The online raves and rants of an Ijebu man in London
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Wednesday, August 15, 2007
The All 'New' Naira
And the main news today, out of naija is about the all New "revalued" Naira coming your way. From August 1st 2008 , two zeroes will be knocked off N100 (N1), N200 (N2),N500 (N5) (i'm sure you get the idea)When Soludo (the CBN governor) was asked what will happen to some body, for example, who has kept N1000 and wants to exchange it. He explained, “If you have $1000, it’s the same thing, you get the value for the $1000. There is no devaluation, there is no loss of value, it is just like instead of N100, you carry N1. That N1 in comparison with the dollar, it’s the same value. Before, you pay N126 for a dollar, now you have N1.26 for one dollar. So it’s fantastic.”
To the man on the street, who has N1000 in his account, he said, “if you have N100, 000, it would become N1000, but the key thing about valuation is that it is in relation to other currencies. If you relate to the dollar, N125, 000 in your account before would give you $1000 but now N125, 000 in your account, would now become N1, 250. If you want to buy dollars, it would give you the same $1000.
As a Nigerian, psychologically it is good for us; that our Naira is N1.25 to a dollar, unlike N125 to a dollar. It’s a feel good factor.
The Naira Big bangI don't know, it all sounds like some strange IMF experiment to test someone's thesis on the chaos theory.I'm not knocking naija here but this is the same country where we had "slight" problems organising a simple election. In a country where 70% of the population is barely literate, how are people expected to understand that N1000 will now be N10. How will iya sikira understand that the 'ogi' she sold for N200 the day before is now N2 or how will baba Morufu, the meat seller understand that the 'bokoto' he is selling for N2000 is now N20?
On a funnier note whats going to happen to the naija version of who wants to be a millionaire considering 10 million naira will soon become 100,000 naira...