Under-Probe CBN Pumps N2.60 Trillion Into Circulation, Up by 88% in 6 Months
- Currency in circulation hit an all-time high of N2.60 trillion in June 2023
- The Central Bank of Nigeria (CBN) said the amount in circulation is the highest since 2023
- The development comes as CBN relaxed its naira swap policy embarked upon earlier in the year
Nigeria witnessed the highest number of currencies in circulation in June since 2023.
Currency in circulation is the amount of cash in paper notes or coins issued by the Central Bank of Nigeria (CBN) to conduct transactions.
Source: Getty Images
Currency in circulation rises by 88%
The latest data from the CBN said the amount increased by 88% from N1.39 trillion in January to N2.60 trillion as of June 2023.
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Currency in circulation in Nigeria fluctuated in the first half of 2023. In January, the amount stood at N1.39 trillion and dropped to N982.097 billion in February.
In March, the currency in circulation rose to N1.68 trillion; it increased to N2.48 trillion, N2.53 trillion, and N2.60 trillion in April, May, and June, respectively.
On October 26, 2023, the CBN announced that it would embark on a currency redesign, leading to a naira swap program perceived mainly as chaotic by many Nigerians.
The policy saw the apex bank redesign the N200, N500, and N1,000 notes which began circulating on December 2023.
CBN explains reason for naira redesign policy
According to the suspended CBN governor, Godwin Emefiele, the apex bank embarked on the redesign program because of the vast amount of cash outside the banking system.
The bank said currency management in the country faced several obstacles, including counterfeiting and hoarding, among others.
The policy caused widespread chaos in the country, leading to many Nigerian being hit by cash scarcity and protests in parts of the country.
At the time, currency in circulation dropped drastically as many Nigerians returned their old naira notes in exchange for the newly redesigned ones.
CBN to sanction licensed Super Agents over hike in PoS charges by operators
Legit.ng reported that the apex said it does not regulate the activities of PoS operators but deals with licensed companies with PoS ,
The bank stated that it had informed the Super Agents that they would be sanctioned if operators hiked charges.
The Central Bank of Nigeria (CBN) has threatened to sanction Super Agents over the activities of Point of Sale (PoS) operators if they breach the guidelines of their license.
Source: Legit.ng
