Currency held outside banks dips to N3.66tn in July — CBN

The amount of cash held outside of Nigeria’s banking system decreased by 3.32 percent in July to N3.66 trillion, indicating a decline from the N3.78 trillion recorded in June.

According to data from the Central Bank of Nigeria (CBN, the percentage of currency in circulation held outside banks dropped to 90.39 percent in July from 93.59 percent in June.

Meanwhile, the total value of currency in circulation rose slightly to N4.05 trillion from N4.04 trillion.

Since the beginning of the year, the currency in circulation has increased by 11.05 percent, compared to a 56.17 percent rise in the same period last year.

Members of the CBN’s Monetary Policy Committee have attributed the excess cash in circulation to the accelerating inflation in the country.

The broad measure of money supply (M3) reached a high of N106.27 trillion in July 2024, despite the CBN’s tightening measures to curb inflation.

In its last meeting in July 2024, the CBN raised the Monetary Policy Rate (MPR) by 50 basis points to 26.75 per cent from 26.25 per cent in June 2024 as part of its hawkish stance to control inflation.

Meanwhile, credit to the private sector continued to rise, reaching N75.48 trillion year-on-year in July 2024.

On a month-on-month basis, banks’ credit to the private sector grew by 3.13 per cent, up from N73.19 trillion in June 2024.