TRADERS IN ONITSHA MARKET PROTEST THE SALE OF NEW NAIRA NOTES.

The selling of the redesigned N1000, N500, and N200 currency notes in the market by individuals suspected of being agents of local commercial banks has prompted traders at the Onitsha Main Market in Anambra State to complain to the Central Bank of Nigeria (CBN).

The dealers said that commercial banks were hesitant to distribute the new banknotes to the general people as a result of this “secret bargain”

When the CBN informed stakeholders about the redesign of the currency at the Onitsha Main Market, the traders protested to Benedict Maduagwu, the controller of the Anambra State branch of the bank.

As a result, Innocent Ezeoha, the chairman of Onitsha Main Market, pleaded with the CBN to release the new naira notes.

The CBN branch controller, Madugwu, responded by stating that the apex bank would going forward conduct surveillance on the commercial banks in the area over the development and warned the banks that every dollar issued to them had security codes.

The new note just released by the CBN of Nigeria has been a major controversial between traders especially people from the Onitsha Market.

He reiterated that commercial banks seen hoarding the new naira notes would face sanctions from the CBN.

The integrity of a local legal lender, the effectiveness of its supply, as well as its efficacy in the conduct of monetary policy, are some characteristics of a great central bank, he continued. “Currency management is a key function of the CBN as enshrined in Section 2(b) of the CBN Act 2007,” he said.

The integrity of the CBN and the nation have suffered unexpected repercussions as a result of recent issues that have grown in scope and sophistication for currency management in Nigeria. These difficulties mainly consist of: First, there has been a massive hoarding of currency by the general populace. According to statistics, just 15.29 percent of the cash in circulation is kept at the central bank, leaving 84.71 percent of it outside commercial banks' vaults.

Third, there is an increase in ease with which criminals can commit crimes and risk of counterfeiting, as indicated by various security reports received at the Central Bank of Nigeria. This is coupled with a bad view of the CBN and heightened risk to financial stability.

Given that: This approach will help to control inflation as the exercise will move the hoarded cash into the banking system, making monetary policy more effective. The benefits of the currency redesign to the Nigerian economy are enormous.

We would have far more reliable statistics on the money supply and monetary aggregates, which would also aid in the better design and implementation of monetary policy. This initiative, in our opinion, would contribute to broader financial inclusion, the development of a cashless society, and the formalization of the Nigerian economy.

Until January 31, 2023, when the present series no longer qualifies as legal money, the new design and current series shall circulate side by side. We advise the general population to make sure that their commercial banks get their cash holdings in these denominations.