CBN Takes A Proactive Step To Launch The Clean Naira Notes Policy Programme

Clean Naira Notes Policy

The Central Bank of Nigeria (CBN) has taken a proactive step in ensuring the circulation of fit and high-quality naira notes within the economy by introducing the Clean Naira Notes Policy and the Banknotes Fitness Guidelines. In a memo issued by the bank and signed by the Director, Currency Operations department, Mrs. Priscilla Eleje and the Deputy Governor Operations, Folashodun Shonubi, the bank said: “As part of its statutory task for the issuance and management of legal tender currency in Nigeria, the CBN formulates and issues the Clean Note Policy.”

The statement further reads: “It ensures that Nigerian banknotes are of high quality, clean and are used with the highest confidence by the general public, retailers and other cash handlers.  The Clean Note Policy requires that the production, issuance of new banknotes and recirculation by the Deposit Money Banks (DMBs) as well as cash processing companies conform to the determined standards.”

The Proactive Step By The Apex Bank.

Start Your Business In 30 Days

This issuance, the apex bank said, is in continuance of its mandate of ensuring the management of legal tender currency in Nigeria and also makes certain the recirculation of unsoiled, fit and high-quality banknotes in the country as imposed as obligation on the bank to maintain the quality of banknotes issued by Section 18 of the CBN Act 2007.

The policy (Clean Naira Notes Policy)articulated by the Central Bank, therefore, involves various currency management activities geared towards the efficient circulation of premium quality banknotes and also, the withdrawal of unfit/soiled banknotes to guarantee confidence and usage of the Naira notes as a medium of exchange by the public.

The banker’s bank will on Tuesday, April 30th, 2019, in Lagos, issue the Clean Notes policy and the Banknotes Fitness Guidelines, in a stakeholder’s engagement policy programme.

Move by CBN to collaborate with financial institutions in achieving this.                  

To achieve these objectives in the policy, the Bank is collaborating with Commercial Banks, Merchant Banks, Microfinance Banks, government agencies, Cash-in-Transit (CIT), Cash Processing Companies (CPCs), Market Associations, Merchants/Retailers, Chambers of Commerce and Industry, security agencies, equipment manufacturers, bank customers and the general public. The strategy will, however, remain open for future amendments in tandem with emerging currency management issues.

The Central Bank of Nigeria is self-confident to ensure the continuous circulation of banknotes that are of good quality. As such, the DMBs, other financial institutions and the general public are urged to discontinue from activities which are injurious to the naira such as writing/graffiti-ing; mutilating; stapling the naira; tearing or making holes of any kind; spraying, soiling or stepping on the notes.

The Central Bank of Nigeria Versus Money Demand And Supply.

Over the years, the growth in economic activities and the increase in population have forced the rise in the volume of banknotes in circulation. The demand for cash continues to grow despite advancement in technology.

Thus, the volume of money in circulation as at the end of 2012 rose significantly by 10.34% to 7,914.70 billion pieces, as at mid-year of 2018, and a large percentage of the notes in circulation were dirty, mutilated, not fit for ATMs and over-the-counter payments.

Now, to ensure that the banknotes in circulation are clean and of high quality, the Bank, hereby issues the Clean Note Policy.

To overcome this high demand, the CBN increases the supply of clean notes and withdraws the soiled and mutilated notes from circulation.

Entrepreneurship is a lonely journey, let us help you get through it with our services.



Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Join Entrepreneurs Family

No spam, only business insights and tips. 

Entrepreneurs Sign Up

Business Registration

Most Popular

Join Entrepreneurs Family

No spam, only business insights and tips. 

Entrepreneurs Sign Up

Related Posts

peer-to-peer lending business

How to Start A Peer-to-Peer Lending Business

The peer-to-peer lending business is a form of micro-lending that enables individuals to obtain loans directly from other individuals, cutting out the financial institution as the middleman. This type of lending is a personal and more direct way of borrowing money, as it eliminates any other intermediary (like a bank)

How to start internet business

How To Start a Successful Internet Business

The Internet offers vast opportunities for business visibility and reach. Across the globe, businesses of various sizes and types are utilizing these chances to expand and extend their reach beyond local boundaries into new territories. Are you contemplating starting a business? Then, consider starting an internet business. How do you

Best WordPress Plugins

Where To Find The Best WordPress Plugins

WordPress, a versatile content management system, reigns as the go-to choice for building websites due to its adaptability. It operates on an open-source platform, allowing extensive modifications using plugins. These plugins, essential for feature augmentation, hold the key to unlocking your site’s true potential. What are the best WordPress plugins?

Scroll to Top

Join Entrepreneurs Family!

Get access to FREE business insights and funding opportunities daily.

Entrepreneurs Sign Up