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HomeInternationalNigeria unveils new financial institution notes in bid to regulate liquidity

Nigeria unveils new financial institution notes in bid to regulate liquidity

ABUJA: Nigerian President Muhammadu Buhari introduced a set of recent naira financial institution notes on Wednesday, saying the design would make them more durable to counterfeit and changing previous notes would assist management liquidity in an economic system the place most cash is held exterior banks.
Underneath a plan introduced final month, the Central Financial institution of Nigeria (CBN) will begin issuing the brand new notes to the general public from Dec. 15. Folks have till Jan. 31, 2023, handy of their previous notes and get replacements or place their cash in financial institution accounts.
“There was an pressing have to take management of forex in circulation and to deal with the hoarding of naira financial institution notes exterior the banking system, the scarcity of fresh and match financial institution notes in circulation and the rise in counterfeiting of high-denomination naira banknotes,” mentioned Buhari.
The 200-, 500- and 1,000-naira notes are those being changed. The brand new notes are made in Nigeria, not like the earlier ones which have been imported, and so they have new safety features, Buhari mentioned at a ceremony on the presidential villa in Abuja.
The plan is unfolding in opposition to a posh backdrop in Nigeria’s cash markets, with a number of alternate charges, a depreciation of the naira’s market worth to historic lows in opposition to the greenback and rampant inflation.
Buhari’s administration has sought to maintain the forex sturdy as a matter of nationwide pleasure, however that turned unsustainable throughout an oil value crash in 2016. To keep away from a devaluation, parallel alternate charges have been launched.
The World Bank and different worldwide establishments have known as on Nigeria to harmonise the charges.
CBN Governor Godwin Emefiele, who took half within the ceremony with Buhari, informed reporters the principle level of changing financial institution notes was for the central financial institution to have management over the amount of money in circulation and to maneuver in direction of a cashless economic system.
Emefiele defended the timeframe of the plan, which has been extensively criticised as too brief, saying that each one previous naira notes ought to be handed in by the deadline or they’d grow to be nugatory.

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