The Central Bank of Nigeria (CBN) reports that the currency in circulation rose 4.58 percent, from 2.84 billion naira in September to 2.97 billion naira in October.

That was equivalent to an increase of 129 billion naira, according to recently released figures from the apex bank.

In August, the currency in circulation had fallen to 2.78 billion naira from 2.81 billion naira in July. In June it was 2.74 tonnes and in May it was 2.79 tonnes. It stood at 2.79 billion naira in April and 2.8 billion naira in March.

It was 2.78 tn and 2.83 tn in February and January respectively.

According to the CBN, the currency in circulation increased by 465.47 billion naira or 19.06%, from 2.44 billion naira in 2019 to 2.91 billion naira in 2020.

“In 2020, DMB withdrawals were higher than deposits, due to the panicked need to hold cash to cope with emergencies and reduced bank hours due to restrictions aimed at curbing cash flow. spread of the pandemic, ”the bank said.

Apex Bank said it has developed and unveiled a blank note policy and banknote adequacy guidelines in 2018 to uphold public confidence and maintain the quality of banknotes in circulation in the economy.

The guidelines provide a plan of quarterly and annual activities to ensure that this goal has been met.

According to apex bank, the policy is that all newly printed and existing banknotes must meet pre-defined standards before circulation and recirculation into the economy.

The CBN said it used the “accounting / statistical / withdrawals and deposits approach” to calculate the currency in circulation in the country.

He said this approach involved tracking fluctuations in the currency in circulation on a transaction-to-transaction basis.

According to the CBN, for each withdrawal made by a depository bank (DMB) at any branch of the CBN, an increase in the currency in circulation (CIC) is recorded; and for each deposit made by a DMB in one of the CBN branches, a decrease in the CIC is recorded.

Transactions are all recorded in CBN’s CIC account, and the account balance at all times was the country’s circulating currency.


About The Author

Related Posts