The Digest:
A new economic report by Quartus Economics is urging the Central Bank of Nigeria (CBN) to introduce N10,000 and N20,000 notes to restore the Naira's "portability" after a 94% decline in its value over two decades. According to The Punch, the report argues that the N1,000 note is now "practically obsolete," making cash transactions cumbersome and costly, and dismisses the fear that new high-value notes would cause inflation as a "myth."
Key Points:
- An economic report has urged the CBN to introduce N10,000 and N20,000 notes.
- The move aims to restore the Naira's portability and reduce the costs of cash transactions.
- The report states that the N1,000 note has lost 94% of its value since its introduction in 2005.
- It argues that higher denominations do not cause inflation but respond to it.
- Carrying large volumes of low-value cash is a drag on the informal economy.
- The cost of printing and moving physical currency has become prohibitive.
- A similar proposal for an N5,000 note was dropped in 2012 after public opposition.
Sources: The Punch
