Naira Redesign: Approximately N165 billion in Deposits Hit Bank Coffers CBN

Since last month, when the Central Bank of Nigeria (CBN) announced the launch of newly redesigned naira notes, roughly N165 billion has been deposited in banks, according to the CBN.

This was revealed on Wednesday during a breakdown of the monetary policy measures that the Bank had released on Tuesday, according to Mr. Ahmed Bello, Director of Currency at the Central Bank of Nigeria.

While this was a far cry from the N2.7 trillion thought to be missing from the banking system, Mr. Bello said that the CBN anticipated an increase in the number of deposits in the upcoming days.

He stated that the delivery of the newly designed Naira notes to the CBN network of branches will start in earnest, but he added that the public would not be able to purchase the new currencies until mid-December.

The CBN is aware of how the rate increase may affect businesses, according to Mr. Mahmud Hassan, Director of the Monetary Policy Department, but the apex bank has no alternative but to increase rates in order to control inflation.

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Mr. Hassan claimed that if inflation starts to fall, the CBN will act appropriately by lowering interest rates.

The Director of Banking Supervision, Mr. Haruna Mustafa, stated that the CBN was constantly working to ensure that the banking industry remained robust and resilient.

Mr. Mustafa revealed that the banking industry’s capital adequacy ratio is currently 13%, which is higher than the required level of 10%.

Yes, there is still a significant amount of money in the system, the CBN’s Director of Development Finance said. We are seeing influx as a result of the redesign and cleanup. Managing the money supply, including the currency in circulation (CIC), is one of the tools we also use for monitoring policy. The amount of money that is not in the banking system will have an impact on the money supply in terms of demand, but the central bank is addressing those issues.
Naira reform: According to CBN, about N165 billion in deposits have reached banks.