The Central Bank of Nigeria (CBN) given more insight on why it’s planning to print new Naira notes. The Apex bank says, it would reduce the rate of money in circulation which has caused inflation and subsequently price hikes.
The redesign would affect only the N200, N500, N1000 denominations respectively. However, Newsway learned that this action may be the reason for the subsequent increase in the dollar-to-naira exchange rate in the parallel market (black market), where buying is now at N830 and selling is at N855, making it the worst for the naira in only two weeks.
The implications are that, illicit money is being converted to dollars or other foreign currencies to avoid wastage when the deadline for deposit elapse. This is what recently caused the exchange rate to spike suddenly against the US Dollar.
In the documentary video below, you can find the people’s opinions on the redesign of the Naira notes.
