{"id":14865,"date":"2022-11-27T09:12:33","date_gmt":"2022-11-27T09:12:33","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/new-naira-banknotes-to-make-monetary-policy-more-effective-nigerian-central-bank-governor-economics-bitcoin-news\/"},"modified":"2022-11-27T09:12:33","modified_gmt":"2022-11-27T09:12:33","slug":"new-naira-banknotes-to-make-monetary-policy-more-effective-nigerian-central-bank-governor-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/new-naira-banknotes-to-make-monetary-policy-more-effective-nigerian-central-bank-governor-economics-bitcoin-news\/","title":{"rendered":"New Naira Banknotes to Make Monetary Policy More Effective \u2014 Nigerian Central Bank Governor \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The Central Bank of Nigeria governor, Godwin Emefiele, has said the newly designed naira banknotes are set to enhance the effectiveness of the organization\u2019s monetary policy and bolster the financial inclusion cause. <\/strong><\/p>\n

Forcing Currency Hoarders to Return to the Banking System<\/h2>\n

According to the Nigerian central bank governor, Godwin Emefiele<\/a>, the recently launched naira banknotes are expected to force currency dealers to return \u201choarded currency [back] into the banking system.\u201d In a speech<\/a> delivered at the new naira banknotes unveiling ceremony, Emefiele claimed that the new banknotes could potentially enhance the effectiveness of the country\u2019s monetary policy.<\/p>\n

Besides helping return the older banknotes into circulation, the CBN governor insisted the redesigned naira banknotes are likely to bolster the bank\u2019s financial inclusion cause. Emefiele explained:<\/p>\n

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We believe that this exercise would help in increasing financial inclusion, moving towards a more cashless economy, and ensuring greater formalization of the Nigerian economy.<\/p>\n<\/blockquote>\n

According to Emefiele, once the exercise to phase out the older 100, 200, 500, and 1,000 naira banknotes has been completed, the CBN\u2019s job of tracking and identifying suspicious movements of funds will become easier. At the moment this has not been possible because 84.71% of the naira banknotes \u201cin circulation are outside commercial banks\u2019 vaults.\u201d<\/p>\n

The CBN\u2019s Controversial Naira Redesign Plan<\/h2>\n

Meanwhile, in the same speech, Emefiele repeated the CBN\u2019s earlier assertions which implied that the controversial decision to relaunch the banknotes had been greenlighted by Nigerian President Muhammadu Buhari.<\/p>\n

According to the CBN, the phasing out of the current banknotes is not only long overdue but is \u201ca global best practice for central banks\u201d that must be repeated every 5 to 8 years. However, after the CBN announced its plan to replace the old naira banknotes with the redesigned ones, the currency\u2019s parallel market exchange rate versus the U.S. dollar depreciated rapidly.<\/p>\n

As reported<\/a> by Bitcoin.com News, the naira\u2019s plunge was caused by the abrupt surge in the demand for U.S. dollars versus the dwindling supply. However, after Nigeria\u2019s Economic and Financial Crimes Commission began cracking down on the so-called illegal currency dealers, the local currency\u2019s parallel exchange rate improved from just over 900 units per dollar in October to just under 800 units per dollar by Nov. 26.<\/p>\n

Register your email here to get a weekly update on African news sent to your inbox:<\/em><\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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