Currency Outside Banks Up 150% YoY to N3.63tn, 94% of CIC

Nume Ekeghe

Latest data released by the Central Bank of Nigeria (CBN), has revealed that the amount of currency held outside banks surged to N3.63 trillion in March 2023, representing a significant portion of the total currency in circulation (CIC), which stood at N3.87 trillion.

This surge reflects a notable 150.98 per cent increase year-on-year (YoY) compared to the N1.44 trillion recorded in March 2022.

The trend indicates a consistent rise in currency outside banks since the reversal of currency redesign.

In February 2024, currency outside banks reached N3.41 trillion, comprising 92 per cent of the total CIC, which amounted to N3.69 trillion. This is an increase from January 2024 when currency outside banks represented 89 per cent of the CIC, totaling N3.28 trillion from a total CIC of N3.65 trillion.

Comparing year-on-year figures between February 2023 and February 2024 reveals a remarkable 304 per cent surge in currency outside banks, leaping from N843 billion in 2023 to N3.41 trillion in 2024.

Similarly, the CIC showed a significant 276 per cent increase over the same period, climbing from N982 billion in February 2023 to N3.69 trillion in January 2024.

A comprehensive analysis of the trends in 2023 reveals fluctuations in both Currency in Circulation and currency held outside banks. In January 2023, CIC was reported at N1.32 trillion, decreasing to N982 billion in February. 

However, it rebounded to N1.68 trillion by March, followed by further increases to N2.38 trillion in April and N2.53 trillion in May. June saw a slight uptick to N2.6 trillion, with a marginal decline to N2.59 trillion in July.

August witnessed growth to N2.66 trillion, followed by rises to N2.76 trillion in September and N3.01 trillion in October, reaching a peak of N3.35 trillion in November, while December ended with N3.65 trillion.

Similarly, the breakdown of currency held outside banks during this period began at N792 billion in January, rising slightly to N843 billion in February. March saw a policy reversal, resulting in an increase to N1.45 trillion. 

Subsequent months showed continuous growth, reaching N2.07 trillion in April, N2.18 trillion in May, N2.26 trillion in June, and N2.21 trillion in July. August remained stable at N2.22 trillion, followed by increases to N2.42 trillion in September, N2.7 trillion in October, and a sustained upward trend to N3.08 trillion in November 2023. While the year-end in December recorded N3.43 trillion