Posted by The new naira notes are of an international quality, according to the Central Bank of Nigeria (CBN), which has dismissed rumors around them as untrue.
There have been claims that the new notes are inferior, colored, and feeble. Due to this, the majority of traders now only accept the old notes for transactions.
This was said by the branch controller of CBN Awka, Mr. Benedict Maduagwu, on Thursday at a workshop to inform traders about the bank’s decisions surrounding the new notes at Onitsha Main Market in Anambra State.
He denied the rumors and provided further justifications for the redesign of the notes, such as vandalism, forgery, and unlawful storing of the previous notes outside of institutions.
The main market in Onitsha, Nigeria, is thought to be the biggest in all of West Africa.
Statistics show that only 15.29 percent of the cash in circulation is stored in vaults belonging to commercial banks and the Central Bank, according to Maduagwu.
“The second issue is the growing lack of crisp, suitable banknotes, which has a bad impact on public view of the CBN and raises the risk to financial stability.
“Third, as shown by various security reports received at the Central Bank of Nigeria, counterfeiting is becoming easier for criminals to commit and poses a greater risk.
“The Nigerian economy will greatly gain from the currency reform. As a result of the exercise, the hoarded money will enter the banking system, increasing the effectiveness of monetary policy and aiding in the management of inflation.
We would have far more reliable statistics on the money supply and monetary aggregates, which would also aid in the better design and implementation of monetary policy. We think that by participating in this exercise, Nigeria’s economy will become more formalized, move toward a cashless society, and increase financial inclusion.
The currency redesign would help in the battle against corruption because it would rein in the higher denomination used for corruption and make it easier to detect the transfer of such funds out of the banking system, he continued.
Despite the short deadline, Mr. Innocent Ezeoha, the market chairman, claimed that commercial banks are still not giving out the fresh notes to customers.
Charles Nworji, the state head of the National Orientation Agency, NOA, said the organization is getting ready to enter communities to educate rural people about the new notes. He reaffirmed that NOA would devote two weeks to the work to ensure that dealers deposited their old notes by the deadline of January 31 or earlier.