Latest figures from the Central Bank of Nigeria as of the end of June revealed that currency outside banks had surged to N2.26tn 2023. This marked an impressive increase of 185.68 percent (N1.47tn) between January 2023 (N792.18bn) and June 2023 (N2.26tn).
Furthermore, currency in circulation in the country also experienced significant growth, rising by 87.05 percent (N1.21tn) from N1.39tn in January 2023 to N2.6tn in June 2023.
During the period under review, the CBN revealed that it had mopped up N2.3tn from circulation, employing the ‘accounting/statistical/withdrawals and deposits approach’ to compute the currency in circulation in Nigeria.
The CBN further clarified that currency-in-circulation encompassed all legal tender currencies in the hands of the public and in the vaults of the Deposit Money Banks, excluding those held within the central bank’s vaults.
The surge in currency outside banks and increased circulation could be attributed to various factors, including economic growth, changes in consumer spending patterns, and government policies. As the Nigerian economy continued to evolve, the central bank remained vigilant in monitoring and regulating the currency supply to ensure stability and prevent potential inflationary pressures.
This surge in currency circulation was likely to impact various sectors of the economy, including trade, investment, and monetary policy decisions. The CBN would likely continue to assess the economic implications and take appropriate measures to maintain financial stability and promote sustainable economic growth.
As Nigeria moved forward, the country’s financial landscape was sure to witness further shifts, with the central bank’s policies and economic developments playing crucial roles in shaping the nation’s currency dynamics.
