Banks Issue New Updates as CBN Circulates Naira Notes

In response to the Central Bank of Nigeria’s (CBN) decision to reverse its naira redesign policy, deposit money banks have announced adjustments to cash withdrawal limits placed on individuals and corporates.

Reverting to the old order, the weekly withdrawals limit has now been upgraded strongly while banks said there is no requirement to generate reference codes for cash deposits has also been discontinued.

Today, the apex bank floods banks with naira notes to assuage the ongoing cash crunch in the economy. It also directed all commercial banks to open for operation on Saturdays and Sundays to reduce the lingering cash crunch in the economy.

The CBN also confirmed on Friday that a substantial amount of money, in various denominations, had been received by the commercial banks for onward circulation to their respective customers.

After the Supreme Court order that upturned the CBN plan to remove old currency from circulation, the naira crunch worsened as depositors grapple to collect money from banks.

As part of efforts to increase circulation, banks agreed to open on Saturdays and Sundays. DMBs told customers that the weekly limit for cash withdrawal has been reviewed upward, from N20,000 to N 500,000 individuals.

Corporate organisations can now access N5 million cash per week, banks said as the apex bank revert to old order following failed implementation of its naira redesigned policy.

There is no limit to the amount a customer can deposit, banks said saying the implementation of the new regulation begins effectively immediately.

This resulted in the rationing of limited cash available in the economy while most funds outside the banking system failed to return because customers develop cold feet and started person-to-person deals.

Most analysts believe that the failed naira design policy which spooked the Nigerian economy will have multiple impacts on key indices – including inflation, gross domestic product (CBN) growth and of course FX rates. # Banks Issue Fresh Updates as CBN Circulates Naira Notes

March 25, 2023