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

[Asiska02]

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/

The nation is dealing with a number of issues, so starting with the redesign of the fiat currency is a step in the right direction for solving those issues. I don't see the currency change harming the people because the justifications are clearly stated and justified, but rather helping the nation's economy.

Since the news broke, there has been an increase in the naira's price in relation to the dollar. This will continue to be an issue since those who have been hoarding or hiding naira notes for a while would want to convert them for dollars because they won't be usable beyond the central bank's specified period of time. Now that dollars are in strong demand, their exchange rates to naira would increase dramatically. After the currency has been redesigned, the price equivalent will change vice versa.

Politicians can never be completely trusted, but it's possible that they have a secret plan to rebuild the currency. After everything our country has been through, we may have to deal with another political crime from our leadership if their true intent is not transparent to the general public. As of right now, it appears that they are moving the nation's economy in the right direction.

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.

The Nigerian government is redesigning the fiat money for a number of reasons, including this. Many Nigerians have fallen victim to being conned by counterfeit naira notes, which is a big concern for the country's citizens. The highest denomination notes in the country, the N500 and N1000 notes, make up the majority of counterfeit currency and have done a lot of damage to people. If this was one of the primary reasons they decided to redesign the currency, I have no issue with it.

[serjent05]

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 think the Government has made it known why they are doing this even if most of the citizens might not agree with the move to redesign the 200, 500, and 1000 Naira Notes. They claim that there are too many of those monies in the hands of Politicians that are planning to buy election votes in the coming 2023 General election and we know what the story was with the last concluded primary elections of some 2 major parties.

It won't have any effect on the vote-buying spree of politicians, since politicians can just exchange their old notes for a new ones and then continue buying votes.  If this is one of the major reason why the government is redesigning notes, I found the people behind that government laughable.

Also, the government mentioned that, with many of the Kidnappings that have happened recently, Billions of Naira are in the hands of the Bandits and their sponsors and this will either all of them to return those old designs to the bank or choose to lose them when those notes expire as Nigerian Legal tender by 31 January 2023.

So the new design will be use to trace criminals, still, criminals is possibly one step ahead of the government, I am sure since one of the replies stated that many government officials are looters, these criminals will just pay someone from the banking institution to clear all traces of money exchanged for the new notes.

I too believe there would have been a better way to address the insecurity Issue the country is facing and deal with the corrupt politicians instead of spending money that the country doesn't have on redesigning and printing new currencies which would have been used for other very important areas of the economy like the flood issue the country is currently facing.
 

They choose that one because it is easier to implement and easier to loot money for the development and production of that new note.  The government should focus on how to improve their GDP.

[crzy]

I too believe there would have been a better way to address the insecurity Issue the country is facing and deal with the corrupt politicians instead of spending money that the country doesn't have on redesigning and printing new currencies which would have been used for other very important areas of the economy like the flood issue the country is currently facing.
 

They choose that one because it is easier to implement and easier to loot money for the development and production of that new note.  The government should focus on how to improve their GDP.

A corrupt government will always find a way to get easy money and printing a new design money might be one of the best option for them.
I'm also wondering why there's a need to redesign the currency where in fact it doesn't change the value of it.

If they really want to make their currency more powerful it's better for them to focus on important matter on how to deal with their economic problem. In my country, we printed a lot of new money almost every new president they redesign it but look at our currency right now, it is still weak.

[Taskford]

I too believe there would have been a better way to address the insecurity Issue the country is facing and deal with the corrupt politicians instead of spending money that the country doesn't have on redesigning and printing new currencies which would have been used for other very important areas of the economy like the flood issue the country is currently facing.
 

They choose that one because it is easier to implement and easier to loot money for the development and production of that new note.  The government should focus on how to improve their GDP.

A corrupt government will always find a way to get easy money and printing a new design money might be one of the best option for them.
I'm also wondering why there's a need to redesign the currency where in fact it doesn't change the value of it.

If they really want to make their currency more powerful it's better for them to focus on important matter on how to deal with their economic problem. In my country, we printed a lot of new money almost every new president they redesign it but look at our currency right now, it is still weak.

On brighter side it creates demand since there are investors who want to see good design on some notes and might their action can gather attention from global investors. On darkest side maybe those corrupt politician just use this alibi for them to get more money from government funds.

But nothing happen unto this plan even how good the beautification they do if their official is corrupt since for sure there's no investor will spend their investment on a country if they know that they cannot get huge benefits especially if their officials are so greedy on money.

[Adbitco]

As a good citizens i m to my country and with the way country are going currently redesigning our currency is the best option & decision taken so far, have you considered NGN circulation?
Yes, Let me break it down for you to understand why it's very important the redesigned our currency;
1. Our currency have been HODL for long by ex Presidents and Governors.
2. Those who were in power since 1984 have just practically hide our currencies to themselves and to their entire generation thinking the currency would remain the same continually.
3. To avoid bribery and corruption in this coming general presidential elections via 2023, Those political parties that claims they have money to bribe young youth with their stolen money will be no way and useless for them
4. We will have enough supply which might likely reduced the country hardship
5. Those Our looted funds will be invalid and useless to those who hold and stole from the poor Nigerians
6. This will restructure Nigeria after the General presidential Election, because those politician who think they have money could be kicked out and possibly it may leads to readjustment of some unfavorable constitution and condition sets in our jurisdiction & country.
7. Those Kidnappers that kept hiding their selves would have no option for those money to be entirely wasted, and with this they would be all reveal. There are more benefits to be listed


They have already Issued a notification to market women and traders holding money in their locality to make a deposit to the bank with only newly created account of maximum NGN 5M and old account of maximum of NGN 50M in other to have the new notes collected, therefore i don't think changing Nigerian Notes would have any bad effects on the poor Nigerian rather only to the politician who is holding billions and trillion Naira to their respective home.
As a matter of fact, i don't have any Naira note in my home all savings in Bitcoin and Usdt so i advised every smart Nigerian who is in this forum to do same and wait till the new Naira Note go in circulation or Generally acceptable. Possibly you could leave few NGN to your account for just PoS & shopping transactions.

WE MUST HAVE A NEW NIGERIA, AND MAKE THOSE WHO THOUGHT THEY HAVE STOLEN AND HODL NGN USELESS.

[gantez]

WE MUST HAVE A NEW NIGERIA, AND MAKE THOSE WHO THOUGHT THEY HAVE STOLEN AND HODL NGN USELESS.

There are some questions to this here. Is hodl of the currency the issue ? I think not so . If the people are corrupt and not check they will go back to hodl again if they release the old currency with them. This is for the government to make laws against such and follow it up like certain amount is not to be in hodl physically with people then it can be fine that way but hodl not problem.

[jrrsparkles]

As a good citizens i m to my country and with the way country are going currently redesigning our currency is the best option & decision taken so far, have you considered NGN circulation?
Yes, Let me break it down for you to understand why it's very important the redesigned our currency;
1. Our currency have been HODL for long by ex Presidents and Governors.
2. Those who were in power since 1984 have just practically hide our currencies to themselves and to their entire generation thinking the currency would remain the same continually.
3. To avoid bribery and corruption in this coming general presidential elections via 2023, Those political parties that claims they have money to bribe young youth with their stolen money will be no way and useless for them
4. We will have enough supply which might likely reduced the country hardship
5. Those Our looted funds will be invalid and useless to those who hold and stole from the poor Nigerians
6. This will restructure Nigeria after the General presidential Election, because those politician who think they have money could be kicked out and possibly it may leads to readjustment of some unfavorable constitution and condition sets in our jurisdiction & country.
7. Those Kidnappers that kept hiding their selves would have no option for those money to be entirely wasted, and with this they would be all reveal. There are more benefits to be listed


They have already Issued a notification to market women and traders holding money in their locality to make a deposit to the bank with only newly created account of maximum NGN 5M and old account of maximum of NGN 50M in other to have the new notes collected, therefore i don't think changing Nigerian Notes would have any bad effects on the poor Nigerian rather only to the politician who is holding billions and trillion Naira to their respective home.
As a matter of fact, i don't have any Naira note in my home all savings in Bitcoin and Usdt so i advised every smart Nigerian who is in this forum to do same and wait till the new Naira Note go in circulation or Generally acceptable. Possibly you could leave few NGN to your account for just PoS & shopping transactions.

WE MUST HAVE A NEW NIGERIA, AND MAKE THOSE WHO THOUGHT THEY HAVE STOLEN AND HODL NGN USELESS.

Do you really think that people who have huge amount of money in their vault will struggle to change them into new notes?

Government can say but again I want to mention the demonetization in India completely made all the printed money to become obsolete overnight and they claimed people who is having black money will no longer be able to convert them but in reality its a biggest failure and politicians and ex politician easily got the replacement even before the common citizen so it conclude the change will not make any impact but on the worst case it will destroy the small scale business due to lack of money in circulation among the middle class people.

[coupable]

Governments resort to changing denominations of local currency notes or all denominations for a good reason, which is often a result of the expansion of the parallel market and the inability of the state to respond to the movement of liquidity in the market. Activists in the parallel market do not make automatic transfers through banks or transfer media, but rather use cash in all operations, and even saving is in the form of cash or in-kind assets. In order to collect this money and ensure its movement, the state can issue new securities.
This helps support the market and boost the state budget with liquidity that was considered out of order.

[Adbitco]

Well this investigation was carried out by EFCC the more research they go the more funds they discovered by EX-president and governors or even those that was in power, so the only way they thought is the right thing to do in order to damage those looted funds was to set up those principles to enable them fight to the end and make those looted fund useless. So to me is the best choice, and note it that any old note with any Nigerian has a limited time of expiry date that means after that date is off then no more deposit and is obsolete and can't be used for any exchange of goods and services.

[panganib999]

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 redesigning the currency comes with newly imposed bylaws to improve its regulation and inflation rate, as well as other economic aspect of the currency then yes. Otherwise just like what someone said here, it's just going to be a better-looking turd. I dare say that frequent redesigning of a country's currency could even be a sign of its economic decline, as this is most common in third-world countries where corruption and graft is rampant, take for example, Philippines, who now had multiple alterations in its currency design since 2010. I don't need to tell you how rampant corruption is in that country.

Circling back to the topic, other than the aesthetic aspect being changed it has never been proven that changing a currency's design led to more people spending it.

[Majestic-milf]

If I should be honest, I see no difference in the new notes created and instead of making the public look like fools, why not stick with the old currency? I doubt this redesigning will stop corrupt politicians from looting or hoarding funds because when this new ones have been accepted as legal tender come Dec 15, and the hype and fuss has died down, business would flow as usual.
 
 According to critics, it would do the naira no profit if it's redesigned but still has no value. This all boils down to how corrupt our government can be. Imagine spending a whooping amount of #218bn just to achieve this?

[Swordsoffreedom]

As a good citizens i m to my country and with the way country are going currently redesigning our currency is the best option & decision taken so far, have you considered NGN circulation?
Yes, Let me break it down for you to understand why it's very important the redesigned our currency;
1. Our currency have been HODL for long by ex Presidents and Governors.
2. Those who were in power since 1984 have just practically hide our currencies to themselves and to their entire generation thinking the currency would remain the same continually.
3. To avoid bribery and corruption in this coming general presidential elections via 2023, Those political parties that claims they have money to bribe young youth with their stolen money will be no way and useless for them
4. We will have enough supply which might likely reduced the country hardship
5. Those Our looted funds will be invalid and useless to those who hold and stole from the poor Nigerians
6. This will restructure Nigeria after the General presidential Election, because those politician who think they have money could be kicked out and possibly it may leads to readjustment of some unfavorable constitution and condition sets in our jurisdiction & country.
7. Those Kidnappers that kept hiding their selves would have no option for those money to be entirely wasted, and with this they would be all reveal. There are more benefits to be listed


They have already Issued a notification to market women and traders holding money in their locality to make a deposit to the bank with only newly created account of maximum NGN 5M and old account of maximum of NGN 50M in other to have the new notes collected, therefore i don't think changing Nigerian Notes would have any bad effects on the poor Nigerian rather only to the politician who is holding billions and trillion Naira to their respective home.
As a matter of fact, i don't have any Naira note in my home all savings in Bitcoin and Usdt so i advised every smart Nigerian who is in this forum to do same and wait till the new Naira Note go in circulation or Generally acceptable. Possibly you could leave few NGN to your account for just PoS & shopping transactions.

WE MUST HAVE A NEW NIGERIA, AND MAKE THOSE WHO THOUGHT THEY HAVE STOLEN AND HODL NGN USELESS.

If these are really the reasons given by the NIGERIA government then I think it is very reasonable and they are doing something good for the country and its people. Of course, this will not guarantee that they will reverse the problems they are talking about and there is no guarantee that this change will help the country's economy but at least it shows they are looking for a solution to this problem.

Corruption is happening in all governments especially in 3rd world countries, people increasingly lose confidence in their government but ultimately the people themselves have no better solution. So let them do what they think is good for the country, just because they are corrupt doesn't mean they don't care about the country because without the country they would have no chance of corruption.

[bakasabo]

Highly doubtful that redesign will have any effect, since buying power will remain the same. The only effect it can have - in future, such old banknotes might be interested for notaphilies. Another example - EU countries that has refused from their national currency and adopted Euro. This can be considered as a redesign also, and a major redesign. Did it made any improvements in economy? The answer is no.

[Kakmakr]

It all depends on why they are doing it....

If they want to improve the security measures on the currency to prevent counterfeiting .. it might help to boost the economy. You only want citizens to use the legal currency that are minted or printed by the government. (Counterfeit currencies inflate the supply of the local currency) - These illicit activities steal market share from legitimate businesses and undermine innovation, with negative implications for economic growth.

Then again.... if you increase the denomination of the currency to adapt to hyperinflation (Like the Zimbabwian 1 Trillion Dollar notes) ... you will set yourself up for failure.  

[dothebeats]

It all depends on why they are doing it....

If they want to improve the security measures on the currency to prevent counterfeiting .. it might help to boost the economy. You only want citizens to use the legal currency that are minted or printed by the government. (Counterfeit currencies inflate the supply of the local currency) - These illicit activities steal market share from legitimate businesses and undermine innovation, with negative implications for economic growth.

Then again.... if you increase the denomination of the currency to adapt to hyperinflation (Like the Zimbabwian 1 Trillion Dollar notes) ... you will set yourself up for failure.   

The main concern that they have considered in redesigning their bank note is to decrease the number of said money in circulation which is.. very counterintuitive. They just spent some resources in redesigning their note, put it out in circulation, and tried to retrieve back those old notes. They just spent more to gain nothing. If Nigeria really want to improve their economy, why not try to invest on other things that can make actual money by not printing it? I don't see any point in this honestly.

[GiftedMAN]

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

Yes to some extent, the primary reason why the federal government decided to redesign the naira notes was because the economy of the nation was down and a lot of citizens were complaining about the lack of cash flow which is due to the currency not circulating as it should have. Redesigning the currency will bring a rapid increase in the circulation of money in the nation because some people who have been holding the old not would want to exchange it with the new note or spend it since a time has been given by the federal government for all old notes to be returned to the banks or it becomes useless to the owner. Since the development, a lot has changed and the citizens can attest to this great change which the introduction of the new notes brings.

[Marykeller]

The major aim of the redesign is simply to force those money hoarders to bring their money out and for CBN to start spending less money on printing naira notes. This single move by the CBN governor has helped the naira to appreciate against the dollar price.

According to CBN: Just to print 2.5 Billion Naira Notes in 2020, we spent over 58 Billion Naira. The value placed on those notes is determined by market forces which means as the value of the Naira continued to fall, we would end up spending more money to print 'worthless' notes. This would have been bad for our Currency.

The CBN won't have used the word redesigning of the naira note, they would have asked all of her citizens to return any naira note that has 2017, 2018, 2019, and 2020 dates to the bank than giving Nigerians hope to expect a new naira note design.

[STT]

Monetary velocity and anti fraud measures, I suppose it could be a positive but it cant alter the economy only the strict circulation of paper.  It should be the case that most value in an economy in this day and age is via balance sheet transfer never being printed or needing paper transfer.  Nigeria is a member of OPEC they certainly have access to the world economy and concentrating in expanding their national economy to be inclusive of all levels of society will be accumaltive   If people are able to avoid paper its probably the greatest positive for raising monetary velocity and increasing the efficiency of pricing in the economy, reducing simply the time to count money physically could represent value and time saved, etc.

[Vaskiy]

Planned execution could help with the improvement of the economy, but the same isn't assured. It's been six years and economist used to say that the effect of overnight demonetisation haven't left our economy. It made the complete country struggle and it wasn't a well planned one. Stating different reasons the demonetisation took place and yet none of the objectives mentioned have got fulfilled.

[Adbitco]

Actually nothing much special about the redesigning the currency it's just about it colors and nothing much which I thought the previous note was even far more better than the current printed notes. I don't even know how on earth they couldn't came up with a reasonable design looking from above pictures there's nothing difference between both notes in facts the new notes looking more of a counterfeit money, we were thinking FG should have given a bounty (Contest) for individual to design and post maybe after much more, they would select the best design and pay off the Best designers for the country to have a better looking Naira Notes instead of just changing colors.