CBN assures of sufficient cash supply

The Central Bank of Nigeria (CBN) yesterday said it has enough cash-in-circulation to meet the transaction needs of Nigerians.

In a statement, CBN Director, Corporate Communications, Isa AbdulMumin said denied reports on alleged scarcity of cash at banks, automated teller machines (ATMs), Points of Sale and among Bureaux de Change (BDCs) in some major cities across the country.

He said: “Our findings reveal that the seeming cash scarcity in some locations is due largely to high volume withdrawals from the CBN branches by Deposit Money Banks (DMBs) and panic withdrawals by customers from the ATMs.”

“While we note the concerns of Nigerians on the availability of cash for financial transactions, we wish to assure the public that there is sufficient stock of currency notes for economic activities in the country. The branches of the CBN across the country are also working to ensure the seamless circulation of cash in their respective states of operation”.

AbdulMumin advised members of the public to guard against panic withdrawals as there is sufficient stock to facilitate economic activities.

“Nigerians are also advised to embrace alternative modes of payment, which would reduce pressure on using physical cash,” he said.

Findings showed that the apex bank has commenced clearance of an estimated $7 billion forex forwards backlog to strengthen the naira and bring stability to the forex market.

The CBN had in recent months reiterated its commitment to clearing the backlogs to firm up the naira and bring stability to the forex market.

CBN Governor, Olayemi Cardoso, said the apex bank is working on clearing the $7 billion FX backlog.

Unconfirmed report estimates that between 75 to 80 per cent of the outstanding matured FX forwards will be cleared in the coming days through the commercial banks.

The Minister of Finance and Coordinating minister for the Economy, Wale Edun, stated last month that the country anticipates receiving $10 billion in inflows in the upcoming weeks.

These inflows would help ease liquidity and clear the backlog of past-due forward contracts that are weighing on the naira.

Analysts said that the settlement by the CBN is a positive move for the Nigerian economy, the FX market, the value of the naira, and the country’s gross external reserves.