CBN Gives Update on Old Naira Usage Deadline
The Central Bank of Nigeria (CBN) has reiterated its commitment to gradually phase out the old N200, N500, and N1,000 notes as new banknotes continue to be issued. During the Money Policy Committee Meeting in Abuja on July 26, 2023, the Acting CBN governor, Folashodun Shonubi, clarified that the old notes are being exchanged for new ones whenever commercial banks request them.
Shonubi explained the currency circulation process, stating that banknotes go through multiple cycles and eventually get replaced over time. The CBN believes it has an optimal level of currency in circulation and the issuance of new banknotes is primarily aimed at maintaining that level rather than flooding the system with excess money.
The replacement of old notes with new ones is an ongoing process and is expected to occur gradually and seamlessly. This transition will not be accompanied by any grand celebration; rather, it will naturally evolve from old to new notes over time.
The history of the naira redesign involved previous plans to demonetize the old notes by January 31, 2023. However, due to certain legal matters, the deadline was extended by former President Muhammadu Buhari until December 2023, allowing the old naira notes to remain legal tender until then.
