The Central Bank of Nigeria (CBN) has said it is planning to decrease the volume of higher denominations like N500 and N1000 in circulation.
Godwin Emefiele, governor of CBN, said this move is an effort to tame the country’s inflation.
The governor said this on Tuesday while fielding questions from journalists at the monetary policy committee (MPC) meeting in Abuja.
According to the governor, increasing the high denomination of the currency could be part of factors fuelling inflation in the country.
He said the highest denomination in the UK is £50, adding that the most spent currency in the country is £10.
“Rarely you find some people spend £20. Nobody sees £50. If you go around carrying £50 in the UK, they will begin to suspect you. Whereas, the reverse is what is happening in Nigeria. Nigerians want to carry N1,000 or N500,” he said.
“In fact, we’re beginning to see or think that increasing the high denomination bills is also part of what may even be fuelling inflation.
“So, over time, we will reduce the volume of N500 and N1000 in circulation.
“Let people carry N50 around. If you want to do high-value transactions, embrace online, embrace our agency programme, embrace our mobile banking programme. That is what you need. You want to conduct legal banking or financial services transactions, you have no business carrying N1,000.”
- Breaking: Ohanaeze President General, George Obiozor, confirmed dead - December 28, 2022
- US to support NDLEA on improved intelligence gathering capacity - December 27, 2022
- Why diversified HIV/AIDS prevention tools matter for women - December 26, 2022
