CBN lists benefits of redesigned currency to economy

From Desmond Mgboh, Kano

The Central Bank of Nigeria, yesterday, listed the benefits of the redesigned currency notes to the economy, saying it would help fight corruption, check inflation and ensure a more effective monetary policy.

Kano State Controller of the Bank, Umar Ibrahim Biu stated this at the Bank’s sensitization program for traders at the West Africa Grain Market, Dawuna, Kano State.

He explained that the exercise would bring the horded currency into the banking system, thereby, paving way for a more effective monetary policy while adding that it would help the Bank access more accurate data of money supplied as well as monetary aggregates

Biu added that it would lead to financial inclusion, enhance the drive to a cashless economy as well as lead to the formalization of the Nigeria economy.

According to him, the global best practice was to redesign currencies every five years, but regretted  that the previous currency was held on for 19 years.

He further noted that as at June 2022, 2.72 billion of 3.26 billion of the currency in circulation, which amounted to 84.71 percent, were outside the commercial banks and the Central Bank.

Aside, he stressed that the old currency had resulted in worsening shortage of clean bank notes, which not only gave the bank a negative perception in the eyes of the public, but represented an increased risk to financial stability.

He stressed that security reports at the disposal of the Bank, prior to the present policy, indicated an increased ease of counterfeiting the currency by criminals

It was for these reasons, he stated, that the management of the Bank sought and obtained the approval of the President to re-design, produce and circulate the new series of bank notes of N200, 500 and 1000 Naira notes.