[FILES] Godwin Emefiele of CBN. Photo: NAIRAMETRICS
Abina claimed this would have helped to reduce the disruption to the exchange rate and support the ideals of the policy, which he described as “good and necessary.” He said, “It mops up the huge amount of cash that is out of the banking system, currently estimated at ₦2.73trn or about 85 per cent of the total cash in circulation. This is totally bad for monetary stability.
“It deepens financial inclusion by getting most people into the banking system, a sine qua non to improving credit in the system, and expanding productive activities.He, however, noted that though the policy would be of immense benefit to the country in the long run, “there are short-term unintended ugly consequences, chief of which is now manifesting in the depreciating value of the naira, as the unbanked excess cash in the system chases scarce dollars.
Abeg tell us