The Central Bank of Nigeria (CBN) is redesigning 200, 500, and 1000 Naira Notes and will start distribution on December 15, 2022.
This was disclosed by CBN Governor, Godwin Emefiele on Wednesday afternoon during a special briefing. He said the redesigning has been approved by the Federal Government.
He also added that with the transition from the old notes to new ones, bank charges for cash deposits have been suspended with immediate effect.
Further explaining, he said the new and existing naira notes shall remain legal tender and circulate together until January 31, 2023. This is when the existing currencies shall seize to be used.
What CBN is Saying Concerning New Notes
“Currency management is a key function of the Central Bank of Nigeria, as enshrined in Section 2 (b) of the CBN Act 2007. Indeed, the integrity of a local legal tender, the efficiency of its supply, as well as its efficacy in the conduct of monetary policy are some of the hallmarks of a great Central Bank,” Emefiele said.
“In recent years, the CBN has recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 and N1,000 banknotes. Although global best practice is for central banks to redesign, produce and circulate new local legal tender every 5–8 years, the Naira has not been redesigned in the last 20 years.” He added.
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Final Notes on CBN
Bank customers are expected to start paying into their accounts the existing currency to enable them to withdraw the banknotes once circulation begins in mid-December 2022.
Banks are therefore expected to keep open their currency processing centers from Mondays through to Saturdays Saturdays. This is to accommodate all cash that will be returned by their customers.
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