CBN Report Shows Currency In Circulation Rises To N2.7tn

By Clement Alphonsus

In a report, the urrency in circulation in Nigeria has jumped by N1.7tn as cash transactions increased.

According to figures obtained by a correspondent from the Central Bank of Nigeria’s data on CIC disclosed on Thursday that the currency in circulation hit N2.7tn as of the end of August.

This was due the naira redesign policy of the apex bank, the currency in circulation fell to N982.1bn as of the end of February 2023.

At the end of February, the currency in circulation in the country had fell by a 235.03 per cent to N982.1bn from N3.29tn at the end of October 2022, on the back of the naira redesign policy of the CBN.

In the figures obtained from the CBN, it was disclosed that N2.3tn was mopped up from circulation during the period under review.

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

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

The CBN further explained that 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.