According to the most recent data from the Central Bank of Nigeria, cash held outside of banks increased to N2.26 trillion at the end of June 2023.
The Spectator received data from the CBN showing that between January 2023 (N792.18bn) and June 2023 (N2.26tn), the value of cash outside banks increased by 185.68% (N1.47tn).
The Spectator also discovered that the amount of money in circulation in the nation increased by 87.05% (N1.21 trillion) from N1.39 trillion in January 2023 to N2.6 trillion in June 2023.
Due to the CBN’s naira redesign policy, it had previously decreased by 235.33% to N982.09 billion at the end of February from N3.29 trillion at the end of October 2022.
Figures obtained from the CBN revealed that N2.3tn 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,” according to CBN.
The CBN stated that it employed the ‘accounting/statistical/withdrawals and deposits approach’ to compute the currency in circulation in Nigeria.
