Currency Outside Banks Hit Historic High of N3.4trn, 94% of CIC

Nume Ekeghe

A report by the Central Bank of Nigeria (CBN) has revealed that currency outside banks at at December 2023 reached a staggering N3.43 trillion, representing a whopping 94 per cent of the N3.65 trillion total currency in circulation (CIC).

This marks a new historical high, surpassing the previous record set in November 92 per cent.

A detailed breakdown of the trends in 2023 illustrates fluctuations in both Currency in Circulation (CIC) and currency held outside banks. For instance, in January 2023, CIC stood at N3.29 trillion, followed by February at N982 billion. It closed March at N1.68 trillion, and stood at N2.38 trillion in April, and May at N2.53 trillion. June witnessed a slight increase to N2.6 trillion, with a marginal dip to N2.59 trillion in July. August saw an uptick to N2.66 trillion, another rise to N2.76 trillion in September, and an increase to N3.01 trillion in October, culminating in the peak observed in November at N3.35 trillion.

The breakdown of currency held outside banks during the same period showed that it started at a low of N792 billion in January, experiencing a slight increase to N843 billion in February. March witnessed a reversal in the policy, resulting in an upturn to N1.45 trillion. Subsequent months saw a continuous rise to N2.07 trillion in April, N2.18 trillion in May, N2.26 trillion in June, and N2.21 trillion in July. August maintained stability at N2.22 trillion, followed by an increase to N2.42 trillion in September, N2.7 trillion in October, and a sustained upward trend to N3.08 trillion in November 2023.

December 2023 marked the pinnacle of both currency in circulation and currency outside banks, with the percentage of money held outside the banks to CIC reaching an all-time high of 94 per cent.