Saturday, August 25, 2012

New bank notes symptom of old woes in Nigeria

LAGOS, Nigeria (AP) ? Nigeria is set to unveil a bank note five times more valuable than its largest denomination bill as part of a major overhaul to its currency, a change some worry will further speed devaluation of its currency and hurt the poorest living in the nation.

The addition early next year of a 5,000 naira note, worth $31.25, comes less than a decade after the country introduced a 1,000 naira note. Over that time, the worth of the naira continued its long slide and analysts say that likely will continue.

The plan announced by Central Bank Gov. Sanusi Lamido Sanusi also calls for smaller denominations to be changed to coins.

In a nation where most earn less than $2 a day, any inflation could be a tremendous pinch on pockets.

Source: http://news.yahoo.com/bank-notes-symptom-old-woes-nigeria-131758843--finance.html

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