CBN Says Currency in Circulation Now at Highest Level Ever
- The CBN says the amount of currency in circulation in Nigeria reached its highest level ever in March 2024
- The excess cash is a concern for the CBN, which has consistently talked about the impact on the inflation rate in the country
- The CBN will now have to find a way to reduce the amount, which has been consistently increasing in 2024
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Data from the Central Bank of Nigeria (CBN) has revealed an alarming rise in the amount of currency in circulation.
The apex bank's money and credit statistics shows that the total currency in circulation rose to N3.87 trillion as at March 2024.
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The latest figure is a 103% increase from N1.68 trillion in the same month of 2023 and also the highest level ever.
Currency in circulation refers to the total amount of physical currency (banknotes and coins) that is in the hands of the public and businesses within a country's economy at a given time.
Breakdown of Currency in circulation
Analysis of CBN data shows a consistent increase in the amount of cash in circulation from January to March 2024 compared to the previous year.
According to CBN, in January 2024, the currency in circulation stood at N3.65 trillion which is more than which is more than doubled the N1.39 trillion as at January 2023. Punch reports.
The increase continued with February recording a cash circulation of N982.1 billion in 2023 and a significant jump to N3.69 trillion in 2024.
Again, in March 2024 it increased to N3.87 trillion.
Economists has consistently argued that high amount of cash in circulation would cause greater inflation because more money in circulation leads to higher prices.
CBN announces changes to customs forex rate
Legit.ng earlier reported that the continued gain of the naira in the official and parallel markets has brought some relief to importers as the CBN again slashed the exchange rate for Customs duties at Nigerian ports by three per cent.
The apex bank reviewed the FX duties downward from N1,448.386 per dollar to N1,405.466.
The development is according to data available at the official trade portal of the Nigeria Customs Service (NIS).
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Source: Legit.ng
