It seems the Central Bank of Nigeria, CBN, has been the butt of false news manufactured at regular intervals by unpatriotic elements. Only recently a falsehood about CBN's purported plan to revalue the naira went viral in the media. The apex bank issued a strongly-worded media release signed by its Corporate Communications Steersman, Dr. Isa Abdulmumin.
The clarification by the CBN spokesman nailed the baseless rumour as total falsehood. The rumour mill had earlier tried to use the media, unsuccessfully, to spread the alarmist impression that the Bank Verification Number (BVN) of Nigerians would expire. Again, the CBN debunked the false news. Now, we have a third one: scarcity of the naira. Much as the unpatriotic elements are bent in continuously spreading falsehood about CBN's monetary policies, Nigerians are too enlightened to be distracted by the unpatriotic elements' falsehood project.
One can see that some persons are taking advantage of the current happenings in the monetary sector of the Nigerian economy, which has shown numerous baffling facts about the economy of a developing country.
Just a few of such facts:
One: The economy of most developing countries is heavily reliant on the huge amount of hard cash circulation.
Two: (which is an attendant effect of the first fact) Micro and medium financial transactions are conducted with much more huge amount of hard cash than the level desired by the banks to build a cashless economy according to current global trends.
This could be symptomatic of the mistrust the larger population of the country nurses against the system of cashless economy, especially with regard to the easier alternative payment modes it offers in trade and commerce.
Three: Slowdowns are rapidly experienced in commercial and other vital sectors of the economy immediately the circulation of the amount of hard cash needed to guarantee them falls.
Four: Knowing that the economy is heavily reliant on the circulation of huge amount of hard cash, detractors and ill-wishers of a country or its existing government readily unleash machinations to disable the circulation required to drive the economy. Low circulation of hard cash can be used as a potent weapon to sabotage the economic policies and programmes of a country or its government.
All, some or at least one of these facts could be responsible for the low circulation of hard cash slowing down economic activities around some cities across the country.
Even if none of the listed facts is responsible, one or some of the numerous others certainly is.
Of grave concern is the possibility of sabotage the low circulation points to against the CBN and the Renewed Hope administration of President Bola Ahmed Tinubu, both of whom have decisively launched themselves with a renewed gusto to reconstruct and reposition the economy for greater and sustainable prosperity.
The fact the CBN has, itself, described the happening as: "FALSE ALARM OF NAIRA SCARCITY" lends credibility to the fact of sabotage, although all other facts may remain credible because Nigeria is a developing economy.
The apex bank had moved swiftly to debunk the false alarm to re-inject confidence in the populace around the affected locations to sustain the required economic activities.
The bank expressed bafflement at the alleged scarcity of cash at commercial banks, automated teller machines (ATMs), Points of Sale and among Bureaux de Change (BDCs) in some major cities across the country.
The bank's findings reveal that the seeming cash scarcity in some locations is due largely to high volume withdrawals from the CBN branches by Deposit Money Banks (DMBs) and panic withdrawals by customers from the ATMs.
While noting the concerns of Nigerians on the availability of cash for financial transactions, it assured the public that there is sufficient stock of currency notes for economic activities in the
country.
The branches of the CBN across the country are also working to ensure the seamless circulation of cash in their respective states of operation.
CBN, therefore, advised members of the public to guard against panic withdrawals as there is sufficient stock to facilitate economic activities.
It also advised Nigerians to embrace alternative modes of payment, which would reduce pressure on using physical cash.
Comments