CIRCULATION OF OLD NOTES: CBN STARTS MONITORING TODAY, BANKS SET A TWO-WEEK GOAL

In an effort to alleviate the severe currency shortage that has caused pain to millions of bank customers nationwide, the Central Bank of Nigeria on Thursday started distributing old naira notes to Deposit Money Banks.

Following a meeting between CBN Governor Godwin Emefiele and bank CEOs on Wednesday, the central bank had instructed DMBS to collect old N1,000, N500, and N200 notes at its offices throughout the country for subsequent disbursements to customers.

According to information obtained by our correspondents on Thursday, commercial banks obtained old naira notes from CBN branches all over the nation.

The apex bank released old notes to banks, according to multiple bank sources, including CEOs and top executives, who confirmed the information to MON DIARIES.

"I can confirm to you that we received old notes from the CBN today, we also received a memo from the central bank to this effect," the CEO of a commercial bank told a reporter on condition of anonymity.

One of our correspondents was also informed by the general manager of a tier-2 bank that the lender received some old notes from the central bank on Thursday.

"The CBN has started giving us old notes. However, it will take some time for the currency to circulate," a top official of a mid-size bank confirmed to one of our correspondents on Thursday.

The situation would take about two weeks to normalize, according to top bank officials, who also suggested that bank lines might not dissipate until later next week.

By the following week, they also hope to pay each customer N500,000.

"The situation will not normalise immediately. The impact will begin to be felt on Friday. Overall, things should normalise between one and two weeks," because he was not authorized to speak on the subject, a senior bank executive said. 

The bank employees' union added that things might not return to normal right away.