British Journal of Economics, Finance and Management Sciences 12 June 2013, Vol. 8 (1) © 2013 British Journals ISSN 2048-125X Macroeconomic Implication of Currency Management in Nigeria: A Synthesis of the Literature Russell Olukayode Christopher SOMOYE Departments of Economics, Business and Finance Faculty of Social and Management Sciences, Crescent University, Abeokuta, Nigeria olukayodesomoye@hotmail.com Adegbemi Babatunde ONAKOYA Department of Economics, College of Social and Management Sciences, Tai Solarin University of Education, Ijebu Ode, Nigeria adegbemionakoya@yahoo.com Abstract Currency management covers currency recalibration, redenomination and restructuring and it forms part of a broad package of economic and political reforms to strengthen the monetary sector of an economy. This paper reviews the likely impact of policy of currency restructuring by the Central Bank of Nigeria (CBN) in the context of macroeconomic implication for Nigeria and in comparison with other nations. The synthesis of the literature suggests that currency management in Nigeria, when viewed from the macroeconomic perspective, is significantly low and in most of the selected countries. The findings also support the literature that the policy may not propel inflation in an open economy. The results, however, suggest that currency denomination in whatever form is only possible in a country with high level of output, of which Nigeria is yet to achieve. The paper therefore recommends that, before embarking on currency restructuring policy, government ought to put in place appropriate fiscal and monetary policies to promote production so as to enhance the economic base of the nation for sustainable monetary sector. Keywords: Monetary Sector; Currency Restructuring; Macroeconomic Indicators JEL Classification: E00; E52; E58 1. Introduction Currency management means many things in monetary policy. It covers currency redenomination, recalibration, redenomination and restructuring. Currency redenomination as defined by Dogorawa (2007) is the process where a new unit of money replaces the old unit with a certain ratio by removing zeros from a currency or moving some decimal points to the left. Mosley (2005) states that redenomination involves the process whereby a country’s currency is recalibrated through reduction in the number of zeros in the currency with a view to achieving a set of given economic and fiscal objectives. The terms, redenomination, revaluation and