Currency in circulation increases by N890 billion in three months under Cardoso

The amount of currency in circulation (CIC) has increased by about N890 billion between September 2023 and December 2023, according to the latest money and credit statistics data by the Central Bank of Nigeria (CBN).

Specifically, the CBN data reveals a climb to N3.65 trillion for CIC in December 2023, a significant jump from N2.76 trillion noted in September 2023, the month of Cardoso’s assumption of office as the governor of the CBN.

This increase of 32% or N890 billion was during a period when Nigerians struggled with another bout of naira scarcity despite CBN’s re-assurance of sufficient cash in circulation.

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Nigerians hoards 94% of circulating cash

The CBN data also shows that Nigerians are holding on to naira at home as about 94% of the currency in circulation (CIC) is outside the banking system as of December 2023.

Also, cash outside banks experienced a 42% increase, reaching N3.43 trillion in December 2023 from N2.42 trillion in September 2023.

This surge in non-bank-held cash comes amidst growing public concern over the sufficiency of currency in the banking system.

In response, the CBN issued a statement in November 2023, reassuring citizens of adequate currency stock and advising against panic withdrawals. The apex bank also blamed the cash scarcity to hoarding.

The backdrop to this scenario includes widespread reports of cash scarcity at banks, ATMs, Points of Sale, and Bureaux de Change (BDCs) across major cities in Nigeria.

This shortage placed considerable strain on Nigerian banks, which have struggled to meet customer withdrawal demands, leading to various operational challenges.