4 Months To 2023 Elections… CBN Moves To Mop Up N3.23trn From Circulation
The CBN governor, speaking at the press briefing, noted that the apex bank had been facing challenges in the management of the current series of banknotes and currency in circulation, particularly those outside the banking system in Nigeria.
“Indeed, recent development in photographic technology and advancements in printing devices have made counterfeiting relatively easier. In recent years, the CBN has recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 and N1,000 banknotes. He went on: “Customers of banks are enjoined to begin paying into their bank accounts the existing currency to enable them withdraw the new banknotes once circulation begins in mid-December 2022. All banks are therefore expected to keep open their currency processing centres from Monday to Saturday so as to accommodate all cash that will be returned by their customers.
The chief executive officer, Centre for the Promotion of Private Enterprise , Dr Muda Yusuf, said it is difficult to see any compelling value proposition of this currency redesign idea, explaining the cost of such an action would be outrageous and disproportionate compared to the expected benefits advanced by the CBN.
“This is one intervention we can do without. There are more urgent issues demanding the attention of the CBN. We have issues with liquidity in the foreign exchange market, the depreciating currency the recent Moody’s downgrade of nigeria, soaring inflation and many more. Bawa, in a statement signed by the EFCC chairman, Wilson Uwujaren, said “The EFCC, the CBN and some other regulators in the financial sector have worked closely in the recent past to determine how best to stabilize the country’s monetary policy environment. It is heart-warming that the CBN has demonstrated courage in taking this bold decision which, I believe, will bring sanity to the currency management situation in Nigeria”, he said.
Also, the Inter-party Advisory Council and Civil Society Organisations in the country have disagreed over the introduction of newly designed naira notes. But the CSOs have frowned at the CBN plans, adding that such a step will cause panic and affect the value of the naira more. “They must tell us why at this time because we will spend a lot of money on this currency rebranding. This is a time when the country is crying that there is no money. How will they take such a decision without communicating with the National Assembly?
On his part, author at 21st Century Chronicle, Mahmud Jega, said the timing of the currency change is not right. “To folks old enough to remember the currency change exercise undertaken by the Buhari military government in 1984, Emefiele’s announcement that the N200, N500 and N1000 notes will cease to be legal tender at the end of January next year was the sudden revival of a nightmare. He said new notes will be introduced in mid-December to replace the old notes.
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