Currency in circulation drops 1.2% to 37.94 trillion naira

Currency in circulation falls MoM

By Jeph Ajobaju, Editor-in-Chief

The naira in circulation fell month-on-month (MoM) to 3.25 trillion naira in February 2022 from 3.29 trillion naira in January, a drop of 37.94 trillion naira or 1 .2%. But it was up 16.95% above N2.78 trillion from February 2021.

Data from the Central Bank of Nigeria (CBN) shows the latest figure is higher than the 2.97 trillion naira currency in circulation in October 2021, a record high at the time.

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Currency in circulation is the total amount of physical cash in paper or coins used to conduct transactions.

It also represents cash issued by the CBN and withdrawn as well as cash in the vault of commercial banks ready to be disbursed to customers seeking withdrawals.

The 2.9 trillion naira in circulation in October 2021 was 128.9 billion naira higher than the 2.83 trillion naira in September 2021 and 467 billion naira higher than the October 2020 amount.

Total currency in circulation has risen to around 2 trillion naira since November 2018 and has remained above this level until 2021. It first hit an all-time high in December 2020 when it hit 2 910 billion naira, but fell for most of 2021.

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Currency in circulation increases

The currency in circulation in the economy has witnessed significant growth since the CBN maintained an accommodative monetary policy to insure the economy following the 2020 recession caused by the pandemic.

Several CBN interventions pushed the currency in circulation to an all-time high in December 2021.

However, it has registered a decline for two consecutive months in 2022, falling N37.13 billion in January and N37.84 billion in February.

Credit to the private sector increased by 1.46 trillion naira, according to CBN data, as reported by Nairametry.

Bank credit to the private sector increased by N1.46 trillion in February 2022 to N36.91 trillion from N35.45 trillion in January, a jump of 4.1% month on month.

About Ruben V. Albin

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