CBN: Currency in Circulation Reached N2.76tn in September 2023

Nume Ekeghe

Latest data released by the Central Bank of Nigeria (CBN), has revealed that the currency in circulation reached N2.76 trillion as of September 2023.

This marks a 14.5 per cent year-on-year (y-o-Y) decline from the N3.23 trillion reported in September 2022.

Currency in circulation refers to physical cash, including paper notes and coins, used for transactions between consumers and businesses within a country.

The N2.76 trillion in circulation is the highest recorded in 2023, as stated by the CBN. In August, the currency in circulation was reported at N2.66 trillion, representing a 3.80 per cent increase from September 2023.

Notably, the currency in circulation had fallen significantly to N982.1 billion by the end of February 2023 due to the CBN’s naira redesign policy. The redesign was initiated by the CBN to address challenges in currency management, such as counterfeiting, illegal activities involving cash, and public hoarding of banknotes.

At the inception of the policy, over 80 per cent of the currency in circulation was held outside the banking system. However, following the conclusion of the policy in March 2023, the circulation of cash increased steadily, with N1.68 trillion in circulation at that time.

The currency in circulation had experienced a substantial 235.03 per cent decline, falling from N3.29 trillion at the end of October 2022 to N982.1 billion by the end of February 2023. During this period, the CBN withdrew N2.32 trillion from circulation.

The CBN had previously announced the redesign of three existing banknotes (N200, N500, and N1000) with new notes set to circulate from December 15, 2022, while the old notes remained legal tender until January 31, 2024.

In the months leading up to September 2023, the currency in circulation fluctuated, with amounts reported as follows: N2.78 trillion in August, N2.81 trillion in July, N2.74 trillion in June, N2.79 trillion in May, N2.79 trillion in April, N2.8 trillion in March, N2.78 trillion in February, and N2.83 trillion in January.