The Economic Financial Crimes Commission’s head, Abdulrasheed Bawa, forecasts that Nigeria’s currency reform would firm up the naira to an exchange rate of 200 naira for one dollar.
The value of the naira has recently fluctuated between N900 and $1 due to its fast depreciation. Currently, the black market exchange rate for the naira is between N680 and N700 to $1.
“With this revamping, (the) dollar may significantly collapse, who knows, perhaps to N200,” Mr. Bawa countered.
This was revealed by the head of the anti-corruption office in an interview with the Hausa service of Deutsche Welle on Wednesday.
The legislation mandates that naira notes be redesigned every eight years, according to Mr. Bawa.
“But we neglected to make any adjustments to them for 20 years. And as a result, banks do not hold 85% of the money in circulation. Dollar increased to N880 when CBN proposed this restructuring before falling to N680 or roughly afterwards, according to the EFCC chairman.
The decision to redesign, print, and distribute new N100, N200, N500, and N1,000 banknotes was announced by Godwin Emefiele, governor of the Central Bank of Nigeria, in October. He claimed that more than 80% of the money was hoarded.
By December 15, the new naira notes will be in use, and by January 31, 2023, the old notes will no longer be accepted as legal cash.
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