President Major General Muhammadu Buhari (retd.) announced that, since the Central Bank of Nigeria introduced the naira redesign policy, N2.1 trillion of banknotes previously held outside the banking sector have been recovered. He disclosed this information during a national broadcast on Thursday, noting that the recovered amount represents about 80 % of the funds that were out of the banking system.
Buhari explained that, in the short, medium, and long term, this substantial retrieval is expected to reduce inflation by decreasing the money supply. He added that the move should also curb illegal economic activities, help stem corruption and illicit money acquisition, stabilize the exchange rate, improve the availability of easy loans, and lower interest rates.
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