Currency in circulation dropped by N52.5bn from N2.35trn in June, the latest figures from CBN showed.
Recent figures showed that there was a steady rise in cash in circulation during lockdown introduced in some states to contain the covid-19 pandemic in the country.
Statistics gotten from the CBN showed that currency in circulation, which stood at N2.29trn at the end of March, rose to N2.3trn in April.
The CBN said “Currency in circulation at end-November 2019 rose by 9.9% to N2.2trn, in contrast to the decline of 0.4% at the end of the Q3 of 2019.
“Currency in circulation is defined as currency outside the vaults of the central bank, that is, all legal tender currency in the hands of the general public and in the vaults of the Deposit Money Banks”.
The CBN stated that it employed the “accounting/statistical/withdrawals and deposits approach” to compute the currency in circulation in Nigeria.
This approach involved tracking the movements in currency in circulation on a transaction by transaction basis.
The transactions are all recorded in the CBN’s CIC account and the balance on the account at any point in time represents the country’s currency in circulation.
According to CBN, analysis of the currency in circulation showed that a large and increasing proportion of the Nigerian currency outside the commercial banking system was held by the general public who hoard a lot of the new banknotes.
The Punch, July 9, 2020
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