CBN Discloses Benefits Of Currency Redesign Policy

The Central Bank of Nigeria (CBN) has said that the benefits of currency redesign policy is that it will reduce inflation, as less cash holding reduces currency outside banks and retards money circulation.

VerseNews reports that the CBN Boss Godwin Emefiele disclosed this in Abuja while addressing the diplomatic community on recent monetary policy decisions of the CBN.

“The policy is typically expected to cause deflation in the market as less cash holding reduces currency outside banks and retards money circulation.”

“The accompanying decline in money supply will thus slow pace of inflation” he said.

He assures that proper implementation of the policy will steadily reduce inflation rate by mid-2023

 “As you can see, we have stated to witness inflation trending downwards, following general price stability in almost all genre of markets including for goods and financial products.

“For instance, analysis shows that an effective implementation of the policy could by itself scrape four percentage points off the current level of inflations as it steadily slows inflation rate to about 18.0 percent by mid-2023.

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Furthermore, the CBN Governor while defending his claims stated that the price of some food items in the market have stated reducing since the beginning of the policy.

“This is quite achievable, as data from our market sources indicate that the prices of grains and key staples, around Suleja and Lambata markets for instance, have generally been on the downward trend since the beginning of the policy.

“The price for soya beans has dropped from N30,000 to N22,000. Maize from N18,000 to N16,000. The price of a bull fell from N400,000 to N330,000 and ram from N75,000 to N50,000.”