CBN Gives Fresh Update On Old Naira Notes, Redesigned Notes

CBN Gives Fresh Update On Old Naira Notes, Redesigned Notes

The Central Bank of Nigeria (CBN) is currently in the process of gradually phasing out the old N200, N500, and N1,000 naira notes, as new notes continue to be issued.

This was confirmed by Folashodun Shonubi, the acting governor of the apex bank, during a statement after the monetary policy committee (MPC) meeting held at the CBN headquarters in Abuja on Tuesday.

In October 2022, the former CBN governor, Godwin Emefiele, announced plans to redesign the N200, N500, and N1,000 naira bills. He had set January 31, 2023, as the deadline for Nigerians to deposit their old notes, after which they would no longer be considered legal tender.

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However, the supreme court invalidated the naira redesign policy in March 2023, ruling that the old N200, N500, and N1,000 notes would remain legal tender until December 31, 2023.

Providing updates on the demonetization policy, Shonubi explained that the old notes would be slowly and gradually replaced over time.

The process involves commercial banks exchanging the old notes for the new ones whenever requested. As old notes are returned to the CBN, they are deemed not issuable and replaced with the new currency.

Shonubi clarified that the CBN aims to maintain an optimal level of currency in circulation. When banks require more notes, the CBN provides them, and if they have excess notes, they return them to the CBN.

This process ensures that the replacement of old notes with new ones is conducted smoothly and without disruption.

The transition from old to new notes will happen gradually and inconspicuously without fanfare, as the old notes slowly morph into the new ones over time.