President Muhammadu Buhari on Thursday said only N200 bank notes remain legal tender until April 10, 2023.
This was as he announced that N1000, N500 notes remain only redeemable through the Central Bank of Nigeria.
He stated these during his national broadcast.
“To further ease the supply pressures particularly to our citizens, I have given approval to the CBN that the old N200 bank notes be released back into circulation and that it should also be allowed to circulate as legal tender with the new N200, N500, and N1000 banknotes for 60 days from February 10, 2023 to April 10 2023 when the old N200 notes ceases to be legal tender,” the president said
He said that in line with Section 20(3) of the CBN Act 2007, all existing old N1000 and N500 notes remain redeemable at the CBN and designated points.
The president regretted that a huge funds had remained outside the banking system saying the percent had grown since 2015.
“The proportion of currency outside banks grew from 78%in 2015 to 85% in 2022. As of October 2022, therefore, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the Banking System while N2.7 trillion remained permanently outside the system; thereby distorting the financial policy and efficient management of inflation,” he said
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The president, while calling for the understanding of Nigerians, said all efforts must be made to restore the statutory role of the Central Bank of Nigeria to keep control over money in circulation.
” The need to restore the statutory ability of the CBN to keep a firm control over money in circulation. In 2015 when this administration commenced its first term, Currency-in-Circulation was only N1.4trillion,” he said