• About Us
  • Advertise with Us
  • Contact Us
Monday, May 29, 2023
GoldenNewsNG
No Result
View All Result
  • Home
  • News
    My Victory Does Not Make Me More Nigerian Than My Opponents – Tinubu

    My Victory Does Not Make Me More Nigerian Than My Opponents – Tinubu

    My Administration Will Tackle Issues Like Terrorism, Extreme Poverty – Tinubu

    My Administration Will Tackle Issues Like Terrorism, Extreme Poverty – Tinubu

    Omokri Reacts As Tinubu Becomes Nigeria’s President

    Omokri Reacts As Tinubu Becomes Nigeria’s President

    Buhari’s Family Off To Katsina Just After Handing Over To Bola Tinubu

    Buhari’s Family Off To Katsina Just After Handing Over To Bola Tinubu

    Buhari’s ADC Officially Hands Over To Tinubu’s ADC

    Buhari’s ADC Officially Hands Over To Tinubu’s ADC

    The Moment Tinubu Was Sworn In As President - See Full Video

    The Moment Tinubu Was Sworn In As President – See Full Video

    Trending Tags

    • Commentary
    • featured
    • Event
    • Editorial
  • Npower
  • Jobs
  • NYSC Info
  • Education
  • Business
  • Entertainment
  • Sports
  • Technology
  • Home
  • News
    My Victory Does Not Make Me More Nigerian Than My Opponents – Tinubu

    My Victory Does Not Make Me More Nigerian Than My Opponents – Tinubu

    My Administration Will Tackle Issues Like Terrorism, Extreme Poverty – Tinubu

    My Administration Will Tackle Issues Like Terrorism, Extreme Poverty – Tinubu

    Omokri Reacts As Tinubu Becomes Nigeria’s President

    Omokri Reacts As Tinubu Becomes Nigeria’s President

    Buhari’s Family Off To Katsina Just After Handing Over To Bola Tinubu

    Buhari’s Family Off To Katsina Just After Handing Over To Bola Tinubu

    Buhari’s ADC Officially Hands Over To Tinubu’s ADC

    Buhari’s ADC Officially Hands Over To Tinubu’s ADC

    The Moment Tinubu Was Sworn In As President - See Full Video

    The Moment Tinubu Was Sworn In As President – See Full Video

    Trending Tags

    • Commentary
    • featured
    • Event
    • Editorial
  • Npower
  • Jobs
  • NYSC Info
  • Education
  • Business
  • Entertainment
  • Sports
  • Technology
No Result
View All Result
Golden News
No Result
View All Result
  • Home
  • News
  • Npower
  • Jobs
  • NYSC Info
  • Education
  • Business
  • Entertainment
  • Sports
  • Technology
Home business

NAIRA SCARCITY : Latest CBN News Today 5th May 2023

Enudi Golden by Enudi Golden
May 5, 2023
in business, Headline
Reading Time: 4 mins read
Naira Scarcity : Latest CBN News Today 23rd May 2023
116
SHARES
FacebookShareTwitterShareWhatsappShareTelegramShare

Following the Naira Scarcity in Nigeria, GoldenNewsNg has compiled Latest CBN News and Update on Naira Notes Today 2nd May 2023.

 

CBN’s Naira Redesign Policy Causes Loan Repayment Issues for Nigerians

According to a survey by Successory Nigeria Ltd, Nigerian banks experienced high loan default due to a shortage of cash caused by the Central Bank of Nigeria’s redesign policy of the Naira. The survey analyzed responses from top bank staff and found that loan approvals peaked between January and March 2023, but customers were unable to repay due to the scarcity of cash. This resulted in a sharp increase in loan defaults and overdue payments, which affected the banks’ earnings and increased operating costs.

READ ALSO

BREAKING: Tinubu Sworn In As Nigeria’s 16th Democratically Elected President

Dollar to Naira: Aboki Exchange Rate in Nigeria Today 29th May 2023

The CBN’s introduction of new N1,000, N500, and N200 notes and withdrawal of the old notes caused a chronic cash crunch, leading to losses for businesses such as the Poultry Association of Nigeria (PAN) and frustration for banks trying to recover loans.

The survey revealed that financial institutions increased loan approvals and disbursements during the naira crunch, but faced challenges with rising corporate running costs due to inflation. The survey also highlighted the greed of some Nigerians who profited from citizens during the shortage of cash, and concluded that the policy was a deliberate punishment that made people poorer. The survey suggests that future policies and economic decisions should consider the impact on people’s livelihoods to avoid further negative effects on the economy.

CBN injects N701b into circulation to ease scarcity

In March, the Central Bank of Nigeria (CBN) injected N701.4 billion back into circulation, resulting in a significant increase in currency in circulation to N1.68 trillion. This represents a month-on-month (MoM) rise of 71.4% from N982.1 billion in February. According to CBN figures, this injection of cash helped reverse the downward trend that had seen currency in circulation fall to a 14-year low in February. The increase in cash supply was due to a Supreme Court ruling ordering the CBN to continue using old banknotes in circulation until December 31, following a lawsuit filed by some governors against the implementation of the naira redesign policy.

CBN Speaks on Plans for New Naira Notes as Banks, Nigerians Complain of Scarcity

CBN Clarifies: No Plans to Phase Out Redesigned Naira Notes, Despite Reports of Scarcity

The Central Bank of Nigeria (CBN) has issued a statement to refute reports that it plans to withdraw the newly redesigned N200, N500, and N1,000 notes from circulation. The apex bank’s clarification comes amid rising concerns about the apparent disappearance of the new notes, which have led to speculation and complaints from bank customers.

Acting director of corporate communications, Isa Abdulmumim, stressed that the speculation was unfounded and a strategy employed by certain groups to incite fear among the public. He also reiterated that both the old and new currency notes were being used concurrently and that the CBN was regularly receiving a substantial amount of updated banknotes from the Nigerian Security Printing and Minting Company (NSPMC) Limited.

The Redesigned and Old Notes Will Continue to Be Accepted as Legal Tender

Abdulmumim emphasized that the CBN remained committed to supplying the approved indent for the smooth running of the economy. He urged members of the public to disregard any report suggesting a phase-out of the redesigned currency and stated that the redesigned and old notes would continue to be accepted as legal tender. These notes would circulate side-by-side for transactions until December 31, 2023, when the old N1000, N500, and N200 banknotes would eventually be phased out.

Bank Customers Lament Over Counter Payment With Only Old Naira Notes

In an earlier report by GoldenNewsNg, bank customers lamented being paid over the counter with only old naira notes. This has led to concerns about the availability of the new notes in circulation. However, the CBN has reassured the public that the new notes are still in circulation and will continue to be so.

CBN pumps N701 billion back into circulation in March 2023 to ease cash at ATMs

In March 2023, Nigeria witnessed a 71.4% increase in its currency in circulation, reaching N1.68 trillion, compared to N982.1 billion recorded in the previous month, indicating an additional N701.4 billion added to the circulation. This information was tracked by Nairalytics from the Central Bank of Nigeria’s website. The surge in circulating currency is likely due to the Supreme Court’s judgment to reintroduce old notes into circulation, following a case brought to court by state governors who opposed the policy. Furthermore, currency outside the banking system also increased to N1.44 trillion from N843.3 billion, representing a 71.4% increase in one month, with about 86% of the circulating currency outside the banking system.

Despite the central bank’s adoption of contractionary measures, including raising the monetary policy rate by 650 basis points, from 11.5% to 18% per annum, between May 2022 and March 2023, to tame rising inflationary pressures in the country, the circulating currency continued to increase. The CBN’s approach included interest rate hikes, naira redesign, and encouraging a cashless policy to mop up excess liquidity from the economy. However, intense cash crunch and high costs of goods and services led to the failure of the naira redesign policy, triggering a massive cash scarcity.

As a result, the Supreme Court ruled to bring back old notes, leading to a surge in the amount of cash in the system. Nigeria’s money supply also rose to a record high of N54.6 trillion in March 2023 from N53.3 trillion recorded in the previous month. This was due to the increase in both components that make up the money supply (M3), Net Foreign Assets (NFA), and Net Domestic Assets (NDA). Credit to the private sector increased to N43.1 trillion, while credit to the government dropped to N27.5 trillion recorded in the previous month.

 

 

 

Related Posts

The Moment Tinubu Was Sworn In As President - See Full Video
News

BREAKING: Tinubu Sworn In As Nigeria’s 16th Democratically Elected President

Dollar to Naira: Aboki Exchange Rate in Nigeria Today 29th May 2023
business

Dollar to Naira: Aboki Exchange Rate in Nigeria Today 29th May 2023

Latest NPower News | NASIMS News Today 29th May 2023 News Today 23rd May 2023 | Latest NASIMS News on Payment of Stipends
Npower

Latest NPower News | NASIMS News Today 29th May 2023

NDLEA 2023 Recruitment Update
Jobs

NDLEA 2023 Recruitment Update | Important Message for Applicant

Headline

May 29: “Break free from religious trap set by politicians”- Niger Gov elect tells Nigerians

Npower C Beneficiaries Payment October to December 2022 Important Update Today 28th May 2023
Npower

Npower C Beneficiaries Payment October to December 2022 Important Update Today 28th May 2023

Next Post
JAMB Result Checker 2023

JAMB Releases More 2023 UTME Result | See JAMB Result Checker 2023

Leave a Reply Cancel reply

JUST IN

Godfrey Okoye University Postgraduate Admission Form

Godfrey Okoye University Postgraduate Admission Form 2023/2024

Paul University School Fees

Paul University School Fees 2023/2024 Academic Session

Paul University Post UTME Form

Paul University Post UTME Form 2023/2024 Academic Session

NAFCONS Admission 2023/2024

NAFCONS Admission 2023/2024 | A Comprehensive Guide To Nigerian Air Force College Of Nursing Sciences

Topfaith University Cut Off Mark

Topfaith University Cut Off Mark 2023/2024 Academic Session

My Victory Does Not Make Me More Nigerian Than My Opponents – Tinubu

My Victory Does Not Make Me More Nigerian Than My Opponents – Tinubu

My Administration Will Tackle Issues Like Terrorism, Extreme Poverty – Tinubu

My Administration Will Tackle Issues Like Terrorism, Extreme Poverty – Tinubu

Tinubu Makes Eight Promises To Nigerians In Inaugural Speech

Tinubu Makes Eight Promises To Nigerians In Inaugural Speech

Paul University Admission List

Paul University Admission List 2023/2024 Academic Session

Paul university courses and requirements

Paul University Courses and Requirements

Follow us

Categories

  • Biafra
  • Big brother Titans
  • business
  • Crime
  • Education
  • Entertainment
  • Featured
  • General Information
  • Headline
  • Health
  • Insurance
  • Jamb & All Education News
  • Jobs
  • Lifestyle
  • LOAN & INVESTMENT
  • News
  • Npower
  • NYSC
  • Opinion
  • Politics
  • Relationship
  • Scholarship/ Opportunities
  • SPONSORED POST / GUEST POST
  • Sports
  • Technology
  • Tour
  • World News

Recent Posts

  • Godfrey Okoye University Postgraduate Admission Form 2023/2024
  • Paul University School Fees 2023/2024 Academic Session
  • Paul University Post UTME Form 2023/2024 Academic Session
  • NAFCONS Admission 2023/2024 | A Comprehensive Guide To Nigerian Air Force College Of Nursing Sciences
  • About Us
  • Advertise with Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms And Conditions

© 2022 Golden News

No Result
View All Result
  • Home
  • News
  • Npower
  • Jobs
  • NYSC Info
  • Education
  • Business
  • Entertainment
  • Sports
  • Technology

© 2022 Golden News

YOU WANT LATEST UPDATES?

JOIN OUR TELEGRAM CHANNEL NOW
X