But the old 1,000 and 500 notes could only be swapped at the central bank and "designated points", he said. The comments contrasted with last week's Supreme Court interim ruling that said all old notes remain legal tender until it hears a challenge brought by some state governments. Buhari defended the initiative saying it would lead to greater transparency in financial transactions, curb money laundering and reduce money supply in the economy. "Notwithstanding the initial setbacks experienced, the evaluation and feedback mechanism set up has revealed that gains have emerged from the policy initiative," said Buhari. Some politicians have criticised the timing ahead of Feb. 25 elections, as campaigns are funded by mostly hard to trace cash. Local media reported on Thursday that some angry citizens had vandalised cash dispensing machines at some banks in southern Nigeria as they protested the cash shortages. (Reporting by Felix Onuah in Abuja and MacDonald Dzirutwe in Lagos; Writing by MacDonald Dzirutwe and Nellie Peyton; Editing by Alexander Winning)
(Writes throughout, changes dateline)
By Felix Onuah
ABUJA, Feb 16 (Reuters) - Nigeria's President Muhammadu
Buhari on Thursday gave approval to the central bank to extend
the deadline to turn in old banknotes by another 60 days after
cash shortages stoked anger ahead of presidential and
parliamentary elections next week.
Nigeria's central bank decided last year to start
circulating newly designed 1,000 ($2.17) 500 and 200 naira
notes. The deadline to turn in old notes has already been
extended once to Feb. 10, after which they would no longer have
been legal tender.
But the new notes have been in short supply, leading to long
queues and chaotic scenes at banks across the country. Most of
Nigeria's economy is still informal and many people use cash for
transactions because they do not have bank accounts.
Buhari said in a television broadcast that old 200 notes
would continue to circulate in the economy alongside new 1,000,
500 and 200 notes until April 10.
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