Governor Yemi Cardoso of the Central Bank of Nigeria (CBN) has stated that the current cash shortage is a result of the naira redesign policy’s inadequate execution.
The head of CBN declared a thorough review effort and admitted the “glaring defects” in several CBN policies.
He said, “We are carefully reviewing every policy we have put in place over the years.”
Cardoso delivered a speech on Wednesday in Abuja during the World Bank Nigeria Development Update launch.
According to him, the goal of the policy review is to create a sophisticated document that will clearly define the guidelines and protocols for negotiating the Nigerian money market.
Speaking about the financial crisis that Nigerians are facing, Cardoso named the shoddy naira redesign as the main offender.
Fears that the policy would expire well ahead of the third quarter led to widespread stockpiling. Many held onto their cash because they were afraid that the old notes would no longer be considered legal money.
“Unfortunately, the history of that is associated with the naira redesign policy. As the year came to an end, much before the third quarter, there was a great deal of uncertainty about the future of this and whether the old currency would remain valid as legal tender, leading to many people beginning hoardings.
“This is exactly what took place. He expressed happiness that the Supreme Court had ruled that the money would remain legitimate when the year ended.