The plan by the Central Bank of Nigeria (CBN) to put an end to the circulation of dirty, mutilated, and unfit naira notes, have been supported by the Association of Bureaux De Change Operators of Nigeria (ABCON).
ABCON threw its weight behind the ‘Clean Note Policy and Banknote Fitness Guidelines’initiative, stating that the goal is essential due to the high volume of unfit and dirty notes that are in circulation across the country.
Speaking in support of the CBN policy, the ABCON President, Alhaji Aminu Gwadabe, said the policy entails diverse currency management plans geared towards the efficient circulation of premium quality banknotes and the withdrawal of unfit/soiled banknotes.
The benefits Gwadabe sees in the policy: He also stated that the initiative will discourage the stashing of naira notes in homes and farms by Nigerians, and would guarantee public confidence and usage of the naira banknotes as a medium of exchange.
According to Gwadabe, the policy will also increase the level of money supply in the economy, and subsequently deepen the volume and value of credit available to real sector operators and other major segments of the economy.
The total notes in circulation: While addressing the benefits of the policy, Gwadabe said there are about N7.9 trillion pieces in circulation that will be sanitised.
Meanwhile, Gwadabe stated that the policy would also enhance transparent currency management system, promote financial inclusion, and enhance the confidence of the informal sector in the financial system.
CBN’s proactive step to sanitise the naira notes: Nairametrics had previously reported that the CBN introduced the clean note policy to put an end to the circulation of mutilated, defaced, and unfit naira notes.
The information was contained in the Clean Note Policy Document which was released by the apex bank, detailing several sanctions to be meted to defaulting banks and the general public.
CBN and banks are blaming each other over mutilated, defaced notes: CBN and deposit money banks (DMBs) disagree over who is responsible for mutilated currencies in circulation. The CBN blamed DMBs for deliberately mixing unfit and new notes available in circulation, and re-circulating dirty/unfit currencies instead of sorting out the bad ones and returning them to CBN.
In response to the accusation, the DMBs have also claimed that CBN’s delay to credit their accounts with cash deposited by them, couple with huge cash handling/sorting costs by the apex bank, are some of the major contributory factors to the problem.