Currency in Circulation Declined by N7.51bn to N2.6tn in July  

Nume Ekeghe

Money and credit data released by the Central Bank of Nigeria (CBN) for the month of July 2023 has revealed that currency outside the banks declined by N7.51 billion to N2.59 trillion. 

Currency-in-circulation refers to legal tender currency that is not stored within central bank vaults. This includes all forms of money held by the public and within Deposit Money Banks’ vaults, as explained by the highest financial authority. 

Upon conducting a more in-depth analysis, THISDAY unearthed a comprehensive breakdown of the currency in circulation figures. The data for various months in 2023 paint an interesting picture: January saw a robust N3.29 trillion, followed by February with N982 billion, March displaying N1.68 trillion, April exhibiting a notable N2.38 trillion, and May recording N2.53 trillion.

A particularly intriguing observation emerged regarding the currency outside banks for the month of July. This value was firmly established at N2.2 trillion, a substantial sum that notably comprised 84.62 per cent of the entire currency in circulation during that period.

The statistics, serving as a reflection of the prevailing economic landscape, underscore the significant role currency outside of the banking sector plays in shaping the overall financial scenario.

Taking a closer look at the individual months, January 2023 stands out as the one with the lowest currency outside banks, amounting to N792 billion. February witnessed a slight increase with N843 billion, while March demonstrated a further upward trajectory reaching N1.45 trillion.

The trend continued in April, marked by a noteworthy N2.07 trillion, and May followed suit with N2.18 trillion. June, on the other hand, maintained a steady incline, with the currency outside banks reaching N2.26 trillion, thereby showcasing a consistent progression over this span of months.