Currency in Circulation Hits N4 Trillion, Money Outside Bank Reaches 93.6% amid Naira Gains

• The Central Bank of Nigeria (CBN) said that currency in circulation hit an all-time high of N4.04 trillion in June
• The bank disclosed that the amount is the highest in history and is due to heightened economic activities across the country
• The CBN Money and Credit Report also disclosed that money outside banks stood at N3.79 trillion in the first six months of 2024

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

Information from the Central Bank of Nigeria (CBN) shows that the currency in circulation hit an all-time high of N4.04 trillion in June 2024.

The Money and Credit Report issued by CBN also disclosed that currency outside banks stood at N3.79 trillion, another historical high, and 93.6% of the money in circulation.

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Monthly analysis of currency in circulation

A six-month analysis showed that currency in circulation at the beginning of the year stood at N3.65 trillion, indicating a moderate start.

By the end of February, the currency in circulation increased marginally to N3.69 trillion, a N43 billion or 1.18% growth from January.

In March 2024, currency in circulation grew exponentially to N3.87 trillion, representing a monthly increase of N175 billion or 4.76%.

The trend continued until April, with currency in circulation hitting N3.92 trillion.

According to reports, the N53 billion or 1.39% increase from March shows sustained economic activity and increased consumer spending during Easter.

In May, currency in circulation grew further to N3.97 trillion, up by N42 billion or 1.07% from April.

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The highest increase reportedly occurred in June, with currency in circulation hitting N4.04 trillion, an N84 billion or 2.11% increase from May.

Money outside banks hits a new high

Further analysis of currency outside banks for the first six months of the year showed that in January, about N3.28 trillion was in the form of money outside the bank.

In February, money outside banks increased to N3.41 trillion, an addition of N130 billion or 3.98% from January.

March witnessed an increase, with money outside banks hitting N3.63 trillion, a monthly increase of N217 billion or 6.34%.

However, April saw a slight decline in money outside the banks, standing at N3.61 trillion, a decrease of N80 billion or 0.62% from the March figure.

Reports say that the currency outside the banks rose again in May to N3.71 trillion, an increase of N105 billion or 2.93% from April.

June saw the highest rise in money outside the bank at N3.79 trillion, an increase of about N80 billion from May.

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CBN crashes dollar for banks, sets new exchange rates

Legit.ng earlier reported that the Nigerian currency, the naira, continued its winning streak for two days on Wednesday, August 7, 2024, following the sale of $876.26 million by the Central Bank of Nigeria (CBN) in a retail auction.

Information from FMDQ shows that the naira strengthened to N1,596 per dollar in the official market from the N1,601 it recorded the previous day.

The apex bank disclosed in a circular on Wednesday, August 7, 2024, that it sold $876.26 million to end users whose bids were submitted by 26 banks at N1,495 per dollar.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng