…..Says Banks Have Taken Delivery Of New Notes
The Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, said that over N1 trillion had been deposited in the banks by bank customers since the introduction of the new Naira notes redesign measure by the apex bank.
Emefiele, who made this disclosure on Thursday during an interactive session with journalists in Daura, Katsina State, when he visited President Muhammadu Buhari to update him on the ongoing policy measures of the CBN in the banking system, also disclosed that the new Naira notes had been delivered to the deposit money banks (DMBs) on Wednesday for immediate dispensing to meet the 15 December timeline for circulation to the public.
The apex bank governor spoke on past initiatives undertaken by the bank to deepen financial inclusion and transform Nigeria into a cashless economy and assured Nigerians that both the past and current monetary policy measures had great socio-economic benefits for the country.
On the deposits by customers, he said: “At the central bank, we have taken more than half a trillion and in the banks we also have close to half a trillion. But what we have done in the central bank is to move more people from different departments into currency processing so that they can process this cash as quickly as possible and from there, banks can now move what they have with them.”
Reacting to media question on how the apex bank is preparing for the December 15 timeline for the commencement of the circulation of the new N200, N500 and N1,000, Emefiele maintained all arrangements were being made by the CBN to ensure the successful circulation of the new Naira notes.
According to him, the CBN has put in place all necessary mechanisms and logistics to ensure that the timeline remains feasible.
He expatiated: “We are more than prepared because I said December 15 when we announced it, we said December 15 is when we will issue the cash but we have to move it forward because it leaped, the President launched it in November 26 instead of December 15 that the President initially planned to unveil it. And I just told you now that yesterday, the banks have received the new cash and they have started dispensing them.
“I can only just assure you that it will go round, let us just be calm. Luckily the old currency continued to be legal tender till January 31, 2023. So, I want to crack a joke, both the painted (new notes) and unpainted (old notes) will operate concurrently as a legal tender. But by January 31, the unpainted one will not be useful you again, so please take it to your bank as quickly as possible” Emefiele stressed.
While justifying the policy measures taken by the CBN over the past weeks on the financial system, the CBN governor explained that it was no longer desirable for Nigeria’s sustainable development to have the largest quantum of money in circulation out of the banking system.
He expatiated: “We cannot continue to allow a situation where over 85 per cent of the cash that is in circulation is outside the bank. More and more countries that are embracing digitization have gone into cashless. And I said it at different fora that this is not targeted at anybody, it’s just meant for the good and development of the Nigerian economy and we can only continue to appeal to Nigerians to please see this policy the way we have presented it.
“We will be reviewing from time to time how this is working because I cannot say that we are going to be rigid. But it is not to say that we will reverse, it is not to say that we will change the timing, but whether it is about tricking some amount to be a little bit higher or a little bit lower, and all the rest of them”, the CBN governor added.
He also spoke on some concerns of Nigerians and the National Assembly lawmakers about some of the policies, especially the over-the-counter withdrawal limits policy which was announced on Wednesday, saying the CBN management is aware of the issues being raised on the measures and that as has been the case in the past, the apex bank will always be ready to make clarifications on areas that are generating controversies in the public space now.
