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CBN To Reduce The Volume Of N500, N1000 In Circulation
By on November 22nd, 2022. Latest Nigerian News

CBN To Reduce The Volume Of N500, N1000 In Circulation

Nigeria’s Central Bank Governor, Godwin Emefiele has announced the apex bank is planning to reduce the volume of N500 and N1000 notes in circulation “over time”.

The governor made this known in his briefing to the media at the monetary policy communique held on November 22nd, 2022.

He was responding to questions about the ease of counterfeiting one thousand naira notes and if there are plans to reduce the volumes.

Mr. Emefiele claimed the effort is aimed at curbing the inflation rate which he partly blamed on the higher-denominated naira notes.

What Emefiele is saying:

He started by using the UK as an example; “In the UK they have a denomination in 50 pounds but the most spent denomination is 20 pounds. Nobody spends 50 pounds. If you go around carrying 50 pounds in the UK they will suspect sic report you in fact.”

And then compared this with Nigeria… “The reverse is what is happening in Nigeria. Nigerians want to carry N500 and N1000. And in fact, we are beginning to think that increasing the high denomination is also part of what is fueling inflation. So in fact, yes we will launch N200, N500, and N1000 over time we will reduce the volume of N500 and N1000 in circulation. Let people carry N50 around. “

Electronic banking is the alternative – “if you want to do high-value transactions, embrace online, embrace our agency program, embrace our mobile banking program, that is what you need”
Who this will affect: If the central bank pushes with this policy as Emefiele alluded to, it is likely to affect a number of people in the economy.

Businesses that rely heavily on cash will be severely affected as they will need to carry a larger volume of smaller-denominated notes to facilitate transactions.

On the flip side, this will favour electronic banking as the policy will push for more online transactions.

Politicians who are mostly associated with cash-based transactions, especially during elections will need to use smaller denominations or find other alternatives for funding cash-based election expenses.

This will also affect party goers who have fond of spraying money.

Optics: Mr. Emefiele’s comment is bound to trigger another round of commentary among economists and analysts who often consider some of his off-the-cuff remarks as detrimental to the standing of the economy.

Mr. Emefiele also spoke in support of contactless banking which will resonate well with FinTech companies who have invested heavily in this sector.

Source:- Nairametrics

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Langztrend NG

David Friday best known professionally as Donsmith makanaki , is a Nigerian Blogger , promoter Performing Artist, Music Publisher & Editor. An Award Winning Blogger , Donsmith makanaki is Associated with artist like Omah lay, Rema, DJ Kaywise , Ajebo Hustlers, Drake, Justin Bieber, Burna Boy,Davido,Wizkid,Buju,kizz Daniel,Dandizzy,Kolaboy. On 19th November 2019 Donsmith makanaki Unveiled “Langztrend NC” Donsmith makanaki An Entertainment Hub in Partnership with UMG, Donsmith makanaki is an Award winning Blogger with Hit tracks on different digital stores. Parents : Mr Ofonime and Mrs. Rose sunday Orgin: Akwa ibom State, Nigeria Subtitle: Nigeria Blogger Occupation(s): Blogger,Promoter,Computer Programming ,Digital marketing, and Web Designer Record Label: Langztrend INC, Universal Music Group Career: Donsmith makanaki Started djing at the age of 19 and his constancy in the profession made him improved to advanced level, He was Managed and Trained in blogging by various top Bloggers Donsmith makanaki have platform in many gigs Show, Tour and Clubs in various states across Nigeria ,Nominated in different awards and he’s the life of the party in turning up crowds Net worth: $30,000 as for 2021 Full name: David ofonime Friday Local Govt : Etim Ekpo L.G.A Akwa ibom Date of birth: 15 December 1997 Donsmith makanaki Donsmith makanaki Donsmith makanaki dropped a hit trap song Titled ‘Bless my hustle ’ ‘ Written by Donsmith makanaki in (2020),and later dropped his latest single titled ‘Fire Fire ’ with His Co Artist Mr Reese in 15 November (2020) Songs: Bless my hustle, Fire Fire , Lagos beat Awards And Nominations: NBF, ONC and BAC AWARD for Blogger of the Year

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