He cautioned the banks that all of the money allocated to them contained security codes.

During the CBN Sensitization of Stakeholders on the Currency Redesign in Anambra held at Market leaders office hall, Onitsha, Main Market, Onitsha main market traders reported to the Central Bank of Nigeria (CBN) that the redesigned N1,000, N500, and N200 naira notes are being sold in the market by individuals suspected of being agents of commercial banks in the area.

According to them, commercial banks were hesitant to distribute the new banknotes to the public due to the shadowy transactions.

In this regard, Innocent Ezeoha, the chairman of Onitsha Main Market, pleaded with the CBN to visit the market and exchange the new currency notes for the merchants.

Maduagwu said that the CBN would penalise commercial banks that hoarded the new naira banknotes.

Noting that Currency management is a vital duty of the Central Bank of Nigeria, as stipulated in Section 2 (b) of the CBN Act of 2007, he stated, "the integrity of a local legal lender and the efficiency of its supply, as policy, are some of the defining characteristics of a great Central Bank."

"Recently, however, currency management in Nigeria has encountered a number of challenges that have grown in scale and sophistication, with unforeseen consequences for the CBN and the country's integrity.

First, a large hoarding of banknotes by the general populace, with statistics indicating that 82.72 trillion of the 3.26 trillion cash in circulation as of June 2022 was purportedly held outside the vaults of commercial banks across the nation.

"This statistic indicates that 84.71 percent of cash in circulation is held outside the vaults of commercial banks, while only 15.29 percent is held by the Central Bank and the remainder is held by commercial banks."

"Second, there is a worsening shortage of clean and fit banknotes, resulting in a negative perception of the CBN and an increased threat to financial stability; third, there is a growing ease of counterfeiting by criminals, as evidenced by multiple security reports received by the Central Bank of Nigeria.

"The benefits of the currency redesign to the Nigerian economy are considerable due to the fact that this strategy will aid in containing inflation as a result of the implementation of the new currency."

The introduction of hoarded currency into the banking system makes monetary policy more effective.

"We would have considerably more reliable statistics on money supply and monetary aggregates, which will aid in the design and implementation of monetary policy. We believe that this initiative will increase financial inclusion, move Nigeria toward a cashless economy, and increase the formalisation of the Nigerian economy."

Additionally, the CBN branch Controller emphasised that the new design and existing series will circulate concurrently until January 31, 2023, when the present series will cease to be legal tender.

"We advise the public to deposit their cash holdings in these denominations at their commercial banks," he continued.

Mr. Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN), has returned to Nigeria from the United States despite recent attempts by the Department of State Service, DSS, to apprehend him.

According to a reliable source, Mr. Emefiele returned to Abuja on Wednesday from his "holiday" abroad.

Emefiele reportedly returned to Nigeria on Wednesday and is expected to be at the office today, January 13.

As of the time this report was filed, none of his aides were willing to confirm his location.

The embattled CBN governor has been away of the nation on "annual vacation" for several weeks.

Prior to his departure and while he was on vacation, he was embroiled in difficulties pertaining to his official responsibilities and outside charges that he had ties to terrorism financing.

Department of State Services (DSS) dismissed allegations of terrorism financing against him in December 2022, despite a recent court order prohibiting the agency from arresting the CBN governor.

In the wake of his bank's policy of redesigned naira notes, there have been sponsored protests and legal actions both against him and in his favour.

Hundreds of youngsters stormed the Central Bank headquarters in Abuja on Wednesday, demanding his resignation.

They maintained Emefiele could not continue to lead the Central Bank of Nigeria from outside.

The protests were part of a series of tactics designed to put Emefiele on the spot, expose his underbelly, and force him out of office.

The involvement of the DSS in the larger scheme increases Emefiele's vulnerability, notwithstanding the fact that the case is already before the court.

(Source: championnews.com.ng)