CBN cites high volume withdrawals as cause of cash scarcity in some areas

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CBN cites high volume withdrawals as cause of cash scarcity in some areas
CBN cites high volume withdrawals as cause of cash scarcity in some areas

In response to recent reports of cash shortages in certain areas, the Central Bank of Nigeria (CBN) has assured the public that there is an ample supply of cash to support economic activities.

According to a statement by Isa AbdulMumin, CBN’s Director of Corporate Communications, the reported scarcity in specific locations can be attributed to the substantial withdrawals made by banks from CBN branches and the panic withdrawals by customers from automated teller machines (ATMs).

CBN acknowledged receiving reports of alleged cash shortages at banks, ATMs, points of sale, and among Bureau De Change (BDC) operators.

The central bank’s investigation indicated that the apparent cash scarcity is primarily a result of high-volume withdrawals from CBN branches by Deposit Money Banks (DMBs) and the increased demand from ATM users.

While acknowledging the concerns expressed by Nigerians regarding the availability of cash for financial transactions, CBN sought to reassure the public that an adequate supply of currency notes exists to support economic activities across the country.

CBN’s branches nationwide are actively working to ensure the smooth circulation of cash in their respective states of operation.

The public has been advised to refrain from panic withdrawals, as there is a sufficient stock of cash to facilitate economic transactions.

CBN also encouraged Nigerians to explore alternative modes of payment to reduce the pressure on physical cash usage.