The Central Bank of Nigeria (CBN) has issued a statement assuring the public of the continued availability of various denominations of old and redesigned banknotes across all its branches. The statement aims to allay concerns about potential currency scarcity, especially in major cities, as the transition to the new naira policy approaches. The CBN emphasizes that all banknotes issued by the institution remain legal tender, in accordance with the CBN Act of 2007.
Key Points:
- Continued Availability of Banknotes:
- The CBN has directed its branches nationwide to continue supplying deposit money banks (DMBs) with an ample supply of both old and redesigned banknotes for distribution to bank customers.
- Legal Tender Status:
- The statement unequivocally affirms that all banknotes issued by the CBN hold legal tender status. This declaration is based on Section 20(5) of the CBN Act, 2007, which stipulates that no one can reject the Naira as a form of payment.
- Addressing Scarcity Concerns:
- The CBN’s announcement seeks to address concerns that have arisen regarding potential currency shortages. Despite recent worries, the CBN reassures the public that there is an ample supply of banknotes to meet the demands of normal economic activities.
- Avoidance of Panic Withdrawals:
- The public is urged not to engage in panic withdrawals. The CBN emphasizes that a sufficient stock of currency notes is vital for maintaining regular economic transactions.
- Encouragement of Alternative Payment Methods:
- To alleviate pressure on physical cash usage, individuals are advised to continue embracing alternative modes of payment. This suggestion aligns with global trends towards digital and electronic forms of transactions.
Conclusion: The Central Bank of Nigeria’s reassurance of the availability of cash and the legal tender status of all its issued banknotes aims to instill confidence in the public amid concerns of potential currency scarcity. By emphasizing the continued accessibility of various denominations and urging the acceptance of Naira as a valid form of payment, the CBN aims to maintain stability in economic transactions. Additionally, the encouragement of alternative payment methods aligns with modern financial practices. This announcement reinforces the central bank’s commitment to ensuring a smooth transition to the new naira policy.
