The apex bank has admitted that the decision to redesign the naira will impact the value of the naira. Almost immediately after announcing the proposed naira redesign, the naira plummeted like a wounded bird and it is now hovering around N800/$ in the parallel market. Another consequence of the naira change is the expected rush of bank customers and other members of the public to convert their old currencies to new ones within the stipulated time.
With the expected rush to dump their old cash for the new in the banks, the CBN will by extension mop up currency in circulation, thereby applying the breaks on inflation that looks unstoppable albeit temporarily.
To address these fallouts, all Deposit Money Banks (DMBs) currently holding the existing denominations of the currency N200, N500, and N1,000 have been ordered to return these notes to the CBN immediately pending when “the newly designed currency will be released to the banks. Bank customers have also been urged to start paying into their bank accounts the existing currency to enable them to withdraw the new banknotes once circulation begins in mid-December 2022.
“All banks are expected to keep open their currency processing centers from Monday to Saturday so as to accommodate all cash that will be returned by their customers.” Bank customers who want to pay in cash over the N150,000 limit can do so if they agree to pay the charges.
For people in rural areas who do not have bank accounts, the eNaira will be introducing a number of tokens where people in rural areas who do not have bank accounts can access bank services without a bank account. However, those carrying cash, have been advised to “go to the nearest bank branch.
They will take your cash and open an account for you for the purpose of returning the naira right into the bank’s vault and then collecting the new naira when we begin to release them.”
