The former president, who disclosed this at a roundtable advocacy forum organised by the Institute of Directors, in Lagos, said the way, Mr Sanusi, was fighting inflation by removing money from circulation was improper.
However, speaking at the sixth annual conference of the Chartered Institute of Bankers of Nigeria, Mr Sanusi said Mr Obasanjo had introduced more high denomination in Nigeria than any other Head of State. “General Obasanjo did N20; he did N100, N200, N500 and N1000. He has introduced more higher
The CBN governor said that during the period Mr Obasanjo was introducing high denomination inflation in Nigeria was actually low.
“General Obasanjo did N100 in 1999; then he did N200 in 2000; he did N500 I think two years later; and did N1000. In that period, inflation was coming down because it was accompanied by very tight monetary and fiscal policies during his reforms.
“For somebody who have gone through that to come and stand up and say ‘introducing a higher denomination causes inflation’ I don’t know if somebody wrote his speech. I’m trying to see him or if he was misquoted.
“If he actually said that then he must be the single most important determinant of inflation in our history given the number of notes that he introduced,” he said Mr Sanusi said printing higher denomination without increasing the money supply in the economy will not increase inflation.
“This is simple economics,” he said. He said that the cost of printing and minting all denomination of currency in 2009 was N47 billion and that by 2011 the CBN brought this cost down to N32 billion.
He said that by 2014 the cost would further be reduced to N25 billion thereby saving about 50 percent of the total cost of printing and minting all denomination of currency.
9 comments:
See pot calling kettle black, Sanusi why are you contradicting yourself, few mths ago you introduced cashless banking and later you are introducing N5000 it does not add up
Sanusi amazes me really, you guys shld open up & tell us the real truth, in borrowing there is always a condition to it,cld it be the reason why you are introdcing this N5,000? bc this new development will weaken the Naria in the long run and dollars will be far stronger eventually more than it is now
I'm not totally against this new policy,but i thought things like gd roads,proper eductional sys, employment shld have been taken care off before this,its not an immediate out cry.
Cashless society, i use for of the atm card,now you introduce N5,000,mitchewwwwww! you are confusing some of us,most pple will rather get the N5,000 than going all d time to the atm,and of course more money will be seen all around- this brings us to the point where too much money chasing few goods
Lets give this govt a chance and se it at their own point of few,i bet you,its not everybody that will get hold of this N5,000 notes,so it has nothing to do with market woman selling items like tomatoes etc, in UK,the 50pounds and 100pounds are not seen with everyone -just a few
the last anony
Sharrap!you must be a politician,so the N5,000 is for the interest of the politicians, what happened to the common man who voted these people,isn't it their duty to make policies that will be beneficials to them?
Education is important, people are arguing blindly,this policy will reduce the amt of cash because instead of holding five 1000 notes, you will only need one 5000 naira note which mean that fewer notes could be printed for the same amount of money which naturally saves cost of production.
Sanusi seems to focus on saving cost ie the printing aspect,which in my view its a gd thing relying on foreigners will end us being dependent and costing us an arm and a leg
Hehehehe! big rich men in this country always want to be relevant in this nation,plz can they tell us or break it down how this N5000 will cause inflation
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