After days of uncertainty, Nigerians can be in a position to heave a sigh of aid after the Central Bank of Nigeria (CBN) directed all deposit cash banks to start accepting old denominations of the N200, N500, and N1,000 notes.
On March 3, TechCabal reported that the Supreme Court dominated that the old notes stay authorized tender till December 31, 2023, including that the Federal Government disobeyed an earlier order not to implement a earlier February 10 deadline for the remittance of all old notes.
Previously, the CBN had introduced that the N200 would stay authorized tender for 60 days after the February deadline. The directive from the federal government got here after 16 state governors sued the FG and requested the apex courtroom to put a maintain on the naira redesign coverage.
Ten days after the courtroom’s ruling, the CBN, in an announcement sighted by TechCabal, said that it will adjust to the courtroom orders to maintain the rule of legislation and the operations of the bank. It additionally directed the banks to comply accordingly.
“In compliance with the established tradition of obedience to court orders and sustenance of the Rule of Law Principle that characterized the government of President Muhammadu Buhari, and by extension, the operations of the Central Bank of Nigeria (CBN), as a regulator, Deposit Money Banks operating in Nigeria have been directed to comply with the Supreme Court ruling of March 3, 2023,” the assertion reads.
The CBN additionally confirmed vast stories that it met with the Bankers’ Committee concerning the circulation of the old notes alongside the redesigned notes till December 31, 2023.
Since the money crunch started, Nigerians have confronted untold hardships making an attempt to get their arms on money. With about 57% of Nigeria’s economic system being casual, the Naira redesign coverage made it tough for folks to conduct enterprise. The money shortage additionally noticed point-of-sale retailers turn out to be kings as they charged exorbitant charges for withdrawals each time that they had money—some charged as a lot as 30% on withdrawals.
While the CBN inspired digital funds for items and providers, Nigerians confronted the hurdle of inconsistent banking networks which noticed many bank account holders left stranded from failed transactions and pending transactions that lasted for hours. The apex bank, in a bid to consider the unbanked, carried out money swap packages in rural communities, which has since ended, in accordance to a report by The Punch.
Before the CBN’s announcement, some state governors warned banks and residents of their states to accept the old naira notes or face prosecution for rejecting them. However, what’s left to be seen is how quickly the banks will begin issuing clients old notes; if the queues would cease, and what’s going to occur after the top of the 31-month progress in enterprise exercise attributable to the money crunch.
…. to be continued
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