Currency in Circulation Hits N4.04tn, Currency Outside Banks Now 93.6% of CIC

Nume Ekeghe

Data from the Central Bank of Nigeria (CBN) has indicated that the currency in circulation reached an all-time time of N4.04 trillion in June 2024.

The Money and Credit Data released by CBN also showed that currency outside banks settled at N3.79 trillion, also a historical high and 93.6 per cent of money in circulation. 

A six months breakdown showed that the year began with the currency in circulation at N3.65 trillion. This stable figure indicated a moderate start to the year, aligning with typical post-holiday economic activities. By the end of February, the currency in circulation slightly increased to N3.69 trillion, a growth of N43 billion or 1.18 per cent from January. 

March saw a more pronounced increase, with the currency in circulation rising to N3.87 trillion, a month-on-month increase of N175 billion or 4.76 per cent. The upward trend continued in April, with the currency in circulation reaching N3.92 trillion. The N53 billion or 1.39 per cent increase from March suggests sustained economic activity and increased consumer spending during the Easter period.

May experienced a further increase to N3.97 trillion, up by N42 billion or 1.07 per cent from April while the most notable rise occurred in June, with the currency in circulation peaking at N4.04 trillion, an increase of N84 billion or 2.11 per cent from May. 

Also, a breakdown of currency outside banks for the first half of the year showed that the year commenced with the currency outside banks at N3.28 trillion. By the end of February, the currency outside banks rose to N3.41 trillion, an increase of N130 billion or 3.98 per cent from January.

March witnessed a notable rise, with the currency outside banks reaching N3.63 trillion, a month-on-month increase of N217 billion or 6.34 per cent. In April, the currency outside banks slightly decreased to N3.61 trillion, a drop of N22 billion or 0.62 per cent from March. 

May saw the currency outside banks climb again to N3.71 trillion, up by N105 billion or 2.93 per cent from April and lastly, the most significant rise occurred in June, with the currency outside banks peaking at N3.79 trillion, an increase of N80 billion or 2.16 per cent from May.