Currency in Circulation Drops to All-Time Low of N982 Billion
- The Central Bank of Nigeria said the total currency in circulation had been reduced to N982 billion
- Data shows this is the lowest since 2015, representing about 235.03 per cent.
- The amount was reduced from N3.29 trillion in October 2023 as CBN pushed its cashless policy
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The Central Bank of Nigeria (CBN) has reduced currency in circulation to an all-time low of N982 billion, representing 235.03 per cent at the end of February.
The amount shrunk from N3.29 trillion at the end of October 2022 as CBN's aggressive naira mop-up and redesign policies took center stage.
Currency shrinks from N3.7 trillion
Data from CBN shows that N2.3 trillion was mopped up from circulation during the review period.
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Banks Say CBN issued more old notes as new naira notes dry up, disobey Supreme Court order on withdrawal limit
Punch reporting says that CBN says the currency in circulation moved from N3.16 trillion to N3,29 trillion and N1.38 trillion in November 2022, December 2022, and January 2023, respectively.
Godwin Emefiele, CBN Governor, said in October last year that the country was embarking on redesigning N200, N500, and N1,000 notes.
The apex bank governor announced deadlines for Nigerians to exchange their old naira notes with the new ones.
Emefiele stated that the challenges of currency management include significant hoarding, with data showing that more than 80% of the currency in circulation was outside the banking system.
Challenges of currency management
He highlighted other challenges, such as a shortage of clean and fit notes with its negative perception of the bank and the risk of financial stability and counterfeiting, as shown by several security reports.
CBN has said it had mopped about N2.7 trillion and was still searching for about N900 billion it said were stashed in people's homes.
Bankers explain the reasons behind continued cash scarcity despite CBN's directive on old naira notes
CBN said the goal was to rein in as much cash as possible to drive its cashless policy.
The bank used the "accounting/statistical/withdrawals and deposits approach" to compute the currency in circulation in Nigeria, which involves tracking money movements in circulation on a transaction-by-transaction basis.
CBN says N900bn is still outside the banking system as it extends the deadline for cash swaps, return of old notes
Legit.ng reported that the Central Bank of Nigeria (CBN) said about N900 billion is still held outside the banking system in Nigeria.
The governor of the CBN, Godwin Emefiele, stated this while announcing the extension of the deadline for exchanging old naira notes for new ones from January 31 to February 10, 2023.
According to Emefiele, in 2015, the currency in circulation was just N1.4 trillion. Still, as of October 2022, the money in circulation in Nigeria has surged to N3.23 trillion, of which only N500 billion was within the banks' vaults. About N2.7 trillion is still held in people's homes.