Yemi Cardoso, the governor of the Central Bank of Nigeria (CBN), has blamed the poor implementation of the naira redesign strategy for the country’s ongoing cash scarcity, News About Nigeria reports.
Cardoso has announced preparations for a thorough study to address the issues and admitted the ‘glaring defects’ in several CBN regulations.
Speaking during the World Bank Nigeria Development Update event in Abuja, Cardoso stressed the importance of carefully reviewing the policies that have been put in place over time.
The policy review’s objective is to provide a precise document that outlines guidelines for interacting with Nigeria’s money market.
Cardoso specifically addressed the cash crunch affecting Nigerians, identifying the poorly executed naira redesign as a primary factor.
He clarified that there was widespread hoarding because of the worry that the old notes would no longer be considered legal money due to the policy’s termination date, which was far ahead of the third quarter.
“The apprehension surrounding the policy’s end date, well before the third quarter, triggered widespread hoarding. Many feared the old notes would lose legal tender status, prompting them to hold onto their cash,” Cardoso said.
However, he mentioned that the Supreme Court has upheld the currency’s legality once the year ends.
Last Friday, News About Nigeria reported that the Central Bank of Nigeria (CBN) warned that fake naira notes are now in circulation.
While warning Nigerians to beware of the counterfeit naira notes in circulation, the Apex Bank noted that the fake currency now in circulation is a result of currency shortage in the country.
