Social Issues

Senate Committee Directs CBN To Suspend Introduction Of N5,000 Note

Social Issues
@StraitTwistedMe

Avid Blogger. I find solace in writing. With a pen, i just might change the world.

The Senate Committee on Banking, Insurance and other Financial Institutions on Monday directed the Central Bank of Nigeria to suspend the introduction of N5,000 note until the Senate was properly briefed.
The Chairman of the committee, Senator Bassey Otu (PDP- Cross River) issued the directive while speaking to newsmen in Abuja, the News Agency of Nigeria reports.

Otu noted that the re-denomination of the currency required the approval of the National Assembly, warning that the CBN must avoid sending the wrong signals to stakeholders in the economy.

He said it was vital for the CBN to discuss the implications of the currency re-denomination with the Senate before it was implemented.

“ I believe that a project of this nature requires parliamentary approval because there are numerous fiscal implications on the entire economy.

”The CBN must be very careful in order not to send the wrong signal to the domestic sector and external partners that the Nigerian currency is valueless.

“So, we are sending a letter to them (CBN) to stop all further actions on this until the Senate of the Federal Republic is properly briefed,” he said.

He warned that the conversion of some denominations into coins would lead to a waste of public funds as the previous exercise did not yield the desired result.

“In 2005, the CBN undertook a major currency restructuring to re-coin some denominations which ran into billions of Naira.

“It did not work at all because both the goldsmiths and the blacksmiths converted the coins to moulding bangles, earrings and so on,” he added.

The committee chairman said there were other mechanisms available to the apex bank to tackle the problem of inflation other than the re-nomination of the nation’s currency.

More in Social Issues

lam1

SEE What This Guy Did to a Lekki Prostitute

SkizzyJan 25, 2015
John-Kerry-in-Nigeria-Goodluck-Jonathan-Buhari.jpg

US Secretary of State, John Kerry arrives Lagos, Meets President Jonathan And Buari

OlamideJan 25, 2015
How Fake Tiwa Savage Duped Lagos Politician

How Fake Tiwa Savage Duped Lagos Politician

SkizzyJan 25, 2015
Aisha Buhari Talks The Roles She Will Play as First Lady of Nigeria

Aisha Buhari Talks The Roles She Will Play as First Lady of Nigeria

SkizzyJan 25, 2015
I Will Rule Nigeria Because Jonathan is Clueless And Buhari is an Old Man- NCP Candidate, Onovo

I Will Rule Nigeria Because Jonathan is Clueless And Buhari is an Old Man- NCP Candidate, Onovo

SkizzyJan 24, 2015
See What Buhari's 5th Daughter Said About Her Father

See What Buhari’s 5th Daughter Said About Her Father

Raymahni #guJan 24, 2015
Check Out The Current State Of Ibadan Airport

Check Out The Current State Of Ibadan Airport

Raymahni #guJan 24, 2015
Sammie Okposo Begs For Forgiveness From Buhari

Sammie Okposo Begs For Forgiveness From Buhari

SkizzyJan 24, 2015
Atiku Abubakar Condemns Recent Attacks Targeted at GEJ Campaign Team

Atiku Abubakar Condemns Recent Attacks Targeted at GEJ Campaign Team

SkizzyJan 23, 2015

GistReel is a Nigerian based news website. Delivering latest info to our varying audience in real time.

Contact us on: +2348179975099 +2348131003070 +2348092750177

All enquires to: admin@gistreel.com...

Read More at http://gistreel.com Follow us: @@GistReel on Twitter | GistReel on Facebook

Copyright © 2013 GistReel.