CBN Continues Phasing Out Old Naira Notes, Embracing New Banknotes
The Central Bank of Nigeria (CBN) has reiterated its commitment to gradually phase out the old N200, N500, and N1,000 notes, as it continues to issue new banknotes. The Acting CBN governor, Folashodun Shonubi, made this announcement during the Money Policy Committee Meeting in Abuja.
According to Shonubi, the new N200, N500, and N1,000 notes are being circulated more extensively, while the old notes are slowly being withdrawn from circulation. He emphasized that the process of replacing old notes with new ones is done as commercial banks request fresh currency from the CBN.
“When a currency is printed and sent out, it is expected to go through several cycles. Then over time, it will become worn and be replaced. That’s what we’re doing,” Shonubi explained. “We had to put out or re-put out old notes, and as they’re coming in, they’re being processed and returned to us as not issuable. We are then bringing out and replacing them with the new notes.”
The Acting CBN governor highlighted that the primary objective is to maintain an optimal level of currency in circulation. He emphasized that the CBN ensures an adequate supply of new notes to meet the demands of commercial banks, preventing any excess or shortage of currency.
“We believe that we have an optimal level of the currency out there, and so much of what’s being done is a replacement to keep the level rather than just putting money out there,” Shonubi said. “And that is seen by the fact that the banks, whenever they come to us for notes, we provide it to them. If it weren’t enough, they would be asking us for more. They’d be dumping that much more on us if it was too much.”
Shonubi assured that the phasing out of old notes will occur gradually and seamlessly. As the new banknotes continue to be introduced, the old notes will naturally fade from circulation without any fanfare. He urged the public to be patient and observe the smooth transition from old to new notes.
With the CBN’s unwavering commitment to modernizing Nigeria’s currency system, the nation’s financial landscape is set to witness a transformation that aligns with global standards and ensures the security and efficiency of the monetary system.
As the process unfolds, Nigerians can expect a seamless shift from the old to the new, ensuring that their transactions are carried out with the latest, reliable banknotes. The CBN remains steadfast in its mission to create a robust financial ecosystem that supports economic growth and stability.
Disclaimer: The information provided in this article is based on official statements made by the Acting CBN governor, Folashodun Shonubi, during the Money Policy Committee Meeting on July 26, 2023.
