High cash us­age ob­structs mon­e­tary poli­cies —CBN

Daily Trust - - NEWS - From Mis­bahu Bashir, Kaduna

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.

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