President directs CBN to allow only old N200 notes remain as legal tender till April 10
****** Oid N500, N1000 no longer legal tender
By Yunus Yusuf
President Mohammadu Buhari has directed that the old N200 remains legal tender till April 10, 2023.
Buhari, gave the directive in his emergency national bbroadcast on Thursday Morning said, “To further ease the supply pressures, I have approved that the old N200 be released into circulation and allowed as legal tender with the new bank notes N500 and N1000 from February 10 to April 10, 2023.”
He sought the understanding and patience of Nigerians, and urged CBN to ensure that the new noted are accessible to Nigerians.
He said that he authorised the redesigning of the old notes to achieve certain objectives bothered on economic growth and strenghten security.
According to the President, “The need to restore the statutory ability of the CBN to keep a firm control over money in circulation.
“In 2015 when this administration commenced its first term, Currency-in-Circulation was only N1.4trillion.
“The proportion of currency outside banks grew from 78%in 2015 to 85% in 2022. As of October 2022, therefore, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the Banking System while N2.7 trillion remained permanently outside the system; thereby distorting the financial policy and efficient management of inflation;
” The huge volume of Bank Notes outside the banking system has proven to be practically unavailable for economic activities and by implication, retard the attainment of potential economic growth,” Buhari explained.
