1 year ago
Starting December 15, Nigerians volition beryllium utilizing newly-designed 100, 200, 500 and 1,000-naira banknotes, the politician of the Central Bank of Nigeria (CBN) has said. The announcement has since resulted successful the naira’s parallel marketplace speech complaint versus the U.S. dollar dropping to a caller debased of N781:$1.
Redesigning Currency a Global Best Practice
The Central Bank of Nigeria (CBN) governor, Godwin Emefiele, precocious said his instauration volition statesman circulating newly-designed naira banknotes connected December 15. Emefiele claimed the injection of the caller notes into Nigeria’s fiscal strategy is intended to assistance the CBN tackle fraud, inflation, and the insecurity challenge.
According to Emefiele, who made the announcement astatine a caller property conference, the affected banknotes are 100, 200, 500 and 1,000-naira banknotes. In justifying the determination to redesign the banknotes, the CBN politician said doing truthful is simply a planetary champion signifier which indispensable beryllium carried retired each 5 to 8 years. Emefiele said Nigeria has not redesigned its banknotes for the past 20 years.
Furthermore, the politician besides pointed to circumstantial sections of the CBN Act which springiness the cardinal slope the authorization to reissue currency. He said:
On the ground of these trends, problems, and facts, and successful enactment with Sections 19, Subsections [a] and [b] of the CBN Act 2007, the absorption of the CBN sought and obtained the support of President Muhammadu Buhari to redesign, produce, and circulate caller bid of banknotes astatine N100, N200, N500, and N1,000 levels.
Some Nigerian experts person suggested that the cardinal slope whitethorn beryllium utilizing the currency redesign to legitimize its crackdown connected currency hoarders and overseas currency dealers. Already, the Nigerian anti-graft body, the Economic and Financial Crimes Commission (EFCC), has said it volition beryllium monitoring the process of swapping aged banknotes with caller ones.
Naira Plunges to New Low Versus the Dollar
In a informing to Nigerian residents who whitethorn privation to undermine this process, the chairperson of the EFCC, Abdulrasheed Bawa, warned his enactment would “spare nary effort to bring to book, immoderate fiscal services relation who runs afoul of extant laws and regulations.”
Besides being utilized to substance enactment successful the overseas speech achromatic market, the naira banknotes — 80% of which are circulating extracurricular the banking strategy — are reportedly the preferred outgo method for criminals and kidnappers.
Meanwhile, conscionable nether 24 hours aft Emefiele’s announcement, the naira’s speech complaint versus the U.S. dollar connected the parallel marketplace fell from N760:$1 to arsenic debased arsenic N781:$1, a caller all-time low. According to a study successful the Premium Times, the naira’s latest autumn tin beryllium attributed to the enactment of ample currency holders who are offloading the soon-to-be-demonetized naira banknotes.
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Terence Zimwara
Terence Zimwara is simply a Zimbabwe award-winning journalist, writer and writer. He has written extensively astir the economical troubles of immoderate African countries arsenic good arsenic however integer currencies tin supply Africans with an flight route.
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