Naira Scarcity: What is CBN Not Telling Nigerians?

cash scarcity

What is the Central Bank of Nigeria (CBN) doing as another naira scarcity builds up?

Development Diaries reports that although the Central Bank of Nigeria (CBN) recently directed commercial banks to continue to issue and accept old naira notes, customers are still complaining of limited cash withdrawals.

The apex bank, in a recent statement, blamed the scarcity on hoarding of naira notes by some people due to the challenges they faced as a result of the naira redesign policy.

Also, the CBN said that the amount of naira notes in circulation climbed from one trillion naira in February 2023 to N3.4 trillion in December 2023, suggesting there is enough cash in circulation.

Meanwhile, point-of-sale (POS) operators have raised transaction fees in several regions of the country in reaction to the naira scarcity.

What, then, are commercial banks saying?

A report by Vanguard revealed that some commercial banks have a limited supply of cash from the CBN.

The CBN should be focused on working with the commercial banks to address the cause of the shortage, not reassuring Nigerians that all is well; indeed, it is the opposite.

If indeed the cause of the scarcity is because Nigerians are hoarding cash, then why are people trying to hoard cash? Is there something Nigerians need to know?

Development Diaries calls on the CBN to urgently rectify whatever challenges there are and ensure that Nigerians do not experience another cash scarcity misery.

Photo source: CBN

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