On the extension of its ongoing currency swap, CBN, the Central Bank reiterated a shocking disclosure. CBN says that 2.5 trillion Naira circulates outside the banking system in Nigeria. Individuals and organisations stash the cash in homes or hoard them in other secret locations.
Here are 10 important things to note about the exercise.
- The Central Bank at the weekend extended exchange of redesigned currency notes by a further 10 days ending 10 February. Citizens therefore have an 11-day window from today to trade in or deposit their old currency.
- Consequently, old Naira notes in 200, 500, and 1,000 denominations cease to be legal tender from 11 February 2023. Citizens cannot carry out transactions with them as from this date.
- What happens to people who still have the old notes after the new February deadline? There is another 7-day window for citizens to take the money directly to the Central Bank, according to CBN Governor, Godwin Emefiele. He did not however indicate what will happen to the funds deposited in CBN, including if and how how they will be credited to the accounts of those bringing in the money. The CBN is not a money deposit bank for individuals.
- The Central Bank mobilised agencies fighting financial crimes such as EFCC and ICPC to monitor and contain breaches by bank branches. There are trending online videos of people “spraying” bundles of the redesigned currency notes on celebrants at parties.
- The CBN promised to sanction the banks and individuals that committed the breaches.
- CBN mandates citizens to report banks that breach the guidelines or issue old currency notes.
- CBN says it mobilised 1.4 million point of sale (POS) terminals nationwide to assist with the currency swap. They are to ensure that the exercise becomes seamless for those who want to trade in their old currency notes.
- In addition to the 1.4m POS outlets, CBN announced that it mobilised 30,000 special agents to move into locations without any form of banking services to mop up any old currencies they have.
- Over N2.5 trillion cash circulate outside of the banking system. As at yesterday 29 January, more than a trillion Naira is still outside the system.
- The redesigned Naira notes are in denominations of 200 500 and 1000. This means that 100 and less notes are still legal tender and will continue to be so after ecpuration of CBN deadline
On the extension of ongoing CBN currency swap,