Breaking: Nigeria’s central financial institution directs deposit banks to just accept previous Naira notes

Breaking: Nigeria’s central financial institution directs deposit banks to just accept previous Naira notes

After days of uncertainty, Nigerians will have the ability to heave a sigh of reduction after the Central Financial institution of Nigeria (CBN) directed all deposit cash banks to start accepting previous denominations of the N200, N500, and N1,000 notes.

On March 3, TechCabal reported that the Supreme Courtroom dominated that the old notes remain legal tender until December 31, 2023, including that the Federal Authorities disobeyed an earlier order to not implement a earlier February 10 deadline for the remittance of all previous notes.

Beforehand, the CBN had introduced that the N200 would remain legal tender for 60 days after the February deadline. The directive from the federal government got here after 16 state governors sued the FG and requested the apex courtroom to place a maintain on the naira redesign coverage.

Ten days after the courtroom’s ruling, the CBN, in a press release sighted by TechCabal, said that it will adjust to the courtroom orders to maintain the rule of legislation and the operations of the financial institution. It additionally directed the banks to conform accordingly.

“In compliance with the established custom of obedience to courtroom orders and sustenance of the  Rule of Legislation Precept that characterised the federal government of President Muhammadu Buhari, and by extension, the operations of the Central Financial institution of Nigeria (CBN), as a regulator, Deposit Cash Banks working in Nigeria have been directed to adjust to the Supreme Courtroom ruling of March 3, 2023,” the assertion reads.

The CBN additionally confirmed large stories that it met with the Bankers’ Committee concerning the circulation of the previous notes alongside the redesigned notes till December 31, 2023.

For the reason that money crunch started, Nigerians have confronted untold hardships attempting to get their palms on money. With about 57% of Nigeria’s economy being informal, the Naira redesign coverage made it troublesome for folks to conduct enterprise. The money shortage additionally noticed point-of-sale retailers grow to be kings as they charged exorbitant charges for withdrawals at any time when they’d money—some charged as a lot as 30% on withdrawals.

Whereas the CBN inspired digital funds for items and providers, Nigerians confronted the hurdle of inconsistent banking networks which noticed many checking account holders left stranded from failed transactions and pending transactions that lasted for hours. The apex financial institution, in a bid to keep in mind the unbanked, performed money swap applications in rural communities, which has since ended, based on a report by The Punch.

Earlier than the CBN’s announcement, some state governors warned banks and residents of their states to just accept the previous naira notes or face prosecution for rejecting them. Nonetheless, what’s left to be seen is how quickly the banks will begin issuing prospects previous notes; if the queues would cease, and what is going to occur after the tip of the 31-month growth in business activity attributable to the money crunch.

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