How Can Redesigning A Currency Help Beat Devaluation & Inflation

The value of the Nigerian currency has been tanking like a lot of shitcoins for as long as I can remember. This is obviously due to the bad leadership and corruption found in the country and amongst leaders. The leaders and the people in power have made it a habit to make the public funds extremely accessible to them(the leaders and politicians). They went as far as implementing rules that made sure they keep benefiting from this even after they are no longer in power. How can leaders be collecting huge amount of money, over $100k monthly as salary? They keep collecting this until they leave and keep collecting it as retirement fee. While paying little or no attention to things that actually matter and can be used for the country’s advantage to help develop the economy of the country.

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These politicians have made hundreds and billions of naira accessible to theirselves, some of them collect this money and invest it abroad. This means that they are selling the naira and buying the economy of another country, devaluing the naira more. We have heard cases of politicians owning properties worth a lot, overseas, because they are trying to launder money. But then, most of these leaders are not in the position to serve the country but to loot the public funds. Aside looting, they are not smart enough to cover their tracks or help improve the country’s economy while looting. But every time, they come up with one of the most ridiculous ways to help increase the value of the naira.

Two years ago, they came up with the idea of restricting financial institutions from transacting cryptocurrency, and guess what happened? People started transacting P2P more and it helped devalued the naira more. You see in my country, we have the official government exchange rate and the unofficial black market rate. The official government exchange rate if you want to exchange dollar to naira and vice versa is about 440 Naira per dollar, but guess what? The government restricted the release of dollar to banks and citizens, making dollars less accessible, meanwhile not providing enough facilities in the country to reduce importations. This means that people have to still import and pay in dollars, so the demand for dollars increased making the exchange rate of dollar to naira 780 Naira per dollar.

It seems like constantly shooting yourself in the foot right? Yep, welcome to Nigeria, the latest way to help boost the value of Naira is to redesign the naira. So they claimed, While this makes a little sense, I still can’t see how this can totally save nigeria from the economic disaster it’s in. Although to a certain extent it’s a little reasonable. Redesigning the Nigerian currency is a way of filtering the people that are hoarding the currency and not allowing the money to circulate, come out. Imagine a very corrupt politician or anybody who has over 2 billion naira in their house that they don’t want to put in the bank, if the country is going to redesign the currency, this means that the money will be useless to them after redesign. So they have to look for a means to spend it, they can buy properties, convert it to dollar or deposit it in the bank. So the bank will be expecting huge sum of money flowing in. But this will do just a minute good to the value of the economy and massive harm.

It’s going to increase naira circulation, but people will be willing to buy more dollars at any rate to dispose their upcoming old naira, this will thereby devalue the naira the more. So the government is to be blamed for making the money accessible to these launderers in the first place through corruption. So to help increase the value of naira, the government need to cut it from the root which is the corruption root.

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