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Naira Scarcity: CBN restates regulator allocates new notes to banks daily, blames currency hoarders

Photo Collage of Mr. Godwin Emefiele Governor of CBN, and Bundles of New Banknotes

*Rashidat Mongunu, Director of Consumer Protection Department of the Central Bank of Nigeria, stresses the Bank makes the redesigned Naira notes available to the banks, and urges Nigerians to discontinue the attitude of hoarding the national currency

Isola Moses | ConsumerConnect

Contrary to the common impression of artificial cash scarcity being attributed to the banking sector regulator, the Central Bank of Nigeria (CBN) Thursday, February 10, 2023, said  the Bank allocates new Naira notes to commercial banks daily.

ConsumerConnect reports the Bankers’ Bank has blamed the reported hoarding of the new banknotes for the scarcity being experienced in the economy currently.

Mrs. Rashidat Mongunu, Director of Consumer Protection Department at CBN, disclosed this development while monitoring Microfinance Banks (MFBs) in Offa, Offa Local Government Area of Kwara State, agency report said.

The CBN monitoring team was said to have paid homage to Oba Mufutau Gbadamosi, the ‘Olofa of Offa, before heading for Stockcorp Microfinance and Ibolo Microfinance banks in the town.

The Director of Consumer Protection also stressed that the CBN had already made the redesigned notes to the banks.

Mrs. Mongunu, however, noted that some unscrupulous people hoarding the new banknotes are the ones creating artificial scarcity in Nigeria.

“Because of the attitude of some Nigerians in hoarding the money, even those that don’t really need the money are rushing to get it and keep, not to spend.

“Currency management is a cycle, but we have not allowed the cycle to mature, because when you issue out currency as CBN, what we expect is that the Naira issued out will come back into the banking system again,” she stated.

The Director further said: “But now, everybody collecting the Naira is hoarding it.

“So, no matter how much Naira we put out there, if we continue with this attitude and the CBN issues (new Naira) from now till December, it will still not be enough.”

Mongunu noted: “And you know that in every economy, you must have a proper accountability on the indent.

“You just don’t issue out Naira for the fun of it, but you issue the amount that is commensurate with the level of activity you have in that country.”

She as well said that the situation could only get better when people start to spend money already hoarded because enough money is already in circulation.

Speaking during the team’s visit to his palace, Oba Gbadamosi, said the extension of the legality of the old notes from January 31 to February 10 was responsible for the problems people are facing currently.

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