Posts Tagged ‘business’

By Hillary Okoronkwo

In the US, the highest denomination ever printed for use in circulation was $10,000. Other high-denomination notes were $5000, $1000, and $500.

The present denominations of US currency in production are $1, $2, $5, $10, $20, $50 and $100

Printing of high-value notes was suspended in 1945. Banks were allowed to distribute large bills up till 1969.

President Nixon issued an order in 1969 halting the practice because large bills were being heavily used by organized criminal groups like Nigeria’s PDP to screen illegal transactions.

The last time that CBN attempted a major currency do exercises, Professor Chukwuma Soludo’s plan to shave two zeros off every Naira note sailed into tempestuous waters.

It fell flat because Soludo exceeded CBN’s powers and did not seek the president’s approval.

Sanusi reportedly sought and obtained president and Mrs. Jonathan approval in December of 2011

In the US, Per Capita Income is about $40K. In the UK, it is about 20K Pounds Sterling. In Nigeria, Per Capita Income is about $2.6K (N390,000)

I just realized that my laptop does not have British Pounds or Nigerian Naira signs. Listen up Mr. Dell, this is not right.

If Sanusi succeeds, the highest circulating currency in the US, UK and Nigeria will be 100, 50 and 5,000 of the respective countries’.

The ratio of Per Capita Income to the highest circulating currency in the US, UK and Nigeria will be 400, 400 and 79 respectively.

Unpaid critics like me will argue that Sanusi’s move will further encourage corruption and weaken the banking system. How much more of the above national calamities can we afford?

I remember when the Governor of Central Bank used to be well respected. I remember Ola Vincent and really no one else. Just to put it into perspective, “Muri” was the highest denomination that I remember.

Of course I recognize that the issues are much more complicated than this high level analysis

Is it more cash or cashless society? I deserve to know. Mallam Sanusi, call me maybe?

And the beat goes on!