Nigeria recently announced a new currency in the country, the Naira. This is an important development that will impact every Nigerian citizens. Here's what you need to know about the New Naira and how it will affect your life.
Overview of Nigeria’s Currency Exchange
Nigeria's currency, the Naira (NGN), has been through a lot of changes in recent years. In early 2015, the Naira was peg up at the total rate of 140 to the U.S. dollar standard.Now the note introduction is what will bring development to the country,although the new change might course an infections to business men and women.
It can bring inflation, if the rate raises from 140 to 360 as exchange rate.The economy market will call on customers and consumers to convert the old notes to the new notes for successful exchange in the market.
How the new note look like
(1)In Nigeria, we have 10 note,20 Naira note ,50 Naira note, 100 naira note,200 Naira note,500 Naira note and 1000 Naira note,but only 200,500 and 1000 note have been changed to the new note.
(2)In the new Naira note, there is are security on them and the color has changed from the old ones with to new colors water mark.
(3)It has features like thread and new designed.
(4) The notes are also slightly smaller in size than the old notes (note).
(e) Exchange is simple: just take your old notes to any bank and they will give you the equivalent value in new notes/send the old notes into your account.
When the Nigerian Central Bank announced on the 24 December 2022 that a new notes has been introduced into circulations, people complained about how it would work and how the citizen will cope. Would it look similar as the old notes? How would people be able to exchange their money in commercial banks to meet up their businesses?
Benefits of Introducing the New Currency
One of the benefits of introducing the new currency is that it will help to reduce inflation around the Nation. The Central Bank of Nigeria (CBN)has indicated that the new currency will have a lower printing cost which will act as the turn reduce of inflation.
The new currency will also be more durable and less vulnerable to counterfeiting. It will be made of polymer which is a material that is difficult to duplicate. This will make it harder for criminals to produce fake currency.
Tourists and investors are likely to benefit from the introduction of the new currency as it will make doing business in Nigeria easier. The new currency will have international security features that will make it easier for people from other countries to identify it as Nigerian currency.
Challenges Facing the Changeover in Nigeria
The transition from existing currencies to the new Nigerian currency is not without challenges. The biggest challenge is cashless period that will bring in violent into different state and destruction. No access of money in the bank.During this time, some public services might face lost of income because of less new note in commercial banks.
Other challenges include counterfeiting, which could lead to loss of trust and a decrease in the value of the new Nigerian currency. Additionally, there may be disruption in trade due to price fluctuations as vendors wait to adjust prices based on the official exchange rate,selling at the high price.
Finally, some vendors may be reluctant to accept payments in old note as they are used to dealing in cash. To make the transition as seamless as possible, it’s important for vendors to invest in affordable POS Windows that accept multiple payment methods like cards and mobile wallets.
Advice for Investors and Travelers to Nigeria
So, what should investors and travelers to Nigeria do? First, be aware of the new currency rate. As of July 2020, the Nigerian Naira has been devalued to 379 Nairas to one dollar. The exchange rate can change at any time, so it’s important to stay informed about the current rate.But as 2022/23 the currency rate inflate to 560 per dollar.
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