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Nigerian Banks Resume Issuance of Recently Demonetized Naira Notes –

According to local reports, Nigerian financial institutions have begun to comply with a Supreme Court ruling that invalidated the Central Bank of Nigeria’s (CBN) demonetization of the 1,000, 500 and 100 naira notes. According to the court, Nigerian residents will continue to use the canceled banknotes until the end of the year.

Court criticizes outgoing Nigerian president

Nigerian financial institutions have reportedly started issuing the recently canceled 1,000, 500 and 100 naira notes just days after the country’s highest court ruled against CBN’s so-called naira reshaping policy. According to a Bloomberg report, some of the country’s leading financial institutions such as Guaranty Trust Holding Co. Plc and Sterling Bank Plc issued the old banknotes as early as March 6.

In its judgment of March 3, 2023, the Nigerian Supreme Court condemned the hasty demonetization process of the central bank. The court also accused outgoing President Muhammadu Buhari of undermining the country’s democratic credibility after his government failed to comply with an interim order barring it from proceeding with the demonization process.

Although CBN has not issued a formal statement following the Supreme Court ruling, Sterling Bank CEO Abubakar Suleiman is quoted in the Bloomberg report as explaining why the banks chose to comply with the ruling.

“The central bank is complying with the Supreme Court ruling, as are the banks. I don’t think we need an order to obey the court,” the executive reportedly said.

Demonetized banknotes will remain legal tender until the end of the year

By redistributing the old banknotes, Nigerian banks are not only complying with the court ruling, but also placating dissatisfied bank customers who failed to withdraw cash in the days leading up to the Feb. 10 demonetization deadline. As before by News reports, CBN’s refusal to extend the deadline and banks’ inability to issue the redesigned notes helped spark violent street protests.

Despite pleas from members of his own political party, All Progressive Congress (APC) President Buhari insisted that a TV address that his government still supports CBN’s naira transformation policy and that the demonstration deadline will not be extended. However, in its ruling, Nigeria’s Supreme Court said all old naira banknotes would remain legal tender until the end of the year.

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Nigerian Banks Resume Issuance of Recently Demonetized Naira Notes –, Crypto Trading News

Terence Zimwara

Terence Zimwara is an award-winning Zimbabwean journalist, author and writer. He has written extensively on the economic woes of some African countries, as well as how digital currencies can provide an escape route for Africans.

photo credit: Shutterstock, Pixabay, WikiCommons

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Source: Crypto News Deutsch

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