Currency In Circulation Hit ₦2.7 Trillion in H2 — CBN Report

Report from the Central Bank of Nigeria (CBN) indicated that the currency in circulation in Nigeria jumped by ₦1.7 trillion as cash transactions increased.

The report on CIC revealed that the currency in circulation hit ₦2.7 trillion as of the end of August.

The currency in circulation fell to ₦982.1 billion as of the end of February 2023, due the naira redesign policy of the apex bank.

It, however, maintained a steady rise when the policy ended, and cash earlier withdrawn from circulation in order to drive e-payments, was returned back into the economy.

The currency in circulation in the country had dipped by a 235.03 percent to ₦982.1 billion at the end of February from ₦3.29 trillion at the end of October 2022, on the back of the naira redesign policy of the CBN.

Figures obtained from the CBN revealed that ₦2.3 trillion was mopped up from circulation during the period under review.

The CBN defined the currency in circulation as currency outside the vaults of the central bank – that is, all legal tender currency in the hands of the general public and in the vaults of the Deposit Money Banks.

The CBN said it employed the “accounting/statistical/withdrawals and deposits approach” to compute the currency in circulation in Nigeria.

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It said this approach involved tracking the movements in currency in circulation on a transaction-by-transaction basis.

According to the CBN, for every withdrawal made by a Deposit Money Bank at one of CBN’s branches, an increase in CIC is recorded; and for every deposit made by a DMB at one of CBN’s branches, a decrease in CIC is recorded.