The bankers committee on
Tuesday endorsed the plan by the central bank to introduce N5000 note
and the coining of lower denominations.
Addressing
journalists after the committees meeting in Abuja, the Managing Director of the United Bank for
Africa, Philip Oduoza said that the move by the Central Bank of Nigeria (CBN)
will not in any way affect the nation’s economy as currently speculated.
“If it
will take you 100 pieces to fit into an ATM for a N100, it will take far lesser
than that if you are feeding the N5000 notes into the machine. If you are moving cash as banks normally do between various
locations, you’ll find out that you’ll do less number of runs,” Mr Oduoza said.
The bank boss said that all the
cost saved from handling more cash will be passed on to the end users, who are the customers of the banks.
Mr
Oduoza assured Nigerians that lending rate will drop as charges for the
printing of higher denominations reduces.
“One of
the things that leads to high interest rate is the
cost of operations, so as that goes down, you’ll find out that the benefit will
also goes to the customers of the
bank,” he said.
On her
part, the Managing
Director of the
Standard Chartered Bank, Bola Adesola said that the N5, 000 note will not be
imposed on any customer who wants to be paid in lower denominations.
“It is
important for the banking public
to also know that the Central Bank or any bank is not going to impose the N5000
note on its customers. It will be based on demand,” she
said.
She
said the customers will have the choice as to what denomination they would like
to receive theircash.
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