…….Says Hoarding Responsible for Cash Scarcity, Appeals for Patience
The Central Bank of Nigeria (CBN) has stated that over N3.4 trillion Cash is currently in circulation compared to about N1 trillion as at February this year.
According to the bank’s spokesperson, Hakama Sidi Ali, this level of liquidity indicates that there is sufficient cash in circulation, except that the cash is in the hands of a few individuals who were apprehensive due to their previous experiences.
What this also means is that the bank has turned full circle from it’s liquidity mop- up policy which it had ,under the last dispensation , promoted as a strategy to frustrate money laundering and terrorism funding.
While assuring members of the public that it is addressing the reported cases of cash scarcity in some major cities across the country, the Apex bank attributed the current situation to the hoarding of the Naira by some persons due to challenges experienced during the Naira redesign project.
The Bank’s Acting Director in charge of Corporate Communications, Mrs. Hakama Sidi Ali gave the latest assurance in a chat with newsmen in Abuja, on Wednesday, December 13, 2023, disclosing that the CBN was monitoring the situation and had released sufficient cash to its branches across the country for onward distribution to Deposit Money Banks (DMBs).
She empathised with Nigerians, over their previous and current experiences, but insisted that the CBN had adequate cash to meet the day-to-day transaction needs of Nigerians. She, therefore, appealed to Nigerians to be patient while the CBN does the needful to ensure the availability of cash, particularly during the yuletide and beyond.
While also urging Nigerians to continue to accept all Naira banknotes for their daily transactions, Sidi Ali reiterated the Bank’s earlier call to the public to embrace alternative modes of payment, e-channels, to reduce pressure on the use of physical cash.