NIGERIAN NOTE QUESTIONED Public Deposited
The E-Sylum: Volume 8, Number 52, December 11, 2005, Article 23
NIGERIAN NOTE QUESTIONED
An editorial in The Independent of Nigeria addresses
a "credibility crisis" around a new note:"We have never seen anything like it! Since Independence,
there has been various changes in the currency and its
component denominations. Indeed there was a change from
pounds to Naira which the Nigerian public took in its
stride: there was not a whisper or whimper of controversy
or debate let alone any dissent or question about the
legality of the tender.For now however, there are clearly troubled whispers.
In spite of an advertising blitz, there has been great
skepticism about the validity and reluctance to accept
the new N1000 note as a medium of exchange. The Central
Bank of Nigeria (CBN) has had to announce that it would
not withdraw the N1000 note following an alleged error
detected on the new note.CBN states that: "The new banknote remains certified
legal tender. The CBN is also not contemplating replacing
the existing N1000 note with a new design. The CBN is
hereby assuring the public that the absence of the 'Naira'
sign on the N1000 banknote is the result of a deliberate
change in design to reflect modern concepts in line with
best practices."The question that refuses to go away however is: why the
reluctance on the part of the public to accept the new
legal tender?"To read the full article, see: Full Story
[Here's a link to the Central Bank of Nigeria's press
release about the note: Full StoryThe alleged error is the removal of the 'Naira' sign.
The bank is saying that they are removing the currency
symbol "to reflect modern concepts in line with best
practices". Reading between the lines, I believe the
thinking here is that symbols can have multiple meanings
and interpretations, but spelled-out currency names are
unambiguous, and that the modern practice is to use only
spelled-out names on currency. I'm not a world currency
collector, so perhaps one of our readers can confirm this.
Has this practice ever been written up formally, in a
publication or trade journal for central bankers?QUIZ ANSWER: A quick look at the U.S. paper money in my
wallet today brings the answer to today's quiz question:
The dollar sign "$" appears nowhere on the U.S. one dollar
note. New question: has it appeared on U.S. currency in
the past? -Editor]- 2005-12-11
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