Buhari Finally Unveils New N200, N500, N1000 Notes, CBN Insists On Reducing Volume Of Notes In Circulation

John Omachonu

President Muhammadu Buhari has finally unveiled the re-designed N200, N500 and N1000 notes at the commencement of the weekly meeting of Federal Executive Council.According to a tweet by the president’s assistant on social media, Bashir Ahmad, Buhari unveiled the redesigned N200, N500, N1000 notes today.

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But Central Bank of Nigeria (CBN) says the redesignation of the notes would amount to a waste of resources if they are pumped into the economy unchecked, adding that the volume of higher denominations would have to be reduced to check inflation.

Hassan Mahmud, Director monetary policy dept, who featured on the Arise Television’s popular program, The Money Show on Wednesday said besides the exercise ensuring that money outside the system is captured and brought back, it is also an opportunity for the effective use of online platforms for transactions.

Using the instrumentality of liquidity forecast, Mahmud insists lower denominations would be encouraged as it’s been practiced even in advanced economies.

He says the cashless policy of the bank has been in existence for about 10 years and as such all efforts should be at enduring that the policy is fully entrenched into the system.

Dispelling the possibility of hoarding for possible dislocations in the system, the director says the usual mop up activities would be used depending on the liquidity situation.

On the negative impact of legacy structural issues like infrastructure deficit, insecurity and even the fiscal impediments, he was optimistic that progress is being made in these areas, just as efforts are on going at ensuring synergy between the monetary and fiscal policy measures.

At the unveiling ceremony, Buhari was flanked by cabinet officials, including the CBN Governor, Godwin Emefiele.

ALSO READ:CBN Plans Additional Measures On Inflation, Hikes Interest Rate, Reduces Volume Of Notes In Circulation
The new notes
The new Naira notes will become legal tender commencing from December 15, while the old ones will cease to be legal tender effective February 1, 2023.

This is the first time in 19 years that Nigeria will be redesigning some of her currency notes