At nearly N3tr, currency in circulation nears pre-naira redesign level

The currency-in-circulation (CIC) has reached a new high of N2.99 trillion by October 31, 2023, inching closer to the level it was before the naira redesign policy of the Central Bank of Nigeria (CBN), latest data from the apex bank has revealed.

This figure represents an increase of N230 billion from the N2.76 trillion recorded in September 22023.

It was also an increase of 115.11% or N1.6 trillion from N1.39 trillion recorded in January 2023.

The CIC comprises the currency outside the banking system and cash vault of banks.

With this new high of almost N3 trillion, currency in circulation appears to be on the rise to the level it was in October 2023 (N3.29 trillion) before the naira redesign policy of the CBN.

READ ALSO:CBN extends old naira notes’ validity indefinitely

The CBN’s naira redesign policy had a significant impact on the country’s currency supply, reducing the currency in circulation from N3.29 trillion at the end of October 2022 when the naira redesign policy was announced, to N1.38 trillion by the end of January 2023.

According to the CBN data, this is a decrease of N1.91 trillion over the time under review.

Also, the total amount of naira in circulation in Nigeria dropped to N982 billion in February 2023, from N1.39 trillion in January 2023. This was the lowest level of circulating Naira since November 2008.

Essentially, the CBN removed over N2 trillion from circulation between October 2022 and February 2023.

However, with the change in leadership at the apex bank, and the recent announcement by the apex bank that the old naira notes remain legal tender ad infinitum, it appears that the central bank is allowing more cash to circulate.

By Babajide Okeowo

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