Currency in circulation hits 3-month high, as CBN pushes N701.4bn into economy

The total currency in circulation in Nigeria has increased to N1.6tn in March 2023, according to the Central Bank of Nigeria (CBN).

The amount represents N701.4 billion increase in one month when compared to N982.09bn at the end of February.

CBN stated this in its money and credit statistics published on its website on Tuesday.

The rise in CIC can be attributed to the decision by the Supreme Court to reverse the CBN redesign policy and extend the use of old notes to December 31, 2023.

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Since CBN introduced the new naira notes CIC dipped from N3.29tn at the end of October 2022.

According to the CBN, 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.

It also represents the cash that has been issued by the CBN net that has also been taken out. And includes the cash in the vault of commercial banks ready to be paid out to customers seeking to withdraw money.

In its report on currency operations, CBN said, “The growth in CIC reflected the continued dominance of cash in the economy.

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Analysis of the CIC showed that a greater proportion was in higher denomination banknotes (N100, N200, N500 and N1000).

“The higher denomination banknotes together accounted for 63.47 percent and 98.08 percent of the total CIC, in terms of volume and value, respectively.

“The volume of lower denomination banknotes (N5, N10, N20, N50), accounted for 28.43 percent of the total CIC and 1.92 percent, in terms of value as at end-December 2020.”