CBN Says Currency in Circulation Reached N2.76trn in September as Naira Hits N1,010 per Dollar
- The Central Bank of Nigeria said the currency in circulation reached about N2.76 trillion in September
- The figure represents a 3.80% increase from the amount recorded in August 2023
- The Nigerian currency continued its depreciation against major currencies, falling to N1,010 per dollar on Tuesday, 10 October 2023
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Data from the Central Bank of Nigeria (CBN) has revealed that the currency in circulation hit about N2.76 trillion as of September 2023.
The new threshold represents a 14.5% decline yearly from the N3.23 trillion reported in September last year.
Source: Getty Images
The current amount in circulation is highest in 2023
According to CBN, currency in circulation refers to physical cash, including paper notes and coins, used for transactions between consumers and businesses in a country.
The current amount in circulation is the highest recorded in 2023, as per the CBN data. In August, the currency in circulation stood at N2.66 trillion, representing a 3.80% increase from September 2023.
ThisDay reports that currency in circulation dropped massively to N982.1 billion by the end of February 2023 as CBN embarked on the naira redesign policy.
The Naira redesign witnessed a decline in currency in circulation
The apex bank initiated the policy under the former CBN Governor, Godwin Emefiele, to address issues in currency management, such as counterfeiting, illegal activities involving cash, and hoarding of banknotes.
Over 80% of the currency in circulation was held outside the banking system, the apex bank said on October 26, 2022, when it announced the reasons for redesigning the banknotes.
In March 2023, the cash circulation spiked steadily, with N1.68 trillion in circulation at the time.
Currency in circulation in Nigeria declined by 235.03%, dropping from N3.29 trillion at the end of October 2022 to N982.1 billion by the end of February 2023.
CBN withdrew about N2.32 trillion from circulation during the period.
The financial institution's regulator had announced the redesign of N200, N500, and N200 notes, with new notes set to begin circulating from December 2022, while the old notes would remain as legal tender until January 31, 2023.
The naira depreciates against major currencies
Currency in circulation has experienced fluctuations in the months leading up to September 2023, with N2.78 trillion in August.
In July, there was N2.81 trillion and N2.74 trillion in June. May recorded N2.79 trillion in circulation, N2.79 trillion was in circulation in April,
March saw N2.8 trillion in circulation, while CBN recorded N2.78 trillion in circulation in February and N2.83 trillion in January, respectively.
Meanwhile, the exchange rates between the naira and dollar remained volatile as of Tuesday, October 10, 2023.
The naira depreciated against the US dollar by N1,010 to a dollar at the parallel market from the N1005 it traded as of Monday, October 9, 2023, as buyers flooded the black market for the elusive hard currency.
According to data obtained by Legit.ng from the FMDQ, the naira appreciated slightly against the US dollar at N763 on Tuesday, October 11, 2023, from the N773 per dollar it traded on Monday, October 9, 2023.
Tunde Lemo, ex-CBN Deputy Governor, advised the current CBN management to revert to the managed float of the Nigerian currency.
Lemo said the apex bank needs to address issues in the FX market, which has led to distrust in the system and kept away investors.
He stated that the new CBN management must address FX debts, obligations, and backlogs to restore confidence in the naira.
CBN appoints 3 new banks to collect fees, debunks claim eNaira threatens financial stability
Legit.ng earlier reported that the CBN appointed three new commercial banks to collect fees under the Nigerian Export Supervision Scheme (NESS).
A circular dated October 6, 2023, signed by the bank's Director of Trade and Exchange Department, W.J. Kanya, said the approval was granted by the Minister of Finance, Budget and National Planning, Wale Edun.
The apex bank named Parallex Bank, Coronation Merchant Bank, and Lotus Bank as additional financial institutions authorised for fee collection under the scheme.
Source: Legit.ng
