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BDCs React to CBN Redesign Plan As Three Banknotes Face Extinction in 70 Days
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BDCs React to CBN Redesign Plan As Three Banknotes Face Extinction in 70 Days

by  Dave Ibemere 2 min read
  • Bureaus de Change operators have responded to the Central Bank of Nigeria's decision to redesign Naira notes
  • The Nigerian Central Bank has revealed intentions to redesign higher denominations of N200, N500, and N1000
  • The old naira notes have a life lifetime of only 70 days, and the CBN has already begun a countdown on its website

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The Association of Bureau De Change Operators of Nigeria (ABCON) has praised the Central Bank of Nigeria's ongoing redesigning of some dominations of the nation’s currency.

According to the President of ABCON, Aminu Gwadabe, the move by the CBN will help make Naira stronger.

CBN Governor Godwin Emefiele, on October 26, announced the redesign of N200, N500 and N1,000.

The CBN governor, during the announcement, also said that the new banknotes would commence on December 15, 2022.

BDC predicts brighter days for Naira
Naira is expected to rebound Credit: Pius Etim
Source: Facebook

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BDC foresee brighter days for Naira

Gwadabe noted that the currency's redesign would likely close the gap between flexible and fixed exchange rates, flooding the market with capital inflows.

He also stated that his view for the naira in 2023 would assist the CBN in capturing considerable amounts of the naira outside the banking vault, according to ThisDay.

Gwadabe added:

"The Naira redesign would put pressure on the fragile currency rate volatility in the parallel market, since the demand increase experienced was just illusory and subsequently thinned down.
"With this situation and the central bank's aspirations to minimize the gap between the fixed and parallel markets in order to attract essential foreign inflows as a substantial liquidity source to boost the naira.
"The anticipated liquidity will flood the market, as we saw in 2016 when the I&E window was introduced to encourage foreign inflows into the market for investment in our huge natural resources."

Read also

Naira Design: Emefiele named man of year as stakeholders laud CBN’s chief

Nigerian banks announce new working days, closing time

Meanwhile, Nigerian banks have announced changes to their operating hours in order to assist Nigerians holding soon-to-expire Naira currencies

The banks have already announced that they have delivered notifications of their working hours via their social media channels and customers' emails

Details of the contents of their emails and changes were captured by Legit.ng in this report.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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