CBN introduces new N1000, N500, N200 notes Dec 15, old notes expire Jan, 2023

Citing Excessive Cash Hoarding, CBN Set to Release Redesigned Naira Notes

*To release new N100, N200, N500, N1000 notes Dec. 15

*Sets Jan 21, 2023 as deadline for old notes

Nume Ekeghe, James Emejo and Kasim Sumaina

The Central Bank of Nigeria has stated that in its bid to reduce the excessive hoarding of naira notes outside the banking system it is set to introduce newly redesigned naira notes for N200, N500 and N1000.

The Governor of the Central Bank, Godwin Emefiele announced this at a press briefing in Abuja Wednesday.

He noted that the new notes would be in circulation from December 15, 2022 and would also accommodate the old notes as legal tenders until January 21, 2023, which the apex bank has set as the target for mop-up.

He advised that there would be no charges for deposits and that the public should deposit monies outside the system to the banks to get the new notes once launched.

He said: “Significant hoarding of banknotes by members of the public, with statistics showing that over 80 percent of currency in circulation are outside the vaults of commercial banks.

“Worsening shortage of clean and fit banknotes with attendant negative perception of the CBN and increased risk to financial stability. Increasing ease and risk of counterfeiting evidenced by several security reports.”

“Indeed, recent development in photographic technology and advancements in printing devices have made counterfeiting relatively easier. In recent years, the CBN has recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 and N1,000 banknotes.”

“On the basis of these trends, problems, and facts, and in line with Sections 19, Subsections a and b of the CBN Act 2007, the Management of the CBN sought and obtained the approval of President Muhammadu Buhari to redesign, produce, and circulate new series of banknotes at N100, N200, N500, and N1,000 levels.”

“In line with this approval, we have finalised arrangements for the new currency to begin circulation from December 15, 2022. The new and existing currencies shall remain legal tender and circulate together until January 31, 2023 when the existing currencies shall cease to be legal tender.”

Credit: ThisDay

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