CBN stands firm: Old or new, your naira is still gold

Infostride News has reported that the Central Bank of Nigeria (CBN) has issued a directive to all its branches nationwide, urging them to continue providing various denominations of both the old and redesigned banknotes in substantial quantities to deposit money banks.

In a public statement released on Wednesday, November 8, 2023, and posted on its official X (formerly Twitter) account, the apex bank emphasized that all banknotes it has issued remain legal tender and should be accepted without rejection.

This announcement comes in response to the growing concerns about a shortage of cash in some major cities across the country, despite previous assurances from the CBN regarding sufficient cash stocks in all locations nationwide.

The CBN’s official statement reads:

“Our attention has again been drawn to reports of a scarcity of cash across some major cities in the country despite assurances of sufficient cash stocks in all locations across the country. There have also been reports of anxiety among some members of the public over the legality or otherwise of the old naira notes.

“For avoidance of doubt, while reiterating that there are sufficient banknotes across the country for all normal economic activity, we wish to state unambiguously that every banknote issued by the Central Bank of Nigeria (CBN) remains legal tender and should not be rejected by anyone as stipulated in Section 20(5) of the CBN Act. 2007.

“Accordingly, branches of the CBN across the country have been directed to continue to issue different denominations of old and redesigned banknotes in adequate quantities to Deposit Money Banks (DMBs) for onward circulation to bank customers.

“We wish to restate that all denominations of banknotes issued by the Central Bank of Nigeria (CBN) remain legal tender. In line with Section 20(5) of the CBN Act 2007, no one should refuse to accept the Naira as a means of payment.

“Consequently, members of the public are advised to accept all CBN-issued banknotes currently in circulation and guard against panic withdrawals. We reaffirm that there is sufficient stock of currency notes to facilitate normal economic activities.

“Furthermore, to reduce the pressure on the use of physical cash, members of the public are again advised to continue to embrace alternative modes of payment.”

This directive underscores the CBN’s commitment to ensuring the availability of cash for everyday transactions and dispelling concerns about the acceptance of both old and redesigned banknotes. The emphasis on the legal tender status of all CBN-issued banknotes aims to reassure the public and prevent unnecessary panic withdrawals.

Infostride News continues to monitor developments related to this directive and will provide updates as the situation unfolds. It is crucial for members of the public to stay informed and follow the guidance provided by the CBN to maintain the stability of the country’s financial system.