CEM REPORT, FINANCE | The Central Bank of Nigeria has revealed plans to reduce the volume of N500 and N1000 in circulation.
This is as the bank also said the new redesigned note will be launched by President Buhari on the 23rd of November 2022.
Speaking during a media briefing after the monetary policy communique held on November 22nd, 2022 in Abuja the apex bank governor noted that the reduction of the N500 and N1000 naira notes in circulation will help curb the inflation rate which he partly blamed on the higher-denominated naira notes.
“In the UK they have a denomination of 50 pounds but the most spent denomination is 20 pounds. Nobody spends 50 pounds. If you go around carrying 50 pounds in the UK they will suspect and report you in fact.”
“The reverse is what is happening in Nigeria. Nigerians want to carry N500 and N1000. And in fact, we are beginning to think that increasing the high denomination is also part of what is fueling inflation. So in fact, yes we will launch N200, N500, and N1000 over time we will reduce the volume of N500 and N1000 in circulation. Let people carry N50 around.“
He admonished Nigerians to employ electronic means for high-value transactions.
“if you want to do high-value transactions, embrace online, embrace our agency program, embrace our mobile banking program, that is what you need”
Furthermore, the Nigerian Central Bank Governor said President Buhari will launch the new naira notes tomorrow, 23rd of November 2022.
He added that the new note will also be unveiled at the Federal Executive Council chambers by 10 am.
While this is well ahead of the earlier scheduled date of December 15th, 2022, he maintained there is no going back on the January 31st data of ensuring all old currencies lose their legal tender status.
Also, he said a law is being put together to push this policy forward.
He also thanked Buhari for his support over the last seven and a half years and singled out the president’s support for the new naira policy which he has backed twice in comments to the media.