• Home
  • Live Crypto Price
  • Contact
No Result
View All Result
  • Home
  • Live Crypto Price
  • Contact
No Result
View All Result
No Result
View All Result
Home Cryptocurrency

Nigerian Central Bank Spent Over $1.8 Billion Managing Local Currency – Economics Bitcoin News

Terence Zimwara by Terence Zimwara
December 30, 2022
in Cryptocurrency
0 0
0
Nigerian Central Bank Spent Over $1.8 Billion Managing Local Currency – Economics Bitcoin News
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter


During her appearance before Nigerian lawmakers, Aisha Ahmad, the deputy governor of the Central Bank of Nigeria (CBN), told lawmakers that out of the nearly $1.8 billion used to manage the local currency, over 90% of this total was reportedly used to fund expenses associated with the production of banknotes.

The Growing Cost of Maintaining the Naira

According to Aisha Ahmad, the deputy governor of the Central Bank of Nigeria (CBN), between the years 2017 and 2021, the apex bank spent an equivalent of nearly $1.8 billion, or 800 billion naira, managing the local currency. The production of new banknotes alone accounted for more than 90% of this figure.

As per remarks published by the Punch, Ahmad, in her recent appearance before Nigerian lawmakers, also claimed that the cost of maintaining the local currency has been increasing by over $22 million annually. Before Ahmad’s disclosure, Kingsley Moghalu, a former CBN deputy governor, had also told lawmakers that the central bank uses approximately $336 million to manage the currency.

In addition to incurring high costs associated with managing the naira currency, the CBN has to contend with the increased risk of counterfeiting, the report said.

Meanwhile, in her testimony, Ahmad partly blamed the spiraling costs on what she characterized as wholesale hoarding of the naira by the Nigerian public.

“An observation supported by statistics shows that cash outside banks consists of over 80 per cent of the currency in circulation; worsening [the] shortage of fit banknotes in circulation. This portends [a] negative public perception of the bank and increases [the] threat to financial system stability,” Ahmad is quoted as saying.

To help the central bank overcome some of the challenges identified by Ahmad, the CBN introduced into circulation newly designed naira banknotes on Dec. 15. At the same time, the bank said Nigerian residents in possession of the old banknotes should return these before or by Jan. 1, 2023.

CBN Not Targeting Politicians

The central bank has also restricted the amount of cash that individuals and corporate organizations can withdraw. However, some Nigerian commentators have accused the CBN of using the so-called naira redesign policy to target politicians. Responding to these allegations, Ahmad reportedly told lawmakers that the bank’s decision to limit cash withdrawals was based on research.

“I have to make it very clear that the CBN is an independent institution and our decisions are taken based on research — it is the work of many teams working together across the different directories,” Ahmad reportedly said.

Register your email here to get a weekly update on African news sent to your inbox:

What are your thoughts on this story? Let us know what you think in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.














Image Credits: Shutterstock, Pixabay, Wiki Commons, Tayvay / Shutterstock.com

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More Popular News

In Case You Missed It





Source link

Previous Post

Bitcoin Is Not Stored Time, Energy, War – Bitcoin Magazine

Next Post

Valkyrie Proposes Manage Grayscale’s GBTC – Bitcoin Magazine

Terence Zimwara

Terence Zimwara

Next Post
Valkyrie Proposes Manage Grayscale’s GBTC – Bitcoin Magazine

Valkyrie Proposes Manage Grayscale’s GBTC - Bitcoin Magazine

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
Pantera Capital CEO: Bitcoin (BTC) Could Hit $115k after Halving

Pantera Capital CEO: Bitcoin (BTC) Could Hit $115k after Halving

May 5, 2022
BOLT12, LNURL And Bitcoin Lightning

BOLT12, LNURL And Bitcoin Lightning

June 20, 2022
Jack Dorsey Muses on Social Media ‘Takeover,’ Ethereum Weaknesses; Plus the Latest in Crypto Mining — Bitcoin.com News Week in Review – The Weekly Bitcoin News

Jack Dorsey Muses on Social Media ‘Takeover,’ Ethereum Weaknesses; Plus the Latest in Crypto Mining — Bitcoin.com News Week in Review – The Weekly Bitcoin News

April 24, 2022
Luna Foundation Acquires An Additional 37.8k Bitcoin Worth $1.5B, Bringing its Total Holdings to 80,394 BTC

Luna Foundation Acquires An Additional 37.8k Bitcoin Worth $1.5B, Bringing its Total Holdings to 80,394 BTC

May 6, 2022
Bitcoin Is Our Weapon In The War Of Ideas

Bitcoin Is Our Weapon In The War Of Ideas

0
Allianz Chief Economic Advisor Predicts Bitcoin Going Higher Amid Inflation

Allianz Chief Economic Advisor Predicts Bitcoin Going Higher Amid Inflation

0
Insurance Considerations For Bitcoin Miners

Insurance Considerations For Bitcoin Miners

0
Becoming A Sovereign Individual With Bitcoin

Becoming A Sovereign Individual With Bitcoin

0
Russia’s Largest Private Bank Launches Digital Asset Platform – Finance Bitcoin News

Russia’s Largest Private Bank Launches Digital Asset Platform – Finance Bitcoin News

February 5, 2023
Reduced To Penny Stocks In 2022, Public Bitcoin Miners Are Primed To Come Back

Reduced To Penny Stocks In 2022, Public Bitcoin Miners Are Primed To Come Back

February 4, 2023
Sberbank Set to Launch Decentralized Finance Platform Based on Ethereum – Defi Bitcoin News

Sberbank Set to Launch Decentralized Finance Platform Based on Ethereum – Defi Bitcoin News

February 3, 2023
CleanSpark Mines Record 697 Bitcoin In January, A 50% Increase Since December

CleanSpark Mines Record 697 Bitcoin In January, A 50% Increase Since December

February 2, 2023

Recommended

Russia’s Largest Private Bank Launches Digital Asset Platform – Finance Bitcoin News

Russia’s Largest Private Bank Launches Digital Asset Platform – Finance Bitcoin News

February 5, 2023
Reduced To Penny Stocks In 2022, Public Bitcoin Miners Are Primed To Come Back

Reduced To Penny Stocks In 2022, Public Bitcoin Miners Are Primed To Come Back

February 4, 2023
Sberbank Set to Launch Decentralized Finance Platform Based on Ethereum – Defi Bitcoin News

Sberbank Set to Launch Decentralized Finance Platform Based on Ethereum – Defi Bitcoin News

February 3, 2023
CleanSpark Mines Record 697 Bitcoin In January, A 50% Increase Since December

CleanSpark Mines Record 697 Bitcoin In January, A 50% Increase Since December

February 2, 2023

About Us

We bring you the latest bitcoin news from all over the internet

Categories

  • Cryptocurrency
  • Latest
No Result
View All Result
  • Home
  • Live Crypto Price
  • Contact

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In