The amount of old notes that will be exchanged for new notes on January 31, 2023, according to CBN Governor Godwin Emefiele, has been made public.
Goldennewsng reported that he claims that banks have received approximately N1 trillion.
After meeting with President Buhari, the Governor of the Central Bank informed journalists in Daura, Katsina State, about this development.
Godwin Emefiele, Governor of the Central Bank of Nigeria, says Cashless Policy Cannot Be Reversed. Godwin Emefiele has said that the current cashless policy cannot be reversed.
During the plenary on Thursday, the House of Representatives asked the CBN Governor to put the policy on hold until the expected engagement on compliance with the CBN act’s relevant sections and the 1999 constitution’s monetary policies are completed.
He was requested to appear before the House on Thursday of the following week to discuss the significance and impact of the new policy.
The Senate raised concerns regarding the most recent CBN policy on cash withdrawals on Wednesday, and they scheduled Tuesday to discuss the new policy.
However, in an interview with reporters at the State House on Thursday, Emefiele stated that a number of electronic channels had been implemented in the ten years since the cashless policy was implemented in 2012. This was in response to President Muhammadu Buhari’s briefing on the CBN’s and the Nigerian economy in Daura, Katsina State.
He stated that the cashless policy was discontinued on multiple occasions to fully prepare for its implementation and strengthen Nigeria’s payment system infrastructure.
He stated that the purpose of the visit was to reassure the President that all currency and cashless policy plans were “going well.”
The CBN governor stated that banks had begun dispensing the new cash, which arrived at their various offices on Wednesday, regarding the redesign of currency notes.
“I can only just assure you that it will go around; please be calm; fortunately, the old currency remained legal tender until January 31, 2023. As a joke, both the painted (new notes) and unpainted (old notes) notes will be accepted as legal tender simultaneously. However, the unpainted one will no longer be of any use to you by January 31, so please take it to your bank as soon as possible,” he added.
According to Emefiele, approximately N1 trillion worth of the old notes have been returned to the banking system.
He stated, when asked what the CBN would do about the policy after the Senate opposed the withdrawal limit: I am aware that they have requested some briefings, and we will brief them. The Senate of the Federal Republic is the National Assembly, which is the legislative branch of the government. From time to time, we brief them about what is taking place and our policies.
“Having 1.4 million of them is equivalent to having 1.4 million banking locations where customers can perform transactions. Additionally, we believe that because Nigeria has the largest economy in Africa, we must quickly transition to a cashless economy. We cannot permit a situation in which more than 85% of the cash in circulation is outside the bank. Countries that are embracing digitization are increasingly abandoning cash.
“And I have stated it at various forums that this is not directed at anyone; rather, it is intended solely for the development and benefit of the Nigerian economy, and we can only continue to appeal to Nigerians to please accept this policy in its current form. Since I cannot guarantee that we will be rigid, we will periodically evaluate the operation of this. However, this does not imply that we will reverse or alter the timing; rather, it merely refers to the possibility of tricking some amount to be slightly higher or lower, in addition to the remaining amounts.
“We will do so because we are humans and want to ensure that our people have a good life.” We would rather not cause problems for them. Therefore, there is no need to be concerned; the central bank is keeping an eye on the situation, and I can reassure everyone that we are up to our obligations and will act in the best interest of Nigeria and Nigerians.
The CBN restricted the maximum weekly cash withdrawals from individuals and businesses from over-the-counter (OTC) accounts to N100,000 and N500,000, respectively, under the new withdrawal policy.
However, the CBN stated that in the future, individuals and businesses would be subject to processing fees of 5% and 10%, respectively, for withdrawals exceeding the thresholds.
Additionally, the new withdrawal policy established a weekly cash withdrawal limit of N100,000 from ATMs, with a daily cash withdrawal limit of N20,000.
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