Business operations and trade in the Katsina metropolis and other urban areas are facing a shortage of cash flow.

The circulation of mostly bigger denominations such as one thousand naira and five hundred naira notes has caused a liquidity squeeze for smaller denominations ranging from N5 to N200.

During The Nation’s visit to various commercial banks in Katsina, it was observed that most automated machines were only dispensing one thousand naira notes, while smaller notes were not being issued.

Malam Umar Kabir, a POS operator told The Nation in Katsina that they were shocked by the development.

He said: ”I think the ÇBN and the commercial banks should do something to help the masses”

Malam Barrau, a shop owner at Kofar Kaura Layout, Katsina also complained that he is losing customers are trading had slowed down due to a cash squeeze

The Nation recalled that even though the old and new naira notes remain legal tender, cash squeeze were being experienced.

Culled from TheNation