Currency in circulation dips MoM
By Jeph Ajobaju, Chief Copy Editor
Naira in circulation dropped month-on-month (MoM) to N3.25 trillion in February 2022 from N3.29 trillion in January, a decline of N37.94 billion or 1.2 per cent. But it rose 16.95 per cent above N2.78 trillion compared with February 2021.
Central Bank of Nigeria (CBN) data shows the latest figure is greater than the N2.97 trillion currency in circulation in October 2021, a record at the time.
Currency in circulation is the total amount of physical cash in paper or coins used to conduct transactions.
It also represents cash issued by the CBN and taken out as well as cash in the vault of commercial banks ready to be paid out to customers seeking withdraws.
The N2.9 trillion in circulation in October 2021 was N128.9 billion higher than N2.83 trillion in September 2021 and N467 billion greater than the amount in October 2020.
Total currency in circulation had risen to about N2 trillion since November 2018 and remained above that level up to 2021. It first hit an all-time high in December 2020 when it touched N2.91 trillion but fell for most of 2021.
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Currency in circulation grows
Currency circulating in the economy has recorded significant growth since the CBN has maintained a dovish monetary policy to ensure economy economic following recession in 2020 caused by the pandemic.
Several CBN interventions pushed currency in circulation to its highest level in history in December 2021.
However, it has recorded a decline in two consecutive months in 2022, dropping by N37.13 billion in January and N37.84 billion in February.
Private sector credit rose by N1.46 trillion, according to CBN data, as reported by Nairametrics.
Credit by banks to private sector increased by N1.46 trillion in February 2022 to N36.91 trillion from N35.45 trillion in January, a 4.1 per cent jump MoM.
