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The Central Bank of Nigeria (CBN) has disclosed that about N165 billion has been deposited in banks since it announced the introduction of newly redesigned naira notes last month.
The Director of currency at the Central Bank of Nigeria, Mr Ahmed Bello stated this on Wednesday during a breakdown of Monetary policy measures announced by the Bank on Tuesday.
Mr Bello noted that although this was a far cry from the N2.7 trillion estimated to be out of the banking system, the CBN expected an increase in the volume of deposits in the coming days.
According to him, the distribution of the redesigned Naira notes to the CBN network of branches will begin in earnest, but he pointed out that the new currencies will not be available to the public until mid-December.
The Director of the Monetary Policy Department, Mr Mahmud Hassan said the CBN was mindful of the impact of the rate hike on businesses, adding that the apex bank was left with little choice in its determination to rein in inflation.
Mr Hassan said the CBN would do the needful by easing the rates once inflation starts to decline.
On his part, the Director of Banking Supervision, Mr Haruna Mustafa said the banking sector remained strong and resilient and that the CBN was on its toes to ensure that it remains so.
Mr Mustafa disclosed that the capital adequacy ratio of the banking sector currently stands at 13 per cent, above the requirement of 10 per cent.
The Director, Development Finance of the CBN said:
“Yes, a large quantity of money is still in the system. Through the redesign and mop-up, we are seeing inflows. One of the tools that we also use for monitory policy is managing money supply including Currency in circulation (CIC), and the quantity of money that is outside the banking system will impact the money supply in terms of demand, but the central bank is addressing those issues.”
Naira redesign: About N165bn deposits hit banks’ coffers, says CBN
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