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The naira gains grounds against other major currencies in the black market notably the US dollar as the Central Bank of Nigeria (CBN) applies stronger measures including introducing redesigned naira notes to mop up large quantity of cash in circulation and get fewer of the naira chasing the dollar. From over N900 to the dollar last week, the naira has recorded gains and currently exchange for N695=$1 in the dark or black market.
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The old naira currency will become useless on the 31st of January 2023 even as the CBN plans to announce new cashless policy in January to drive digital adoption and opening of new accounts; as well as expand the portfolios of uses for the eNaira.
Fundamentals still not naira-favourable
But many experts remain pessimistic concerning the health of the naira warning that the fundamentals still not favour the Nigerians currency. A stable naira is still not in sight and the factors that make the naira volatile as a national currency are still active.
Nigeria remains a mono economy, earning little and spending more; maintaining a multiple currency exchange regime that exposes the naira to speculations and encourages opportunistic criminal trading of the scarce dollar to a surplus naira.
Tope Fasua, economist and politician, believes the “dark market can be driven totally underground” to make the naira stable on an Investors & Exporters (I &E) FX window not exceeding N440 =$1.
THE NEW NAIRA BANK NOTES: WHAT YOU SHOULD KNOW
- Banks must only accept cash from customers with full KYC and bank accounts.
- Cash must only be paid into customers’ accounts. Cash must not be paid into ledgers or suspense accounts
- CBN and EFCC will be tracking all deposits.
- Old currency will become useless on the 31st of January 2023.
- It’s an opportunity to leverage on our branch network to drive funding of accounts.
- It will drive digital adoption and opening of new accounts.
- CBN will no longer print large quantities of Cash. New cashless policy to be announced in January
- Banks that receive cash from non-account holders or customers will be penalised by CBN and EFCC
- CBN will change the current N200, N500 and N1,000 currency denominations to a new currency.
- Everyone should start paying the old currency notes into the bank effective immediately.
- The new currency notes will go into circulation on December 15th, 2022.
- Collection of the old notes will stop on January 31st, 2023.
- The old notes would stop being a legal tender by January 31st, 2023.
- Banks are advised to keep all their deposit centres open from Monday to Saturday going forward for collections.
