Currency in Circulation Surpasses N2 Trillion as New CBN Governor Assumes Duty, Faces N1k Per Dollar

Currency in Circulation Surpasses N2 Trillion as New CBN Governor Assumes Duty, Faces N1k Per Dollar

  • The currency in circulation in Nigeria has risen to N2.7 trillion as of the end of August 2023
  • The Central Bank of Nigeria said the amount increased by N1.7 trillion monthly
  • The currency in circulation hit an all-time low of N982 billion in February 2023 when the naira redesign policy

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Currency in circulation in Nigeria spiked by N1.7 trillion following increased cash transactions.

Data from the Central Bank of Nigeria as of Thursday, September 21, 2023, shows that the currency in circulation hit about N2.7 trillion as of the end of August 2023.

Currency in circulation, Naira, Cardoso
New CBN Governor, Olayemi Cardoso Credit: National Archives
Source: Getty Images

Cash in circulation dropped to N982 billion in February 2023

In February 2023, the country had a mere N982.1 billion as currency in circulation following the naira redesign policy of the CBN.

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The amount has increased since the policy ended, and cash mopped up from the system returned.

The money in circulation in Nigeria dropped by about 235.03% to N982.1 billion at the end of February this year from N3.29 trillion at the end of October 2022, when CBN announced the naira redesign policy.

CBN data shows that it mopped up N2.3 trillion from circulation during the period under review.

Punch reports that the apex bank defines money in circulation as currency outside the banking system and the vaults of the CBN. It means all legal tender currencies are in the hands of the public and commercial banks' vaults.

The bank said it utilizes the "accounting/statistical/withdrawals & deposits approach" to compute the currency in circulation in Nigeria.

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It stated that the approach involves tracking currency movements in circulation on a transaction-by-transaction basis.

The banking industry regulator said for every withdrawal made by a commercial bank at one of its branches, an increase in currency in circulation is recorded, and records deposits by commercial banks as a decrease in money in circulation/

The development comes amid reports that the new helmsman for the CBN, Olayemi Cardoso, assumes duty as the new CBN chief.

Analysts say Cardoso is saddled with stabilizing the volatile exchange rates, providing adequate FX liquidity to strengthen the fall in naira, which recently hit N1000 per dollar on the streets.

CBN reveals currency in circulation dropped by N7.51 billion in one month reports that the Central Bank of Nigeria (CBN) has revealed that the money in circulation in Nigeria declined from N2.6 trillion as of the end of June 2023 to N2.37 trillion by the end of July 2023.

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The development is the first time the amount has declined since February.

Data from CBN showed that the figure represents a decline of N7.51 trillion in 30 days.


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