A former Deputy Governor of the Central Bank of Nigeria (CBN), Prof. Kingsley Moghalu says he supports the the apex bank’s proposed redesigning of the Naira.
ASHENEWS reports that the Political Economist who threw his support behind the CBN in a statement on Saturday in Lagos, however recommended a 90-day window for implementation.
I fully support the Central Bank of Nigeria in redesigning of the Naira. If 80 per cent of bank notes in circulation are outside the banks, that is troubling.
“The CBN obviously wants to force all those notes back into the banking system. Those with the notes must surrender them to get new ones or else it becomes illegal tender after January 31 2023.
Moghalu also expressed doubt that the step would solve inflation, “because there also are other major reasons for inflation such as the forex crisis, which this new move can exacerbate, as well as the impact of the security crisis on food price inflation.”
According to him, the step, however, has become necessary for national security but the window for implementation is too short.
The CBN on Wednesday, announced the new monetary policy to redesign N200, N500 and N1000 naira notes with effect from December 15.
The Governor of the CBN, Mr Godwin Emefiele had said that the proposed redesigning of the naira could impact positively on its value.
Emefiele had said that significant hoarding of banknotes by members of the public, worsening shortage of clean and fit banknotes and increasing cases and risk of counterfeiting informed the decision.
According to him, statistics show that more than 85 per cent of currency in circulation are outside the vaults of commercial banks.
Emefiele said the new currencies and the existing ones would remain legal tender and circulate together until January 31, 2023.
(Ashe news daily)
