The Central Bank of Nigeria (CBN) has reiterated that it has no plans to redenominate the country’s legal tender, the naira.
This statement comes amid ongoing speculation about potential changes to the naira notes, purportedly aimed at supporting the local currency against international currencies in the foreign exchange market.
The CBN had previously addressed these rumors after a misleading WhatsApp message circulated in September, stating that the central bank planned to redenominate the naira.
In a statement issued on Tuesday, signed by CBN’s Director of Corporate Communications, Isa AbdulMumin, the central bank emphasized that it does not intend to redenominate the naira.
Redenomination typically involves recalibrating a country’s currency due to factors such as hyperinflation or currency devaluation. During redenomination, an old currency is exchanged for a new one at a fixed rate.
“We are concerned that this narrative, which we had refuted before now, appears to be gaining traction with several debates on the implication of such a policy for the Nigerian economy,” CBN stated in the release.
The statement continued, “We wish to reiterate that the contents of the message are misleading. The authors of the message, in their mischief, modified text eked from an old policy move by a previous CBN governor in 2007 to make it appear recent.”
“For the avoidance of doubt, there is currently no plan by the Bank to restructure and redenominate the naira. While the Bank may be considering reforms, such are subject to laid-down procedures in line with the provisions of the CBN Act, 2007.”
The CBN urged Nigerians to dismiss the report as speculative and intended to create unnecessary panic.
