Renowned Economist Mr Henry Boyo has argued that the Central bank of Nigeria (CBN) operates a faulty monetary framework, hence the need to launch a new N5000 note.
Mr Boyo made this known on our early morning breakfast show, Sunrise Daily, where he explained that due to inflationary measures, what Nigerians use to buy for N1000 will soon cost N5000, adding that this will give the rise to the need for a new higher denomination of probably N10,000 in the next five years or less due to the official rate and growth of inflation.
According to the Economist, the monetary profile of any country depends on how successful its monetary policy model is “but because ours (CBN Monetary Policy) is a failure, is the reason why we have a N5,000 note and we will have a N10,000 note, in another five years or less because at the rate at which inflation is officially going,….we will need a higher denomination meaning we have a faulty monetary framework.”
Mr Boyo also criticised the apex bank and the federal government for what he termed ‘endangering the nation’s excess liquidity’ by the sales of Treasury Bills at 15 per cent, via the regular mopping of funds by the CBN, thereby making the government compete with the real sector which struggles to borrow funds at single digits.
The CBN’s Director of Media, Dr Ugochukwu Okoroafor however denied the claims, saying CBN’s move to create a new denomination is in-line with global best practices which periodically reviews national currency structure in a bid to support transactions in financial systems and also fight counterfeits.