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

[siniminomorocomunisakito]

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.

If I may add sir, I think There are valid and valid reasons why everyone should use legal currency to avoid counterfeit Money.

This is a serious problem. Not only does it clog circulation, but it can cause serious problems for unsuspecting people who might end up losing real money.

Redesigning a country's banknote can have both positive and negative effects on that country's economy. Enhancing the security features of a country's banknotes helps combat counterfeiting operations in terms of production as well as increases the overall confidence in banknotes.

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[Frankolala]

Rebranding the naira will not change anything or reduce inflation, all the government is doing is just deceiving the people of Nigeria and enriching their pocket with this kind of action,since I don't really see any difference from the the previous one,just a change of color. The money they said was used to redesign the naira is to big that they would have used it for a better project for the masses and not for resigning currencies when there is high rate of poverty in their country.

Well in the other side,it is helpful to the country in the sense that,Nigeria politicians steals and hoard money in their house and so many funny places not banks because they will be apprehended for been in possession of such amount of money. So the redesign of the naria will make these looters to loose their funds,since they will not be able to change this huge sum of money once,and the money will later become useless if not changed.It will also help to circulate money since money kept will be brought out to change.

[Tallupooh]

I think redesigning paper money is not possible to move the economy forward. I mean, will inflation go down? Will redesigning banknotes make society better?

I think it's the same, want the money to be redesigned or not.

[Iroh]

I think redesigning paper money is not possible to move the economy forward. I mean, will inflation go down? Will redesigning banknotes make society better?

I think it's the same, want the money to be redesigned or not.

The redesigning of the fiat currency notes does in fact help the economy in a way. It does help reduce counterfeit currency in circulation which in turn helps in reducing inflation as counterfeit notes are pushed and flooded in the society. The new notes would also have new watertight security marks that would deter people from making new counterfeits notes.
That fact alone helps the economy of any nation.

[teosanru]

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's like will repainting my house to blue colour safeguard it from Earthquake? it's nothing but a remedy designed to disguise the common folks that things will b alright if we do this so we should definitely try this. Nothing other than that. It's more like making people stupid by taking their attention away from the main problem and a lot of governments have been doing this lately.

[Genemind]

I guess this is already answered by a few members already, it somehow helps the economy since it's standard for any country to change the design of their currency to lessen the volume of counterfeited notes and to keep counterfeiting levels low. This also happens just to change the design or just to make currencies look presentable since it showcases national identity. In our country, they redesign the bill every new term of a new president and add a new watermark to the currency.

[sana54210]

I think redesigning paper money is not possible to move the economy forward. I mean, will inflation go down? Will redesigning banknotes make society better?

I think it's the same, want the money to be redesigned or not.

The redesigning of the fiat currency notes does in fact help the economy in a way. It does help reduce counterfeit currency in circulation which in turn helps in reducing inflation as counterfeit notes are pushed and flooded in the society. The new notes would also have new watertight security marks that would deter people from making new counterfeits notes.
That fact alone helps the economy of any nation.

I would guess that this would be a temporary solution though, it is not helping the nation on the fast track, plus the cost of printing new money is not that easy neither, it actually costs a lot to print new money, and take the old money and either burn it or whatever they do.

It means that it is not a good solution to any problems at all, there is a big need that we should be focusing on finding the core of the problem that caused the need for one. I believe that the best way would be keeping the interest high, while taxes even higher. Any rich person or a company avoids paying taxes by moving their money away?

Tax them even higher for each business they do in your country. Companies can avoid paying taxes as much as they want, but they will be forced to, even seize bank accounts, when you are soft on rich because they may take their money and run away, that creates a problem for poor who pays for the difference, fix that, and you have yourself a nation with no financial trouble.

[Fara Chan]

I guess this is already answered by a few members already, it somehow helps the economy since it's standard for any country to change the design of their currency to lessen the volume of counterfeited notes and to keep counterfeiting levels low. This also happens just to change the design or just to make currencies look presentable since it showcases national identity. In our country, they redesign the bill every new term of a new president and add a new watermark to the currency.

Redesigning banknotes is still meaningless in containing inflation, I personally do not know what underlies the country's government's plan to redesign banknotes, but if the reason is to prevent the circulation of counterfeit money against this currency. As far as I know, this is also not necessarily successful in limiting the circulation of counterfeit money. Because counterfeiting money will still be carried out by people who have procedures and have the tools to make counterfeit money.

[EarnOnVictor]

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.

If I may add sir, I think There are valid and valid reasons why everyone should use legal currency to avoid counterfeit Money.

This is a serious problem. Not only does it clog circulation, but it can cause serious problems for unsuspecting people who might end up losing real money.

Redesigning a country's banknote can have both positive and negative effects on that country's economy. Enhancing the security features of a country's banknotes helps combat counterfeiting operations in terms of production as well as increases the overall confidence in banknotes.

First, I don't believe that the redesigning of money should be an issue for any country, they do it often. Even if there is an issue, it would be little compared to a lot of its advantages in countries that are battling corruption, money laundering, kidnapping for ransom, and human trafficking amongst others. I would elaborate on this because this topic was borne out of the announcement of the CBN of Nigeria to redesign some naira notes, which is very acceptable to me because of what the country is battling, including the political vote buying during elections that is not being mentioned in any other countries of the world. However, the redesigning will not affect all the naira notes but three notes out of the eight naira notes, which is not a big deal to me, except for how people and media took it.

Aside from the positive side, I'm particularly against any economists' position against the redesigning of the naira notes. I read a lot of opposition then, but it's good to know that redesigning is not the same as printing more money. The plight of the CBN was that money is not circulating compared to the amount injected into the economy, and this might cause inflation. Could you imagine that only about 1/3 of the amount printed is in circulation, where are the others? People are hoarding it illegally of course.

A resealable country would surely act, which is what the CBN in collaboration with the Nigeria government did.

[Mauser]

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

From my country I know that currency redesigns are done within 10 year time spans  to increase security of the bank notes. A new design also means the chance to include more anti counterfeiting measures. This doesn't mean that the old currency design are not being accepted anymore. Even today I see a lot of old bills that people had at home and didn't use in a long time. Only when the notes are being deposited at a bank they will be taken out of circulation. I am not really sure if the price of creating new designs and printing new notes is smaller than the economical damage of counterfeiting old notes. A new design also means to make someone else happy as  there can be new pictures on the notes. The main issue I have with new currency is that it seems to reduce the value of the old currency. When cleaning out the basement of my grandparents 2 years ago we found some old British Pounds and some Swiss Francs. The notes were probably 15-20 years old and I went to the bank to get them exchanged. They told me because these notes are old and not in circulation anymore she can't give me the full price anymore. We lost like 25% of the value only because the notes were old.

[Lubang Bawah]

In my opinion the redesign of a country currency note will not have an impact or improve the economic system, the economy will grow positively if there is a balance of the production, distribution, and consumption process, some countries have changed the currency note and the most common is reducing numbers for example from 1000 is eliminated 3 zero to 1, and after the implementation there is no impact.

[Punakawan]

Economic Improve is a long journey that requires a lot of things, the economy can improve if supported by stable political conditions, then good infrastructure and so on, and currency note is a small thing that does not affect the economy too much.

[Cryptomultiplier]

Reading through all comments, it suffices that the redesign of the currency note does líttle to improve the economic stand of the country.
From my perspective however, I think the redesign would help checkmate neferous activities of those who have hoarded cash, printed counterfeit cash, and stached ransom from vices away. The redesign will create a kind of almost equillibrum between legal and illegal financiers. This should help improve even if a little, the economy of the country.

[yhiaali3]

This is all deception. I don't expect "redesigning the paper currency" to fix the deteriorating economy. It's a circumvention of reality and filling more dirty money in the government's pocket after bleaching it. What difference does redesigning the currency make if the economy is collapsing? no thing.
Paper currencies do not carry value in themselves, and you can print as many banknotes as you want, so all repairs or redesigns will do nothing in the event of deflation or inflation problems.
These are all government tricks.

[Sir Legend]

If redesigning the paper currency improves the economy then there are no poor countries, the work is simple but the results are very good, this is wrong thinking and will never be proven, even though the government redesigns the paper currency every year I'm sure there won't be any impact on economy.

[Smack That Ace]

This is all deception. I don't expect "redesigning the paper currency" to fix the deteriorating economy. It's a circumvention of reality and filling more dirty money in the government's pocket after bleaching it. What difference does redesigning the currency make if the economy is collapsing? no thing.
Paper currencies do not carry value in themselves, and you can print as many banknotes as you want, so all repairs or redesigns will do nothing in the event of deflation or inflation problems.
These are all government tricks.

Maybe it's a lie or avoidance of a government's responsibility in running the country. But if you read all the previous comments, you will see that the real reason given by the Nigerian government is that the redesign of the currency makes perfect sense. If what Adbitco says is true, then the government is doing the right thing for the nation of Nigeria, and if they succeed, then it will improve their country's economy. He is from Nigeria so i believe what he said is true.
https://bitcointalk.org/index.php?topic=5418438.msg61341499#msg61341499

[Balmain]

There is no use in redesigning banknotes to stop inflation. I think the current government is aware of this, they may have a different strategy, not for inflation. If the economy is developing to design paper money, all developing countries should start doing it as soon as possible. Very specific solutions should be proposed to prevent inflation. Society and Government should act together on ideas and solutions, This seems impossible, but it doesn't sound convincing to me.

[naira]

There is no use in redesigning banknotes to stop inflation. I think the current government is aware of this, they may have a different strategy, not for inflation. If the economy is developing to design paper money, all developing countries should start doing it as soon as possible. Very specific solutions should be proposed to prevent inflation. Society and Government should act together on ideas and solutions, This seems impossible, but it doesn't sound convincing to me.

Rather than reprinting it with a new design, maybe the current government is more interested in making CBDCs because it refers to technological sophistication, the government is now able to map banknotes so this has been done by many developing countries. Although not much different from paper money, the fact is that CBDC does not mean it can stop inflation.

Based on all that, inflation is still a delicious spice for fiat, while for the paper money system there is no solution to prevent inflation other than minimizing it.

[JoyMarsha]

This is a controversial viewpoint since the government of Nigeria believes that redesigning the currency notes is the most important thing to accomplish at this crucial juncture in their country's economic realities. Their current government continues to display varying degrees of shortcomings and, most frequently, impunity. This action is yet more unmistakable proof that the Nigerian government is incapable of managing a population endowed with all it takes to rank among the top in the world economy. Their government is also lacking in competence when it comes to managing country resources.

Unfortunately, nations like the United States take similar steps to raise the standard and value of their money, whereas Nigeria does not.

[Bitstar_coin]

I guess this is already answered by a few members already, it somehow helps the economy since it's standard for any country to change the design of their currency to lessen the volume of counterfeited notes and to keep counterfeiting levels low. This also happens just to change the design or just to make currencies look presentable since it showcases national identity. In our country, they redesign the bill every new term of a new president and add a new watermark to the currency.

Yeah the Nigerian government made this decision to combat the high rate of counterfeit money in circulation and also to combat hoarding, it turns out most of the corrupt politicians are hoarding tons of naira notes for their selfish interests instead injecting it in the economy for growth.
This sudden decision by the government to change the notes forced majority to bring out these notes they have safely hoard in strategic locations. It is sudden but a good decision. Like you said, it something that should be done in every new administration.