Buhari Set To Change The Colour Of Nigeria’s Naira in Fews Weeks.
President Muhammadu Buhari’s economic team has finalised to the arrangements to introduce a new colour of the Nigerian Currency, the Naira in the coming weeks.
President Muhammadu Buhari’s economic team has finalised to the arrangements to introduce a new colour of the Nigerian Currency, the Naira in the coming weeks.
Like a similar policy in 1984, Buhari changed the colour of Naira, stating that it is a mechanism to boost confidence in the currency and slamming the door against Nigerians that have billions of the currency stashed outside Nigeria.
Today, Naira is not used in the Western world creating doubts the actual reason behind the current adventure. It is apparent that the so called looters have their funds in foreign currencies and this said policy will only affect local businesses that trade on cash and carry.
The CBN claimed that the store-of-value function of the Naira as legal tender in Nigeria was being replaced by the dollar. If this continues unchecked, the unit-of-account function of the Naira will be displaced as many prices are being quoted in the local market in dollars.
If this is the case, the government and CBN are prescribing the wrong solution to the Nigerian monetary plocies problems.
The CBN and government should be fighting against the use of foreign currency as a method of payment or store of value in the country instead of this apparent policy that punish the SME’s.
