Thursday, 24 November 2022 06:13

Not much success recorded so far in getting old Naira notes back into banks - CBN

Rate this item
(0 votes)

One hundred and sixty five billion old naira notes have so far been absorbed by commercial banks since the announcement of the planned launch of new naira notes on October 26.

Director Currency, Central Bank of Nigeria (CBN), Ahmed Bello Umar, made the disclosure in Abuja at a post-Monetary Policy Committee media briefing.

According to him, the amount deposited thus far was small compared to what the apex bank has anticipated.

He also revealed that the apex bank will from Thursday, begin reticulating the new naira notes to all its branches across the country since the currency has been officially launched by President Muhammadu Buhari at the presidential villa on Wednesday.

He added that the new notes will be available for spending from December 15, even as he reiterated the federal government’s position that the no extension will be given to the old naira notes beyond January 31.

He said: No extension will be given. From Thursday, we will start distribution to our networks and not to customers yet.

“We have N3.2 trillion currency in circulation and out of this, N2.7 trillion is outside the banking system. As at 18th of November, N165 billion has been deposited since the announcement. The amount is small and we are not seeing the rush. Some banks have not made any recoveries of the old notes. It’s a challenge for us and we hope there won’t be stampede when it’s almost the deadline. We have made several concessions to encourage deposit. We removed all deposit limits, mandated the banks to work of Saturday, etc

“We hope that 80 per cent of the N2.7 trillion will come back. We are also pessimistic that we may record 40 per cent recovery and the reality is around 60 per cent recovery”.

Umar said the bulk of the new notes will be lower denomination, adding that 88 per cent of the money returned to the banks by customers were N500 and N1,000 notes. 

“We won’t print much of the high denomination. We will have currency for transaction which is more like the N200 note.

We want to drive cashless policy, mobile money, electronic payments etc. And this is certainly not an exchange programme where a customers deposits let’s say N10 million of the old currency and expects to get N10 million equivalent of the new currency. Deposit the money in your account and spend it more through electronic means. That’s what we want to achieve”, he added.

Also speaking at the event, the Director, Development Finance Department of the CBN, Yusuf Yila noted that apex bank was working with insurance companies to see ways of assisting farmers ameliorate their sufferings following the heavy flooding that destroyed their agricultural investments.

“With the right evidence, we can restructure the loans of those who suffered losses. But you have to pay back the loan you received”, he said.

 

Sun

June 12, 2024

Guinness’ core investor to exit Nigeria after 75 years amid economic challenges

After operating in Nigeria since 1950, Guinness’ core investor has announced its departure from the…
June 05, 2024

Many politicians go to court after elections because they know they can be declared winners…

Former President Goodluck Jonathan on Tuesday said that many politicians would avoid going to court…
June 09, 2024

Bar soap or body wash: Which is best for your skin and the planet?

What’s the most sustainable way to wash your hands or lather up in the shower?…
June 08, 2024

World’s first ever AI Beauty pageant names 10 finalists

The Fanvue Miss AI pageant, the world’s first beauty pageant for AI-generated female models, judges…
June 11, 2024

Gunmen kill 50 in raid on Katsina village, residents say

At least 50 people were killed and an unspecified number kidnapped, including women and children,…
June 12, 2024

Here’s the latest as Israel-Hamas war enters Day 250

Hamas responds to Gaza cease-fire plan seeking some changes. US says it's 'evaluating' the reply…
June 10, 2024

Three reasons why it’s good news that robots are getting smarter - The Economist

The robots are coming! In science fiction that is usually an ominous warning. In the…
June 11, 2024

Gernort Rohr’s sweet revenge as Nigeria lose World Cup qualifier to Benin coached by ex-Super…

Nigeria’s World Cup qualifying hopes took a heavy blow with a 2-1 defeat by Benin…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Prof Wale Are Olaitan: Editorial Consultant; Femi Kawonise: Head, Production & Administration; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2024 NewsScroll. All rights reserved.