Preventing to cease the worth of the naira from dropping additional, the Central Financial institution of Nigeria (CBN) faces one more drawback: abuse of naira banknotes. In keeping with the CBN’s Aladeen Badajo, the central financial institution is worried with the speed at which Nigerians “mutilate, deface, squeeze and even spray and promote the naira notes.” He provides that on account of this abuse, Nigeria is now spending more cash on reprinting banknotes than it ought to.
In keeping with a report that quotes Badajo, an assistant director on the CBN’s Foreign money Operations Division, offenders now face doable jail time. Badajo elaborated:
Abuse of the foreign money attracts a penalty of not lower than six months or a nice of not lower than $120 (N50,000) or each.
The assistant director provides that as a substitute of damaging the banknotes, “folks [should] think about Nigeria’s foreign money as a logo of nationwide identification.”
In the meantime, Bitcoin.com Information reached out to Nathanial Luz, a Nigerian “cryptocurrency thought chief” to know why his countrymen proceed to abuse the banknotes regardless of the CBN’s pleas and threats. In keeping with Luz, Nigerians see the follow of spraying banknotes as some form of celebration and the CBN is conscious of this however has not been capable of implement a ban. Luz informed Bitcoin.com Information:
Nigerians go so far as shopping for new banknotes at a premium of 70% simply so they may spray the notes. So I may purchase $10,000 price of naira banknotes for between $15,000 and $17,000 simply to spray the cash.
However, Luz says he’s sure that this follow has little to do with the naira’s persevering with depreciation.