(BREAKING NEWS) CBN Secures Approval From Buhari To Redesign N200, N500, N1,000 Notes

* Pix source: Daily Post Nigeria

 

 

 

 …New Currency To Begin Circulation From December 15, 2022

 …Says Naira Has Not Been Redesigned For 20 Years

 …Decision In Line With Sections 19, Subsections A and B Of CBN Act 2007,

 

The Central Bank of Nigeria(CBN) said that it has secured approval of President Muhammadu Buhari to redesign the N100, N200, N500 and N1,000 notes.

This was disclosed today by the apex Bank Governor, Godwin Emefelie at a special briefing to inform relevant stakeholders and the public of persisting concerns the CBN is facing with the management of current series of banknotes, and currency in circulation, particularly those outside the banking system in Nigeria.

He lamented that in recent times, however, currency management has

faced several daunting challenges that have continued to grow in scale and sophistication with attendant and unintended consequences for the integrity of both the CBN and the country.

He listed these challenges to include:

1, Significant hoarding of banknotes by members of the public, with statistics showing that over 80 per cent of currency in circulation are outside the vaults of commercial banks.

2, Worsening shortage of clean and fit banknotes with attendant negative perception of the CBN and increased risk to financial stability.

3, Increasing ease and risk of counterfeiting evidenced by several security reports.

He explained that recent development in photographic  technology and advancements in printing devices have  made counterfeiting relatively easier.

The Central Bank Governor added that in recent years, CBN has recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 and N1,000 banknotes.

To buttress his point, the Apex bank boss pointed out that currency management is a key function of the Central Bank of Nigeria, as enshrined in Section 2 (b) of the CBN Act 2007. Indeed, the integrity of a local legal tender, the efficiency of its supply, as well as its efficacy in the conduct of monetary policy are some of the hallmarks of a great Central Bank.

Emefelie stated that although global best practice is for central banks to  redesign, produce and circulate new local legal tender every 5–8 years, the Naira has not been redesigned in the last 20 years.

“On the basis of these trends, problems, and facts, and in line with Sections 19, Subsections A and B of the CBN Act 2007, the management of the CBN sought and obtained the approval of President Muhammadu Buhari to redesign, produce, and circulate new series of banknotes at N100, N200, N500, and N1,000 levels.

“In line with this approval, we have finalised arrangements for the new currency to begin circulation from December 15, 2022. The new and existing currencies shall remain legal tender and circulate together until January 31, 2023 when the existing currencies shall seize to be legal tender.

“Accordingly, all Deposit Money Banks currently holding the existing denominations of the currency may begin returning these notes back to the CBN effective immediately,” the CBN Governor directed.

The newly designed currency, Emefelie said will be released to the banks in the order of First-Come-First serve basis.

He urged 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.

He directed all banks to keep open their currency processing centres from Monday to Saturday so as to accommodate all cash that will be returned by their customers.

“For the purpose of this transition from existing to new notes, bank charges for cash deposits are hereby suspended with immediate effect. Therefore, DMBs are to note that no bank customer shall bear any charges for cash returned/paid into their accounts.

“Members of the public are to please note that the present notes remain legal tender and should not be rejected as a means of exchange for purchase of goods and services.

“We would like to use this opportunity to reassure the public that the CBN would continue to monitor both the financial system in particular and the economy in general and always act in good faith for the achievement of the Bank’s objectives and the betterment of the country,” he said.

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