Old currencies cease to be legal tender May 31
February 21st, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
The Central Bank of Nigeria on Monday said the existing currency notes being replaced with new ones by the end of this month, will cease to be legal tender by May 31.The affected notes will, continue to circulate side by side with the new ones until that date..
While addressing representatives of the 25 commercial banks with the features of the new notes and coins, the banks were asked to dedicate at least two tellers in each of their branches for exchange of the existing notes with new ones, irrespective of whether or not such customers were account holders.
At the end of May, the banks should continue to collect the old notes from customers and return them to the CBN, as it would be illegal for the banks to reject the old notes after the May 31 deadline. In Nigeria, the existing currency had been in circulation for close to 23 years.
The Deputy Governor, Financial Sector Surveillance, Central Bank of Nigeria, Mr. Tunde Lemo explained that the new notes were embossed with distinctive symbols at the top left corner for ease of recognition by visually impaired persons through feeling. The CBN boss said the Arabic inscriptions on the old notes were removed because of the reality that an average Nigerian was now literate enough to read in any of the three major languages.
In its place, he said the new notes now carried translations of the values of the notes in Hausa, Yoruba and Igbo as a symbol of national unity. Although the portraits in the existing notes were retained in the new ones, he said the portrait of Ladi Kwali was introduced on the reverse side of N20 in recognition of her feats as a potter.
He said this was to disabuse the mind of the people that only past leaders or influential members of the society could be so recognized and honored. The bank chief said fishermen were also introduced on the reverse side of N50 to underscore the agrarian status of the country. Similarly, he explained that the National Assembly was embossed on the new N2 coin to reinforce the democratic experience of the country, especially as a reminder that democracy had come to stay in the country.
The new coins, according to the CBN boss, were user friendly given their lightweights. He added that they were portable and convenient to carry, as well as attractive in shape; the features he said made them suitable for vending machines and the visually impaired. To encourage the circulation of the coins, he directed commercial banks to ensure that two percent minimum of banking transactions were conducted in coins.
The CBN deputy governor said the coins were meant to break the bulk and encouraged the people to insist on collecting their change after each financial transaction on introduction of the new notes. Lemo said the bank would embark on aggressive public enlightenment to ensure that the new notes became popular among the people.
He appealed to Nigerians to respect the new currency by ensuring that they were not mutilated.
(No Ratings Yet)
Loading ...