Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso has said apprehension surrounding the end date of the Naira redesign policy triggered widespread hoarding.
TheNewsGuru.com (TNG) reports Cardoso said this on Wednesday in Abuja at the launch of the World Bank Nigeria Development Update.
The CBN Governor, who stressed this has contributed to the prevailing cash scarcity, gave a glimmer of hope.
Cardoso said the Supreme Court’s recent ruling, upholding the validity of the old notes beyond the initial deadline, will alleviate apprehensions and incentivize individuals to release hoarded cash into circulation.
“Unfortunately, the history of that lies with the Naira redesign policy. Coming to the end of the year, way before the third quarter, there was a lot of apprehension with respect to where this was all going to end; and whether the old currency would no longer be good for legal tender and many started hoardings.
“The apprehension surrounding the policy’s end date, well before the third quarter, triggered widespread hoarding. Many feared the old notes would lose legal tender status, prompting them to hold onto their cash.
“This is really what happened. Happily, Supreme Court has decided that the currency will be valid post-end of the year,” the CBN Governor said.
Cardoso acknowledged the “glaring defects” in various CBN policies and announced a comprehensive review initiative.
“We are taking a thorough look at all our policies implemented over time. This review aims to produce an elegant document outlining clear rules and procedures for navigating the Nigerian money market,” he said.