The Central Bank has laid the blame of bad Naira notes at the doorstep of commercial banks in the country. Isaac Okorafor, CBN’s spokesman while providing answers to questions in a tweetchat accused banks of recirculating unfit notes because they do not want to bear the little cost of sorting the notes.
He however noted that the apex bank is considering a permanent solution to the proliferation of bad naira notes in the country.
We have enough lower denomination notes to go round. Banks have merely recirculated unfit notes because they do not want to bear the little cost of sorting the notes and bringing the unfit ones to the CBN for reissue. Very soon we will announce a more permanent solution#GrowthNG
— Isaac Okorafor (@IsaacOkorafor) February 26, 2018
Noting that lower denomination notes are more frequently in use hence prone to damage.
Lower denomination notes have greater velocity of circulation, meaning they are frequently in use and get abused. Several factors account for the existence of worn out notes: The abuse mentioned above and the attitude of banks who fail to return them for reissue is another. https://t.co/p9nFzbQogb
— Isaac Okorafor (@IsaacOkorafor) February 26, 2018
On what the Central Bank is doing about rising cases of illegal deductions by commercial banks, the spokesman revealed that over ₦55 billion has been refunded to overcharged customers by banks noting that excessive charges outside the Guide to Bank Charges on the CBN’s website should be reported to the bank and if not satisfied should report to the apex bank.
Excessive and illegal charges outside the Guide to Bank Charges on @cenbanks website https://t.co/dWuIsVoRsX are not allowed. Customers who feel aggrieved by any charge should protest to the bank and if not satisfied should write to cpd@cbn.gov.ng or call 07002255226#GrowthNG https://t.co/OQIFBRFlGI
— Isaac Okorafor (@IsaacOkorafor) February 26, 2018
Assuring Nigerians that the disparity between the CBN official rate and the parallel market will merge soon. He said the injections by the CBN has prevented the official and black market exchange rates from widening.
Yes. Our forex injections worked according to plan and we are sustaining our activities in the market to maintain stability and liquidity.#GrowthNG https://t.co/EkNXvSdQPR
— Isaac Okorafor (@IsaacOkorafor) February 26, 2018
He also reveal that the key success factor of growth in 2017 was the prudent use of forex reserves and funding of food production and manufacturing. Expressing confidence on the outlook for 2018 with a better than expected oil-market, further boost in Agric, and growth in the capital market.
2. The key success factors for 2018 include a better-than-expected Oil market, further boost in agric. production, especially rice; growth in the Capital Market; increase in Dollar inflows; a stable Naira arising from better reserves levels.#GrowthNG
— Isaac Okorafor (@IsaacOkorafor) February 26, 2018
Nigerians should expect a better year than 2017. All the indices are positive. Better Oil price regime. Better growth figures expected, Inflation is trending down, and the exchange rate is stable. These are the markers of economic health. So @cenbank remains positive. https://t.co/ACfyPZNgbw
— Isaac Okorafor (@IsaacOkorafor) February 26, 2018
While absolving the CBN from the current alarming unemployment rate, he said the bank will continue to fund agriculture and industries to create jobs noting that activities to create employment is within the purview of the fiscal agency.
He also noted significant improvement in the population of the unbanked in the rural areas. The Anchor Borrower Scheme he noted was to drive financial inclusion among rural farmers in the country and this has achieved a great success.
5. The various interventions of the CBN such as MSME, AADS, Anchor Borrowers' Programme, all these ensure that people at the grassroots, farmers, artisans, etc open accounts to be able to access the loan and are brought into the formal financial services system to reap benefits
— Isaac Okorafor (@IsaacOkorafor) February 26, 2018
On measures put in place by the bank to bring inflation rate down he highlighted various policy put in place such as the Import and Export window and the restriction of 41 items from accessing the forex, all these has yielded positive results. Assuring that the country will continue to build its forex reserves.
The Forex stability that we experience today results from CBN’s ingenious measures in Demand Management, creation of the I&E Window in the Forex Market, and introduction of the 41 Items restricting access to Forex for frivolous imports. And we are happy with the results#GrowthNG https://t.co/VaDisR5OwZ
— Isaac Okorafor (@IsaacOkorafor) February 26, 2018
Norway has over $1Trn in its Soverign Wealth Fund. With a population of 180m, we have just $42BN in our reserves. We will continue to build reserves for as long as we have ability to do so and the exchange rate remains stable … https://t.co/fzLE2HCVI9
— Isaac Okorafor (@IsaacOkorafor) February 26, 2018
Responding to speculations surrounding the introduction of a new capital base for Micro Finance Banks the CBN spokesman reveal that a new stronger capital base will soon be announced.
Currently, we are looking at stronger Capital Base for MFBs. We believe that viable banks are required at this level to promote financial inclusion and Micro and Small Enterprises. As soon as a decision is taken on this, it will be made public. https://t.co/AgNJAEQRlT
— Isaac Okorafor (@IsaacOkorafor) February 26, 2018
He also hoped that the stalemate between the Legislators and Executive over the approval of new members of the Monetary Policy Committee will resolved soon.