Following the Central Bank of Nigeria (CBN) to manage exchange rate, currency in circulation dropped by N72.5billion or 2.2 per cent from N3.33trillion as at the end of May to N3.26trillion at the end of June 2022, the latest statistics from the CBN has revealed.
This is on the back of several monetary policies adopted by the apex bank to mop-up liquidity in the economy to tackle inflationary pressure. The CBN defined currency in circulation as currency outside the vaults of the apex bank; that is, all legal tender currency in the hands of the general public and in the vaults of the Deposit Money Banks (DMBs).
According to figures from the CBN, the currency in circulation has witnessed second consecutive decline since April when it hits all-time high over political spending, hike in inflation, among other factors. The CBN’s “Money and Credit” statistics revealed that currency in circulation in April 2022 stood at N3.35trillion from N3.25trillion in March.
Findings by THISDAY revealed that currency in circulation dropped by N19.75billion or 0.59 per cent in April, third highest decline this year. The apex bank in January reported N3.28trillion currency in circulation and it dropped by N37.8billion or 1.15 per cent to N3.25trillion in February 2022. [This Day]
