CBN NAIRA REDESIGN
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CBN NAIRA REDESIGN
Chapter one
INTRODUCTION
1.1 Background of the Study
The Central Bank of Nigeria (CBN) recently redesigned the country’s primary currency, the Naira. The primary purpose of this makeover was to combat counterfeiting and improve the security characteristics of the currency.
The CBN’s Naira redesign has sparked great interest because it represents a fundamental change to the country’s monetary structure (Odior, 2022).
The impact of the CBN’s Naira redesign has been hotly disputed, with some claiming that it will increase financial security and prevent counterfeiting, while others are concerned about the potential costs and complexities of the shift (Chijioke, 2022).
The positives of the redesign, on the other hand, are thought to include increased public trust in the currency, a reduction in the quantity of counterfeit notes in circulation, and improved security features that will make it more difficult for criminals to fabricate counterfeit notes (Odior, 2022).
In addition to these benefits, the CBN’s Naira makeover is intended to help Nigeria’s economy. By reducing the amount of counterfeit notes in circulation, the redesign is projected to boost consumer faith in the currency, resulting in higher economic activity and a more stable financial system (Uchenna, 2020).
Despite the potential benefits, there have been worries regarding the cost of the redesign and the difficulties in shifting to the new notes. Some claim that the redesign’s cost would be passed on to customers through higher pricing, while others are concerned about potential confusion and annoyance during the transition time (Dada, 2022).
Overall, the CBN’s Naira redesign represents a substantial shift in Nigeria’s monetary system, and its implications and benefits will undoubtedly be studied and debated.
Currency redesigns can provide numerous benefits to governments (Uchenna, 2020). For starters, better security features may make it more difficult for counterfeiters to fabricate phoney notes, resulting in fewer counterfeit notes in circulation.
This can boost public confidence in the currency and help to create a more stable financial system. Additionally, by upgrading the design, central banks can make the currency more accessible to people with disabilities, hence increasing financial inclusion (Adamu, 2021).
Currency redesigns can also reflect a country’s cultural, historical, and political identity, encouraging national solidarity and pride. Finally, currency redesigns can provide a variety of benefits, including better security and public confidence, as well as greater accessibility and reflection of national identity (Odoko, 2020).
Currency redesigns are prevalent in many countries throughout the world as central banks strive to strengthen the security aspects of their currency and combat counterfeiting.
Currency redesign can also reflect changes in a country’s political, social, or economic context, as well as making the currency more accessible to individuals with impairments (Tobi, 2021).
The impact and benefits of a currency redesign vary based on the central bank’s unique goals and objectives, but some frequent benefits include higher public trust in the money, less counterfeiting, and improved accessibility (Adamu, 2021).
Furthermore, a currency redesign can reflect a country’s distinctive identity while also encouraging national togetherness and pride. While there may be difficulties connected with a currency redesign
such as the cost of migrating to new notes and potential confusion, the overall impact and benefits of a currency redesign can be significant for a country’s monetary system and economy (Tobi, 2021).
The process of implementing a new currency design can be stressful for a central bank because it requires organising a complex and time-consuming activity.
The central bank must ensure that fresh notes are printed and supplied to banks and other financial institutions in a timely way, while also pulling old notes from circulation (Holden, 2019).
This can be a difficult procedure because it needs collaboration with various parties and may result in temporary cash shortages in some locations.
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