Tuesday, August 28, 2012
Senates suspends Introduction of 5000 Bill, I hope Sanusi will Obey.
I hope Sanusi obeys the orders of the Senate. I just hope he does, The last time i remembered the word suspension was handed, Nigerian woke up with "Jaiz Bank" again, i recalled the unilateral donation made to northern states at the inception of the Bombings, especially in Kano. some men are Just too catholic than the Pope or rather too Civil than the Civilian. again the Senate having examined the conduct of the zealous CBN governor in the introduction of the 5000 Naira controversial Bill rose from a meeting on 27th August instant and suspends the Planed introduction of N5000 Bill.
``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,''
The Chairman of the Committee, Sen. Bassey Otu (PDP- Cross River) issued the directive while speaking to newsmen in Abuja.
"The CBN must be very careful in order not to send a wrong signal or message to households, domestic sector and even the external ones that the Nigerian currency is valueless, which I believe it is definitely not, and that for every unit of value they need to carry a large quantity of cash."
"As a committee we should do our work, this morning there is a burning issue that is going on in our country and there is need for us; as a committee to comment on this topical issue. I am the chairman of the senate committee on banking, currency and other financial institutions. We have also read in the papers just like you about the currency restructuring that the CBN embarked on.
"I believe that a project of this nature requires parliamentary approval because there are numerous and fiscal implications on the entire economy.
"The CBN in 2008 and 2009 came up with a proposal to re-denominate the currency, that was even to take off the zeroes. This was just 2008 and 2009 and here we are in 2012 we have seeing a kind of policy somersault even though we understand the dynamics of the sector very well. I believe that we have to be well briefed on this.
"Also in 2005, the CBN undertook a major currency restructuring which ran into billions of Naira. Till date a proper value has not been done to know it's costs to the Nigerian taxpayers and the extent of the benefits and in that 2005 coinage, I think it did not work at all because both the goldsmith and the blacksmith converted the coins to molding bangles, earrings and so on etc.
"So, we believe that the coinage works very well where there is infrastructure to take it like a half, probably like a parking where you go and put it etc. We have not developed that real basic infrastructure and those coins most of them are nowhere really to be found.
"So, the CBN will have to prove that the policy is not a clear contradiction or at variance with cashless society, which they are even yet to justify and whether this is the popular economic way to go.
"So, we are asking and we are sending a letter to them to stop all further actions on this until the senate of the federal Republic is properly briefed", he said.
at 1:19 am