Can A Redesign of A Countries Currency Note Improve Its Economy?

[Cryptomultiplier]

In recent news, it is the plan of the Nigerian government to redesign its currency notes. I don't know why such a project at this time is even mentioned, because other worst case scenarios that require redesign is left abandoned or nearly abandoned in total.
My thoughts is on how such a government at these time of flooding and inflation would think that by redesign the currency, such issue will be the remedy to the countries huge debt margin or natural disaster ongoing.
Do you think the effect of redesigning the nations currency note will be of benefit to the economy and nation at large?
Let's discuss!

https://nairametrics.com/2022/10/26/cbn-redesign-naira-notes/

[Gozie51]

In recent news, it is the plan of the Nigerian government to redesign its currency notes.

I have not heard this lately at least not today. You can share the link bro

Do you think the effect of redesigning the nations currency note will be of benefit to the economy and nation at large?
Let's discuss!

Definitely it not no where a benefit, not in the Nigerian context where people have no value for anything anymore.

The Nigerian currency have been redesign several times but today the exchange rate keeps dropping against foreign currency. Today a dollar to naira is 752/5 and in the last 18 months ago it was around $1 to #390. You can see the difference and madness running in the Nigerian economy.

It is needless to say that redesigning of the naira is not the solution but to demonitize the Nigerian political system and get serious minded people who will be selfless to service not to have shenanigans going their for personal profit and to make name as a past president, governor, senator or other political offices.

Yes, Nigeria government need to focus on more serious issues than mediocre agendas. A chance to try fresh blood is what is required.

[Fortify]

In recent news, it is the plan of the Nigerian government to redesign its currency notes. I don't know why such a project at this time is even mentioned, because other worst case scenarios that require redesign is left abandoned or nearly abandoned in total.
My thoughts is on how such a government at these time of flooding and inflation would think that by redesign the currency, such issue will be the remedy to the countries huge debt margin or natural disaster ongoing.
Do you think the effect of redesigning the nations currency note will be of benefit to the economy and nation at large?
Let's discuss!

https://nairametrics.com/2022/10/26/cbn-redesign-naira-notes/

If you polish a turd, it's still a turd. Having a fancy looking currency fixes nothing about the underlying economy and it's a bit of a silly question to ask. Often times these are actually hidden deflation methods, for example removing a few zeros off the end and re-issuing currency in new denominations. If your governments fiscal policy is revolving around whether to redesign the currency, instead of spurring growth and new jobs, then they might just be rearranging unimportant stuff. Just look at Zimbabwe, who actually ended up creating hundred trillion dollar notes, but you still needed whole wheel barrows worth of them to buy anything useful.

[Gyfts]

The redesign for Nigeria isn't an overhaul of the currency system, it's merely aesthetic changes. That won't do anything. If their concern is with counterfeiting, then I suppose the redesign would help in that regard. Won't help inflation.

If you wanted to help a country's economy, ditch the currency system for a currency that's deflationary or at the least is tied to a physical asset. The problem with any fiat currency is that the supply is infinite -- there isn't anything stopping the government from merely creating more. Obviously, overhauling the currency system is a radical approach that has detrimental economic effects in the short term. Long term, it's a viable solution to save a country's economy IMO.

[stompix]

In recent news, it is the plan of the Nigerian government to redesign its currency notes. I don't know why such a project at this time is even mentioned, because other worst case scenarios that require redesign is left abandoned or nearly abandoned in total.

You have the explanation in the same article you've quoted:

“In recent years, the CBN has recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 and N1,000 banknotes. Although global best practice is for central banks to redesign, produce and circulate new local legal tender every 5–8 years, the Naira has not been redesigned in the last 20 years.

It's nothing special, every country does so, even the Eurozone launched a new batch of banknotes designs in 2019,  the US has changed the design of the $100 in 2010, and Britain just replaced two of their banknotes just to change them again after the death of the Queen.

Nothing to do with the economy, its standard procedure.

[South Park]

In recent news, it is the plan of the Nigerian government to redesign its currency notes. I don't know why such a project at this time is even mentioned, because other worst case scenarios that require redesign is left abandoned or nearly abandoned in total.
My thoughts is on how such a government at these time of flooding and inflation would think that by redesign the currency, such issue will be the remedy to the countries huge debt margin or natural disaster ongoing.
Do you think the effect of redesigning the nations currency note will be of benefit to the economy and nation at large?
Let's discuss!

https://nairametrics.com/2022/10/26/cbn-redesign-naira-notes/

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.

[Majestic-milf]

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?

[Furious 7]

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

[The Sceptical Chymist]

Definitely it not no where a benefit, not in the Nigerian context where people have no value for anything anymore.

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.

[ChiNgadOr]

In recent news, it is the plan of the Nigerian government to redesign its currency notes. I don't know why such a project at this time is even mentioned, because other worst case scenarios that require redesign is left abandoned or nearly abandoned in total.
My thoughts is on how such a government at these time of flooding and inflation would think that by redesign the currency, such issue will be the remedy to the countries huge debt margin or natural disaster ongoing.
Do you think the effect of redesigning the nations currency note will be of benefit to the economy and nation at large?
Let's discuss!

https://nairametrics.com/2022/10/26/cbn-redesign-naira-notes/

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.

[Iroh]

In recent news, it is the plan of the Nigerian government to redesign its currency notes. I don't know why such a project at this time is even mentioned, because other worst case scenarios that require redesign is left abandoned or nearly abandoned in total.
My thoughts is on how such a government at these time of flooding and inflation would think that by redesign the currency, such issue will be the remedy to the countries huge debt margin or natural disaster ongoing.
Do you think the effect of redesigning the nations currency note will be of benefit to the economy and nation at large?
Let's discuss!

https://nairametrics.com/2022/10/26/cbn-redesign-naira-notes/

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.

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  

[Oceat]

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.

[Techkoy407]

In recent news, it is the plan of the Nigerian government to redesign its currency notes. I don't know why such a project at this time is even mentioned, because other worst case scenarios that require redesign is left abandoned or nearly abandoned in total.
My thoughts is on how such a government at these time of flooding and inflation would think that by redesign the currency, such issue will be the remedy to the countries huge debt margin or natural disaster ongoing.
Do you think the effect of redesigning the nations currency note will be of benefit to the economy and nation at large?
Let's discuss!

https://nairametrics.com/2022/10/26/cbn-redesign-naira-notes/

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.

[Zlantann]

In recent news, it is the plan of the Nigerian government to redesign its currency notes. I don't know why such a project at this time is even mentioned, because other worst case scenarios that require redesign is left abandoned or nearly abandoned in total.
My thoughts is on how such a government at these time of flooding and inflation would think that by redesign the currency, such issue will be the remedy to the countries huge debt margin or natural disaster ongoing.
Do you think the effect of redesigning the nations currency note will be of benefit to the economy and nation at large?
Let's discuss!

https://nairametrics.com/2022/10/26/cbn-redesign-naira-notes/

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.

[Wexnident]

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.

[bittraffic]

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.

[Darker45]

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.

[Razmirraz]

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.

[Iroh]

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.

[Rruchi man]

In recent news, it is the plan of the Nigerian government to redesign its currency notes.

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.