Bankers said the CBN’s inability to satisfy the cash demands of commercial banks is the reason for the nation’s growing cash crisisASSBIFI’s president underlined the shortage’s severe consequences, particularly as the holidays approachHe emphasized that cash demands have not been met by the top bank adding that Nigerian banks only have two source of cash
Henzodaily.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Association of Senior Staff of Banks, Insurance, and Financial Institutions has said that the Central Bank of Nigeria’s inability to satisfy the cash demands of commercial banks is the reason for the nation’s growing cash crisis.
Photo Credit: Contributor
Source: Getty Images
Olusoji Oluwole, president of ASSBIFI emphasized the negative effects of the shortage, especially as the holiday season draws near, emphasizing the need for cash in the cause of business and shopping.
“In terms of (the cash) scarcity, this is something that has not ended since the redesign of the naira,” Oluwole said.
Read also
CBN makes another move to monitor forex as naira crashes in parallel market
“Banks have only two sources of cash: the CBN and retailers. The CBN has not met banks’ demands, and retailers often sell cash for profit, making it harder for banks to access funds,” he explained.
He pointed out that while shops make money by selling cash rather than reinvesting it in the banking system, the apex bank has not been able to match the cash demands of banks.
“But, of course, it is beginning to become more pronounced now that we’re heading towards the Christmas celebrations, where a lot of people are going to need money to carry out their shopping and other businesses.
“Banks are not in a position to force retailers to bring the cash to banks.”
He claimed that the apex bank has not been able to meet banks’ cash demands, hence, retailers profit by selling cash instead of reinvesting it in the banking system.
Read also
Access, Zenith, other banks impose new cash withdrawal limits as scarcity worsens
“For us, we are not interested in trading games like we were doing last year but looking for solutions. The solution, one, is for CBN to have clear statistics, so that they understand where they are, how they are circulating, and where they are circulating to,” he said.
Oluwole also promoted a move away from cash, highlighting the fact that a cashless economy is more cost-effective, secure, and efficient.
“An economy that operates in a cashless manner does better than a cash-dependent economy. It is a proven thing all over the world,” he stated.
The president of ASSBIFI also urged security forces to take tough measures against illicit currency trade.
“You cannot be selling cash. You cannot sell your currency to people for a profit at discounted rates. It is not done anywhere,” Oluwole emphasised.
Authorities should look into reports of point-of-sale operators purchasing cash from supermarkets and gas stations.
Read also
Scarcity of cash fuels fear of exploitation by PoS agents as new withdrawal charges are implemented
Banks impose new cash withdrawal limits
Henzodaily.ng reported that Point-of-sale (PoS) companies have raised their fees by as much as 100% in response to the growing nationwide cash shortage.
The banks have set an ATM cash withdrawal cap of N5,000 and an over-the-counter withdrawal cap of N10,000 per transaction, according to visits to a few of the city of Lagos’ banks.
When questioned about the rationale behind the new cap, a Zenith Bank employee in Marina, Lagos, stated that they were waiting on supplies from the Central Bank of Nigeria (CBN) and that there was no cash.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Henzodaily.ng