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B N W: Biafra Nigeria World News |
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CBN to introduce N1,000 note May 29, 2005
THE Central Bank (CBN) has concluded plans to introduce N1,000 notes into the financial system on May 29, 2005.
Already, the design for the new currency note is in the works to further raise the number of naira bills to eight. Currently, there are bills in N5, N10, N20, N50, N100, N200 and N500 denominations.
The CBN governor, Prof. Charles Soludo, who disclosed this at the weekend in Lagos, said the new bill is part of the clean note policy being pursued by the apex bank to sanitise the nation's financial system.
Soludo, however, allayed fears that the new bill would heighten the inflation in the country, pointing out that the premium currency note is only an equivalent of $7.58, by the current official exchange rate.
According to him, the issue of inflation is being frontally tackled by the current administration and CBN has already marshalled various instruments to ensure success in this regard.
Soludo, however, stressed that the clean note policy would be carried out along with current revival and restructuring of the Nigerian Security, Minting and Printing Company (NSMPC), otherwise known as the Mint.
The governor added that under the restructuring plan, the nation would become less dependent on foreign printers for production of national currency notes.
"A primary objective of the restructuring plan is to ensure that operational hiccups besetting the operations of the Mint are addressed and we are determined to place the place back as an efficient outfit, fulfilling its core mandate to the country," he said.
Besides, he disclosed that the Mint would be upgraded to serve not only the country but also the West African sub-region.
The governor, who allayed fears that the introduction of the new N1,000 bill would heighten inflation, said CBN's commitment to the Mint's restructuring has not foreclosed Federal Government's plan to privatise it.
He disclosed that CBN, which has now taken over the Mint, will revive and operate it for about three years and thereafter sell part of the shares to the public, to decimate government's interest in the outfit.
His words: "We realise the problems presently confronting the Mint. All these old problems will be removed. We are starting a new Mint, with a master-plan already in place. New management will be established for the place and will be fully set to break the jinx that Nigeria cannot produce its own currency."
He added: "We are drawing a thick line between the past and the present. We are not unaware of the crises with the Mint but when you set out to do things, you don't see the obstacles but the opportunities.
"The technology for currency production is the same worldwide. It's an oligopolistic market. The problem with the place (the Mint) is the management. That's why we are getting to the heart of the management issue."
Soludo, who clocked 100 days in office on Saturday, said he felt fulfilled with his achievements so far.
He said: "I know from the first day I assumed office that we had to start running immediately. So, right from the start, we started running. It has been 100 days of deep thoughts, actions, analyses, planning and implementation. It has been 100 days of acting upon all the essential things needed to promote the fortunes of Nigerian economy.
"We were informed in all our actions that Nigeria has no time to waste in respect of the economy. The economy, in short, could not wait any longer. We know what the economy desires before I assumed office."`
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