According to Pulse, CBN Governor Godwin Emefiele announced on Wednesday, October 26, 2022, that the apex bank will issue redesigned N200, N500, and N1000 naira notes beginning December 15, 2022.
Emefiele stated that the action was taken to clean up excess naira notes in circulation as well as to combat crimes such as kidnapping and money laundering.
The Finance Minister, on the other hand, has distanced herself from the new monetary policy, claiming that the CBN acted unilaterally.
On Friday, October 28, 2022, Ahmed stated this during a budget defense session with the Senate Committee on Finance, chaired by Senator Solomon Olamilekan Adeola.
In response to senators’ questions, the Minister warned the CBN of the potential consequences of the policy.
Senator Bamidele Opeyemi (APC-Ekiti) has criticized the CBN’s policy for causing a spontaneous increase in the price of the dollar to the naira in the parallel market since the announcement.
Given the astronomical rise in currency, he expressed concern about the policy’s likely consequences for the nation’s economy.
Senator Adeola, who collaborated, stated that the announcement of the policy had already caused the Naira to rise from N740 to N788 due to a rush in exchange of stashed Naira Notes for foreign currencies, particularly the dollar.
He stated that, while the policy was well-intended, the consequences of the policy were that the price of the dollar to the naira was rising, and that it could reach N1,000 before December, when the policy would take effect.
In her response, Ahmed stated that she received information on the new policy just like other Nigerians, and that her ministry, as a fiscal authority, was not involved in the process that led to the policy’s formulation and announcement.
Ahmed’s words: “We were not consulted, it was an announcement that we heard, it was said that part of the reason advocated was that it was one of the ways to mope up liquidity to manage inflation.
“But there are consequences that we are also looking at, what will the consequences be, there will be some benefits, but there will be some challenges.
“And I don’t know whether the monetary authorities have actually looked very closely as to where the consequences are and how they can be mitigated.
“So I still advise that you have that discussion with the monetary authorities.”
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