The currency in circulation has dropped by N42.43bn between January and March, the Central Bank of Nigeria CBN has said.
The CBN the currencies stood at N3.29tn as of the end of January, fell to N3.25tn by the end of March.
The CBN recently warned Deposit Money Banks against accepting mutilated naira notes, explaining that they were not the real currencies in circulation.
In a circular to the DMBs titled ‘Treatment of composed banknotes’, it said, “The management of the Central Bank of Nigeria observed with concern the increase number of composed banknotes deposited by DMBs and request for replacement of such banknotes by members of the public.
“The existence of composed banknotes in the economy falsifies the true value of currency in circulation and can also be avenue for fraudulent activities.
“A composed banknote is a banknote that comprises of several parts of different banknotes of the same denomination put together with the intention of receiving value.”
The CBN threatened that any composed banknote discovered in the deposit of DMbs would attract penalty of 400 per cent of the value.
