The value of the country’s currency in circulation has risen to N3.97 trillion as at the end of May.
The figure represents a 1.07 per cent increase over the previous month (April) when it was N3.92 trillion.
Currency in circulation refers to banknotes and coins that have been produced and issued for use in the economy.
Currency in circulation has been on a steady increase. In March, the figure was N3.86 trillion, representing about a 4.76 per cent month-on-month increase from N3.69 trillion in February 2024.
The latest figure represents an all-time high.
The currency in circulation has continued to increase month-on-month despite the Central Bank of Nigeria (CBN) monetary policy tightening which has seen the benchmark interest rate set at 26.65 per cent.
Currency outside banks also increased in the first quarter, rising from N3.28 trillion in January to N3.41 trillion and N3.63 trillion in February and March, respectively.
Data by the CBN revealed that over 90 per cent of currency in circulation is held outside of the banking system.
This indicates that more people are keeping cash in spite the cashless policy and increase in e-transactions.
The high rate of currency outside the banking system has been identified as one of the drivers of the country’s inflation.
