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

[Taskford]

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/

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.

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[Marykeller]

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

[davis196]

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.

[Ucy]

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 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

[Zaguru12]

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!

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

[Gozie51]

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.

Lol but that's the truth of it all. It wouldn't matter anything because that is not the issue about the Nigerian economy. The naira is not the issue but it is affected because the effect of corrupt leadership is the cog in the wheel of the Naira.

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,

No. IMO I don't think so. And this is not the Nigerian problem. Fortification of institutions and make them work is most crucial.

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

Yeah I don't think it is rampant. People easily detect it. But then the challenge is in the government itself. The security architecture to apprehend and seriously punish offenders and criminals have been compromised. No government will claim not to know perpetrators of illicit businesses but the political will to execute punishment is lacking and this is important.

--they're not even harming them by representing a devalued currency; they're just neutral in their impact as far as I can see.

The government need to look at how to safe the devalued Naira from total worthless status. They
Imagine the CBN governor (that's the Nigerian Central Bank governor) was summoned to appear before the senate to answer to his financial policies and the reason for the free fall of naira and its depreciation, yet nothing is heard about that and he has not been fired.

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

Yeah it surely has some security that are visible to "common and frequent user". The printing is different, it has security thread and watermark like resistance.

[Hydrogen]

Currency redesign could be a prelude to policies similar to india's bank note demonetisation of 2016.

2016 Indian banknote demonetisation

On 8 November 2016, the Government of India announced the demonetisation of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. It also announced the issuance of new ₹500 and ₹2,000 banknotes in exchange for the demonetised banknotes.[1] Prime Minister Narendra Modi claimed that the action would curtail the shadow economy, increase cashless transactions and reduce the use of illicit and counterfeit cash to fund illegal activity and terrorism.[2][3][4]

The announcement of demonetisation was followed by prolonged cash shortages in the weeks that followed, which created significant disruption throughout the economy.[5][6][7][8][9][10] People seeking to exchange their banknotes had to stand in lengthy queues, and several deaths were linked to the rush to exchange cash.[11][12]

https://en.wikipedia.org/wiki/2016_Indian_banknote_demonetisation

Redesign makes it easier to identify previously issued paper currencies for demonetisation purposes.

It might also result in contraction of money supply due to start up time required to switch to producing a new line of paper currency.

Contraction of money supply is a policy some central banks of the world are currently folllowing in an effort to boost national economies.

There is a reason and motive behind most of these moves, which are not at all random.

It helps to know some basic fundamentals else people will have a very difficult time comprehending what is happening in the world.

[zasad@]

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/

Most economists believe that non-cash money is much safer. It is very difficult to rob a person, because the card has limits on withdrawals per day, week or month. Paper money needs to be constantly updated, because it loses its appearance, and this is a big expense for the treasury. Metal coins are more expensive to make than their face value.
We need to unite banks and create fast payment systems. In my country, taxes, utility bills have a QR code. I just need to open the bank application on my phone, point the camera and confirm the payment. This is called the fast payment system, which is supported by most banks.

[stompix]

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.

Why are you people so against an idea that others don't give a damn about and see it as normal?
The western countries do the same over and over, China did the same thing 8 years ago, Jpana will do it the next year, every country does so as the technology has improved in both fields, making it both easier to create intricate patterns but also easier to copy old ones designed half a century ago.

It's this continuously bashing of everything the government does is bad going to help you, or are you going to strat denying even the good things as being god just because it's a politician doing so?

What is wrong with the designs of the existing notes? When it is expensive to print new currencies.

Probably you're not aware but banknotes get printed all the time, in every country tons of notes are being withdrawn from circulation as they are being damaged every day, and the CB prints the replacement, so it will be the same thing long term.

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.

Oh, the irony, when people dump their naira for other currencies evaluating it's bad for the economy when they are dumping it for Bitcoin again evaluating it, it's great for the economy. You just have to love it, no matter what some will do it will be bad because it must be bad!

[Renampun]

This is related to psychology, most countries redesign their country's fiat note currency with the aim of increasing the interest of money holders and investors. if asked whether it will have an impact on the economy, it can say the impact will still be there but not so significant.

there is also a country that redesigns its banknotes for security purposes (This is the quote I read in an article)

He added that the issuance of this new currency started with public complaints that the old banknotes were very easy to counterfeit. On the basis of this complaint, the central bank is determined to strengthen the security system for these banknotes. These banknotes are strengthened in security starting from the design, the reliability of the security elements, and the durability of the money material.

[kryptqnick]

I initially thought that redesigning meant something like transforming the fiat currency itself, changing monetary policies, choosing a different name for the new currency or something in this line of thought. That, while risky, can help if the fiat situation is very bad. But from the article the op linked, it's clear that it's just literally about a new design for the banknotes. In that case, one possible advantage, as the article notes, might be less counterfeit money, but that's not going to have any profound impact on the currency, let alone the country's economy. I wish Nigeria focused on creating a favourable legislative climate for crypto usage and businesses instead of doing useless things like making new designs for their fiat banknotes.

[Anonylz]

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/

Removing too much liquidity in circulation will reduce the rate of inflation. The government is very aware of what they are doing, this action is to combat the high rate of corruption as well. Because of the upcoming election, politicians have been hoarding money for their bribing activities. This action will force them to release that money or face a great loss. Either way, they are not going to be very pleased with this sudden news.   

[uneng]

From times to times the local fiat currency of a country must be redesigned through economical plans which have as goal to improve the economy of a country. Where I live we already had 7 different currencies, being the last and currently one active and alive for 28 years so far. I can say it was a good plan which made the country quite stable for a while, although we are entering a very serious stage of our economy due to populism, corruption and greediness from governments. But if implemented correctly in Nigeria, an economical plan like this can proportionate a very prosperous age for your nation.

[Davidvictorson]

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!

In respect of Nigeria's Central Bank that announced a redesign of her currency, I am starting to think that there's some good in it. And I seem to agree with this twitter user's opinion on this. Here is what he said - This sudden Naira redesign and note-swap announcement by the CBN will do good wonders.  People will have to forfeit huge amounts of money that they’ve stored away in cash (majorly from corrupt process, intended for vote buying) or start doing giveaway. If you think you can use the money to buy properties, you lie! No dealer will accept huge cash from you from now, until January 31st when the old notes are useless. If you think you’d convert to dollars, forget it. No BDC(bureau de change) Operator will take huge amounts of cash from you. It’s also strategic if you consider the fact that the CBN is effecting the plan two months to a Presidential elections. All old Naira notes must be out of circulation in the 45 days between December 15- Jan 31st. In short it reduces the number of the currency in circulation thereby reducing inflation.

[Marykeller]

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.

Why are you people so against an idea that others don't give a damn about and see it as normal?
The western countries do the same over and over, China did the same thing 8 years ago, Jpana will do it the next year, every country does so as the technology has improved in both fields, making it both easier to create intricate patterns but also easier to copy old ones designed half a century ago.

It's this continuously bashing of everything the government does is bad going to help you, or are you going to strat denying even the good things as being god just because it's a politician doing so?

What is wrong with the designs of the existing notes? When it is expensive to print new currencies.

Probably you're not aware but banknotes get printed all the time, in every country tons of notes are being withdrawn from circulation as they are being damaged every day, and the CB prints the replacement, so it will be the same thing long term.

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.

Oh, the irony, when people dump their naira for other currencies evaluating it's bad for the economy when they are dumping it for Bitcoin again evaluating it, it's great for the economy. You just have to love it, no matter what some will do it will be bad because it must be bad!

As long as there's no confidence in one's currency because of a lack of stability and loss of value, other strong currencies must triumph over theirs. This move by the Nigerian government is just an effort in futility. A move that will further hurt the already weak naira.

This news is coming from a Govt that just presented a budget that would be financed mainly with loans. The dollar price to Naira may go more than expected before December. The rate of inflation and commodity prices will skyrocket.

[eaLiTy]

~
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.

The specific reason the Nigerian government is telling is to curb the counterfeiting but some reports says that the issue is not that big and are blown out of proportion and in one of the old reports from the central bank i could find, says that less than 1% of the currencies are counterfeited.

Another aspect that is said for the change in design is control the ransom payment due to kidnapping and terrorism. I am not aware of the crime rate and how frequent are these issues to have a major change in the economy.

[BigBos]

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!

Depending on how big the reserves are to back up the money and to redesign it, the circulation of money that has been spread needs to be withdrawn or at least process the expiration date so that everyone knows which paper money is valid and which paper money the government has launched in the latest form. But in most cases it is to withdraw the long circulation of money that takes years of betting.

[Cryptomultiplier]

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!

In respect of Nigeria's Central Bank that announced a redesign of her currency, I am starting to think that there's some good in it. And I seem to agree with this twitter user's opinion on this. Here is what he said - This sudden Naira redesign and note-swap announcement by the CBN will do good wonders.  People will have to forfeit huge amounts of money that they’ve stored away in cash (majorly from corrupt process, intended for vote buying) or start doing giveaway. If you think you can use the money to buy properties, you lie! No dealer will accept huge cash from you from now, until January 31st when the old notes are useless. If you think you’d convert to dollars, forget it. No BDC(bureau de change) Operator will take huge amounts of cash from you. It’s also strategic if you consider the fact that the CBN is effecting the plan two months to a Presidential elections. All old Naira notes must be out of circulation in the 45 days between December 15- Jan 31st. In short it reduces the number of the currency in circulation thereby reducing inflation.

It somehow occurred to me that those who have stashed away huge amounts can take it to the bank and exchange it for the new notes. Or what do you think. It would be somehow to just abandon all old currency kept away.
The banks however will make it known on how to swap old notes in huge sums for the new notes. I hope and pray that this development contributes immensely to the case of counterfeiting and innseecurity in every possible form.

[roslinpl]

The economy of Nigerian was totally crashed.Not only Nigeria,most of the developing countries leads to this way of economic condition.This economic crash due to the continuous effect of Corona and Russia war.Russia war increased the oil value over most of the developing countries.People of Nigeria was not able to run their family with the recession.So the government made the good way to handle this economic situation.Other countries should look into this for their country economy.

[trendcoin]

Redesigning the country's currency does not change the economy, but can affect people's psychology... I adopt Neo liberal monetary policies, but I know that Keynesian monetary policies aim to influence the psychology of the masses with such solutions. In today's crisis period, "post Keynesian" discourses are starting to rise. Considered in this context, this strange method may have some benefit in terms of the "post Keynesian" method. Although it didn't sound like a very smart idea, I didn't see it as a harmful idea...