The CBN has estimated that the currency note redesign will result in the return of over 2 trillion naira to banks.
This information was gathered from the CBN governor, Godwin Emefiele while speaking to reporters in Abuja.
The CBN began issuing redesigned 200, 500, and 1000 naira notes in mid-December 2022 as a way to mop up excess cash liquidity and take control of the money supply.
The CBN governor in his statement noted that the Central Bank of Nigeria recorded over 1.5 trillion naira of old naira notes exchanged last week and hoped that the figures would continue to rise to over 2 trillion naira. Emefiele emphasizes that Nigeria’s cash in circulation has doubled since 2015 to 3.23 trillion naira; the findings show that people are hoarding cash and keeping vaults inside their houses, but they lack the proper permit to erect bank vaults there. The central bank governor urges Nigerians to release the money back to the CBN because it is undermining the monetary policy.
To promote the adoption, the central bank on Monday allowed citizens without bank accounts in rural areas and those with limited access to formal financial services to exchange a maximum of 10,000 naira per person of the old naira through banks or agents without having to open an account. CBN is working with about 1.4 million agents and lenders to reach citizens across the country to swap old notes for new ones or open a bank. Using its representatives to penetrate rural areas
RateCaptain believes that redesigning the new naira will increase the liquidity of the banking system and help to stimulate economic growth.
We hope that this move is successful so that more steps can be taken in the future to combat crime-related activities involving monetary exchanges.
