'Naira will bounce back' — BDCs explain benefits of new naira notes from December

According to the President of ABCON, Aminu Gwadabe, the move by the CBN will help make Naira stronger.

CBN Governor Godwin Emefiele, on October 26, announced the redesign of N200, N500 and N1,000.

The CBN governor, during the announcement, also said that the new banknotes would commence on December 15, 2022.

BDC foresee brighter days for Naira

Gwadabe noted that the currency's redesign would likely close the gap between flexible and fixed exchange rates, flooding the market with capital inflows.

He also stated that his view for the naira in 2023 would assist the CBN in capturing considerable amounts of the naira outside the banking vault, according to ThisDay.

Gwadabe added: "The Naira redesign would put pressure on the fragile currency rate volatility in the parallel market, since the demand increase experienced was just illusory and subsequently thinned down.

"With this situation and the central bank's aspirations to minimize the gap between the fixed and parallel markets in order to attract essential foreign inflows as a substantial liquidity source to boost the naira.

"The anticipated liquidity will flood the market, as we saw in 2016 when the I&E window was introduced to encourage foreign inflows into the market for investment in our huge natural resources."