Inflation: CBN Governor: We’ll shortly cut the number of N500 and N1,000 notes in circulation.

In order to control inflation, the Central Bank of Nigeria (CBN) said it will reduce the amount of larger denomination notes (N500 and N1000) in circulation.

This was said on Tuesday by CBN Governor Godwin Emefiele in response to inquiries from reporters at the monetary policy committee (MPC) meeting in Abuja.
Emefiele suggested that factors contributing to the nation’s inflation may include raising the high denomination of the currency.

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. People in Nigeria prefer to carry N1,000 or N500.

In fact, we’re starting to notice or believe that increasing the number of high denomination bills may potentially be contributing to the inflation.