New Naira Notes: CBN Says it is Searching For N2.56 Trillion Outside Banking System

New Naira Notes: CBN Says it is Searching For N2.56 Trillion Outside Banking System

  • The Central Bank of Nigeria is still on the prowl for missing N2.56 trillion outside the banking system
  • The bank said only 6 per cent of the 85 percent of the money outside banks’ vaults had been received
  • It stated that the amount represents about N165 billion of the entire money in circulation

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The Central Bank of Nigeria is still searching for and expecting N2.56 trillion out of the N2.73 trillion outside bank vaults before January 31, 2023, deadline.

The bank said that as of September 2022, N3.23 trillion was in circulation but N2.73 trillion, representing 85 per cent, was outside the banking system in Nigeria.

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BusinessDay reports CBN’s director of currency, Ahmed Bello Umar as saying that as of November 18, the bank received only N165 billion. It said it had made a lot of concessions to ease the deposits.

The bank hopes that about 80 per cent of the total money in circulation will be returned to the banks.

Umar said:

“From the deposit, we have received now, 95 per cent is in N1000 and N500 denominations averaging N86 billion and N51 billion respectively while N200 is N7 billion,” he said.
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According to him, the newly unveiled naira notes would be distributed across the CBN networks starting Thursday, November 24, 2022, to reduce the challenges when it launches.

CBN begins distribution of new notes

Umar stated that the provides for three months’ notice before introducing new notes into circulation, saying that it has been adhered to.

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He also said the CBN would reduce the circulation of higher denominations to combat currency hoarding.

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“We want to drive cashless policy and reduce the cost of currency management because we have to carry this money across the 37 branches we have,” he said.

CBN’s director of risk management, Blaise Ijebor, said apart from hoarding challenges, there are a lot of risks associated with having a lot of cash outside the banking system.

New notes spikes demand for naira, exchanges for N730 per dollar in the parallel market

onebeat.com.ng reported that amid the unveiling of the new naira notes on Wednesday, November 23, 2022, by President Muhammadu Buhari, the local currency has gained about N40 against the US dollar.

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Checks by onebeat.com.ng along the Allen Avenue and Ogba axis in Lagos reveal a massive demand for the naira, leading to its appreciation.

Currency dealers in the areas visited said people are asking if the new notes are already available, and if not, they are ready to trade existing ones.

Source: onebeat.com.ng

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