CURRENCY outside banks rises to N3.08 trillion of currency in circulation as of November 2023
Money Supply statistics from the Central Bank of Nigeria (CBN) as of November 2023 has revealed that currency in circulation (CIC) surged by 21.24 percent in November to N3.35 trillion (highest in 2023) from N2.76 trillion as of September 2023.
In the same vein, currency outside banks (COB) rose by 27.53 percent to N3.08 trillion in November 2023 from N2.42 trillion. This in essence means, 92.04 percent of the currency in circulation (CIC) was outside the banking system as of November 2023, marking a notable rise from the 57.14 percent recorded in January 2023, following a few months of the CBN naira redesign policy.
The currency outside the banks had averaged 84.42 percent of currency in circulation since the year 1960 till December 2022.
From reported numbers, it can be concluded that the Naira redesign policy would have been moderately successful in mopping up currency outside the banks if it wasn’t reversed, as there was a considerable reduction in currency outside bank in the first four month of the policy implementation.
Between January and November 2023, currency in circulation (CIC) has risen by 141.47 percent (N1.96trn) and this can be attributed to the reinjection of older Naira notes into the system, which had been previously withdrawn from circulation by the CBN.
In the same period, currency outside banks (COB) has surged by 288.96percent (N2.29trn) on the back of rising non-bank held cash, amidst growing public concern over the sufficiency of currency in the banking system.
The persistent challenge of a substantial portion of currency in circulation outside the banking system according to CSR research has remained since independence, despite past currency redesigns and printing. The former Central Bank Governor’s efforts to reduce the currency outside the banking system faced considerable criticism, given the circumstances. Nevertheless, “we emphasize the importance of reducing the substantial cash held outside the banking system for the purpose of enhancing monetary policy efficacy, fostering and financial inclusion, among other objectives. “Reducing cash outside the banking system also aids in combating illicit activities like terrorism and mitigating money laundering when implemented in collaboration with appropriate agencies such as the EFCC and banks,analysts stated.
According to insiders, Tlthe seeming cash scarcity in some locations is due largely to high volume withdrawals from the CBN branches by Deposit Money Banks (DMBs) and panic withdrawals by customers from the ATMs While we note the concerns of Nigerians on the availability of cash for financial transactions, we wish to assure the public that there is sufficient stock of currency notes for economic activities in the country.
The branches of the CBN across the country are also working to ensure the seamless circulation of cash in their respective states of operation.
It therefore advises members of the public to guard against panic withdrawals as there is sufficient stock to facilitate economic activities.
Nigerians are also advised to embrace alternative modes of payment, which would reduce pressure on using physical cash
Banks in the first eight days on 2024, deposited a whooping N902.66billion with the Central Bank of Nigeria (CBN), rather than lend to the real sector of the economy.
The banks, according to the CBN “financial data”, however, borrowed an estimated N615.47 billion in the first eight days of 2024 in a nid to meet their daily business obligations.
YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE
FULL LIST: 45 visa-free countries Nigerian passport can travel in 2024
Nigeria sits behind Ghana, Guinea, Kenya, Lesotho, Morocco, Benin Republic and Namibia which are at…
How my brother and I became professor same day in same varsity —UNILORIN don
Recently, two brothers –Ahmed Oloduowo Ameen and Mubarak Oloduowo Ameen– were promoted to…
‘I expected N2,000 as my share from sale of human head we got at Saki cemetery’
Thirty-two-year-old Alli and Abdullahi, aged 35, who were the two suspects arrested by…
Why Port Harcourt refinery is yet to start production—Soneye, NNPCL Chief Comm Officer
Mr Femi Soneye is the Chief Corporate Communications Officer (CCCO) of the…
Fear women, fair women and Minister Ojo
Betta Edu, Sadiya Umar-Farouq and Halima Shehu are the reigning women in our…
What you should know about players in Nigerian 2024 AFCON team
The Nigerian football team have appeared in the finals of the Africa Cup of Nations on twenty different occasions. Nigeria has…