MACROECONOMIC IMPLICATIONS OF THE NEW CURRENCY REFURBISHMENT AND CAPITAL FORMATION IN NIGERIA
This paper is an effort to investigate the economic implications and justification for the adoption of the policy of currency redesign by the monetary authority in Nigeria. In order to fulfil this objective, based on the available data over the period spanning 1973 to 2022. A panel data analysis was employed for the estimation in which preference was shown for the fixed effect over the random effects as suggested by the Hausman test, with the panel unit root test, which enables us to test for the stationary of the variables involves, This is followed by the panel co-integration test, which makes it possible to determine the long run relationship between money supply and the CBN policy of currency redesign. Thirdly, we then proceed to present the result of the scientific enquiry using Pedroni residual cointegration test estimation techniques to test the macroeconomics implications. The findings of the study shows that currency redesigning by the CBN is another means to reduce excess of money supply in circulation and reinforced more monetary policy effectiveness in curbing inflationary pressure and enhanced the exchange rate policy of the CBN. The study recommends more stabilization focus of pegging the exchange rate of dollar to naira, Harmonization of both monetary and fiscal policies effectiveness of the government.
Macroeconomics Policy, Currency Redesign, Interest Rates and Inflation Rate, Money Multiplier, Exchange Rate and Capital Accumulations