CBN to pump more new naira notes, dispels rumour of withdrawal
By Jeph Ajobaju, Chief Copy Editor
More new naira notes are to be released by the Central Bank of Nigeria (CBN) to quell rumours and concerns about the disappearance of the newly rejigged notes.
Acting CBN Corporate Communications Director Isa AbdulMumim said banks are expected to disburse the new currencies through over-the-counter payments and Automated Teller Machines (ATMs)
“We wish to reiterate that the new and old currency notes have been circulating side by side just as the bank has been taking delivery of a good quantity of the redesigned bank notes from the Nigerian Security Printing and Minting Company Limited,” AbdulMumim explained in a statement issued in Abuja.
“Furthermore, we are committed to supplying the approved indent for the smooth running of the economy. We, therefore, urge members of the public to disregard any report suggesting a phase-out of the redesigned currency.”
The CBN reiterated old and new notes would continue to be accepted as legal tender and co-circulate for transactions ahead of the phasing out of old N1000, N500 and N200 denominations on December 31.
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Currency in circulation
Currency in circulation increased by N701.4 trillion to N1.6 trillion in March after the CBN reversed money supply policy that triggered a cash crunch.
The CBN defines currency in circulation as currency outside its vaults; that is, all legal tender currencies in the hands of the public and in the vaults of the Deposit Money Banks (DMBs), per reporting by The PUNCH.
Currency in circulation slashed 235.03 per cent from N3.29 trillion in October 2022 to N982.09 billion in February 2023 on the back of the naira redesign policy.
CBN data shows N2.3 trillion was mopped up from circulation during the period.
CBN Governor Godwin Emefiele announced in October 2022 plans to redesign N200, N500, and N1,000 notes in part to curtail cash hoarding by members of the public, saying 80 per cent of currency-in-circulation was outside bank vaults.