The latest data from the Central Bank of Nigeria (CBN) shows that currency outside banks surged to N2.26tn by the end of June 2023. Figures obtained reveal a remarkable increase of 185.68 percent (N1.47tn) from January 2023 (N792.18bn) to June 2023 (N2.26tn).
Further findings by The PUNCH indicated that the country’s currency in circulation witnessed an 87.05 percent rise (N1.21tn) from N1.39tn in January 2023 to N2.6tn in June 2023.
This rise in currency outside banks comes after a significant dip of 235.03 percent to N982.09bn at the end of February 2023 from N3.29tn at the end of October 2022. The dip was attributed to the naira redesign policy implemented by the CBN.
During the period under review, the CBN revealed that it mopped up N2.3tn from circulation. The term “currency-in-circulation” is defined by the CBN as currency outside the central bank’s vaults, encompassing all legal tender in the hands of the public and in the vaults of Deposit Money Banks.
To calculate the currency in circulation in Nigeria, the CBN adopted the ‘accounting/statistical/withdrawals and deposits approach.’