The Central bank of Nigeria revealed an amount of N1.9 trillion held outside the banking system had been so far recovered from the populace due to the current cash swap policy activities going on across the federation. This was revealed by the CBN governor, Godwin Emefiele when giving an update to the President.
CBN acknowledged the federal government for granting them the approval to embark on the cash redesign program that has not been done over the last 19 years. The decision to embark on this activity was in the best interest of the Nigerian economy, to ensure the efficacy of the monetary policy.
The CBN governor, Godwin Emefiele analyzed the situation saying, currency-in-circulation as of 2015, was just N1.4 trillion. It increased to N3.23 trillion in October 2022, in which just only 500 billion was within the banking system.
Hence, the ongoing activity is, therefore, a means to mop up excess liquidity in the country. Also, it has gone a long way in making the CBN lend a helping hand in combating banditry and Ransome taking in Nigeria.
‘Our aim mainly is to make our monetary policy decisions more efficacious, we’ve started to see inflation trending downwards and exchange relatively stable. Secondly, we aim to support the effort of our security agencies in combating Banditry and Ransome taking in Nigeria.”
According to Emefiele, this activity helped to discover a total sum of 2.7 trillion permanently held up in people’s houses.
Ordinarily, when CBN releases currency into circulation, it is meant to be used, and after effluxion of time. It returns to the CBN thereby keeping the volume of currency under the firm control of the CBN.
Furthermore, Emefiele said in the update that this activity of redesign should be conducted in the country at 5-8 years intervals.
On The Deadline Extension.
Emefiele says that CBN has sought and obtained Mr. President’s approval for a 10 -day extension from Jan 31st to February 10, 2023.
“A 10-day extension of the deadline from January 31st, 2023 to February 10, 2023; to allow for the collection of more old notes legitimately held by Nigerians and achieve more success in cash swaps in our rural community after which all old notes outside the CBN losses their legal tender status”.
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