- President Buhari unveils newly redesigned naira notes
- The rationale behind the redesign
Today, Wednesday, November 23, 2022, at the State House in Abuja, President Muhammadu Buhari unveiled the newly redesigned naira notes.
Following the Central Bank of Nigeria’s announcement that the president would introduce the new banknotes today yesterday, the launch took place. The denominations of the notes are 200, 500, and 1000 Naira.
CBN Governor Godwin Emefiele explained that instead of waiting until the initial date of December 15, 2022, the new banknotes will begin to circulate right away after the launch during the MPC meeting on Tuesday. The Governor claims that by lowering the amount of currency in circulation, the new notes will help slow the rate of inflation from rising.
The rationale behind the redesign
He emphasized the need for the redesign once more and said that the greater rates of counterfeiting of the N500 and N1,000 banknotes were the reason for it.
The record-high inflation rate in Nigeria, on the other hand, is partially a result of the increasing circulation of currency. The CBN reports that in October, Nigeria’s broad money supply reached its highest level ever, surpassing the N50 trillion mark.
Similarly to that, it is estimated that there are N3.29 trillion in coins in circulation, up over N855 billion from January to October 2022. This is a sign of currency hoarding, which has made monetary policies less effective in containing the rise in the price of goods and services.
READ MORE: Buhari to unveil redesigned naira notes today – Emefiele
The CBN explained that until January 31, 2023, when the present currencies will cease to be legal tender, both the new and old naira notes will continue to be legal tender and circulate together. The apex bank has posted a countdown clock on its website that displays the date that the old naira will cease to be legal money.
This indicates that Nigerians have roughly 69 days to withdraw the new notes and deposit their old money in the bank. In order to allow clients to exchange their old notes for new ones, the CBN has also directed commercial banks across the nation to open on Saturdays till the deadline.