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CBN moves against currency counterfeiting

By on June 26, 2013

The Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi, has said the bank will intensify its fight against currency counterfeiting because the malady, if not addressed, can undermine the integrity of the nation’s economy and create distortions.

Sanusi stated this on Monday in Abuja while presenting a keynote address at a workshop of the West African Institute for Financial and Economic Management.

The regional workshop on banknote, currency management and forecasting in central banks was attended by representatives from Gambia, Ghana, Liberia, Nigeria and Sierra Leone, among others.

The CBN boss, who was represented by the Deputy Governor, Economic Policy, Dr Sarah Alade, said the advancement in technology had made it easier for currencies to be counterfeited.

He said central banks needed to safeguard the value of their countries’ currencies through various measures such as initiating policies relating to the issue and redemption of currency; preventing and minimising money laundering and counterfeiting; and adequately meeting the demand for money by the public.

Sanusi said when confidence in the currency was strong; it would foster monetary and financial stability, a precondition for achieving sustainable economic growth.

He said, “Currency management covers the entire cycle of currency issue functions from the printing of banknotes and minting of coins, storage, distribution and processing, to the disposal of unfit notes. It is not only cumbersome with the attendant complex logistical arrangements, but also very expensive.

“Hence, the trend, for example, towards the outsourcing of some of the non-core processes such as currency distribution and currency processing to create space for the central bank to focus on its core functions.”