Stochastic Model for Predicting the Circulation of new Re-design Naira notes and its impact on Nigerian Cashless Economy

Subject Areas : International Journal of Mathematical Modelling & Computations

Aliyu Usman Kinafa ¹ , Nata'Ala Bako ² , Aliyu Kinafa ³

1 - Department of Mathematics, Gombe State University
2 - Department of Mathematics, Gombe State University
3 - Department of Mathematics, Gombe State University

Received: 2023-09-16 Accepted : 2023-12-14 Published : 2024-11-15

Keywords: Stochastic, Circulation, Re-designed, Cashless,

Abstract :

Abstract With the introduction of new re-design Naira note and setting limit on withdrawal to achieve the objectives of cashless policy, these create scarcity of Cash at hand of individuals. The circulation of a new redesign currency is dependent on several factors, including the level of public acceptance, the efficiency of the financial and banking systems, and the government's ability to effectively circulate the new currency. Redesign of currency in Nigeria comes with some little challenges or implications, including political, practical, and economic implications. By considering these implications, we proposed and analyzed a stochastic model that can help in monitoring and control of circulation of the new redesign naira note and its impact on Nigerian Cashless economy. The model will served as a starting point for policy direction and thereby forecasting the future trend of cashless policy in Nigeria.