The Central Bank of Nigeria CBN has asked anxious Nigerians not to hoard cash as a hedging strategy to save for the “rainy day”.
The apex said it noticed humongous withdrawals in commercial banks in some states in reaction to the fake news about possible currency redenomination in the near future.
CBN spokesman, Dr. Isa Abudulmumin, while assuring the public of sufficient cash to buoy the economy, said it is concerned about reports on alleged scarcity of cash at banks, automated teller machines (ATMs), Points of Sale and among Bureaux de Change (BDCs) in some major cities across the country.
He said CBN’s findings reveal that the seeming cash scarcity in some locations was due largely to high volume withdrawals from the CBN branches by Deposit Money Banks (DMBs) and panic withdrawals by customers from the ATMs.
“While we note the concerns of Nigerians on the availability of cash for financial transactions, we wish to assure the public that there is sufficient stock of currency notes for economic activities in the country. The branches of the CBN across the country are also working to ensure the seamless circulation of cash in their respective states of operation.
“Members of the public are, therefore, advised to guard against panic withdrawals as there is sufficient stock to facilitate economic activities. Nigerians are also advised to embrace alternative modes of payment, which would reduce pressure on using physical cash,” he explained.