In circulation N500 and N1000 notes would be reduced by the CBN, according to Emefiele

In order to control inflation, the Central Bank of Nigeria (CBN) has made known that it intends to restrict the amount of N500 and N1000 notes in circulation.

This was said by CBN Governor Godwin Emefiele on Tuesday while he was answering questions from reporters at the monetary policy committee (MPC) meeting in Abuja.

Emefiele claimed that raising the currency’s high denomination could be one of the elements causing inflation in the nation.

He mentioned the UK, stating that the greatest denomination there is £50 and that the most common amount spent there is £10.

“It’s uncommon to see someone spend £20. £50 is invisible. In the UK, if you walk around with £50, people will start to wonder about you.

In Nigeria, however, the opposite is taking place. According to him, Nigerians prefer to carry N1,000 or N500.

In fact, we’re starting to notice or believe that growing the use of large-denomination bills is contributing to or even causing inflation.

“As a result, we will eventually decrease the amount of N500 and N1000 in circulation.

“Let folks walk about with N50.

You should embrace internet banking, our agency program, and our mobile banking program if you wish to do high-value transactions.

What you require is that. You have no business carrying N1,000 if you want to perform legitimate banking or financial services operations.

The new naira notes have now been introduced by President Muhammadu Buhari.

The highest currency denominations in circulation in the country, including the N200, are represented by the newly designed notes.