Naira Scarcity : Latest CBN News Today 9th June 2023: In the latest news from the Central Bank of Nigeria (CBN) on 8th June 2023, concerns have emerged regarding the scarcity of the naira. President Tinubu has expressed apprehension regarding the redesign of the naira and its impact on its availability. The CBN’s announcement provides insights into the current state of the currency and its potential consequences for the economy. Stay tuned for further updates as this issue continues to develop.
Tinubu Speaks on Use of Old and New Naira Notes as Emefiele Prepares to Leave
In a significant development, President Bola Tinubu has made his first official statement regarding the use of old and new naira notes, shedding light on the government’s stance on the matter. This announcement comes as the deadline approaches for the old naira notes to cease being legal tender by the end of December 2023. Additionally, the impending departure of Godwin Emefiele, the long-serving governor of the Central Bank of Nigeria (CBN), adds further weight to President Tinubu’s remarks.
The decision to maintain the recognition of both old and new naira notes as legal tender marks a departure from the previous plan to phase out the old currency. Previously, on October 26, 2022, the CBN had announced the redesign and introduction of higher denomination naira notes, including N200, N500, and N1,000, into the economy starting from December 15, 2022. However, President Tinubu’s recent declaration emphasizes a more inclusive approach, taking into consideration the concerns of the unbanked population and the potential impact on the economy.
President Tinubu expressed his belief that the currency swap policy implemented by the CBN had been too harshly applied, particularly considering the significant number of unbanked Nigerians who heavily rely on physical cash transactions. As a result, he has called for a review of the policy, indicating his administration’s intention to treat both the old and new naira notes as legal tender.
In addition to addressing the naira notes issue, President Tinubu also directed the CBN to embark on a process of house cleaning, which includes working towards a unified exchange rate. This directive signals the administration’s commitment to streamlining and improving the foreign exchange market, ensuring a fair and transparent pricing mechanism that aligns with demand and supply fundamentals.
The reaction to President Tinubu’s statements has been largely positive. Muda Yusuf, the chief executive officer of the Centre for the Promotion of Private Enterprise, lauded the decision to establish a unified exchange rate. It is important to note that this move should not be perceived as a devaluation proposition, but rather as a pricing mechanism that responds to market dynamics. The unified exchange rate framework allows for adjustments based on the prevailing demand and supply conditions in the foreign exchange market.
As President Tinubu’s administration takes office, his early pronouncements on the naira notes and exchange rate policies indicate a willingness to review and adapt existing strategies to better align with the needs of the Nigerian population. The recognition of both old and new naira notes as legal tender aims to ensure a smooth transition and avoid potential disruptions to daily financial transactions. With a focus on a unified exchange rate system, the government aims to foster a more efficient and transparent foreign exchange market that can better support the country’s economic growth and development.