Nigerians have reacted to the news as expected as to why the central bank decided to implement this revised cash withdrawal policy.
New notes: With the introduction of the new notes, the central bank has the chance to use technology and data mining tools to comprehend the velocity and flow of foreign exchange into the nation. If there is no cash involved in the transaction, the apex bank will have no trouble tracking the money’s movement across the industry when compared to eNaira and electronic transfers.
Development Finance: In addition to foreign exchange, these policies are a part of the apex bank’s effort to boost national productivity. The CBN will be “better able to influence savings, investment, and consumption behaviour through interest and exchange rate changes, a direct result of increased participation of Nigerians in the formal financial sector,” according to one of its financial inclusion goals.
The central bank has been driving these development finance activities for years by snatching up bank liquidity via CRR and using it as one of its sources for its intervention funds.