The Central Bank of Nigeria (CBN) continues to clean up currency in circulation, leaving the economy at 982.09 billion naira as Nigerians grapple with a naira shortage, according to data obtained from the financial watchdog on Sunday.
At the end of October 2022, the Naira circulation is N3.29 trillion Cubic boron nitride Started its naira redesign policy, resulting in a shortage of paper money.
Ripples Nigeria has reported that the central bank is dissatisfied with the currency in circulation, which CBN Governor Godwin Emefiele attributed to soaring inflation.
In the last week of October, Emefiele announced that the CBN would start liquidating funds to reduce the amount of cash in circulation.
Part of its strategy to reduce cash in circulation includes redesigning the old N200, N500 and N1,000 notes, with the new notes being issued in December 2022 and the old notes being phased out on February 10, 2023.
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Despite the Supreme Court ruling on February 8, 15 and 22 that old naira notes are still legal, the central bank continues to clear old naira notes from circulation, removing N23,000 naira notes from October 2022 to February 2023. Billions were removed from circulation while fewer new notes were printed.
This was one of the factors prolonging the scarcity of the naira, extending it until March, despite the Supreme Court ruling on March 3, 2023, that the old naira would remain legal until December 31, 2023.
From October last year to February 2023, cash in circulation fell by 70.14% from N3.29 trillion to N982.09 billion.
With cash in circulation dwindling and currency in commercial bank vaults or central bank vaults appreciating, Nigerians are still unable to withdraw funds from their accounts despite regulations that old and new banknotes should coexist for 10 months.
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