or curb vote buying at the polls.
Some politicians vying for positions in the government would have probably stashed billions in cash to enable them canvass and “persuade” the people for their votes.

Naira banknotes are the identity and proof of the sovereignty of the Nigerian nation, as a form of love and pride for Naira, the Nigerian people can support programs that are being intensified by the government. Redesigning a country's currency is not to improve its economy, it's not part of the plan and the government can't guarantee a currency redesign can improve the economy.

One of the reasons the Nigerian government printed the new Raira design is to suppress the circulation of counterfeit money by irresponsible people. Each new currency issued has a number of advantages, including a design that is easier to identify, increased security so that it is not easily counterfeited and increased durability so that it does not get worn out and damaged quickly.

One of the reasons mentioned is the rampant counterfeiting of the current currency. New and improved currency designs would at least stop the flow of these fake bills. Hopefully, the security features of the new bills would prevent criminals from making fake copies.

So in a way there's an indirect economic benefit that the country gets from redesigning currencies. After all, if fake money is making up a large amount of the circulating supply, the value of money decreases. It contributes to the inflation. It weakens the currency.

But as far as direct economic effects are concerned, I'm afraid it doesn't have any.

If they decide to take out the old ones from the circulation I guess it could help. They don't do that though at least in my country they don't.
Nigeria afaik already have a national digital currency (enaira) so it's interesting to see they are redesigning bills instead of distributing cheap phones and improving internet speed and availability for the enaira adoption.

No. Changing banknotes is solely afaik for the purpose of preventing counterfeit money. The design would hardly matter especially since the value of the money isn't based on the design but rather on the value given to it by the government. I don't even think inflation should be discussed with this announcement, it's goal was never to fix it in the first place. Would've probably agreed with questioning it if they said it was combat against inflation, didn't see the article saying it though.

An average Nigerian sees this move by the Central Bank as a waste of funds because of the high rate of poverty and unemployment. They feel that the money that would be spent On redesigning these banknotes should be used to tackle some more pressing economic challenges. Others are opposing this move because they see is an avenue by the government to loot funds by inflation of the contract sum.

But in recent times Nigeria has experienced a high rate of fraud which includes currency clowning and counterfeit banknotes. There are even times when commercial banks' ATMs dispense counterfeit currency notes. This move by the Nigerian CBN will at least check this financial crime to a large extent.

it won't change their economy at all,
because their currency remains the same price,
if they or their country wants to progress maybe something like this is the right way,

• Literacy with the Latest Technology
• Maintain Facilities and Infrastructure.
• Investing in the Capital Market.
• Improving Education and Skills Possessed.
• Buying Bonds.
• pay off debts and don't make any more debt

instead of changing the paper, it will have no effect.

Every country does the redesigning of their currency to improve the looks and add some security features that would be hard to forfeit and also to change some features that are present in a coin or paper bill already. And no, there's nothing it can do to you and the other countries economy. Perhaps it's just your first time to see a currency being redesign despite of your country's situation. You'll get over it soon once you see what are the results of having a new face of your currency.

I found your topic head very amusing and I chuckled a bit. I wonder if you’re really serious about the question in your topic.
A change in the design of a country’s currency doesn’t add any value to the currency nor does it improve its economy in any way. I think anyone with the basic knowledge of economics would know that.

If a change in design did have an impact on its value and on the economy in general, we would have every country designing and redesigning their currency notes. The most beautiful and skillful design gets to be the one with the highest value  

I don't see how this is going to boost a country's currency but who knows who the government are really planning about this. I could remember once the Zimbabwe currency was redesign to the extend that the citizen thought all hope is lost but at the end they were able to revive there currency and make it live again.
It all depends on what the plan is and what they had out in place to make sure that the currency will survive if this is done.

Ouch, that's harsh--but I don't live there and you could be spot-on for all I know.

Is there a major counterfeiting problem in Nigeria?  One of the points mentioned in the article is that new banknotes with enhanced security features make it much harder to counterfeit.  That is actually one tangible way upgrading a country's paper money might help the economy, but if the problem isn't rampant then I wouldn't expect to see much of an effect.  And yeah, aside from that I don't see how the new notes are of any real help to Nigerians--they're not even harming them by representing a devalued currency; they're just neutral in their impact as far as I can see.

Wonder if they've got tracking devices embedded in them.  C'mon guys, we all know that's coming if not here already.

Actually in this case it is not only about Nigeria but indeed for all countries which of course have a currency and redesigning it does not mean anything because everything remains the same in terms of value, only the visual appearance is different so this has no impact.
A country's economy can be improved in many ways than I know and redesign is not there lol

This is quite ridiculous and misplacement of priorities if you ask me. In a nation where the naira is constantly devalued against the dollar and pounds, I doubt there's anything the rebranding of the #200, 500 and 1000 notes will do because we'd still experience the inflation.
 This time wasted to change these notes can actually be invested into something more productive like making provisions for the country to become a BTC hub or something else to help the naira and not to rebrand! Or possibly, why not take that time to fix the flooding problem that is slowly but surely putting the economy at risk?

Such a thing would do nothing to improve the economy at all, however this is a classic move by politicians, since they know they cannot stop the inflation that is going around Nigeria they need to do something so it seems they are actually working and doing something, so they do something completely useless like this to show how hard working they are, it is ridiculous I know but they prefer to do this than to tackle the real issues, since it will require great sacrifices from the population and from them as well.