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Canadian_Nickle
Penny Hoarding Member
Canada
938 Posts |
 Posted - 07/02/2007 : 12:09:28
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Banks in hasty move to dispose of coins
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Business Day gathered that the banks now want to dispose of the coins by all means because of the CBN’s directive that it will not accept any deposit of coins from the banks.
NSE AKPAN
Banks across the country are making frantic efforts
to dispose of the coins in their coffers to enable them cut short the losses suffered by continued tying down of their liquid assets.
Business Day findings reveal that banks have now begun to enforce the 2.0 per cent mandatory coins withdrawals on customers after several months of non-enforcement. The Central Bank of Nigeria (CBN) had from the outset mandated banks to pay their customers 2.0 percent coins on all withdrawals across the counter. However, many banks failed to heed the directive due to the rejection of the coins by customers especially those making large withdrawals.
Most banks, it was gathered, just collected the coins from the CBN shortly after introduction in February, with no real intention of circulating them to their customers. Their real intention, Business Day gathered was to keep the coins in their vaults without circulating them and after a while return them to the apex bank.
That way, they will save themselves the awkward situation of having to impose the coins on unwilling customers.
However, the table turned on the directive from the CBN, which told the banks point blank at the last Bankers’ Committee meeting held in Lagos, last week, that it would not accept any return of coins from the banks until further notice. The apex bank has already instructed banks not to accept the coins as deposit from customers until further directive is given stating otherwise.
Falalu Bello, managing director of Unity Bank plc said "the Central Bank is not prepared to have us depositing coins with them. Literarily, what that means is that we the banks must dispense of these coins at all cost to our customers," he said and also disclosed that banks have coins worth several millions of naira in their vaults.
"We have millions of naira worth of coins in our vaults and we are willing to dispense them," he said.
Analyst believe if the banks continue to shy away from dispensing the coins they will lose money because they will be unable to use the funds for other banking activities to make money.
That being the case, more banks have been forcing the coins on their customers to enable them recover their funds and put them to profit yielding activities.
Bello however explained banks’ difficulty in getting customers to accept the coins. "But what do you do if someone said he is not going to accept coins. Do you force him? It is not possible. It is his money you are just keeping it."
According to him, coins have just been reintroduced in Nigeria after a long time, so it will take some time for Nigerians to get used to the idea of using coins.
Atedo Peterside, chief executive officer, IBTC, also emphasised that "banks are not going to receive those coins from customers as deposit to lodge into their accounts."
He explained that the coins are to be spent, to be used to buy goods outside. The intention is that the coins are to be left in circulation and not for customers to bring them back to the bank to deposit into their accounts because it will not be accepted.
He added "if the coins are well circulated, the CBN may change its mind and reverse the directive.
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"A nickel's nothing to scoff at."
C. Montgomery Burns
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CA10Ag250:CA50Ag100:CA25Ag30:CA500Ag48:US100Ag20:CA1000Ag16
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 07/02/2007 : 17:49:43
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Nickel plated Steel or copper plated Steel are the makeup of Nigerian coins.
Ain't worth the melting fees (unless, of course, the Chinese and Indians are really hungry for steel).
I should have chosen "Cut-n-Paste" as a forum name, since that is what I do, mostly. |
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Banks refusing coins in nigeria
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