Planned New Naira Notes: Finance Minister disagrees with CBN over currency redesigning

Warns of consequences

Two days after the Central Bank of Nigeria (CBN) announced a planned redesign of the naira the minister of Finance, Budget and National Planning, Zainab Ahmad, has rejected the idea, warning that it will have a devastating effect on the economy.

Zainab, who totally disowned the policy during budget defence at the Senate, said there would be severe consequences.

Recall that the Central Bank of Nigeria (CBN) governor, Godwin Emefiele, on Wednesday announced the introduction of newly designed notes of N200, N500 and N1, 000, which he said would be in circulation by December 15, 2022. While stating that the old notes remain valid until January 31, 2023, he advised holders of the old naira notes to return them immediately without bank charges.

Speaking during the 2023 Budget defence, Senator Opeyemi Bamidele noted that barely two days after announcement of the CBN policy, the repercussion of it on the value of naira to the US dollar was being felt.

According to him, since the announcement of the policy, the value of Naira to a US dollar has risen from N740 to N788 to a US dollar due to a rush in exchange of stashed naira notes for foreign currencies, particularly the dollar.

More worrisome, however, the Minister of Finance, Zainab Ahmed, in her response, said she and the other ministers were not consulted on the policy, but only heard of it in the media.

She further said, “As a Nigerian privileged to be at the top of Nigeria’s fiscal management, the policy as rolled out at this time, portends serious consequences on the value of Naira to other foreign currencies”.

“I will however appeal to this committee to invite the CBN governor for required explanations as regards merits of the planned policy and rightness or otherwise of its implementation now”, she advised.

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