The Central Bank of Nigeria (CBN) has disclosed that the currency in circulation grew by 6.2 per cent from N2.97trillion in October to N3.15trillion in November 2021. Currency in circulation hits the historical N3trillion mark in November 2021 as banks customers withdraw physical cash amid festive period.
According to analysts, the currency in circulation in its Year-till-Date and Year-on-Year gained 11per cent and 18 per cent respectively. The apex bank on its official website reported N2.84 trillion currency in circulation for the month of September.
Commenting, analyst and finance expert, Mr. Rotimi Fakeyejo hinted that excess liquidity in the “Ber” months contributed to growth in currency in circulation, stressing that Nigerians are finding it difficult to embrace the cashless policy of the CBN. According to him:
“The market currently is awash with excess liquidity and it is due to season of the year. CBN interventions in the foreign exchange and other key sectors of the nation’s economy are factors contributing to hike in currency in circulation.” He explained further that Nigeria is still more of a cash economy, facing infrastructure challenges. Someone can blame infrastructure deficit to CBN’s good intention of making Nigeria a cashless society.
