The Central Bank of Nigeria (CBN) has launched a countdown clock showing when the old naira would stop being a legal tender.
The countdown clock is visible on the home page of the CBN’s website and it shows January 31, 2023, as the deadline for the N200, N500, and N1,000 notes to “remain legal tenders.”
The Backstory: In October, the apex bank announced that it would redesign the N200, N500, and N1,000 notes. The apex bank also set December 15, 2022 as the official start day for circulating the new naira notes.
The policy sent shockwaves to the forex market, causing the naira to hit its lowest point of N910/$1 at the black market, as many people rushed to exchange their naira for USD. The naira has since recovered to trade at N680/$1.
Godwin Emefiele, the governor of the Central Bank of Nigeria, had explained that the decision to redesign the naira notes was made to ensure macroeconomic stability. He said the goal was to create a strong, stable, and resilient economy that is self-sufficient and capable of weathering unexpected shocks.
In case you missed it: The CBN recently directed commercial banks in the country to remain open on Saturdays until January 31, 2023, to allow bank customers to exchange old naira notes for new ones
Godwin Emefiele, the governor of the Central Bank of Nigeria, had claimed that people were hoarding naira notes. Statistics showed that more than 80% of the currency in circulation was not kept in commercial banks’ vaults.
In September 2022, a total of N3.2 trillion was in circulation, of which N2.73 trillion was outside the bank vaults. He described this situation as unacceptable.
