Currency outside banks rose to N2.26 trillion at the end of June 2023, the latest figures from the Central Bank of Nigeria (CBN) show.
CBN said the currency outside banks rose by 185.68 per cent (N1.47 trillion) between January 2023 (N792.18 billion) and June 2023 (N2.26 trillion).
Also, currency in circulation in the country rose by 87.05 per cent (N1.21 trillion) from N1.39 trillion in January 2023 to N2.6 trillion in June 2023.
It had earlier dipped by 235.03% to N982.09 billion at the end of February from N3.29 trillion at the end of October 2022, on the back of the naira redesign policy of the CBN.
Figures obtained from the CBN revealed that N2.3 trillion was mopped up from circulation during the period under review.
“Currency-in-circulation is defined as currency outside the vaults of the central bank; that is, all legal tender currencies in the hands of the public and in the vaults of the Deposit Money Banks,” CBN stated.
The CBN revealed that it employed the ‘accounting/statistical/withdrawals and deposits approach’ to compute the currency in circulation in Nigeria.
Currency in circulation in Nigeria has been on the rise since the Supreme Court ruled against the new Naira notes policy introduced by the apex bank in late 2022.
The policy was largely criticised by most Nigerians due to its poor implementation and the spate of scarcity it created across several cities in the country.
The apex bank had stated that the policy was introduced to curb excess money supply, especially physical cash which it claimed contributed to inflation.
