“There Are Sufficient Banknotes”: CBN Sends Strong warning to Banks, Others Rejecting Old Notes
- The CBN has reiterated that there is no form of cash scarcity across the country
- It said that CBN branches have been directed to issue the old and redesigned banknotes
- According to the apex bank, the new and old notes remain legal tender and should not be rejected by anyone
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market
The Central Bank of Nigeria (CBN) has assured Nigerians of enough cash available across Nigeria.
It said this on the back of reports of naira scarcity across major cities despite assurance of sufficient cash.
In a statement signed by Isa AbdulMumin, Director, Corporate Communications on X, the CBN said that there has been increased anxiety among some members of the public over the legality or otherwise of the old naira notes.
Source: UGC
Sufficient notes available
The CBN reiterated that both old the note and the new note remain legal tender and should not be rejected.
It stated,
”For the avoidance of doubt, while reiterating that there are sufficient banknotes across the country for all normal economic activity, we wish to state unambiguously that every banknote issued by the Central Bank of Nigeria (CBN) remains legal tender and should not be rejected by anyone as stipulated in Section 20(5) of the CBN Act. 2007.
”Accordingly, branches of the CBN across the country have been directed to continue to issue different denominations of old and redesigned banknotes in adequate quantities to Deposit Money Banks (DMBs) for onward circulation to bank customers.
It emphasized that CBN branches across the country have been directed to continue to issue different denominations of old and redesigned banknotes. It explained that the notes “remain legal tender and should not be rejected by anyone as stipulated in Section 20(5) of the CBN Act. 2007.”
In an earlier report, CBN clarified that the old 200, 500, and 1000 naira notes would continue to be legal tender even after December 31, 2023.
A senior official, who spoke anonymously, assured Nigerians that both old and new banknotes would still be considered legal tender.
Also, recall that last week, the has assured that there are sufficient banknotes for economic activities and no need for panic withdrawals. This followed a report that cash shortages resurfaced in two states ahead of the December deadline for the withdrawal of old Naira notes.
“No More N900/$”: BDC Operators Send Important Message to CBN As Naira Records Massive Gain Against US Dollar
The Association of Bureau de Change Operators of Nigeria (ABCON) has asked the Central Bank of Nigeria to sell forex to them to improve dollar liquidity in the country, Legit.ng reported.
ABCON President Aminu Gwadebe in a telephone interview with Legit.ng said that such a decision will help ease the pressure on the naira.
He stressed that BDCs can go a long way in helping the CBN monetary policies and efforts to create stability in the forex market.
Source: Legit.ng
