Currency in circulation hits record high as CBN pumps 418 billion naira into economy

Total currency in circulation in Nigeria closed the year 2021 at a record high of 3.33 trillion naira.

This represents an increase of 418 billion naira from 2.91 trillion naira in December 2020 and also an increase of 19.06% from 2.44 trillion naira in 2019.

The Central Bank of Nigeria (CBN) has stated this in its Money and Credit Statistics published on its website.

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

It also represents money that was issued by the CBN network that was also withdrawn.

It also includes cash in the vaults of commercial banks ready to be paid out to customers wishing to withdraw cash.

In its foreign exchange report, the CBN said, “CIC’s growth reflects the continued dominance of cash in the economy.

Also Read: CBN Rejects Senate Decision to Repeal Money Laundering Act

CIC analysis showed that a greater proportion was made up of higher denomination banknotes (N100, N200, N500 and N1000).

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

“The volume of lower denomination notes (N5, N10, N20, N50) represented 28.43% of total CIC and 1.92%, in terms of value at the end of December 2020.”

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