The Central Bank of Nigeria (CBN), has started clearing over $10 billion foreign exchange backlogs of commercial banks and foreign airline operators.
This is as the apex bank also assured the public that it has enough volume of banknotes to go around even in the approaching festive period, calling off allegations of cash in the banking sector.
The CBN claimed in reaction to reports of alleged scarcity of cash at banks, automated teller machines (ATMs), Points of Sale and Bureaux de Change (BDCs) in some major cities across the country.
The central bank in a statement said the seeming cash scarcity in some locations is due largely to high volume withdrawals from the CBN branches by Deposit Money Banks (DMBs) and panic withdrawals by customers from the ATMs.
There had been reported cases of panic withdrawals in parts of Nigeria over fears that the banknote could be scarce as was experienced in 2022 end of the year festivities, especially as the bank is yet to comment on continued use of the redesigned higher-denominations of the old currency notes.
The court had extended the use of the old banknotes till December 2023 to allow a better circulation of the new notes. The CBN is here to make its position known on the issue.
“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,” CBN spokesman Isa AbdulMumin said in the statement.
With an estimated backlog of over $10 billion, CBN said, it has started clearing outstanding foreign currency forwards owed to banks, with banking sources saying there was an initial payment of $1 billion.
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