The Central Bank of Nigeria ,has said that currency in circulation rose by N29bn to N2.81tn as of the end of March from N2.78tn as of the end of February
In its latest figures,the apex bank said currency in circulation dropped by N50bn in February from N2.83tn as of January.
It said currency in circulation rose from N2.5tn as of the end of October to N2.66tn in November.
The CBN defined the currency in circulation as currency outside the vaults of Central Bank; that is, all legal tender currency in the hands of the general public and in the vaults of the Deposit Money Banks.
The CBN stated that it employed the “accounting/statistical/
“That is, for every withdrawal made by a Deposit Money Bank at one of CBN’s branches, an increase in CIC is recorded, and for every deposit made by a DMB at one of CBN’s branches, a decrease in CIC is recorded.
The transactions are all recorded in the CBN’s CIC account, and the balance on the account at any point in time represents the country’s currency in circulation”
According to the apex bank, analysis of the currency in circulation showed that a large and increasing proportion of the Nigerian currency outside the commercial banking system was held by the general public who hoard a lot of the new banknotes.
