The total amount of Nigeria’s currency in circulation has recorded a 5-month low, diminishing from N2.6 trillion (N2,603,266 million) at the close of June 2023 to N2.59 trillion (N2,595,761 million) by the conclusion of July 2023 which is the first decrease since February 2023.
CBN records significant decline from N2.6trn to 2.59trn in July
According to data sourced from the Central Bank of Nigeria (CBN), this decline represents a reduction of N7.51 billion within a single month.
Currency-in-circulation, defined as the legal tender currency held by the public and within Deposit Money Banks‘ vaults, is monitored through the CBN’s “accounting/statistical/withdrawals and deposits approach.”
This method involves meticulous tracking of currency movement transaction by transaction. Withdrawals made by banks at CBN branches contribute to an increase in currency-in-circulation, while deposits result in a decrease.
The shift is a departure from the prior trend. Preceding January 2023, currency-in-circulation had dropped substantially from N3.29 trillion at the conclusion of October 2022 to N1.38 trillion by January 2023, primarily due to the CBN’s naira redesign policy.
This represented a decline of N1.91 trillion within three months.