Naira redesign: Buhari approves the use of old N200 notes for 60 days

Nigeria’s President Muhammadu Buhari in a nationwide broadcast on Thursday morning directed the Central Bank of Nigeria to launch old N200 notes into circulation. “To further ease the supply pressure, particularly on citizens, I have given approval to the CBN that the old N200 bank notes be released back into circulation and it should also be allowed to circulate as legal tender with the new N200, N500 and N1,000 bank notes for 60 days from February 10, 2023 to April 10, 2023 when the old N200 note ceases to be legal tender,” the President stated.

It’s an essential but curious concession from Nigeria’s President after a shocking and sudden determination to revamp the Naira in December 2022. (*60*) redesign course of, which included a forex swap, has been riddled with uncertainty. With the CBN unable to satisfy the demand for new notes, the coverage has additionally led to lengthy queues at financial institution ATMs and a money disaster.

CBN strikes deadlines twice

At the announcement of the forex redesign program, the CBN introduced a forex swap, asking individuals to deposit their old Naira notes for new ones. This element was essential as a result of the CBN acknowledged that every one old notes would stop to be authorized tender by January 31, 2023. At a press convention, Godwin Emefiele insisted that the deadline wouldn’t change.

However, it appeared that the CBN underestimated the money demand, resulting in a horde of annoyed prospects at banking halls who couldn’t entry their monies. Eventually the CBN prolonged the deadline to February 10. Yet, that has produced little decision; TechCabal reported on Tuesday that banks have been not accepting the old notes from prospects at the same time as the newer notes weren’t obtainable. It paints the image of a coverage that’s in sixes and sevens.

Only the old N200 notes can be again in circulation

Last week, state governments took the Federal Government to courtroom after protests broke out throughout a number of states in Nigeria. (*60*) Supreme Court determined that the Federal Government ought to put a maintain on the coverage deadline till February 15, throwing much more uncertainty into the combine. While many argued that the CBN was not a celebration to the case and wouldn’t obey the guidelines, Buhari’s determination means that the determination to revamp the Naira got here from above.

In what was a compromise, the authorities will now launch old N200 notes into circulation and can permit them to stay authorized tender for the subsequent 60 days. Old N500 and N1000 notes will not function authorized tender; as an alternative, these notes can nonetheless be exchanged per new tips from the CBN. It is unclear if the launch of old N200 notes will meet the current demand for money.