High cash usage obstructs monetary policies —CBN
Officials of the Central Bank of Nigeria (CBN) yesterday in Kaduna said increase in domestic cash usage has a negative effect on monetary policies meant to reconstruct the economy.
Branch Controller, CBN Kaduna, Alhaji Mohammed Gusau, said at a stakeholders meeting on CBN cash-less policy that 90 per cent of bank customers’ daily withdrawals are of amounts below N150,000.
He said high cash usage “results in a lot of money outside the formal economy, thus limiting the effectiveness of monetary policy in managing inflation and encouraging economic growth.”
He said the cash-less drive does not mean the absence or replacement of cash, rather: “it is the privation of safer and efficient alternatives of payment to bank customers”.
Some of the avenues identified to help in reducing the use of cash in the economy include; card payments through PoS terminals and ATMs, mobile money transfers, electronic payment of all forms of taxes, salaries and pensions as well as internet banking.