From News Editor
The Central Bank of Nigeria (CBN) has disclosed that currency outside the banks stood at N3 trillion, saying bank revealed that currency in circulation rose by 92%.
Data from the Central Bank of Nigeria (CBN) shows a rise in currency outside the banking system for November 2023, a record high since the naira redesign policy.
The bank’s Money and Credit Statistics show that the total currency in circulation for November amounted to N3.35 trillion, while currency outside the banking system is about N3.03 trillion, comprising 92% of the actual currency in circulation.
CBN provides an analysis of currency in circulation The record surpasses the previous N2.73 trillion in currency outside the banks, reported in September 2022, representing 85% of the N3.2 trillion in circulation.
The development prompted the CBN to enforce the naira redesign policy to curtail excess cash in circulation and currency outside the banks. An analysis of the 11-month trend shows fluctuations in the currency in circulation and currency outside the banks.
In January last year, the currency in circulation was about N3.29 trillion. It declined in February to N982 billion, in March to N1.68 trillion, in April to N2.38 trillion, and in May to N2.53 trillion. The amount spiked to N2.6 trillion in June, with a slight drop to N2.59 trillion in July.
August saw an increase of N2.66 trillion. It rose further in September and October to N3.01 trillion and in November to N3.35 trillion.
Despite cash scarcity, CBN says currency in circulation is N3.35 trillion ThisDay reports that currency outside banks for the review period ranged from N792 billion in January, with a marginal increase to N843 billion in February.
It witnessed a reversal in March to N1.45 trillion and rose further in April to N2.07 trillion and N2.18 trillion in May. For June, currency outside banks hit N2.26 trillion, July N2.21 trillion, and N2.22 trillion for August, and for September, it was N2.42 trillion, October N2.7 trillion, and N3.08 trillion for November.
The November figure marked the highest recorded currency levels in circulation and outside the banks. Per the report, the percentage of money outside the banking system hit 92%. Analysts believe CBN is fighting inflation
The development comes amid a report of cash crunch, which resurfaced in the same period that the CBN said Nigerians kept N3 trillion outside the banks.
Nigerians have battled sustained cash scarcity in the last three months, leading to bank agents, popularly called PoS operators, hiking their charges by 50%.
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