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V25 2022 INDEX       E-SYLUM ARCHIVE

The E-Sylum: Volume 25, Number 51, December 18, 2022, Article 27

NEW NIGERIAN BANKNOTES ENTER CIRCULATION

Pablo Hoffman of New York City passed along this article on the new Naira banknotes of Nigeria. -Editor

Pablo writes:

"An interesting behind-the-scenes look at the issuance of a new currency; collectors of modern notes might be forewarned of possible limited availability. Current official exchange rates are about 450 Naira per US Dollar, and about 750 per Dollar in the parallel unregulated market."

new Nigerian naira banknotes The newly redesigned naira notes will go into circulation on Thursday (today) with Deposit Money Banks releasing the bills to their customers via over-the-counter payments.

This came about three weeks after the President, Major General Muhammadu Buhari (retd), unveiled the new bills at a weekly Federal Executive Council meeting in Aso Rock Villa.

The President unveiled the redesigned notes across the N200, N500 and N1,000 denominations.

The Governor, Central Bank of Nigeria, Godwin Emefiele, had in October announced that apex bank would release re-designed naira notes by December 15, 2022.

He also disclosed that the old notes would cease to be regarded as legal tender by January 31, 2023.

Emefiele pointed out that the redesigning of the naira notes would help to curb counterfeit notes, and reduce ransom payments to terrorists and kidnappers.

The CBN boss said it was worrisome that 85 per cent of the total currency in circulation was being hoarded by Nigerians.

As such, he said the redesigning of the local currency would help to mop up the currency outside the banking sector, adding that out of about N3.3tn in circulation, close to N2.75tn were outside the banking sector.

However, some bank officials claimed the amount of the new notes available to the various bank from the CBN was small.

According to them, most OTC payments will still have to be made using the old notes because the amount of the available new notes is still small.

new Nigerian Naira banknotes 2 The amount given to us is small compared to what we need. For example, what is available to my branch is less than N1m. This is nothing compared to what we need. But I believe it will increase with time, an official of FCMB in Lagos who pleaded anonymity told one of our correspondents.

Meanwhile, findings from the CBN show the total amount to be released into circulation may not be much as the sum previously in circulation.

A top official of the CBN, who spoke on condition of anonymity, said the CBN was planning to increase electronic payments and not cash transactions.

Don't expect that there will be a large circulation of the new notes in the economy. There are different electronic channels that people should be using.

Pablo included the above illustration of the notes. -Editor

To read the complete article, see:
Banks reconfigure ATMs, new naira enters circulation today (https://punchng.com/banks-reconfigure-atms-new-naira-enters-circulation-today/)

To read the earlier E-Sylum article, see:
NIGERIANS UNIMPRESSED WITH NEW BANKNOTES (https://www.coinbooks.org/v25/esylum_v25n48a27.html)

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Wayne Homren, Editor

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The Numismatic Bibliomania Society is a non-profit organization promoting numismatic literature. See our web site at coinbooks.org.

To submit items for publication in The E-Sylum, write to the Editor at this address: whomren@gmail.com

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