Naira redesign: Old notes now in circulation as money hoarders offload cash to beat CBN deadline

Since the Central Bank of Nigeria revealed plans to redesign the Naira, money hoarders are believed to be making frantic efforts to offload the cash in their closet.

The CBN Governor, Godwin Emefiele had on October 26, 2022, announced that the current N200, N500 and N1000 denominations will be redesigned and reissued by the end of this year.

Emefiele stated that while the new notes will begin to circulate from December 15, 2022, the old Naira currency will be faced out by January 31, 2023.

Since the announcement, old Naira notes, some never been spent have surfaced across Nigeria. This is reportedly as a result of people who have stored huge cash at home now trooping to banks to deposit the money.

In one video posted on social media, a female voice can be heard saying her husband just withdrew cash from bank, it happens that the N200 notes were printed in 2023, almost 20 years ago.

The money is believed to have been recently brought to the bank as the rush to beat CBN deadlines heats up.

In another video, some people can be seen arranging huge pile of cash, which seems to have been starched at home for years.

The dirty looking Naira notes, which appears to be only N1000 denominations, seems to have been brought to a bank for deposit.
Also, a N500 note printed 2007 seems to have been re-introduced into the market by hoarders.

Meanwhile, CBN had stated that the Naira redesign is an effort by the apex bank to take control of the money supply and curb inflation in the country.

But analysts believe introducing unspent notes into circulation is the reason for the crash of the naira, as there is over supply of the local currency in the market.

The Naira is reportedly currently being exchanged at over N800 per dollar in the parallel market.

According to reports, the naira is losing its value due to increased demand for foreign currencies such as Dollar, British Pounds and Euros.

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