The Central Bank of Nigeria (CBN) introduced Monday night time that it had reversed the December deadline for the withdrawal of previous naira notes from circulation, which signifies that the previous designs of N200, N500 and N1,000 denominations will stay authorized tender, alongside the brand new ones till they’re gradual fade out of circulation.
The financial institution mentioned additionally it is working with the related authorities to put aside the subsisting court docket ruling which instituted the December deadline.
“Thus, all banknotes issued by the CBN, by Part 20(5) of the CBN Act 2007, will proceed to stay authorized tender, advert infinitum, even past the preliminary December 31, 2023, deadline,” the CBN famous in a press release signed by Isa AbdulMumin, its Director of Company Communications on Tuesday.
The CBN mentioned its newest resolution is in keeping with worldwide finest practices and to forestall a repeat of earlier experiences.
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The recent announcement adopted current developments the place financial institution prospects had already began making panic withdrawals and stashing naira notes forward of the sooner December deadline when previous notes had been presupposed to be pushed out of circulation.
As such fears heightened, business banks have needed to reduce down money withdrawal limits in concern of doable money shortage as December approaches.
“The Central Financial institution of Nigeria is working with the related authorities to vacate the subsisting court docket ruling on the identical topic.
“Accordingly, all CBN branches throughout the nation will proceed to situation and settle for all denominations of Nigerian banknotes, previous and redesigned, to and from deposit cash banks (DMBs).
“Most of the people is inspired to proceed to just accept all Naira banknotes (previous or redesigned) for day-to-day transactions and deal with them with the utmost care to safeguard and defend their lifecycle.
“ Additionally, most people is inspired to embrace various modes of fee, e-channels, for day-to-day transactions,” the assertion partly learn.