Friday, September 29, 2023

Currency circulation decreases for the first time in five months.

Must Read

“Police Respond to Viral Video Involving Alleged Stepson Murder”

Lagos Police Disprove Viral Video Accusing Step-Mother of Killing Stepson The Lagos State Police Command has addressed a viral video...

“Kogi Election: I Have No Fear of Yahaya Bello or APC, Says Melaye”.

Senator Dino Melaye, the gubernatorial candidate of the Peoples Democratic Party (PDP) in Kogi State, has confidently declared that...

“Governors, Led by Shettima, Appeal to Organized Labour to Avoid Going on Strike””Governors, Led by Shettima, Appeal to Organized Labour to Avoid Going on...

The National Economic Council (NEC) Appeals to NLC and TUC to Halt Planned Strike During its 136th meeting at the...

The country’s currency in circulation saw a decline from N2.6tn at the end of June 2023 to N2.59tn by July 2023’s conclusion. This marked the first decrease since February 2023, with a one-month drop of N7.51bn, as per data from the Central Bank of Nigeria (CBN).

Currency in circulation refers to all legal tender outside the CBN’s vaults, encompassing the funds held by the public and within the vaults of Deposit Money Banks.

The CBN calculates currency in circulation using the “accounting/statistical/withdrawals and deposits approach”, tracking every currency movement. Any withdrawal or deposit made by a Deposit Money Bank at a CBN branch either increases or decreases the currency in circulation, respectively. These transactions are monitored via the CBN’s CIC account, indicating the nation’s circulating currency at any given time.

A significant drop was also noted before January 2023, when currency in circulation plummeted from N3.29tn in October 2022 to N1.38tn by January 2023. This was due to the CBN’s naira redesign policy, resulting in a three-month decrease of N1.91tn.

In October 2022, the then CBN Governor, Godwin Emefiele, introduced the redesign of the N200, N500, and N1,000 banknotes, setting deadlines for the public to exchange old notes for new ones. He urged banks to return old denominations to the CBN and informed the public to deposit old notes to access the new ones upon release.

Emefiele highlighted challenges in currency management, pointing out that over 80% of the circulating currency was hoarded outside commercial bank vaults.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -
Latest News

“Police Respond to Viral Video Involving Alleged Stepson Murder”

Lagos Police Disprove Viral Video Accusing Step-Mother of Killing Stepson The Lagos State Police Command has addressed a viral video...

“Kogi Election: I Have No Fear of Yahaya Bello or APC, Says Melaye”.

Senator Dino Melaye, the gubernatorial candidate of the Peoples Democratic Party (PDP) in Kogi State, has confidently declared that the November 11 election will...

“Governors, Led by Shettima, Appeal to Organized Labour to Avoid Going on Strike””Governors, Led by Shettima, Appeal to Organized Labour to Avoid Going on...

The National Economic Council (NEC) Appeals to NLC and TUC to Halt Planned Strike During its 136th meeting at the Presidential Villa in Abuja, the...

“Tribunal Upholds Uba’s Victory as Governor of Kaduna, Rejects Ashiru’s Petition”

Kaduna State Governor, Uba Sani of the All Progressives Congress (APC), has received confirmation as the victor of the March 18, 2023 governorship election,...

Rafsanjani Calls for an Explanation from Wike Regarding the Dismissal of Heads of FCT Agencies”

Auwal Musa Rafsanjani, the Head of Transparency International (Nigeria) and Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), has called upon Nyesom...
- Advertisement -

More Articles Like This

- Advertisement -