By Munachimso Obienyi
In its bid to curb inflation, the Central Bank of Nigeria (CBN) announced the it is planning to reduce the volume of N500 and N1000 notes in circulation over time.
The CBN Governor, Godwin Emefiele made this known in his briefing to the media at the monetary policy communique which held on Tuesday.
Responding to questions about the ease of counterfeiting one thousand naira notes and if there are plans to reduce the volumes, Emefiele claimed the effort is aimed at curbing the inflation rate which he partly blamed on the higher-denominated naira notes.
He said, “In the UK they have a denomination in 50 pounds but the most spent denomination is 20 pounds. Nobody spends 50 pounds. If you go around carrying 50 pounds in the UK they will suspect and even report you.
The reverse is what is happening in Nigeria. Nigerians want to carry N500 and N1000. And in fact, we are beginning to think that increasing the high denomination is also part of what is fueling inflation. So in fact, yes we will launch N200, N500, and N1000 over time we will reduce the volume of N500 and N1000 in circulation”.
