The newly redesigned naira notes were unveiled by President Muhammadu Buhari today, Wednesday, November 23, 2022, at the State House in Abuja.
This is following the disclosure made by the Central Bank of Nigeria (CBN) yesterday that the president would launch the new banknotes today. The notes are in the N200, N500, and N1000 denominations.
CBN Governor Godwin Emefiele revealed that the new banknotes will begin to circulate right away following the debut rather than waiting for the initial date of December 15, 2022, during the MPC meeting on Tuesday. The Governor claims that the new notes will contribute to a decrease in the amount of money in circulation, hence regulating the pace of inflation.
He reaffirmed the need for the redesign once more and said that the greater rates of counterfeiting of the N500 and N1,000 banknotes were the reason for it.
§ On the other hand, Nigeria is battling a record-high inflation rate, partly attributed to the increased amount of money in circulation. According to data from the CBN, Nigeria’s broad money supply rose past the N50 trillion margin in October, which is the highest level on record.
§ Similarly, currency in circulation is stated at N3.29 trillion, increasing by over N855 billion between January and October 2022. This is an indication of currency hoarding which has kept monetary policies somewhat ineffective against the rising cost of goods and services.
The CBN explained that until January 31, 2023, when the present currencies will cease to be legal tender, both the new and old naira notes will continue to be legal tender and circulate together. The apex bank has posted a countdown clock on its website that displays the date that the old naira will cease to be legal money.
This indicates that Nigerians have roughly 69 days to withdraw the new notes and deposit their old money in the bank. To allow clients to exchange their old notes for new ones, the CBN has also directed commercial banks across the nation to open on Saturdays till the deadline.
