Dollarization Of The Economy Will Rise As A Result Of Naira Note Change-Expert

The Central Bank of Nigeria’s (CBN) decision to redesign some naira notes will accelerate the dollarization of the Nigerian economy, according to trade and investment expert Ikenna Nwosu.

Hours after CBN Governor Godwin Emefiele revealed that the apex bank will mint the redesigned 200, 500, and 1000 naira notes starting on December 15, 2022, The expert made his comments on Thursday’s episode of Sunrise Daily on Channels Television.

READ MORE: CBN To Redesign N200, N500, And N1,000 Notes

Nwosu admitted that while the CBN’s action will help bring back a significant amount of money into the system, not all money that has been hidden away will be returned.

“Why am I saying they may not get all the money in, but I believe they will get a lot in? It is because politicians are going to start using the naira to buy dollars; because they are going to be afraid to pay the cash. So, there will be increased dollarization of the economy. They won’t buy pounds because pounds will soon be changed because there is a new king.

“So, there is going to be dollarization and that has national security implication again…that is going to affect the impact on inflation,” he said.

READ MORE: CBN: Effects of the New Naira Note on Your Money

Nwosu, the Chief Executive Officer of Mooregate Limited, Investment Advisory, stated that in order to address the increased likelihood of dollarization, cooperation is required from all stakeholders, including the Economic and Financial Commission (EFCC), the Independent Corrupt Practices and Other Related Offences Commission (ICPC), the Nigerian Financial Intelligence Unit (NFIU), and the Nigeria Police Force.

Source: channelstv.com