The Central Bank of Nigeria (CBN) says it is planning to reduce the volume of higher denominations — N500 & N1000 — in circulation to tame inflation
Godwin Emefiele, governor of CBN said this while fielding questions from journalists at the monetary policy committee (MPC) meeting in Abuja.
Emefiele said increasing the high denomination of the currency could be part of factors fuelling inflation in the country
Making reference to the United Kingdom, he said the highest denomination in the UK is £50, adding that the most spent currency in the country is £10. “Rarely you find some people spend £20. Nobody sees £50. If you go around carrying £50 in the UK, they will begin to suspect you. Whereas, the reverse is what is happening in Nigeria. Nigerians want to carry N1,000 or N500.
In fact, we’re beginning to see or think that increasing the high denomination bills is also part of what may even be fuelling inflation.