N5000 NOTE CANNOT CAUSE INFLATION---ANAN

The President of the Association of National Accountants of Nigeria (ANAN), Hajia Maryam Ladi-Ibrahim has said that the planned introduction of the N5,000 note by the Central Bank of Nigeria (CBN) would not increase inflation.  Ladi-Ibrahim said, in a statement to newsmen in Lagos recently, that “looking at it from the macro-economic aspect, it will not, for now,
outrightly increase inflation. Those earning N50,000 would still collect the same amount”.
But she explained that in the long-run, the effects would depend on the implementation of the policy by the apex bank. “The restructuring of currency denomination is not new to any country”, she stated, “because after some years, you find the apex banks of countries restructuring.  They consider the advantages and disadvantages of doing this.
“We thought it was going to be something from N1,000 to N2,000. Listening to the CBN, the bank considered the cost saving effect – the cost of production of the note – and I think that is why our President and his economic coordinating team approved that”, she said.
ANAN’s president further advised that the government should make the smaller denominations of naira notes more available in circulation.
“In all sectors, you have people doing menial jobs and they are paid very little. If you give them a single N5, 000 note, they still need to go and break it down to make purchases”.
A former Auditor-General of Kogi State, Ladi-Ibrahim stated that “the quality of our currency must be of international standard and I think that is what is making the cost of production very high. The new N5,000 is for everybody and it makes life easier for those that have it”.
She said that it would be easier to carry just 200 notes totaling N1million, but warned that this could promote money laundering. “Most countries do not encourage large quantum of cash carriage as this could affect any nation’s security situation.”
Culled: Leadership