Currency outside banks grows to 4%
By Jeph Ajobaju, Chief Copy Editor
Currency Outside Banks (COB) grew 4.09 per cent month-on-month (MoM) from N2.2 trillion in July to N2.29 trillion in August, according to the latest data from the Central Bank of Nigeria (CBN).
COB has been on the increase since March, the CBN said, reflecting the impact of the implementation of the Supreme Court order that old N200, N500, and N1,000 notes remain in circulation till December 31.
CBN Money and Credit data for August also shows currency-in-circulation (CIC) amounted to N2.66 trillion in August, a 2.7 per cent rise over N2.59 trillion in July.
The implementation of naira redesign and withdrawal of old banknotes by CBN sucked about N1.81 trillion from COB, and crashed CIC to N1.4 trillion in January, per Vanguard reporting.
CBN data shows banks’ credit to the government rose 0.62 per cent MoM from N32.3 trillion in July to N32.5 trillion in August, and credit to the private sector ticked up 1.1 per cent from N54.1 trillion to N54.7 trillion.
This produced a 0.92 per cent rise in net domestic credit from N86.5 trillion in July
to N87.3 trillion in August, it added.
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Currency in circulation dips to N2.59tr post naira redesign
CIC dipped by N7.51 billion, from N2.6 trillion in June to N2.59 trillion in July, the first time the figure dropped since February, the CBN had previously disclosed.
The CBN defines CIC as currency outside its vaults; that is, all legal tender currency in the hands of the general public and in the vaults of the Deposit Money Banks (DMBs) otherwise known as commercial banks.
The apex bank said it used the “accounting/statistical/withdrawals and deposits approach” to compute the CIC which involved tracking the movements of currency-in-circulation on a transaction-by-transaction basis.
For every withdrawal made by a bank at a CBN branch, it explained, an increase in the CIC is recorded and the balance in the CIC account at any point in time represents the currency in circulation.
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