Outdated Banknote Stays Authorized Tender – CBN
Each banknote stays authorized tender and shouldn’t be rejected by anybody, the Central Financial institution of Nigeria has disclosed.
That is because the apex financial institution directed all its branches throughout the nation to proceed to situation completely different denominations of the previous and redesigned banknotes in ample portions to deposit cash banks.
The apex financial institution harassed that each banknote that it has issued stays authorized tender and shouldn’t be rejected by anybody. This disclosure was contained in a public assertion issued by the Director of Company Communications of the CBN, Isah Abdulmumin, on Wednesday, in Abuja.
It was titled, ‘All Banknotes Issued by the CBN Stay Authorized Tender.’ Isa mentioned the directive follows stories of shortage of money throughout some main cities within the nation regardless of preliminary assurances by the CBN of ample money shares in all places throughout the nation.
The assertion learn, “Our consideration has once more been drawn to stories of a shortage of money throughout some main cities within the nation regardless of assurances of ample money shares in all places throughout the nation. There have additionally been stories of hysteria amongst some members of the general public over the legality or in any other case of previous Naira banknotes.
“For the avoidance of doubt, whereas reiterating that there are ample banknotes throughout the nation for all regular financial exercise, we want to state unambiguously that each banknote issued by the Central Financial institution of Nigeria stays authorized tender and shouldn’t be rejected by anybody, as stipulated in Part 20(5) of the CBN Act, 2007.
“Accordingly, branches of the CBN throughout the nation have been directed to proceed to situation completely different denominations of previous and redesigned banknotes in ample portions to deposit cash banks for onward circulation to financial institution prospects.
“We want to restate that each one denominations of banknotes issued by the Central Financial institution of Nigeria stay authorized tender. According to Part 20(5) of the CBN Act, 2007, nobody ought to refuse to just accept the Naira as a method of fee.
“Consequently, members of the general public are suggested to just accept all CBN-issued banknotes at present in circulation and guard towards panic withdrawals. We reaffirm that there’s ample inventory of forex notes to facilitate regular financial actions.”
Isa additional suggested members of the general public to scale back the stress on the usage of bodily money and embrace different modes of fee.
Just lately, the apex financial institution issued a listing to the general public that it had ample inventory of forex notes following alleged stories of shortage of money in banks, automated teller machines, Factors of Sale, and Bureaux de Change in some main cities throughout the nation.
The financial institution famous that the money shortage in some places was on account of excessive quantity withdrawals from CBN branches by Deposit Cash Banks and panic withdrawals by prospects from the ATMs.
It mentioned, “Whereas we word the considerations of Nigerians on the supply of money for monetary transactions, we want to guarantee the general public that there’s ample inventory of forex notes for financial actions within the nation. The branches of the CBN throughout the nation are additionally working to make sure the seamless circulation of money of their respective states of operation.”
The apex financial institution has needed to make clear the state of affairs of the naira due to a December 2023 deadline looming on the legitimacy of previous naira notes.