LAGOS,Nigeria (VOICE OF NAIJA)-The value of currency in circulation reached a record high of N3.97 trillion at the end of May, reflecting a 1.07 percent increase from the previous month.
According to data published on the Central Bank of Nigeria’s (CBN) website on Sunday, the currency in circulation has been steadily climbing, rising from N3.92 trillion in April and N3.86 trillion in March.
This upward trend has continued despite the CBN’s tightening of monetary policy, which has seen the benchmark interest rate set at 26.65 percent.
Currency in circulation includes banknotes and coins that have been produced and issued for use within the economy.
In March, the currency in circulation of N3.87 trillion marked a 4.76 percent increase from the N3.69 trillion recorded in February 2024, according to the CBN.
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Additionally, currency held outside banks also showed a progressive increase during the first quarter, growing from N3.28 trillion in January to N3.41 trillion in February and N3.63 trillion in March.
The data indicated that over 90 percent of the currency in circulation is held outside the banking system, suggesting that Nigerians are holding on to more cash.
At the March meeting of the Central Bank of Nigeria’s Monetary Policy Committee, member Muhammad Abdullahi stated that the apex bank identified the high level of currency held outside banks as a key driver of the country’s inflation. Currency in circulation reached N3.97 trillion in May.