Financial circles are on edge as customers are withdrawing Unusual Surge in Cash from banks while depositing less, leading to fears of a potential cash crunch. A recent customer survey revealed ongoing complaints about the scarcity of naira notes, prompting individuals to shift from less dispensing ATMs to banking halls for over-the-counter withdrawals.
Despite these concerns, the Central Bank of Nigeria (CBN) remains steadfast in asserting that there is an ample supply of currency to meet all demands. The CBN has also issued a caution against panic withdrawals, emphasizing the need for confidence in the system.
Customers have Unusual Surge in Cash reported difficulties in accessing adequate cash at various points, including ATMs, Points of Sale (PoS) terminals, Bureaux de Change (BDCs), and within banking halls. Some bank officials claim they are facing challenges in securing sufficient cash supplies to meet immediate customer needs.
The scarcity of cash is forcing customers into banking halls, where they encounter rationed cash through imposed withdrawal limits. Many express frustration at only being able to withdraw a fraction of their desired amount after enduring long queues.
The situation has prompted a shift in customer behavior, with some turning to alternative sources such as PoS operators. However, this has led to subtle increases in charges by certain PoS service providers.
While the degree of cash scarcity varies across locations, there is a consistent sense of constraint reported by all surveyed customers. Concerns are growing that if the situation persists, it may escalate into a full-blown panic.
Bank officials acknowledge changes in cash deposit and withdrawal patterns, noting more outflows than inflows. There are also indications that banks may be hoarding cash to cater to the demands of large retail customers who hold sway over branch operations.
Despite reassurances by the CBN to address seasonal cash squeezes during the Yuletide period, the scarcity persists. The apex bank has directed its branches to ensure smooth cash circulation within their respective states of operation.
In response to public concerns, the CBN released a statement highlighting that apparent cash scarcity is primarily due to high-volume withdrawals by deposit money banks (DMBs) from CBN branches and panic withdrawals from ATMs. The CBN reassures the public that there is an adequate stock of currency notes to support economic activities and urges confidence in the banking system.
Amidst these developments, the CBN has also issued a caution against the circulation of fake naira notes. The situation remains dynamic, and stakeholders are closely monitoring the evolving cash dynamics in the financial landscape.
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