The House of Representatives wednesday summoned Central Bank of Nigeria (CBN) governor,\u00a0 Malam Sanusi Lamido Sanusi to explain the benefits for introducing of the N5000 note billed for 2013.<\/p>\n
Chairman of the House committee on Banking and Currency, Hon. Jones Chukwudi Onyereri disclosed this at a press\u00a0 briefing in Abuja.<\/p>\n
He said the CBN governor will among other things brief the House on the state of the cashless policy and the need for the proposed N5000 denomination.<\/p>\n
The lawmaker said “The House committee will invite the management of the Central Bank in an effort for the Committee to know whether the Central Bank is still pursuing the cashless policy, and if they are, how does this higher currency note compliment the cashless policy or if it contradicts the cashless policy, what are the next steps.<\/p>\n
He noted that “the Committee on Banking and Currency has been briefed extensively on the cashless and wireless payment system policy of the Central Bank, which we understand is designed to reduce the actual cash in circulation while not affecting the volume of money available to citizens; this simply means cashless policy is not a monetary policy instrument used to reduce cash\u00a0 in circulation, as it leaves the cash available in the system unaffected while at the same time substantially reducing the volumes of currency in circulation by converting currency to electronic payment codes and systems”.<\/p>\n
Continuing, the chairman said “This is the direction the Central Bank has been following.\u00a0 The understanding is that carrying less cash is in every body\u00e2\u20ac\u2122s interest as it reduces the risk, it reduces the money spent on printing currency and it reduces the money spent on movement of currency as well as on security and safe guards for large consignments of currency”, he stated.<\/p>\n
The chairman explained further “We understand that the cashless policy encourages payment with a credit card, debit card or mobile money,\u00a0 which means a citizen will avoid the high risk of traveling with currency for large ticket transactions”<\/p>\n
The chairman who also disclosed that the House had no prior information about the introduction of the new denomination said ” whereas we fully respect the separation of powers enshrined in the Constitution and the Central Bank’s autonomy as provided by the Central Bank Act 2007 as amended as well as the Banking and Other Financial Institutions Act, we have a responsibility to the Nigerian people to engage the Executive branch on issues that may have a far reaching effect on the national economy, and affect the day to day lives of the ordinary Nigerian.<\/p>\n
“As representatives of the people, with particular oversight responsibility over the banking industry, we have set up the processes to immediately address the matter. In doing so, we will rely strictly on the provisions of the Constitution of\u00a0 the Federal Republic of Nigeria,\u00a0 the Central Bank Nigeria Act of 2007 as amended, the Banking and Other Financial Institution Act, as well as other requisite legal and regulatory instruments”.<\/p>\n
The chairman explained that the intervention of the House has become necessary to ensure that due process is followed and rule of law adhered to assuring that the House would be mindful of the effect of the introduction of N5000 note and its implications on any other banking policy and the ordinary Nigerian.<\/p>\n
He assured that “we will keep an open mind while engaging the Bank Management to have a full picture and understanding of the thinking at the Central Bank and the reasons for this action”<\/p>\n
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The House of Representatives wednesday summoned Central Bank of Nigeria (CBN) governor,\u00a0 Malam Sanusi Lamido Sanusi to explain the benefits for introducing of the N5000 note billed for 2013. Chairman…<\/p>\n","protected":false},"author":1,"featured_media":3705,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-3702","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\n