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Currency in circulation hits N3.97tr in May

THE currency’s value in circulation has reached N3.97 trillion at the end of May, an all-time high and a 1.07 percent gain over the previous month.

According to figures posted on the Central Bank of Nigeria’s website yesterday, the money in circulation has steadily increased in recent months, from N3.92 trillion in April to N3.86 trillion in March.

Despite the CBN’s tightening of monetary policy, which has resulted in the benchmark interest rate being set at 26.65 percent, the currency in circulation has increased month after month.

Currency in circulation refers to banknotes and coins that have been printed and distributed for usage in the economy.

According to the CBN, currency in circulation reached N3.87 trillion in March, about 4.76 percent month on month from N3.69 trillion in February 2024.

Meanwhile, cash outside banks climbed gradually over the first quarter, rising from N3.28 trillion in January to N3.41 trillion in February and N3.63 trillion in March.

The report found that more than 90% of the currency in circulation is stored outside of the banking system, showing that Nigerians are hoarding more cash.

In their speeches, Muhammad Abdullahi, a member of the CBN’s Monetary Policy Committee at its March meeting, stated that the apex bank had identified high currency outside banks as one of the monetary drivers of the country’s inflation. Currency in circulation reaches N3.97 trillion in May.

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