The Central Bank of Nigeria, CBN, has begun some crucial steps toward cementing the policy measures amidst early successes from the recently released twin policy on the cashless economy.
The Naira redesign and the implementation of new restrictions on bank cash withdrawals are the cornerstones of the twin policy, which aims to reduce corruption while establishing a functional monetary system and security environment.
The apex bank has also stated that the policy has achieved certain successes that have laid the groundwork for the new reinforcements.
In order to increase understanding of the cashless policy, particularly in rural areas, marketplaces, and underserved populations across the six geopolitical zones of the country, the essential steps include the beginning of a statewide stakeholder engagement and enlightenment campaign.
The apex bank, in collaboration with Bankers Committee and Share Agents Network Expansion Facility, SANEF, is also enhancing Agents' capacity to carry out a wider range of financial services in addition to 12 Classified as Confidential cash-in and cash-out (electronic card distribution, wallet/account opening, BVN onboarding, bills payment, etc.) by intensifying agent rollouts across the nation (especially underserved locations).
A geospatial map of available financial access points is also being completed and the apex bank said it shall be made public to inform all stakeholders of the locations of physical and electronic financial access points where they can process transactions electronically.
The CBN promised to continue to be flexible in its implementation of cashless policy and monitor its impact especially on vulnerable segments of the society but ensure the multiple advantages are achieved.
In response to the Naira redesign policy banks’ vaults have recorded about N190 billion inflow as Currency Outside Banks, COB, fell by 6.7 per cent month-on-month in November to N2.64 trillion from N2.83 trillion in November 2022.
The N2.64 trillion COB in November represents the lowest in 12 months since October 2021.
Further reflecting the impact of the CBN cashless policy, currency-in-circulation (CIC) similarly fell month-on-month (MoM) by 4.0 percent, to N3.16 trillion in November from N3.29 trillion.
The COB in November, N2,64 trillion, was the lowest in a whole year since October 2021.
Currency-in-circulation (CIC) similarly decreased month-over-month (MoM) by 4.0 percent, from N3.29 trillion in October to N3.16 trillion in November, showing the effects of the CBN's cashless policy.
Recall that the CBN Governor, Mr. Godwin Emefiele, said on October 26 that the redesign of the N200, N500, and N1,000 notes would take place in October, citing among other things ongoing issues with the administration of the present series of banknotes.
In order to prevent the old notes from losing their legal tender status on January 31st, the CBN instructed bank customers to deposit them. The new notes were then put into circulation on December 15th.
The massive hoarding of banknotes by the general public, which statistics indicate accounts for more than 80% of the currency in circulation, is one of the issues, according to Emefiele.
He claimed that as of the end of September 2022, the CBN's data indicated that out of the N3.23 trillion in money in circulation, N2.73 trillion was outside the vaults of commercial banks throughout the nation.
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