By Daniel Edu

The Central Bank of Nigeria (CBN) has reported a significant rise in currency outside banks, reaching N2.26tn at the end of June 2023. This figure represents a remarkable 185.68 per cent increase (N1.47tn) from January 2023 when it stood at N792.18bn.

Additionally, the currency in circulation in the country witnessed an 87.05 per cent surge (N1.21tn) from N1.39tn in January 2023 to N2.6tn in June 2023.

It’s worth noting that the currency in circulation had previously experienced a dip of 235.03 per cent, dropping to N982.09bn by the end of February from N3.29tn in October 2022. This decline was linked to the CBN’s naira redesign policy.

During the period under review, the CBN conducted currency mopping up, amounting to N2.3tn.

The term “currency-in-circulation” refers to legal tender currencies held by the public and the Deposit Money Banks, excluding the central bank’s vaults, as defined by the CBN.

To compute the currency in circulation in Nigeria, the CBN employs the ‘accounting/statistical/withdrawals and deposits approach.’