CBN directives fail to ease cash crunch
Amid fears that the Central Bank of Nigeria (CBN) may not release the old notes in its custody, Deposit money banks have started rationing old notes (500 and 1000) to their customers.
CBN Governor Godwin Emefiele had earlier announced that the old N1000, N500 and N200 notes remained legal tender.
The announcement on Monday night did not make the Nigeria Labour Congress to halt the seven-day ultimatum it gave the Federal Government to end the cash crunch.
The central bank’s position came after several weeks of confusion and hardship Nigerians were made to pass through. This was in spite of Supreme Court judgments in a suit between some states and the federal government.
The CBN declaration, however, has not eased the crunch because the old notes are in short supply thus inflicting more pain on Nigerians.
Banks are said to be rationing old notes to their customers through over-the-counter payments. The banks’ Automated Teller Machines have not been helpful because few of them are loaded with cash.
Bank executives and officials are uncomfortable with this situation because their vaults are being emptied with no hope of getting back the old notes they had deposited with the central bank some weeks ago.
