Currency Outside Banks Hits ₦3.87 Trillion, CBN Reports

Currency Outside Banks Hits ₦3.87 Trillion, CBN Reports

The Central Bank of Nigeria (CBN) has disclosed that the country’s circulating currency reached a total of ₦3.87 trillion by the end of March. This figure represents a notable increase compared to ₦3.69 trillion in February and ₦3.65 trillion in January……READ ALSO Opay Sends Message To Customers Concerning Funds In Their Account Following CBN’s Directive

Despite this surge, the amount of currency circulating outside the banking system has consistently risen throughout the first quarter. From ₦3.28 trillion in January, it escalated to ₦3.41 trillion in February and further to ₦3.63 trillion in March.

Data from the CBN indicates that over 90 percent of the circulating currency is held outside banks, suggesting a preference for cash among Nigerians.

During the March Monetary Policy Committee meeting, a member of the committee, Muhammad Abdullahi, highlighted the significant amount of currency held outside banks as a contributing factor to the country’s inflation. He emphasized the need to address monetary drivers such as money supply growth and exchange rate depreciation to mitigate inflationary pressure.

Under the currency redesign policy, the amount of cash held outside banks totaled ₦792.184 billion in January, rising to ₦843.311 billion in February, and slightly decreasing to ₦1.445 trillion in March, representing 85.8% of the total currency in circulation.

Join our channel for more latest news https://whatsapp.com/channel/0029VaV4jB6DuMRgwqnJCF32