The International Monetary Fund, IMF has urged Nigeria to apply caution in its plan to replace higher denominations of the naira and avoid any missteps that could undermine confidence in the financial system.
The IMF has reached out to the Central Bank to get more information on the plan which was announced on Wednesday, Ari Aisen, the lender’s resident representative, said in an emailed response to questions. “We stand ready to provide any assistance as needed,” he told Bloomberg.
The country’s banking regulator plans to issue redesigned 200-, 500- and 1,000-naira notes from mid-December, according to Central Bank Governor Godwin Emefiele. Nigerians have until January 31 to exchange the existing bills for new ones, a tight deadline considering that the central bank wants to mop up 2.7 trillion naira that it says is outside banking vaults.