The Effect of Currency Redesign on Inflation in Yenagoa Local Government Area

Abstract

The study investigated the effect of currency redesign on inflation in Yenagoa Local Government Area. The objectives of the study are to examine the effect of currency redesign on food prices, service cost and savings. Based on the set objectives of the study, three research questions and three hypotheses were formulated for the study. The survey design was used in the study while the sample comprised 357 participants. A structured questionnaire containing 16 items was use as instrument for data collection and descriptive statistical tool and Pearson Product Moment Correlation statistics were used for data analysis and test the hypothesis. The finding revealed that currency redesign has a negative but significant relationship with food prices, currency redesign has a negative but significant relationship with service cost and currency redesign has a negative but significant relationship with savings. The conclusion drawn therefore was that currency redesign has further increased the inflation in Yenagoa metropolis. It is recommended that government should ensure adequate food security before carrying out future redesign of the currency and adequate and long-term planning must be undertaken before embarking on currency redesign in the country to avoid unnecessary hardship for the Nigerian people amongst others.