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The Central Bank of Nigeria (CBN) has stated that plans to gradually phase out the old 200, 500, and 1,000 naira notes are underway, while new notes will be issued.
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CBN Acting Governor, Folashodun Shonubi, made this announcement on Tuesday after the monetary policy committee (MPC) meeting at the CBN headquarters in Abuja.
Shonubi stated on Tuesday while updating the demonetisation policy, that old notes would be gradually replaced over time.
He noted that whenever commercial banks request new currency, the old notes are exchanged for the new ones, ensuring a smooth transition.
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“When a currency is printed and sent out, It is expected that it will go through a number of cycles and then, over time, will become one and then be replaced. That’s what we’re doing,” Shonubi said.
“We had to put out or re-put out old notes. And as they’re coming in, they’re being processed and returned to us as not issuable. We are then bringing them out and replacing them with the new notes.”
Shonubi added that the replacement process will be gradual and without fanfare, saying, “You will just see it slowly morph from old to new.”
He also stated that as the initiative progresses, the new notes will eventually become the norm, rendering the old ones obsolete.
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