CBN dismisses report of plans to redenominate the naira

The Central Bank of Nigeria (CBN) has dismissed the purported plan by the apex bank to redenominate the country’s legal tender, the naira.

This follows speculation that the CBN plans to change the naira notes to support the local currency against international currencies in the foreign exchange market.

CBN had previously told Nigerians to ignore the rumours after a WhatsApp message was circulated in September, informing users of the messaging app that the apex bank plans to redenominate the naira.

In a statement on Tuesday, signed by CBN’s director of corporate communications, Isa AbdulMumin, the apex bank reiterated that the financial regulator does not intend to redenominate the naira.

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Redenomination is the recalibration of a country’s currency, typically due to hyperinflation and currency devaluation, whereby an old currency is exchanged for a new one at a fixed rate.

The statement reads, “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.”

“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.

“Whilst the Bank may be considering reforms, such are subject to laid down procedures in line with the provisions of the CBN Act, 2007.”

The apex bank said Nigerians should ignore the report, as it is speculative and calculated to cause panic.