We’ll soon reduce the volume of N500 and N1000 in circulation – Emefiele
Godwin Emefiele the Governor of the Central Bank of Nigeria has stated that plans have been made to reduce the number of higher denominations (N500 and N1000) in circulation to curb inflation.
Emefiele, who claimed that higher denominations may be contributing to inflation in the country, supported his claim by pointing out that the highest denomination in the UK is PS50 and the most spent currency in the country is PS10.
“Rarely you find some people spend £20. Nobody sees £50. If you go around carrying £50 in the UK, they will begin to suspect you. Whereas, the reverse is what is happening in Nigeria. Nigerians want to carry N1,000 or N500.
“In fact, we’re beginning to see or think that increasing the high denomination bills is also part of what may even be fuelling inflation.
“So, over time, we will reduce the volume of N500 and N1000 in circulation.
“Let people carry N50 around. If you want to do high-value transactions, embrace online, embrace our agency programme, embrace our mobile banking programme. That is what you need. You want to conduct legal banking or financial services transactions, you have no business carrying N1,000.”