Home Forex Nigerian court docket suspends Friday deadline to swap banknotes By Reuters

Nigerian court docket suspends Friday deadline to swap banknotes By Reuters

Nigerian court docket suspends Friday deadline to swap banknotes By Reuters


© Reuters. A person holds cash in his hand on the animal market in Karu, Abuja, Nigeria, July 8, 2022. REUTERS/Afolabi Sotunde

By Camillus Eboh and Chijioke Ohuocha

ABUJA (Reuters) – Nigeria’s Supreme Court docket on Wednesday prevented the federal government from implementing a Friday deadline for residents to swap outdated banknotes for brand new ones, because the Worldwide Financial Fund flagged disruptions to commerce and funds.

Nigerians had been as a result of flip in outdated 1,000, 500 and 200 naira banknotes in alternate for newly designed notes by Friday as a part of a central financial institution initiative to curb money in circulation and management double-digit inflation.

The plan has brought about enormous controversy, with folks saying there aren’t but sufficient new notes out there, resulting in chaotic scenes at banks and acute money shortages.

Some politicians have criticised the timing forward of Feb. 25 elections for a brand new president and lawmakers, as campaigns are funded by principally exhausting to hint money.

Supreme Court docket Decide John Inyang Okoro stated the choice to droop the deadline was unanimous, pending a authorized problem from three states who had argued that the be aware swap plan was inflicting hardship forward of the elections.

The court docket is because of hear the states’ problem on Feb. 15.

Earlier on Wednesday, the IMF’s resident consultant in Nigeria urged the Central Financial institution of Nigeria (CBN) to think about extending the deadline for notes to be swapped given disruption brought on by the scarcity of recent notes.

The central financial institution says the plan additionally goals to cut back fraud because the safety features on the brand new notes will make them more durable to counterfeit and that it’ll foster a transfer in the direction of a cashless financial system.

About 1.3 trillion naira ($2.8 billion) in outdated notes has been deposited into the financial institution for the reason that announcement in October, in accordance with the financial institution.

Some ruling celebration officers have publicly accused the CBN of a plot to show voters in opposition to its candidate within the presidential election, Bola Tinubu.

President Muhammadu Buhari isn’t working he’ll full his constitutionally allowed two phrases in Could.

Inflation and a flagging financial system are prone to be main points for voters on the elections, with many saying life is more durable than when Buhari took workplace in 2015.

($1 = 459.92 naira)



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