CBN Tightens Noose on Currency Mutilation, Counterfeiting

CBN Tightens Noose on Currency Mutilation, Counterfeiting

The Central Bank of Nigeria (CBN) yesterday vowed to impose stiff sanctions on commercial banks and individuals that dispense mutilated and counterfeit currencies. The central bank has also called for an increase in private companies participating in the currency management value chain to enhance its clean note policy. The CBN Governor, Mr. Godwin Emefiele, said

The Central Bank of Nigeria (CBN) yesterday vowed to impose stiff sanctions on commercial banks and individuals that dispense mutilated and counterfeit currencies.
The central bank has also called for an increase in private companies participating in the currency management value chain to enhance its clean note policy.
The CBN Governor, Mr. Godwin Emefiele, said this yesterday during the unveiling of the Bank’s Clean Notes Policy and Banknotes Fitness Guidelines in Lagos.
Emefiele said CBN branch controllers across the country have been empowered to work with security agencies in their respective states to ensure that cases of currency mutilation are addressed.
He noted that bank notes remain important for payments and settlement of commercial transactions in Nigeria, saying the central bank takes the state of the nation’s currency very important.
Emefiele, who was represented by the Deputy Governor (Operations), CBN, Mr. Folashodun Shonubi, said: “It is worth noting that the bank has the responsibility for preserving the integrity of the naira and sustaining public confidence in the national currency as enshrined in Section 2 of the CBN Act 2007.
“To attain these objectives, the bank strives to ensure an optimal supply of clean and quality banknotes in a balanced denominational mix to meet public demand, while also maintaining a balanced currency structure that is both efficient and cost effective.
“The responsibility for clean notes in circulation is not exclusively that of the central bank, rather a collaborative effort between the central bank, banknote suppliers, deposit money banks, manufacturers of currency management equipment, currency transportation and processing companies, security agencies, and the general public.
“I commend the existing collaboration between the CBN and the stakeholders in the currency management value chain, and wish to stress that this should be deepened and strengthened for the overall good of the industry.
“Currency management is vital to our daily lives because despite the improvements in electronic payments system, banknotes remain predominant for payment and settlement of commercial transactions in Nigeria.”
Speaking further, Emefiele said the central bank had registered eight companies to carry out cash-in-transit and two cash processing companies to operate in Nigeria.
He urged commercial banks to patronise only these registered companies for CIT and sorting services.
“It is expected, therefore, that more private sector participation in the currency management value chain would further strengthen the efforts toward ensuring availability of clean banknotes,” he added.

editor
AUTHOR
PROFILE

Posts Carousel

Leave a Comment

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

Latest Posts

Top Authors

Most Commented

Featured Videos

Thenewspad

FREE
VIEW