The World Bank has talked about the negative impact the Naira redesign will have on Nigeria’s economic activities.
In a new report titled “Nigeria Development Update”, the international financial institution revealed that the Naira redesign might have a negative effect on SMEs and poor Nigerians because of its timing and short transition period.
Part of the report read: “While periodic currency redesigns are normal internationally and the naira does appear to be due for it since naira notes have been redesigned for two decades, the timing of and short transition period for this demonetization may have negative impacts on economic activity, in particular for the poorest households.
“International experience suggests that rapid demonetizations can generate significant short-term costs, with small-scale businesses, and poor and vulnerable households, potentially being particularly affected due to being liquidity-constrained and heavily reliant on day-to-day cash transactions.
“At present, households and firms already face elevated financial pressures from prolonged, high inflation, recently compounded by external food and fuel price shocks, and the severe floods, and phasing out existing naira notes over a short time period may add to their challenges.”
SUPPORT NIGERIAN CANADIAN NEWS
If you like our work and want to keep enjoying what we offer, kindly support us by donating to the Nigerian Canadian News through the button below
Share your thoughts in the comments section below
Do you want to share any news or information with us? If yes, contact the publisher at publisher@test1.nascitest.club
