A Graduate of History& International Relations/ Public Affairs Commentator, Anya Chiedozie has given his thoughts on the supreme court verdict on old naira notes, saying the background of this development was more of a political tussle than economics.
Chiedozie who maintained that the verdict was not surprising to him, said he was not under any illusions that it would have gone otherwise.
Speaking with newsmen, he noted that President Mohammadu Buhari and perhaps some of his inner caucus tried to use a monetary policy strategy to destabilise some political proceedings, within certain quarters and for whatever purposes.
He said “What he failed to consider is that we aren’t ripe for a forced and hasty transition to a cashless economy.
“We do not have the capacity sufficient for such a quick transition. There is a need for proper consultation and sensitization, where certain government parastatals like the National Orientation Agency (NOA) will play vital roles.
“As to the going forward, Supreme has given the judgement but the fact is that it is not going to be automatic for cash to be back in circulation as before,” he said.
Speaking further, Chiedozie said the apex bank may have destroyed loads of the old notes.
According to him, to manage demand inflation, “you need to control cash flow, so CBN ideally will not print 1 for 1 new to old notes, that’s bad economics.
“Hopefully, the politicians will release hoarded funds for gubernatorial elections.
“As per the judgement itself, I think it is a landmark sound one because President Buhari faulted on many grounds, and it has been highlighted in the judgement, I am hopeful that it is obeyed, judging by the precedents already set by this administration on flagrant disobedience to court judgements.
“I don’t know why the supreme Court said demonetisation is inconsistent with CBN act,” he maintained.
He however, noted that the CBN has power to make regulations and if they deem fit that demonetisation is in line with a monetary policy as the deem fit and as it makes for economic regulation, they are as I believe empowered to make such.
