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Currency in circulation hits all time high, as CBN pushes N418bn into economy

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The total currency in circulation in Nigeria closed the year 2021 at an all-time high of N3.33 trillion.

This represents a N418 billion increase when compared to N2.91 trillion as at December 2020 and also 19.06 percent rise from 2.44 trillion in 2019.

The Central Bank of Nigeria (CBN) stated this in its money and credit statistics published on its website.

The currency in circulation is the total amount of physical cash represented in paper or coins used to conduct transactions in Nigeria.

It also represents the cash that has been issued by the CBN net that has also been taken out.

It also includes the cash in the vault of commercial banks ready to be paid out to customers seeking to withdraw money.

In its report on currency operations, CBN said, “The growth in CIC reflected the continued dominance of cash in the economy.

Read also: CBN rejects Senate move to repeal law on money laundering

Analysis of the CIC showed that a greater proportion was in higher denomination banknotes (N100, N200, N500 and N1000).

“The higher denomination banknotes together accounted for 63.47 per cent and 98.08 per cent of the total CIC, in terms of volume and value, respectively.

“The volume of lower denomination banknotes (N5, N10, N20, N50), accounted for 28.43 per cent of the total CIC and 1.92 per cent, in terms of value as at end-December 2020.”

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