How to make N1 equal $1, currency analyst explains

-


A Nigerian currency analyst on nairaland.com with username Samleen has explained how to make N1 equal $1 with sufficient explanation.

He explains in details:

If government can stop the printing 500 NGN notes and 1,000 NGN notes and officially discontinue its use!

*Reintroduction of Nigeria coins, 50Kobo, 1 NGN and 2 NGN.



Welcome, lets get started by examinining the top 10 performing currencies in the world to gain necessary insights before drawing our conclusions.

*.Kuwait Dinar KWD: ( 1 KWD = 1201.9611 NGN )
Bank notes: 1/4, 1/2, 1, 5, 10, 20 Dinars
Coins: 5, 10, 20, 50, 100, 200 Fils


*.Bahraini Dinar BHD: ( 1 BHD = 956.3254 NGN )
Bank note: BD 1/2, BD 1, BD 5, BD 10, BD 20
Coins: 5, 10, 25, 50, 100 Fils, BD 1/2


*.Omani Rial OMR: ( 1 OMR = 936.2906 NGN )
Bank note: 1/2, 1, 5, 10, 20, 50 Rials
Coin: 50, 10, 20, 50, 100 baisa and rarely used 200 biasa


*.Jordanian Dinar JDD: ( 1 JDD = 507,65070 NGN )
Bank notes: 1, 5, 10, 20, 50, Dinars
Coins: 1/2, 1, quirsh, 21/2, 5, 10 Piastras


*.British Pound GBP: ( 1 GBP = 504.8154 NGN )
Bank notes: €5, €10, €20, €50
Coins: 1P, 2P, 5P, 10P, 50P, €1, €2


*.Caymanian Dollar KYD: ( 1 KYD = 432.7622 NGN )
Bank notes: 1, 5, 10, 25, 50, 100 Dollars
Coin: 1, 5, 10, 25 Cents


*.Euro EUR: ( 1 EUR = 448.2926 NGN )
Bank notes: €5, €10, €20, €50, €100, €200 and €500


*.Swiss Franc CHF: ( 1 CHF = 388.1395 NGN )
Bank note: 10, 20, 50, 100, 200, 1000 francs
Coins: 5, 10 and 20 Rp/cts, 1/2, 1, 2 and 5 Fracs


*.United State Dollar USD: ( 1 USD = 360.5000 NGN )
Bank note: $1, $2, $5, $10, $20, $50, $100
Coins: 1C, 5C, 10C, $1/4, $1/2, $1.




Go back to the list once again and check what's the highest denominations of each currency (and population of users of each currency), You will discover that the top performing currency do not have high face value like we have 500 NGN and 1,000 NGN in Nigeria.

Also, you will notice that the top performing currencies have coins form of currency with denomination of very low face value.

The highest of the denominaton is 1000 Franc followed by 500 EUR. 1000 Franc is not in frequent use and the highest Franc denomination next to it is 200 Frank ( not like 500 NGN as we have here in nigeria ). Also the use of 500 EUR will discontinue this year 2018.

Get a hold on history of exchange rate in Nigerian, you will find out that every introduction of new high denomination currency note has averse advese effect on it.


Why High Denominational Currency Note Is Bad:
1. Increase in prints of currency notes with high face value e.g 1000 NGN makes other lower currency of less important and less usefull. This can gradually lead to upgrade of price of goods and services in market.

2. It makes stealing and loothing of cash easier as larger amount of money value can be packed into a very small space.

Why do CBN currently print more high denominational currency alone? Methink its in a bid to enhance hoarding of cash against the comming 2019 general election.

3. 500 NGN and 1000 NGN are no money for the common man, go to the market and examine what denomination are most in use.

4. It's in a way opposing the cashless policy by the federal government of Nigeria.


What The Wise Nations Did:
1. United State of Ameria used to have $500, $1000, $2000 currency notes until December 14, 1945, when the high denominational bills were last printed and officially discontinued on July 14, 1969 by the Federal Reserve System.

2. Europian Central Bank announced on 4 May, 2016 that it would phase out the 500 Euro notes by the end of 2018.



Other Factors That May Affect The Exchange Rate Of A Currency Include:
1. Ratio of goods/services importation to exportation

2. Availability of currency and number of complying users.

The Illegal illegal printing of currency by the CBN according to as reported by some news media outlets has a long way to desctroy value on our cash.

3. Inflation rate

4. Government debts and federal reserve.

5. Political policies and stability

6. And many more



My Recomendations:
Nigerian government should permanently discontinue and remove 500 NGN and 1,000 NGN currency notes from circulation. Reintroduction of 50 Kobo, 1 NGN and 2 NGN coins should also be done.

A serious government fighting corruption will yield to my advice as abundance of lower denomination currency will discourage looters from hoading and keeping cash in a safe instead of bank.

Caveat emptor:
This writeup is a personal opinion resulting from my many observations. It is not a scholarly work and should not be treated as one.

Source: http://www.nairaland.com/4349453/secret-revealed-1-ngn-equate

Comments

Post a Comment

Popular posts from this blog

5 facts about O TO GE slogan and the collapse of Saraki's dynasty

-
Image
Kwara Must Change 1. Alh. LAK Jimoh was the first politician in modern history of Kwara state to use the O TO GE slogan in a campaign. O TO GE simply means, Enough is Enough.  Alhaji Jimoh first used the slogan in 2011 when he was contesting the Kwara Central Senatorial seat under the People's Democratic Party (PDP). Bukola Saraki eventually won the ticket and went ahead to represent Kwara Central at the Senate.  While the slogan wasn't popular at the time, there's no taking away the fact that Alh LAK Jimoh used it first and could be rightly credited to be the originator. 2. 8 years later, the slogan idea was pitched again in 2018 immediately after the All Progressive Congress primary election in Kwara State. After the APC primary election, Islamic singer, Aminat Obirere produced a song titled o to ge as part of a joint album coordinated by Kwara Must Change to promote the candidature of APC governorship candidate, Alh. Abdulrahman Abdulrazaq. The album itself was titled
Read more

Brave lady quites her job because her boss persistently calls her sweetie

-
Image
A lady, who goes by the name Sarah Mcgovern on social network site Facebook, has quite her job over what she described as harassment and persistently being refereed to as sweetie by her boss. Sarah took to Facebook on December 7th 2017 to narrate her experience. She wrote: I don't post many deeply personal things online, but I want to share this. I quit my job about a month ago because of harassment. Below is my letter of resignation. I think it's important to share this truth, and to know that many of us will not tolerate the abuse. We can and should walk out. #metoo "Hi Elias, This is my letter of resignation, effective today, October 31, 2017, my last partial day of employment. Since the second day of my employment, on October 12, 2017, I have asked you not to call me "Sweetie." I have asked you not to call me Sweetie more than 5 times since then, and you have still not respected this request. I nearly walked out because of this last Tuesday, Oc
Read more

CONSTITUENCY PROJECTS AND NATIONAL DEVELOPMENT PROCESS: THREAT OR OPPORTUNITY? BY JAYE GASKIA

-
Image
Fourteen years after the practice and phenomenon of Constituency projects began to evolve in the legislative practice and appropriation process of the 4th Republic, the phenomenon has grown to become pervasive across the Federation with both Federal and state legislatures now fully embracing the practice. Yet, nearly a decade and half on, there is still no clarity regarding the practice, with respect to any form of agreed framework guiding its implementation. There is, as of the moment of writing this piece in 2018, no policy, legislative nor institutional framework underlying and providing not only pragmatic, but also scientific criteria and parameter for determining the why, how, and where of constituency projects. And even though there are currently draft bills being considered by both chambers of the National Assembly [NASS] aimed at providing a regulatory framework for the practice, the bills have nevertheless remained stuck within the opaque labyrinth of the legislative proce
Read more

2019 Election: FPP condemn reckless remarks by political parties and foreign interests

-
........ call on Nigerians to trust INEC An independent Non Governmental Organisation, Foundation for Peace Professionals (FPP) has called on the Nigerian people to have faith in their country & give chance to Government Institutions like Independent National Electoral Commission (INEC), being the Nigerian electoral body to finish up what its started. The elections cannot be concluded if announcement of Presidential election results cannot be made. The organisation frowned at reckless statements coming from political parties, organisations and foreign  individuals aimed at heating up the polity just to pitch Nigerians against each other. In a statement issued by the Executive Director, Abdulrazaq Hamzat, FPP stated that after the successful conduct of the 2019 general election, the two leading political parties in Nigeria have been raising false alarms without basis. According to Hamzat, "the baseless and unsubstantiated alarms being raised by the ruling All Progress
Read more

IBB had no respect for sycophants - Col. Abubakar Dangiwa (Part 2)

-
Image
The Col. Abubakar Dangiwa Umar story (part two) "My relationship with General Babangida" “I had on several occasions in the past explained why I enjoy a very close relationship with IBB. IBB was my instructor at the Nigerian Defence Academy. Since then, I found him to be a very brilliant and inspiring officer. In fact, he had great influence on my career choice of the armoured corps, being an amour officer himself. Of course, we had disagreements, some of them quite straining, but they have not succeeded m changing my perception of him. This is true with most officers who worked closely with the man. With all this, I had never allowed such a close personal relationship to becloud my vision and judgment of his performance as a superior officer, particularly during his eight‑year rule as President and C‑in‑C. Mr. Edwin Madunagu, a man I have high regards for as an accomplished intellectual and a socially concerned person, confirmed what I have always suspected that most ou
Read more

Kwara Must Change unveil list of Offa robbery victims, urges govt to immortalize them

-
Image
Victim Kwara Must Change has compiled at least, 14 names of victims murdered in the deadly armed robbery attack that took place in Offa Community, Offa Local Government Area of Kwara State. The names gathered so far include 10 police officers and 4 civilians. However, we shall continue to update the list as we gather more details. It would be recalled that on 5th April 2018, a deadly armed robbery attack took place in Offa Local government Area of Kwara State, in which several innocent lives were lost. While several figures were claimed by police and several media houses, Vigilance Group of Nigeria in Offa said vigilantes in the state counted about 50 dead bodies after armed robbers attacked and robbed five banks. It was on this basis that Kwara Must Change has set out to preserve the memory of the victims, through compiling and documenting their names, not only to ascertain the figure, but to also immortalize them. We believe that only by documenting the names of the victims, wi
Read more

What Drake has in common with Davido

-
Image
If you have been following the American hip hop scene lately, you must have heard about the beef between Drake and Pusha T, the President of kanye West Good Music. On Friday, Pusha T dropped Daytona, a 21-minute album currently making wave in America. Closing out the album’s seven-track run was “Infrared,” a lyrical track addressing the dubious artistry of Drake, a longtime thorn in Push’s side. On the infrared track, Pusha T slammed Drake once again for using ghost writer and many others. In the usual Drake manner, the God’s Plan hit maker fired back with a track titled “Duppy Freestyle”—released less than 24 hours after Pusha T’s album dropped, where he dispensed the grievances about his history with ghostwriting. Drake went further to drag Kanye West into the rap battle, saying he had once assisted Kanye on a track, a collaboration well aknowleded by Mr. West. In the Drake’s response, he also dragged the name of Pusha T’s wife into the battle and all hell let loose.
Read more