Currency in circulation has reached an all-time high of N4.3 trillion as of August 2024, data from the Central Bank of Nigeria (CBN) has shown.
This is just as currency outside the banks is racing neck-to-neck with the currency in circulation growing from N3.86 trillion in August to N4.02 trillion in September.
Daily Trust reports that currency in circulation is the amount of cash–in the form of paper notes or coins–within a country that is physically used to conduct transactions between consumers and businesses.
It represents the money that has been issued by the country’s monetary authority, minus cash that has been removed from the system.
The rise in the currency in circulation represents the increased economic activities and spending by people and businesses.
This is also as a result of increased revenue to all tiers of government as well as the devaluation of the naira.
But more worrisome, according to experts, is the fact that over 95% of the currency in circulation is now outside the banks.
Currency in circulation has recorded steady growth since the beginning of the year, starting with N3.65 trillion in January.
In February, the currency in circulation slightly increased to N3.69 trillion representing an increase of N43 billion or 1.18 per cent from the January figure.
March also saw an appreciable increase to N3.87 trillion while it further increased to N3.92 trillion in the following month of April.
The growth trajectory continued in May with the currency in circulation increasing slightly to N3.97 trillion, an increase of N42 billion or 1.07 per cent while it reached an all-time high of 4.04 trillion, an increase of 2.11 per cent from May.
The July figure also rose marginally with the currency in circulation settling for N4.05 trillion before growing to N4.14 trillion in August and N4.43 trillion in September.
But there are concerns over the rise in currency outside banks, an indication of people keeping money outside the formal banking system.
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
