implications to the financial system and customers’ businesses. The clean note policy and banknote fitness guidelines unveiled by the Central Bank of Nigeria is expected to reverse the trend as nearly N7.9 trillion pieces of unfit notes will be withdrawn from circulation. COLLINS NWEZE examines what it takes to rid the economy of such notes.
Perhaps, the customers are right. Finding new naira notes is like finding a needle in a haystack despite the fact that a country’s currency is its national pride. The development has, therefore, prompted the CBN to begin the process of getting the commercial banks and stakeholders in the currency circulation project to implement its clean note policy and banknote fitness guidelines that will involve withdrawal of the dirty notes from circulation.
The plan will ensure that unfit, dirty, mutilated and counterfeit banknotes are not in circulation. This is pursuant to Sections 18, 20 & 21 of the CBN Act 2007, which prohibits the counterfeiting, sale and abuse of the naira. “Despite the prevalence of other forms of payment, cash remains ‘king’ in our day to day economic transactions. As such, people still prefer to use cash in making payments, especially where there are no digital payment platforms.
“To ensure that the banknotes in circulation are clean and of high quality, the bank hereby issues the clean note policy. The clean note policy enunciated, therefore, by the bank, entails a spectrum of diverse currency management activities geared towards the efficient circulation of premium quality banknotes and withdrawal of unfit/soiled banknotes to guarantee public confidence and usage of the naira banknotes as a medium of exchange.
Gwadabe said the policy entails diverse currency management plans geared towards the efficient circulation of premium quality banknotes and withdrawal of unfit/soiled banknotes. This, he said, will guarantee public confidence and usage of the naira banknotes as a medium of exchange. Gwadabe said ABCON, and its over 4,500 members will collaborate with the CBN to make the new policy a success. He said that Nigeria remains a cash-based economy and that the new policy is crucial to ensure that the local currency remains attractive to the people.
Eleje said the regulator will regularly carry out spot checks on bank branches, based on complaints from customers, which will serve as a guide on where to go.
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: TheNationNews - 🏆 6. / 69 Read more »