Central Bank Puts New Naira Noted Into Circulation
By Sahabi Abdul
Newly redesigned naira notes were put into circulation today by the Central Bank of Nigeria, marking the start of a six-week period holders of the old notes have to exchange them.
The affected denominations are the 200, 500 and 1,000 notes, changed by the monetary authorities with the aim of regaining control over the amount of cash in circulation in the economy. More than 85 percent of the cash currently circulating in the country are outside the banking system.
As an additional measure, the CBN has also stipulated that cash withdrawals be limited to 20,000 naira daily for individuals and 100,000 naira daily for corporate organizations. It’s a move widely seen as aimed at curtailing the use of money to buy votes during February general elections.
The currency redesign and restrictions on cash withdrawals are remiscent of similar measures introduced by President Muhammadu Buhari when he was a military ruler in the 1980s.