Currency outside Nigerian banks drops to N3.66trn – CBN report

The Central Bank of Nigeria (CBN) has stated that currency outside Nigerian banks has dropped to N3.66 trillion in July.

Currency held outside Nigeria’s banking system fell to N3.66 trillion in July 2024, marking a 3.32 percent decrease from the previous month of 3.79 trillion.

CBN reported that the proportion of currency circulating outside banks dropped to 90.39 percent in July, down from 93.59 percent in June.

The bank said the reduction aligns with its efforts to encourage more cash to remain within the formal banking sector, likely in response to concerns about the informal economy and potential money laundering.

• Group seeks media collaboration to promote peace in Nigeria
• Reps uncover over N500b in unused TETFund for Nigerian universities

Despite the decrease, the total currency in circulation slightly increased, reaching N4.05 trillion in July, compared to N4.04 trillion in June representing 0.12%.

Since the start of the year, currency in circulation has grown by 11.05 percent, a significant slowdown from the 56.17 percent surge observed during the same period in 2023.