CBN Speaks On Old N1000, N500 Notes After Supreme Court’s Ruling
CBN Speaks On Old N1000, N500 Notes After Supreme Court’s Ruling
Following the Supreme Court judgment extending the deadline for the use of the old banknotes of N200, N500 and N1,000 till December 31, 2023 the Central Bank of Nigeria (CBN) has fixed March 20 and 21st, to review the decision.
The two-day 12-man Monetary Policy Committee (MPC) meeting is expected to review the decision of the court and the implications in the economy.
Ibom Focus earlier reported that a seven-man panel of Supreme Court in unanimous decision stopped the federal government from ending the implementation of the naira swap police until December 31.
Justice Emmanuel Agim who read the judgment held that the correct process for the redesign policy had not been followed.
It faulted President Muhammadu Buhari for introducing the policy without the Council of States, the Federal Executive Council, the Civil Society and other relevant stakeholders.
“The directive given by President is invalid. Such directive is not just handed down after personal conversation with the governor of CBN Central Bank of Nigeria,” the court held.
Agim, therefore, revealed that the old naira notes will remain valid until December 31, 2023, to relief citizens.
It had been reported that the naira redesign policy was introduced in October 2022 by the CBN in an effort to reduce counterfeit and drive cashless means of transaction.
However, the policy was challenged by state governors at the supreme court citing massive hardship the Policy had created paralysing the economic and social activities across the country.
Now the judgment has effectively overruled CBN and the federal government ban on the use of old N500, and N1000 notes and also the April 10 validity of N200 notes.
However, the MPC meeting consists of the Governor of the Bank CBN who shall be the Chairman; four Deputy Governors of the Bank; two members of the Board of Directors of the Bank; three members appointed by the President and two members appointed by the Governor.
The MPC meeting, which is scheduled to take place in Abuja, will be chaired by the CBN Governor, Godwin Emefiele.
The committee is also expected to review the current state of the economy and make decisions on key policy issues such as interest rates, exchange rates, and inflation.
