Again, CBN allays fears of naira scarcity, use of old notes

Kauthar KhaleelNovember 10, 20232 min

The Apex Bank reiterated that all denominations of banknotes issued by it remain legal tender.

The Central Bank of Nigeria (CBN) has directed all its branches across the country to continue with the issuance of different denominations of old and redesigned banknotes in adequate quantities to deposit money banks (DMBs) for onward circulation to bank customers.

The CBN also insisted that all banknotes issued by it remain legal tender.

This was contained in a statement signed by CBN Director of Corporate Communications, Isa AbdulMumin, on Wednesday.

In the statement, the CBN allayed public fears over reported cash scarcity in some major cities across the country as the December deadline for the transition to the new naira policy nears.

Also, there have been reports of apprehension among Nigerians over the legality or otherwise of old Naira banknotes.

READ ALSO: We have sufficient stock of naira notes – CBN

According to Abdumumin, the clarification became necessary following recent panic that there could be currency scarcity, despite the apex bank’s assurances of sufficient cash stocks in all locations across the country.

“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.

“We wish to restate that all denominations of banknotes issued by the Central Bank of Nigeria (CBN) remain legal tender. In line with Section 20(5) of the CBN Act, 2007, no one should refuse to accept the Naira as a means of payment. Consequently, members of the public are advised to accept all CBN-issued banknotes currently in circulation and guard against panic withdrawals. We reaffirm that a sufficient stock of currency notes facilitates normal economic activities.

“Furthermore, to reduce the pressure on the use of physical cash, members of the public are again advised to continue to embrace alternative modes of payment,” it added.

 

Kauthar Khaleel

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