New lower denomination currency notes and coins have just been launched into circulation. Why currency redenomination at this time?
• The CBN has proceeded with reforms in measured steps. The first was to re-build the basic financial infrastructure that would facilitate effective implementation of monetary policy and improved payments system (ie, reforms of the banking system). It was followed by gradual liberalization of the Forex market. The third is the currency reforms which are proceeding in two stages: first, re-design of the lower denominations, re-introduction of coins, and experimentation with the polymer substrate. Typically, countries re-design their currencies after 6- 8 years but our lower denominations were re-designed about 23 years ago (1984). The essence was to streamline the security features to combat counterfeiting and safeguard the integrity of the currency, as well as achieve cost savings. We have learnt a lot from these reforms, including the fact that the effective cost of printing currency notes and minting coins has been reduced by an average of about 50 percent. Currency re-denomination a
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