<\/p>\n
A former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, has given reason for his support of the bank\u2019s recent decision to redesign naira notes.<\/p>\n
In a series of tweets, Moghalu said the CBN is trying to gain control over money supply in the economy.<\/p>\n
He noted that while the move may not stem inflation, it is \u201cnecessary step.\u201d<\/p>\n
\u201cI fully support the Central Bank\u2019s redesign of the Naira,\u201d he said. \u201cIf 80% of bank notes in circulation are outside the banks, that\u2019s troubling. The CBN obviously wants to force all those notes back into the banking system. Those with the notes must surrender to get new ones or else it becomes illegal tender after January 31 2023.<\/p>\n
\u201cThis is also a way to withdraw currency from circulation, an unorthodox way of tightening the money supply since the country is battling high inflation.<\/p>\n
Also Read:\u00a0We\u2019ve Lost Track Of N2.7 Trn Out of N3.2 Trn Currency In Circulation \u2013 CBN<\/strong><\/p>\n \u201cThe flip side is that people who are holding huge amounts of cash outside the banking system for nefarious reasons will go the parallel forex market to buy hard currency, putting further downward pressure on the value of the Naira as too much Naira will be chasing too few dollars.<\/p>\n \u201cI doubt it will solve inflation because there also are other major reasons for inflation such as the forex crisis, which this new move could exacerbate, as well the impact of the security crisis on food price inflation.<\/p>\n \u201cBut overall it is a necessary step.<\/p>\n \u201cI just think the time window for its implementation is rather short. This will put a lot of operational pressure on commercial banks and the financial system in general. A 90 day window would have been better, but one can understand the need to avoid interfering with the elections.\u201d<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Moghalu A former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, has given reason for his support of the bank\u2019s recent decision to redesign naira notes. In a series of tweets, Moghalu said the CBN is trying to gain control over money supply in the economy. He noted that while the move […]<\/p>\n","protected":false},"author":1,"featured_media":1150393,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3888],"tags":[],"class_list":["post-1237769","post","type-post","status-publish","format-standard","has-post-thumbnail","category-nigeria-news"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1237769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=1237769"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1237769\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=1237769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=1237769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=1237769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}